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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-K

X

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

 

SECURITIES EXCHANGE ACT OF 1934


For the year ended December 31, 2004

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

 

SECURITIES EXCHANGE ACT OF 1934

 For the transition period from

 

to

 

Commission file number 1-7928

BIO-RAD LABORATORIES, INC.

(Exact name of registrant as specified in its charter)

Delaware

 

94-1381833

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

1000 Alfred Nobel Drive, Hercules, California

 

94547

(Address of principal executive offices)

 

(Zip Code)

(510)724-7000

Registrant's telephone number, including area code

Securities registered pursuant to Section 12 (b) of the Act:




Title of Each Class



Name of Each Exchange on Which Registered



Shares Outstanding February 15, 2005

Market  Value on February 15, 2005 of Stocks Held by  Non-Affiliates

Class A Common Stock

Par Value $0.0001 per share


American Stock Exchange


21,043,099 


$ 1,001,218,565 

Class B Common Stock

Par Value $0.0001 per share


American Stock Exchange


4,848,378 


$ 30,028,939 

 

Securities registered pursuant to Section 12 (g) of the Act:     NONE

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the

Securities Exchange Act of 1934 during the preceding 12 months,  for such shorter period that the registrant

was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days

 

Yes    X        No  _____

Indicate by check if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not  contained herein,

And will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements

incorporated by reference in Part III of the Form 10-K or any amendment to this Form 10-K.{   }

 

Indicated by check mark whether the registrant is an accelerated filer ( as defined in Rule 126-2 of the Act)

 

Yes    X       No  _____

Documents Incorporated by Reference

 

Document

Form 10-K Parts

(1)

Annual Report to Stockholders for the fiscal year

 
 

ended December 31, 2004 (specified portions)

I, II, IV

   

(2)

Definitive Proxy Statement to be mailed to stockholders

 
 

in connection with the registrant's 2005 Annual Meeting

 
 

of Stockholders (specified portions)

III




1




P A R T  I

ITEM 1. BUSINESS


General


Founded in 1957, Bio-Rad Laboratories, Inc. ("Bio-Rad" or the "Company") was initially engaged in the development and produc­tion of specialty chemicals used in biochemical, pharmaceutical and other life science research applications.  In 1967, the Com­pany entered the field of clinical diagnostics with the develop­ment of its first test kit based on separation techniques and materials developed for life science research.  Recognizing that the fields of clinical diagnostics and life science research were evolving toward more automated techniques, Bio-Rad expanded into the field of analytical and measuring instrument systems through internal research and development efforts and acquisitions in the late 1970's and 1980's.


As Bio-Rad broadened its product lines, it also expanded its geographical market.  The Company has distribution chan­nels in over thirty countries outside the United States through subsidiaries whose primary focus is customer service and product distribution.


On October 1, 1999 Bio-Rad acquired the stock of Pasteur Sanofi Diagnostics (PSD) and the rights to certain ancillary assets for $210 million.  PSD was founded by the Institut Pasteur to commercialize its diagnostic research, and held certain exclusive licenses from the Institut Pasteur in the HIV and infectious disease diagnostic product market.  PSD also expanded the geographic reach and market penetration for the Company's products particularly in Latin America, Africa and France.


Bio-Rad manufactures and supplies the life science research, healthcare, analytical chemistry and other markets with a broad range of products and systems used to separate complex chemical and biological materials and to identify, analyze and purify their components.


Description of Business


Business Segments


The Company operates in two industry segments designated as Life Science and Clinical Diagnostics.  Each operates in both the United States and international markets.  For a description of business and financial information on industry and geographic segments, see Note 15 on pages 29 through 32 of Exhibit 13.1, which is incorporated herein by reference.



2




Life Science Segment.


Life science is the study of the characteristics, behavior, and structure of living organisms and their component systems.  Life science researchers use a variety of products and systems-- including reagents, instruments, software and apparatus-- to advance the study of life processes, drug discovery, biotechnology and food pathogen testing, primarily within a laboratory setting.


