##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K


|           |  |                                                                                                               
|---------- |  | --------------------------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                                               
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934                      
|           |  | For the fiscal year ended December 31, 2005                                                                   
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
|          
|           |  | For the transition period
    from           to                                                               

Commission File Number 1-10920





Fisher Scientific International Inc.


(Exact name of registrant as specified in its charter)


|                                                                                |  |                                         
|------------------------------------------------------------------------------- |  | ----------------------------------------
|Delaware                                                                        |  | 02-0451017                              
|(State or other jurisdiction of
    Incorporation or organization)              |  | (I.R.S. Employer
    Identification No.)
|Liberty Lane
    Hampton, New Hampshire(Address of principal executive offices) |  | 03842(Zip Code)                         

Registrants telephone number, including area code:


(603) 926-5911


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


|                                       |  |                                          
|-------------------------------------- |  | -----------------------------------------
|Title of each class                    |  | Name of each exchange on which registered
|                                       |  |                                          
|Common Stock, par value $.01 per share |  | New York Stock Exchange                  

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


None





þ o


o þ


þ o


S-K 10-K 10-K. o


12b-2


þ o o






Documents Incorporated by Reference:




12b-2 o þ










---



##### 










FISHER SCIENTIFIC INTERNATIONAL INC.


FORM 10-K
ANNUAL REPORT


December 31, 2005


|                                                             |  |                                                                                                                      |    |      |    | 
|------------------------------------------------------------ |  | -------------------------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|                                                             |  |                                                                                                                      |    | Page |   
|                                                             |  |                                                                                                                      |    | No.  |   
|                                                             |  |                                                                                                                      |    |      |   
|PART I                                                      
|Item 1.                                                      |  | Business                                                                                                             |    |      | 3  | 
|Item 1A.                                                     |  | Risk Factors                                                                                                         |    |      | 11 | 
|Item 1B.                                                     |  | Unresolved Staff Comments                                                                                            |    |      | 16 | 
|Item 2.                                                      |  | Properties                                                                                                           |    |      | 16 | 
|Item 3.                                                      |  | Legal Proceedings                                                                                                    |    |      | 17 | 
|Item 4.                                                      |  | Submission of Matters to a Vote of Security
    Holders                                                              |    |      | 18 | 
|                                                            
|PART II                                                     
|Item 5.                                                      |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |    |      | 18 | 
|Item 6.                                                      |  | Selected Financial Data                                                                                              |    |      | 19 | 
|Item 7.                                                      |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |    |      | 21 | 
|Item 7A.                                                     |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                       |    |      | 39 | 
|Item 8.                                                      |  | Financial Statements and Supplementary
    Data                                                                      |    |      | 41 | 
|Item 9.                                                      |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                             |    |      | 86 | 
|Item 9A.                                                     |  | Controls and Procedures                                                                                              |    |      | 86 | 
|Item 9B.                                                     |  | Other Information                                                                                                    |    |      | 86 | 
|                                                            
|PART III                                                    
|Item 10.                                                     |  | Directors and Executive Officers of the
    Registrant                                                               |    |      | 89 | 
|Item 11.                                                     |  | Executive Compensation                                                                                               |    |      | 89 | 
|Item 12.                                                     |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                   |    |      | 89 | 
|Item 13.                                                     |  | Certain Relationships and Related
    Transactions                                                                   |    |      | 89 | 
|Item 14.                                                     |  | Principal Accountant Fees and Services                                                                               |    |      | 89 | 
|                                                            
|PART IV                                                     
|Item 15.                                                     |  | Exhibits and Financial Statement
    Schedules                                                                       |    |      | 90 | 
|SIGNATURE                                                    |  |                                                                                                                      | 98 |     
|EX-10.33 - Second Amendment to Credit Agreement             
|EX-10.37 - First Amendment to Receivables Transfer Agreement
|EX-10.40 - Waiver and Omnibus                               
|EX-12.01 - Computation of Ratios                            
|EX-21.01 - List of Subsidiaries of the Registrant           
|EX-23.01  Consent of Deloitte & Touche, LLP                 
|EX-31.01 - SEC 302 Certification of CEO                     
|EX-31.02 - SEC 302 Certification of CFO                     
|EX-32.01 - SEC 906 Certification of CEO                     
|EX-32.02 - SEC 906 Certification of CFO                     





