GENERAL

The consolidated condensed financial statements included herein have been prepared by Danaher Corporation (the “Company”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations; however, the Company believes that the disclosures are adequate to make the information presented not misleading. The condensed financial statements included herein should be read in conjunction with the financial statements as of and for the year ended December 31, 2013 and the Notes thereto included in the Company’s 2013 Annual Report on Form 10-K.

In the opinion of the Company, the accompanying financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position of the Company as of September 26, 2014 and December 31, 2013, and its results of operations for the three and nine months ended September 26, 2014 and September 27, 2013 and its cash flows for each of the nine month periods then ended.

Accumulated Other Comprehensive Income (Loss) - The changes in accumulated other comprehensive income (loss) by component are summarized below ($ in millions). Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries.



	Foreign Currency Translation Adjustments			Pension and Post-Retirement Plan Benefit Adjustments				Unrealized Gain (Loss) on Available-For- Sale Securities				Total
For the Three Months Ended September 26, 2014:
Balance, June 27, 2014	$	465.1		$	(364.2	)		$	204.9			$	305.8
Other comprehensive income (loss) before reclassifications:
Decrease	(670.5		)	—				(26.0		)		(696.5		)
Income tax benefit	—			—				9.8				9.8
Other comprehensive income (loss) before reclassifications, net of income taxes	(670.5		)	—				(16.2		)		(686.7		)
Amounts reclassified from accumulated other comprehensive income (loss):
Increase (decrease)	—			6.0			(1)	(4.3		)	(2)	1.7
Income tax (expense) benefit	—			(2.2		)		1.6				(0.6		)
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes	—			3.8				(2.7		)		1.1
Net current period other comprehensive income (loss), net of income taxes	(670.5		)	3.8				(18.9		)		(685.6		)
Balance, September 26, 2014	$	(205.4	)	$	(360.4	)		$	186.0			$	(379.8	)

(1) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 6 for additional details).
(2) Included in other income in the accompanying Consolidated Condensed Statement of Earnings (refer to Note 9 for additional details).



	Foreign Currency Translation Adjustments			Pension and Post-Retirement Plan Benefit Adjustments				Unrealized Gain on Available-For- Sale Securities				Total
For the Three Months Ended September 27, 2013:
Balance, June 28, 2013	$	89.7		$	(644.7	)		$	176.4			$	(378.6	)
Other comprehensive income (loss) before reclassifications:
Increase	288.2			—				95.4				383.6
Income tax expense	—			—				(35.7		)		(35.7		)
Other comprehensive income (loss) before reclassifications, net of income taxes	288.2			—				59.7				347.9
Amounts reclassified from accumulated other comprehensive income (loss):
Increase	—			8.4			(1)	—				8.4
Income tax expense	—			(2.9		)		—				(2.9		)
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes	—			5.5				—				5.5
Net current period other comprehensive income (loss), net of income taxes	288.2			5.5				59.7				353.4
Balance, September 27, 2013	$	377.9		$	(639.2	)		$	236.1			$	(25.2	)

For the Nine Months Ended September 26, 2014:
Balance, December 31, 2013	$	413.2		$	(366.7	)		$	168.0			$	214.5
Other comprehensive income (loss) before reclassifications:
(Decrease) increase	(618.6		)	(5.5		)		52.3				(571.8		)
Income tax benefit (expense)	—			1.1				(19.6		)		(18.5		)
Other comprehensive income (loss) before reclassifications, net of income taxes	(618.6		)	(4.4		)		32.7				(590.3		)
Amounts reclassified from accumulated other comprehensive income (loss):
Increase (decrease)	—			16.7			(1)	(23.5		)	(2)	(6.8		)
Income tax (expense) benefit	—			(6.0		)		8.8				2.8
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes	—			10.7				(14.7		)		(4.0		)
Net current period other comprehensive income (loss), net of income taxes	(618.6		)	6.3				18.0				(594.3		)
Balance, September 26, 2014	$	(205.4	)	$	(360.4	)		$	186.0			$	(379.8	)

For the Nine Months Ended September 27, 2013:
Balance, December 31, 2012	$	475.3		$	(655.7	)		$	121.2			$	(59.2	)
Other comprehensive income (loss) before reclassifications:
(Decrease) increase	(97.4		)	—				183.8				86.4
Income tax expense	—			—				(68.9		)		(68.9		)
Other comprehensive income (loss) before reclassifications, net of income taxes	(97.4		)	—				114.9				17.5
Amounts reclassified from accumulated other comprehensive income (loss):
Increase	—			25.2			(1)	—				25.2
Income tax expense	—			(8.7		)		—				(8.7		)
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes	—			16.5				—				16.5
Net current period other comprehensive income (loss), net of income taxes	(97.4		)	16.5				114.9				34.0
Balance, September 27, 2013	$	377.9		$	(639.2	)		$	236.1			$	(25.2	)

(1) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 6 for additional details).
(2) Included in other income in the accompanying Consolidated Condensed Statement of Earnings (refer to Note 9 for additional details).

New Accounting Standards - In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which impacts virtually all aspects of an entity's revenue recognition. The core principle of the new standard is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016. Management has not yet completed its assessment of the impact of the new standard, including possible transition alternatives, on the Company's financial statements.

In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. To qualify as a discontinued operation the standard requires a disposal to represent a strategic shift that has, or will have, a major effect on an entity's operations and financial results. The standard also expands the disclosures for discontinued operations and requires new disclosures related to individually material dispositions that do not qualify as discontinued operations. The standard is effective prospectively for fiscal years beginning after December 15, 2014, with early adoption permitted. This standard was adopted by the Company on June 28, 2014, the beginning of the third quarter, and did not have a material impact on the Company's financial statements.