We focus on selected segments of the life science market all dealing with functional genomics and proteomics and which we estimate 2004 worldwide sales totaled approximately $4 billion.  The primary technological applications that we supply to these segments consist of electrophoresis, image analysis, molecular detection, chromatography, gene transfer, sample preparation and amplification. The primary end-users in our sectors of the market are universities and medical schools, industrial research organizations, government agencies, pharmaceutical manufacturers, biotechnology researchers and food testing laboratories.


Clinical Diagnostics Segment.


The clinical diagnostics industry encompasses a broad array of technologies incorporated into a variety of tests used to detect, identify and quantify substances in blood or other bodily fluids and tissues.  The test results are used as aids for medical diagnosis, detection, evaluation, monitoring and treatment of diseases and other medical conditions.  The bulk of tests are performed in vitro (outside the body), while the remainder consist of in vivo ("in the body") tests.  The most common type of in vitro tests are routine chemistry tests that measure important health parameters, such as glucose, cholesterol or sodium, as part of routine blood checks.  Other diagnostic tests are more specialized and require more sophisticated equipment and materials than do routine tests.  These specialized tests are typically lower-volume and higher-priced than routine tests.  We estimate that in 2004 the global clinical diagnostics market totaled approximately $24.0 billion.


The primary end-users in the areas of the clinical diagnostics industry we target are hospital laboratories, reference laboratories, physician office laboratories, government agencies and other diagnostics manufacturers.



3





Raw Materials and Components


The Company utilizes a wide variety of chemicals, biological materials, electronic components, machined metal parts, optical parts, minicomputers and peripheral devices.  Most of these materials and components are available from numerous sources and the Company has not experienced difficulty in securing adequate

supplies.


Patents and Trademarks


We own numerous U.S. and international patents and patent licenses.  We believe, however, that our ability to develop and manufacture our products depends primarily on our knowledge, technology and special skills.  Under several patent license agreements, we pay royalties on the sales of certain products.  We view these patents and license agreements as valuable assets.


Seasonal Operations and Backlog


The Company's business is not inherently seasonal, however, the European custom of concentrating vacation during the summer months usually tempers third quarter sales volume and operating income.


For the most part, the Company operates in markets characterized by short lead times and the absence of significant backlogs.  Management has concluded that backlog information is not material to the Company's business as a whole.


Sales and Marketing


Each of Bio-Rad's segments maintains a sales force to sell its products on a direct basis.  Each sales force is technically trained in the disciplines associated with its products.  Sales are also generated through direct mail advertising, exhibits at trade shows and technical meetings, telemarketing, e-commerce and by extensive advertising in technical and trade publications.  Sales and marketing efforts are augmented by technical service departments that assist customers in effective product utilization and in new product applications.  Bio-Rad also produces and distributes technical literature and holds seminars for customers on the use of its products.  



4





Our customer base is broad and diversified.  In 2004, no single customer accounted for more than 2% of our total net sales.  Our sales are affected by certain external factors.  For example, a number of our customers, particularly in the Life Science segment, are substantially dependent on government grants and research contracts for their funding. A significant reduction of government funding would have a detrimental effect on the results of this segment.


The Company is the leading provider of BSE (Bovine Spongiform Encephalopathy or mad cow) tests throughout the world.  Revenues from the sales of testing products for BSE within our Life Science segment represented approximately 11% of consolidated net revenue in 2004 and 2003.  A large portion of the revenue for this product is from government agencies currently mandating the use of the test.  Competition, pricing, changes in test standards, technology or a decrease in government demand could negatively impact the Company's future revenue from this product.  


Most of the Company's international sales are generated by wholly-owned subsidiaries and their branch offices.  Certain of these subsidiaries also have manufacturing facilities.  While Bio-Rad's international operations are subject to certain risks common to foreign operations in general, such as changes in governmental regulations, import restrictions and foreign exchange fluctuations, the Company's international operations are principally in developed nations, which the Company regards as presenting no significantly greater risks to its operations than are present in the United States.


Competition


Most markets served by our product groups are competitive.  Our competitors range in size from start-ups to large multinational corporations. Reliable independent information on sales and market share of products produced by our competitors is not generally available.  We believe, however, based on our own marketing information, that while some competitors are dominant with respect to certain individual products, no one company, including us, is dominant with respect to a material portion of any segment of our business.