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##### Table of Contents






PART I







|        |         
|------- | --------
|Item 1. | Business

Our Business




www.fisherscientific.com


Competitive Strengths






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Broad product offering: We offer an extensive line of
    products that constitutes a virtual one-stop shop for the
    scientist, researcher and healthcare professional. This
    comprehensive offering of high-quality products includes
    proprietary products developed in our manufacturing facilities
    or exclusively sourced from some of the worlds leading
    scientific and clinical-laboratory suppliers. We actively invest
    in the development of our self-manufactured product portfolio.
    Given the complexity of dealing with multiple suppliers
    providing thousands of products and the pressure to improve
    efficiency and reduce costs, our customers increasingly look to
    us to meet their diverse product requirements in a timely and
    cost-effective manner.
|
| |  | Enhanced suite of outsourced services: We provide a wide
    range of outsourced services, from supply-chain management and
    custom chemical synthesis to clinical-trial packaging and
    distribution, analytical-laboratory testing and biological
    sample storage. Our suite of services helps our customers reduce
    their costs, enabling them to engage in more productive research
    activities.                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | Global distribution network: We have a world-class supply
    chain that allows us to reduce
    end-to-end procurement
    costs for our multinational customers. Utilizing
    state-of-the-art
    systems and our global footprint, we serve our customers in more
    than 150 countries on a cost-effective basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| |  | Comprehensive channel position: We believe we occupy a
    pivotal position in the globally integrated supply chain for
    suppliers and end users, by combining our global distribution
    capabilities with an extensive portfolio of proprietary products
    and value-added services. By constantly expanding our product
    and service offerings and leveraging operational efficiencies,
    we can further enhance our position with both our customers and
    suppliers.                                                                                                                                                                                                                                                                                                                          

Business Segments and Products






3



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| |                                 
| | --------------------------------
| | Scientific products and services





® ® ® tm ® ® ® ® ® ® ® ® ® ® ® ® ® ® ®




| |                                 
| | --------------------------------
| | Healthcare products and services





® ® ® ® ® ® ®


4



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| |                        
| | -----------------------
| | Laboratory workstations

® ® ® ® ®


Customers




Scientific products and services:


Healthcare products and services:


Laboratory workstations:


Competition




Scientific products and services:


Healthcare products and services:


Laboratory workstations:


Sales and Distribution


e-commerce www.fishersci.com e-commerce


5



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Manufacturing and Distribution










Research and Development




6



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##### Table of Contents



Intellectual Property




Government Contracts




Acquisitions and Divestiture














7



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Environmental Matters


















8



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##### Table of Contents





Regulatory Affairs






| |                                     
| | ------------------------------------
| | Executive Officers of the Registrant



|                                 |  |     |    |  |          |                                                  
|-------------------------------- |  | --- | -- |  | -------- | -------------------------------------------------
|Executive Officers and Directors |  | Age |    |  | Position
|                                 |  |     |    |  |         
|Paul M. Montrone                 |  |     | 64 |  |          | Chairman of the Board and Chief Executive Officer
|Paul M. Meister                  |  |     | 53 |  |          | Vice Chairman of the Board                       
|David T. Della Penta             |  |     | 58 |  |          | President and Chief Operating Officer            
|Kevin P. Clark                   |  |     | 43 |  |          | Vice President and Chief Financial Officer       
|Thomas L. Rea                    |  |     | 58 |  |          | Senior Vice President, Corporate Services        
|Rosanne F. Coppola(3)            |  |     | 55 |  |          | Director                                         
|Michael D. Dingman(2)(3)         |  |     | 74 |  |          | Director                                         
|Bruce L. Koepfgen(2)             |  |     | 53 |  |          | Director                                         
|Simon B. Rich(1)                 |  |     | 61 |  |          | Director                                         
|Charles A. Sanders, M.D.(3)      |  |     | 74 |  |          | Director                                         
|Scott M. Sperling(2)             |  |     | 48 |  |          | Director                                         
|W. Clayton Stephens(1)           |  |     | 63 |  |          | Director                                         
|Richard W. Vieser(1)             |  |     | 78 |  |          | Director                                         






|    |                                                            
|--- | -----------------------------------------------------------
|(1) | Member of Audit Committee                                  
|   
|(2) | Member of the Compensation Committee                       
|   
|(3) | Member of the Nominating and Corporate Governance Committee

Paul M. Montrone


Paul M. Meister


9



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David T. Della Penta


Thomas L. Rea


Kevin P. Clark


Rosanne F. Coppola


Michael D. Dingman


Bruce L. Koepfgen


Simon B. Rich


Charles A. Sanders, M.D.


