NOTE 1. 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, 2011 and the notes thereto included in the Company's 2011 Annual Report on Form 10-K.

In the opinion of the registrant, 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 March 30, 2012 and December 31, 2011, and its results of operations and cash flows for the three months ended March 30, 2012 and April 1, 2011. Refer to Note 3 for a discussion of the impact on the financial statement presentation resulting from the Company's sale of its Pacific Scientific Aerospace ("PSA"), Accu-Sort ("ASI") and Kollmorgen Electro-Optical ("KEO") businesses.

Adoption of New Accounting Pronouncements - In June 2011, updated accounting guidance was issued which requires entities to present comprehensive income either as a single continuous statement of comprehensive income or as two separate but consecutive statements. This guidance became effective and was adopted by the Company on January 1, 2012. As the new guidance relates to presentation only, the adoption did not have a material impact on the Company's results of operations, financial position or cash flows.

In May 2011, updated accounting guidance was issued that established a framework for how to measure fair value and the required disclosures to provide about fair value measurements. The updated guidance is largely consistent with fair value measurement principles that existed prior to the update and became effective and was adopted by the Company on January 1, 2012. The Company's adoption did not have a material impact on the Company's results of operations, financial position or cash flows.

Other Comprehensive Income - The components of other comprehensive income presented on a pre-tax basis and the associated income tax impact for the three months ended March 30, 2012 and April 1, 2011 are summarized below ($ in millions). Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-US subsidiaries.


	Foreign currency translation adjustment		Unrealized gain on available-for- sale securities			Total other comprehensive income
For the Three Months Ended March 30, 2012:
Before-tax amount	$	156.0	$	45.3		$	201.3
Tax expense		—		(17.0	)		(17.0	)

Net-of-tax amount	$	156.0	$	28.3		$	184.3


For the Three Months Ended April 1, 2011:
Before-tax amount	$	253.0	$	13.1		$	266.1
Tax expense		—		(4.6	)		(4.6	)

Net-of-tax amount	$	253.0	$	8.5		$	261.5