5





Because of the breadth of its product lines, Life Science does not face the same competitor for all of its products.  Competitors in this market include GE Biosciences, Invitrogen, Qiagen, and Applied BioSystems (Applera).  We compete primarily based on meeting performance specifications.


Competitors in the Clinical Diagnostics segment range in size from small private companies to large multinational corporations. We compete mainly in specific market niches and do not attempt to pursue the most competitive general diagnostics markets.  We compete based on our technological ability to provide customers with very specific tests and believe we are usually a significant competitor within our market niche.  Competitors include Abbott Laboratories, bioMerieux, Inc., Roche Diagnostics, BioChem Pharma, Inova, diaSorin and Medical Analysis Systems.


Product Research and Development


The Company conducts extensive product research and development activities in all areas of our business, employing approximately 700 people worldwide in these activities.  Research and development have played a major role in Bio-Rad's growth and are expected to continue to do so in the future.  Our research teams are continuously developing new products and new applications for existing products.  In our development and testing of new products and applications, we consult with scientific and medical professionals at universities, hospitals and medical schools, and in industry.  Excluding in-process research and development, we spent approximately $108.3 million, $91.3 million and $79.8 million on research and development activities during the years ended December 31, 2004, 2003 and 2002 respectively.


Regulatory Matters


The manufacturing, marketing and labeling of certain of our products (primarily diagnostic products) are subject to regulation in the United States by the Center for Devices and Radiological Health of the United States Food and Drug Administration (FDA) and in other jurisdictions by state and foreign government authorities.  FDA regulations require that some new products have pre-marketing approval by the FDA and require certain products to be manufactured in accordance with "good manufacturing practices," to be extensively tested and to be properly labeled to disclose test results and performance claims and limitations.



6





As a multinational manufacturer and distributor of sophisticated instrumentation equipment, we must meet a wide array of electromagnetic compatibility and safety compliance requirements to satisfy regulations in the United States, the European Community and other jurisdictions.  These requirements relating to testing and trials, product licensing, pricing and reimbursement vary widely among countries.

 

Our operations are subject to federal, state, local and foreign environmental laws and regulations that govern such activities as emissions to air and discharges to water, as well as handling and disposal practices for solid, hazardous and medical wastes.  In addition to environmental laws that regulate our operations, we are also subject to environmental laws and regulations that create liabilities and clean-up responsibility for spills, disposals or other releases of hazardous substances into the environment as a result of our operations or otherwise impacting real property that we own or operate.  The environmental laws and regulations also subject us to claims by third parties for damages resulting from any spills, disposals or releases resulting from our operations or at any of our properties.


Employees


At  January 31, 2005 Bio-Rad had approximately 5,200 full-time employees.  Fewer than 9% of Bio-Rad's approximately 2,700 U. S. employees are covered by a collective bargaining agreement which will expire on November 7, 2006.  Many of Bio-Rad's non-U.S. full-time employees, especially in France, are covered by collective bargaining agreements.  Bio-Rad considers its employee relations in general to be good.


Available Information


The Company files annual, quarterly, and current reports, proxy statements, and other documents with the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.  The public may read and copy any materials that the Company files with the SEC at the SEC's Public Reference Room at 450 Fifth Street, NW, Washington, DC 20549.  The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.  Also, the SEC maintains an Internet website that contains reports, proxy and information statements, and other information regarding issuers, including the Company, that file electronically with the SEC.  The public can obtain any documents that the Company files with the SEC at http://www.sec.gov.



7





The Company's website address is www.bio-rad.com.  The Company makes available, free of charge through its Internet website, its Form 10-K's, 10-Q's and 8-K's, and any amendments to these forms, as soon as reasonably practicable after filing with the SEC.


ITEM 2. PROPERTIES


We own our Corporate headquarters located in Hercules, California.  The principal manufacturing and research locations for each segment are as follows:


Segment

Location

Owned/Leased

   

Life Science

Richmond, California

Owned/Leased

 

Hercules, California

Owned/Leased

 

Waltham, Massachusetts

Leased

 

Milan, Italy

Leased

 

Riom, France

Owned/Leased

   

Clinical

  

Diagnostics

Hercules, California

Owned/Leased

 

Irvine, California

Leased

 

Greater Seattle, Washington

Owned/Leased

 

Plano, Texas

Leased

 

Lille, France

Owned

 

Paris, France

Leased

 

Munich, Germany

Leased

 

Nazareth-Eke, Belgium

Leased


Most manufacturing and research facilities also house administration, sales and distribution activities.  In addition, we lease office and warehouse facilities in a variety of locations around the world.  The facilities are used principally for sales, service, distribution and administration for both segments.


