GENERAL

The consolidated condensed financial statements included herein have been prepared by Danaher Corporation (“Danaher” or 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 consolidated condensed financial statements included herein should be read in conjunction with the financial statements as of and for the year ended December 31, 2015 and the Notes thereto included in the Company’s 2015 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 July 1, 2016 and December 31, 2015, its results of operations for the three and six month periods ended July 1, 2016 and July 3, 2015 and its cash flows for each of the six 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 & Postretirement Plan Benefit Adjustments				Unrealized Gain (Loss) on Available-For-Sale Securities Adjustments			Total
For the Three Month Period Ended July 1, 2016:
Balance, April 1, 2016	$	(1,596.3	)	$	(642.0	)		$	1.8		$	(2,236.5	)
Other comprehensive income (loss) before reclassifications:
(Decrease) increase	(161.9		)	—				2.3			(159.6		)
Income tax impact	—			—				(0.9		)	(0.9		)
Other comprehensive income (loss) before reclassifications, net of income taxes	(161.9		)	—				1.4			(160.5		)
Amounts reclassified from accumulated other comprehensive income (loss):
Increase	—			8.6			(a)	—			8.6
Income tax impact	—			(2.8		)		—			(2.8		)
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes	—			5.8				—			5.8
Net current period other comprehensive income (loss), net of income taxes	(161.9		)	5.8				1.4			(154.7		)
Balance, July 1, 2016	$	(1,758.2	)	$	(636.2	)		$	3.2		$	(2,391.2	)
^(a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost. Refer to Note 7 for additional details.



	Foreign Currency Translation Adjustments			Pension & Postretirement Plan Benefit Adjustments				Unrealized Gain (Loss) on Available-For-Sale Securities Adjustments				Total
For the Three Month Period Ended July 3, 2015:
Balance, April 3, 2015	$	(1,501.6	)	$	(720.8	)		$	114.5			$	(2,107.9	)
Other comprehensive income (loss) before reclassifications:
Increase	44.8			—				38.3				83.1
Income tax impact	—			—				(14.4		)		(14.4		)
Other comprehensive income (loss) before reclassifications, net of income taxes	44.8			—				23.9				68.7
Amounts reclassified from accumulated other comprehensive income (loss):
Increase	—			10.4			(a)	—				10.4
Income tax impact	—			(3.3		)		—				(3.3		)
Amounts reclassified from accumulated other comprehensive income, net of income taxes	—			7.1				—				7.1
Net current period other comprehensive income (loss), net of income taxes	44.8			7.1				23.9				75.8
Balance, July 3, 2015	$	(1,456.8	)	$	(713.7	)		$	138.4			$	(2,032.1	)
For the Six Month Period Ended July 1, 2016:
Balance, December 31, 2015	$	(1,797.4	)	$	(647.3	)		$	133.5			$	(2,311.2	)
Other comprehensive income (loss) before reclassifications:
Increase	39.2			—				14.9				54.1
Income tax impact	—			—				(5.6		)		(5.6		)
Other comprehensive (loss) income before reclassifications, net of income taxes	39.2			—				9.3				48.5
Amounts reclassified from accumulated other comprehensive income (loss):
Increase (decrease)	—			16.4			(a)	(223.4		)	(b)	(207.0		)
Income tax impact	—			(5.3		)		83.8				78.5
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes	—			11.1				(139.6		)		(128.5		)
Net current period other comprehensive (loss) income, net of income taxes	39.2			11.1				(130.3		)		(80.0		)
Balance, July 1, 2016	$	(1,758.2	)	$	(636.2	)		$	3.2			$	(2,391.2	)
For the Six Month Period Ended July 3, 2015:
Balance, December 31, 2014	$	(821.8	)	$	(727.8	)		$	115.9			$	(1,433.7	)
Other comprehensive income (loss) before reclassifications:
(Decrease) increase	(635.0		)	—				36.0				(599.0		)
Income tax impact	—			—				(13.5		)		(13.5		)
Other comprehensive (loss) income before reclassifications, net of income taxes	(635.0		)	—				22.5				(612.5		)
Amounts reclassified from accumulated other comprehensive income (loss):
Increase	—			20.7			(a)	—				20.7
Income tax impact	—			(6.6		)		—				(6.6		)
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes	—			14.1				—				14.1
Net current period other comprehensive (loss) income, net of income taxes	(635.0		)	14.1				22.5				(598.4		)
Balance, July 3, 2015	$	(1,456.8	)	$	(713.7	)		$	138.4			$	(2,032.1	)
^(a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost. Refer to Note 7 for additional details. ^(b) Included in other income in the accompanying Consolidated Condensed Statement of Earnings. Refer to Note 10 for additional details.

New Accounting Standards—In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The ASU is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. Management has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718), which aims to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, classification of certain items on the statement of cash flows and accounting for forfeitures. The ASU is effective for public entities for fiscal years beginning after December 15, 2016, with early adoption permitted. Management has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements and does not expect to adopt the standard earlier than required.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which will require, among other items, lessees to recognize a right-of-use asset and a lease liability for most leases. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing contracts. The accounting applied by a lessor is largely unchanged from that applied under the current standard. The standard must be adopted using a modified retrospective transition approach and provides for certain practical expedients. The ASU is effective for public entities for fiscal years beginning after December 15, 2018, with early adoption permitted. Management has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements.

In May 2014, the FASB issued 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 Topic 606 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. In July 2015, the FASB deferred the effective date of the standard by one year which results in the new standard being effective for the Company at the beginning of its first quarter of fiscal year 2018. In addition, during March, April and May 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, respectively, which clarified the guidance on certain items such as reporting revenue as a principal versus agent, identifying performance obligations, accounting for intellectual property licenses, assessing collectability and presentation of sales taxes. The Company is currently assessing the impact that the adoption of the new standard will have on its consolidated financial statements and related disclosures, including possible transition alternatives.