.bash_profile vs .bashrc
According to the bash man page, .bash_profile is executed for login shells, while .bashrc is executed for interactive non-login shells.
When bash is invoked as an interactive login shell, or as a non-interactive shell with the --login option, it first reads and executes commands from the file /etc/profile, if that file exists. After reading that file, it looks for ~/.bash_profile, ~/.bash_login, and ~/.profile, in that order, and reads and executes commands from the first one that exists and is readable.
When an interactive shell that is not a login shell is started, bash reads and executes commands from ~/.bashrc, if that file exists. This may be inhibited by using the --norc option. The --rcfile file option will force bash to read and execute commands from file instead of ~/.bashrc.
In the context of Unix-like systems, the term rc stands for the phrase “run commands”.
Mac OS X — an exception
An exception to the terminal window guidelines is Mac OS X’s Terminal.app, which runs a login shell by default for each new terminal window, calling .bash_profile instead of .bashrc. Other GUI terminal emulators may do the same, but most tend not to.
Recommendation
Most of the time you don’t want to maintain two separate config files for login and non-login shells — when you set a PATH, you want it to apply to both. You can fix this by sourcing .bashrc from your .bash_profile file, then putting PATH and common settings in .bashrc.
To do this, add the following lines to .bash_profile:
if [ -f ~/.bashrc ]; then
source ~/.bashrc
fi