The Marnes la Coquette facility near Paris, France serves as a significant manufacturing, administrative and research facility.  The lease expires at December 31, 2005.  The Company believes it will successfully conclude negotiations to extend the lease for several years.   


The Company recently completed building additional facilities at its Northern California headquarters.  Historically, adequate space to expand sales and distribution channels has been available and we have leased space as needed.



8




ITEM 3.  LEGAL PROCEEDINGS


Note 14, "Legal Proceedings," appearing on page 27 of the Exhibit 13.1 is incorporated herein by reference.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS


There were no matters submitted to a vote of the Company's security holders during the fourth quarter of the fiscal year covered by this report.


P A R T  II


ITEM 5.  MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED  

               STOCKHOLDER MATTERS AND ISSUER PURCHASES OF

               EQUITY SECURITIES


Information Concerning Common Stock


The Company's Class A and Class B Common Stock are listed on the American Stock Exchange with the symbols BIO and BIO.B, respectively.  The following sets forth, for the periods indicated, the high and low prices for the Company's Class A and Class B Common Stock.


 

Class A

Class B

 

High

Low

High

Low

2004

    

Fourth Quarter

59.50 

50.06 

58.25 

50.90 

Third Quarter

58.50 

50.01 

57.25 

50.25 

Second Quarter

61.90 

55.15 

61.00 

55.50 

First Quarter

58.79 

51.81 

59.00 

52.00 

     

2003

    

Fourth Quarter

65.00 

48.81 

65.10 

47.95 

Third Quarter

62.50 

48.52 

63.00 

50.00 

Second Quarter

62.85 

35.35 

61.00 

35.00 

First Quarter

39.11 

33.20 

44.35 

32.00 


On February 15, 2005 the Company had 446 holders of record of Class A Common Stock and 198 holders of record of Class B Common Stock. Bio-Rad has never paid a cash dividend and has no present plans to pay cash dividends.


See Item 12 for the security ownership of certain beneficial owners and management.



9





ITEM 6.  SELECTED FINANCIAL DATA


The table headed "Summary of Operations and Selected Financial Data" appearing on page 1 of Exhibit 13.1 is incorporated herein by reference.


ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

 CONDITION AND RESULTS OF OPERATIONS


The section headed "Management's Discussion and Analysis of Results of Operations and Financial Condition" appearing on pages 35 through 46 of Exhibit 13.1 is incorporated herein by reference.


ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT

MARKET RISK


The section headed "Financial Risk Management" appearing on pages 45 and 46 of Exhibit 13.1 is incorporated herein by reference.


ITEM 8

 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


The Consolidated Financial Statements and Notes thereto and the Report of Independent Registered Public Accounting Firm appearing on pages 2 through 34 of Exhibit 13.1 are incorporated herein by reference.


ITEM 9.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON

ACCOUNTING AND FINANCIAL DISCLOSURE


None.


ITEM 9a.

CONTROLS AND PROCEDURES


Evaluation of Disclosure Controls and Procedures


As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and the Company’s Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures.  Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective to provide reasonable assurance that material information relating to the Company is made known to management, including the Chief Executive Officer and Chief Financial Officer.



10




Changes in Internal Control Over Financial Reporting


There has been no change in the Company’s internal controls over financial reporting during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal controls over financial reporting.


Management’s Report on Internal Control Over Financial Reporting


The management of Bio-Rad Laboratories is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”).  The Company’s internal control system is designed to provide reasonable assurance regarding the preparation and fair presentation of the Company’s financial statements presented in accordance with generally accepted accounting principles.


An internal control system over financial reporting has inherent limitations and may not prevent or detect misstatements.  Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.


We excluded MJ Geneworks, Inc. from our assessment of internal control over financial reporting as of December 31, 2004 because it was acquired by Bio-Rad in the third quarter of 2004.  MJ Geneworks constituted less than 5% of total assets as of December 31, 2004 and less than 5% of total revenues and net earnings for the year then ended.  Refer to Note 2 to the consolidated financial statements for further discussion of this acquisition and its impact on Bio-Rad’s consolidated financial statements.  Notwithstanding the exclusion of MJ Geneworks from our assessment, there was no material change to our internal control over financial reporting due to the acquisition pursuant to Rule 15d-15 of the Exchange Act.  Our assessment of internal control over financial reporting for fiscal year 2005 will include MJ Geneworks.


Management has used the framework set forth in the report entitled “Internal Control – Integrated Framework” published by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission to evaluate the effectiveness of the Company’s internal control over financial reporting as of December 31, 2004.  Management has concluded the Company’s internal control over financial reporting was effective as of December 31, 2004.  The Company’s independent auditor, Deloitte and Touche LLP, has issued an attestation report on management’s assessment of the Company’s internal control over financial reporting.



11





REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INTERNAL CONTROLS OVER FINANCIAL REPORTING


To the Board of Directors and Stockholders of

Bio-Rad Laboratories, Inc.

Hercules, California


We have audited management’s assessment, included in the accompanying Management’s Report on Internal Control Over Financial Reporting, that Bio-Rad Laboratories, Inc. and subsidiaries (the “Company”) maintained effective internal control over financial reporting as of December 31, 2004, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.  As described in Management’s Report on Internal Control Over Financial Reporting, management excluded from their assessment the internal control over financial reporting at MJ Geneworks, Inc. and its subsidiaries (“MJ Geneworks”), which was acquired on August 17, 2004 and whose financial statements reflect less than 5% of total consolidated assets as of December 31, 2004 and less than 5% of consolidated revenues and net earnings for the year then ended. &nbs p;Accordingly, our audit did not include the internal control over financial reporting at MJ Geneworks.  The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting.  Our responsibility is to express an opinion on management’s assessment and an opinion on the effectiveness of the Company’s internal control over financial reporting based on our audit.


We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.  Our audit included obtaining an understanding of internal control over financial reporting, evaluating management’s assessment, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we considered necessary in the circumstances.  We believe that our audit provides a reasonable basis for our opinions.



12





A company’s internal control over financial reporting is a process designed by, or under the supervision of, the company’s principal executive and principal financial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.


Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis.  Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.


In our opinion, management’s assessment that the Company maintained effective internal control over financial reporting as of December 31, 2004, is fairly stated, in all material respects, based on the criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.  Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2004, based on the criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.


We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements and financial statement schedule as of and for the year ended December 31, 2004 of the Company and our reports dated March 2, 2005 expressed an unqualified opinion on those consolidated financial statements and financial statement schedule.




DELOITTE & TOUCHE LLP


San Francisco, California

March 2, 2005



13






ITEM 9b.

OTHER INFORMATION


None.


PART III


ITEM 10.

DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT


The sections labeled "Election of Directors" and "Section 16(a) Beneficial Ownership Reporting Compliance" of the definitive Proxy Statement mailed to stockholders in connection with the 2005 Annual Meeting of Stockholders (the” 2005 Proxy Statement") are incorporated herein by reference.


The Company’s Board of Directors has determined that Philip L. Padou is an “audit committee financial expert,” as defined in Item 401(h) of Regulation S-K.  Mr. Padou is also an “independent” director, as determined in accordance with the independence standards set forth in Rule 10A-3 under the Securities Exchange Act of 1934, as amended, and Section 121A of the American Stock Exchange Company Guide.


The Company has adopted a code of business ethics and conduct that applies to its principal executive officer, principal financial officer, principal accounting officer or controller and all other employees.  The Company will provide a copy of the code of ethics to any person, without charge, upon request, by writing to the Company at “Bio-Rad Laboratories, Inc., Investor Relations, 1000 Alfred Nobel Drive, Hercules, CA  94547”.



14





ITEM 11.

EXECUTIVE COMPENSATION


The sections labeled "Executive Compensation and Other Information," "Compensation of Directors," "Compensation Committee Interlocks and Insider Participation," "Report of the Compensation Committee of the Board of Directors" and "Stock Performance Graph" of the 2005 Proxy Statement are incorporated herein by reference.


ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS

AND MANAGEMENT


The section labeled "Principal and Management Stockholders" of the 2005 Proxy Statement is incorporated herein by reference.








Plan category

(a)


Number of securities

 to be issued

upon exercise of outstanding options,

 warrants and rights

(b)



Weighted-average exercise price

of outstanding options, warrants  and rights

(c)


Number of securities remaining available for future issuance  under equity compensation plans (excluding securities reflected in column (a))


     


Equity compensation

plans approved by

security holders (1)




1,611,089 




$27.20 




1,550,795 




(2)

     

Equity compensation  plans

not approved by

stockholders



             -- 



        -- 



              -- 

 
     

Total

1,611,089 

$27.20 

1,550,795 

 



(1) Consists of the Bio-Rad Laboratories, Inc. 1994 Stock Option Plan, the 2003 Stock Option Plan and the Bio-Rad Laboratories, Inc. Amended and Restated 1988 Employee Stock Purchase Plan.


(2) Consists of 1,372,550 shares available under the 2003 Stock Option Plan and 178,245 shares available for issuance under the Bio-Rad Laboratories, Inc. Amended and Restated 1988 Employee Stock Purchase Plan.



15





ITEM 13.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS


The sections labeled "Certain Relationships and Related Party Transactions" and "Compensation of Directors" of the 2005 Proxy Statement are incorporated herein by reference.


ITEM 14.

PRINCIPAL ACCOUNTANT FEES AND SERVICES


The information required by this Item is incorporated by reference to the section entitled “Report of the Audit Committee of the Board of Directors” of the 2005 Proxy Statement.



16





P A R T  IV

 

ITEM 15.

EXHIBITS, FINANCIAL STATEMENT SCHEDULES

   

(a)

1.

Index to Financial Statements

 

 

 

The following Consolidated Financial Statements are included in Exhibit 13.1 and

 

are incorporated herein by reference pursuant to Item 8:

  

Page in

  

Exhibit 13.1

   
 

Consolidated Balance Sheets at December 31, 2004 and 2003

2-3 

   
 

Consolidated Statements of Income for each of the three years

 
 

in the period ended December 31, 2004

   
 

Consolidated Statements of Cash Flows for each of the

 
 

three years in the period  ended December 31, 2004

   
 

Consolidated Statements of Changes in Stockholders' Equity

 
 

for each of the three years in the period ended December 31, 2004

6

   
 

Notes to Consolidated Financial Statements

7-33 

   
 

Report of Independent Registered Public Accounting Firm

34 

   

2.

Index to Financial Statement Schedule


 
   
  

   Page in

  

  Form 10-K

   
 

Schedule II Valuation and Qualifying Accounts

18 

 

Report of Independent Registered Public Accounting Firm

19 

   

All other financial statement schedules are omitted because they are not required or because

the required information is included in the Consolidated Financial Statements or the Notes thereto.

 

3.

Index to Exhibits

 
 

The exhibits listed in the accompanying Index to Exhibits on pages 22  through 25 of this report

are filed or incorporated by reference as part of this report.

 





17





BIO-RAD LABORATORIES, INC,.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

Years Ended December 31, 2004, 2003 and 2002

(In thousands)



Reserve for doubtful accounts receivable


 



Balance at Beginning

of Year


Additions Charged to Costs and Expenses 





Deductions 





Other (A) 




Balance at End of Year

2004

$12,978 

$2,029 

$   (621)

$(980)

$13,406 

2003

$12,122 

$4,687 

$(3,831)

        -- 

$12,978 

2002

$11,509 

$2,857 

$(2,244)

        -- 

$12,122 


(A)  Due to the sale of the Company’s confocal microscopy product line.


Valuation allowance for current and long-term deferred tax assets

 



Balance at Beginning

of Year





Additions 


Deductions Charged to Costs and Expenses 





Other (B)




Balance at End of Year

2004

$21,446 

$1,058 

$(4,481)

          --

$18,023 

2003

$17,215 

$4,240 

$       (9)

          --

$21,446 

2002

$20,337 

$2,783 

$(2,571)

$(3,334)

$17,215 


(B)

 Valuation arising from the acquisition of PSD.



18




 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Board of Directors and Stockholders of

Bio-Rad Laboratories, Inc.

Hercules, California


We have audited the consolidated financial statements of Bio-Rad Laboratories, Inc. and subsidiaries (the “Company”) as of December 31, 2004 and 2003, and for each of the three years in the period ended December 31, 2004, management’s assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2004, and the effectiveness of the Company’s internal control over financial reporting as of December 31, 2004, and have issued our reports thereon dated March 2, 2005; such consolidated financial statements and our report on such consolidated financial statements are included in your 2004 Annual Report to Stockholders and are incorporated herein by reference.  Our report relating to management’s report on the effectiveness of internal controls over financial reporting is included herein.  Our audits also included the consolidated financial statement schedule of the Company listed in Item 15(a)2.  This consolidated financial statement schedule is the responsibility of the Company’s management.  Our responsibility is to express an opinion based on our audits.  In our opinion, the consolidated financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set for therein.



DELOITTE & TOUCHE LLP


San Francisco, California

March 2, 2005




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SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


BIO-RAD LABORATORIES, INC.


By:_/s/ Sanford S. Wadler

Sanford S. Wadler

Secretary


Date:   March 2, 2005    



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Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



Principal Executive Officer:

  

   /s/ Norman Schwartz


President and Director

March 2, 2005

    (Norman Schwartz)

  
   

Principal Financial Officer

  

   /s/ Christine A. Tsingos___

Vice President,

 

(Christine A. Tsingos)

Chief Financial Officer

March 2, 2005

   

Principal Accounting Officer

Corporate Controller

March 2, 2005

   /s/ James R. Stark________

  

    (James R. Stark)

  
   

Other Directors:

  

   /s/ James J. Bennett______

Director

March 2, 2005

     (James J. Bennett)

  
   

   /s/ Albert J. Hillman______

Director

March 2, 2005

    (Albert J. Hillman)

  
   

/s/ Ruediger Naumann-Etienne

Director

March 2, 2005

(Ruediger Naumann-Etienne)

  
   

   /s/ Philip L. Padou________

Director

March 2, 2005

    (Philip L. Padou)


  
   

   /s/ Alice N. Schwartz______

  

   (Alice N. Schwartz)

Director

March 2, 2005

   

   /s/ David Schwartz________

Director

March 2, 2005

    (David Schwartz)  

  




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BIO-RAD LABORATORIES, INC.

INDEX TO EXHIBITS

ITEM 14(a)3


Exhibits 32.1 and 32.2 are furnished herewith and should not be deemed to be “filed under the Securities Exchange Act of 1934.”


Exhibit No.


3.1

Restated Certificate of Incorporation, as of February 8, 2002. (1)


3.1.1

Certificate of Amendment to Restated Certificate of Incorporation of Bio-Rad Laboratories, Inc., as of May 6, 2004.


3.2

Bylaws of the Registrant, as amended February 19,1980. (2)


4.1

Credit Agreement dated as of September 9, 2003 among Bio-Rad Laboratories, Inc., the lenders, Bank One, N.A., as Administrative Agent, Wells Fargo Bank, N.A. And Union Bank of California, N.A., as Syndication Agents and ABN AMRO Bank N.V. and BNP Paribas, as Documentation Agents. (3)


4.1.1

Amendment No. 1 to Credit Agreement dated as of December 8, 2004 among Bio-Rad Laboratories, Inc., the lenders referred to herein, JPMorgan Chase Bank, N.A. (successor by merger to Bank One, NA (Illinois), as lender and Administrative Agent, Wells Fargo Bank, N.A. and Union Bank of California, N.A., as Syndication Agents and ABN AMRO Bank N.V. and BNP Paribas, as Documentation agents. (4)


4.2

Pledge Amendment dated as of September 9, 2003 among Bio-Rad Laboratories, Inc., and Bank One, N.A., as contractual representative.  (3)


4.3

Security Agreement dated as of September 9, 2003 among Bio-Rad Laboratories, Inc., as Grantor and Bank One N.A., as Administrative Agent. (3)


4.4

The Indenture dated as of August 11, 2003 for 7.50% Senior Subordinated Notes due 2013 among Bio-Rad Laboratories, Inc., as Issuer, and Wells Fargo Bank, N.A., as Trustee. (3)



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4.5

The Exchange and Registration Rights Agreement dated as of August 11, 2003 for 7.50% Senior Subordinated Notes due 2013. (3)


4.6

Indenture, dated as of December 21, 2004, between Bio-Rad Laboratories, Inc. and Wells Fargo National Bank, as trustee. (5)


10.4

1994 Stock Option Plan. (6)


10.4.1

Amendment to the Bio-Rad Laboratories, Inc. 1994 Stock Option Plan dated April 28, 1998. (7)


10.4.2

Second Amendment to the Bio-Rad Laboratories, Inc. 1994 Stock Option Plan dated December 6, 1999. (7)


10.4.3

Third Amendment to the Bio-Rad Laboratories, Inc. 1994 Stock Option Plan dated September 19, 2000. (7)


10.4.4

Fourth Amendment to the Bio-Rad Laboratories, Inc. 1994 Stock Option Plan dated April 25, 2001.  (8)


10.5

Amended and Restated 1988 Employee Stock Purchase Plan. (9)


10.5.1

Amendment to the Amended 1988 Employee Stock Purchase Plan. (8)


10.6

Employees' Deferred Profit Sharing Retirement Plan (Amended and Restated effective January 1, 1997). (10)


10.7

2003 Stock Option Plan. (11)

 

10.10

Non-competition and employment continuation agreement with James J. Bennett. (10)


10.13

Stock Purchase Agreement dated as of August 16, 2004 by and between the Company, MJ GeneWorks, Incorporated, Michael J. Finney and John D. Finney, excluding exhibits and schedules.  Pursuant to Regulation S-K Item 601(b)(2), the exhibits and schedules to this agreement have not been filed.  The Company agrees to furnish supplementally a copy of any omitted exhibits or schedules to the SEC upon request.  The Company has requested confidential treatment of certain portions of this agreement. (12)



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13.1

Excerpt from Annual Report to Stockholders' for the fiscal year ended December 31, 2004, (to be deemed filed only to the extent required by the instructions to exhibits for reports on Form 10-K).


21.1

Listing of Subsidiaries.


23.1

Consent of Independent Registered Public Accounting Firm.


31.1

Certification of Chief Executive Officer Required by Rule 13a(14(a) (17 CFR 240.13a-14(a)).


31.2

Certification of Chief Financial Officer Required by Rule 13a(14(a) (17 CFR 240.13a-14(a)).


32.1

Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


32.2

Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


______________________________________________________________


(1)

Incorporated by reference from Exhibits to the Company's Form 10-K filing for the fiscal year ended December 31, 2001, dated March 28, 2002.


(2)

Incorporated by reference from the Exhibits to the Company's Registration Statement on Form S-7 Registration No. 2-66797, which became effective

April 22, 1980.


(3)

Incorporated by reference from Exhibits to the Company's Form S-4 dated September 19, 2003.



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(4)

Incorporated by reference from Exhibits to the Company’s Form 8-K filing dated December 14, 2004.


(5)

Incorporated by reference from Exhibits to the Company’s Form 8-K filing dated December 22, 2004.


(6)

Incorporated by reference from the Exhibits to the Company's Form S-8 filing, dated April 28, 1994.


(7)

Incorporated by reference from the Exhibits to the Company's Form  10-K filing for the fiscal year ended December 31, 2000, dated March 28, 2001.


(8)

Incorporated by reference from the Exhibits to the Company's Form  10-K filing for the fiscal year ended December 31, 2003, dated March 15, 2004.


(9)

Incorporated by reference from the Exhibits to the Company's September 30, 1998, Form 10-Q filing dated November 12, 1998.


(10)

         Incorporated by reference from the Exhibits to the Company's September 30, 1997, Form 10-Q filing dated November 13, 1997.


(11)

Incorporated by reference from Exhibits to the Company’s March 31, 2003, Form 10-Q filing dated May 13, 2003.


(12)

Incorporated by reference from Exhibits to the Company’s September 30, 2004, Form 10-Q filing dated November 9, 2004.



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