Scott M. Sperling


W. Clayton Stephens


Richard W. Vieser


10



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##### Table of Contents



Employees






Foreign and Domestic Operations, Segment Data and Export
Sales




Availability of Reports and Other Information


1-800-SEC-0330 www.sec.gov


www.fisherscientific.com 10-K, 10-Q, 8-K,




Corporate Governance


www.fisherscientific.com







|         |             
|-------- | ------------
|Item 1A. | Risk Factors

10-K.


11



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| |                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our growth strategy to acquire new businesses may not be
    successful and the integration of future acquisitions may be
    difficult and disruptive to our ongoing operations.





| |   |                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------
| |  | managements attention being diverted to the integration of
    the acquired businesses;                                           
|
| |  | difficulties in integrating the operations and systems of the
    acquired businesses and in realizing operating
    synergies; and
|
| |  | difficulties in assimilating and retaining employees and
    customers of the acquired companies.                                  





| |                                                                                                                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our results of operations depend on our customers
    research and development efforts; these efforts and the spending
    on them are beyond our control, and our results of operations
    may be adversely affected if our customers do not continue
    expending sufficient resources on these activities.





| |                                                                                                                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Because we compete directly with certain of our largest
    customers and product suppliers, our results of operations could
    be adversely affected in the short term if these customers or
    suppliers abruptly discontinue or significantly modify their
    relationship with us.





| |                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------
| | We may incur impairment charges on our goodwill and
    intangible assets with indefinite lives that would reduce our
    earnings.



12



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We rely heavily on manufacturing operations to produce the
products we sell, and our business could be adversely affected
by disruptions of our manufacturing operations.




We have implemented, and will continue to implement,
various cost-savings initiatives that may not achieve the
anticipated results.






Our indebtedness could adversely affect our financial
health and prevent us from fulfilling our financial
obligations.








| |   |                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | increasing our vulnerability to generally adverse economic and
    industry conditions;                                                                                                           
|
| |  | reducing the availability of our cash flows to fund working
    capital, capital expenditures, research and development efforts,
    program investment efforts and other general corporate needs;
|
| |  | limiting our flexibility in planning for, or reacting to,
    changes in our business and the industry in which we operate;                                                                       
|
| |  | exposing us to the risk of increased interest rates because some
    of our debt has variable interest rates; and                                                                                 
|
| |  | limiting our ability to borrow additional funds.                                                                                                                                                  



13



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| |                                                                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Because we rely heavily on third-party package-delivery
    services, a significant disruption in these services or
    significant increases in prices may disrupt our ability to ship
    products, increase our costs and lower our profitability.





| |                                                                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are subject to regulation by various federal, state and
    foreign agencies that require us to comply with a wide variety
    of regulations, including those regarding the manufacture of
    products, the shipping of our products and environmental
    matters.







| |                                                                            
| | ---------------------------------------------------------------------------
| | If we lose our key personnel, our business could be
    adversely affected.





| |                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are subject to economic, political and other risks
    associated with our significant international sales and
    operations, which could adversely affect our business.



14



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| |   |                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------
| |  | changes in the political or economic conditions in a country or
    region, particularly in developing or emerging markets;
|
| |  | future fluctuations in exchange rates;                                                                                     
|
| |  | trade-protection measures and import-or export-licensing
    requirements;                                                 
|
| |  | differing tax laws and changes in those laws;                                                                              
|
| |  | difficulty in staffing and managing widespread
    operations; and                                                         
|
| |  | differing regulatory requirements and changes in those
    requirements.                                                   



| |                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------
| | We may be unable to adjust to rapid changes in the
    healthcare industry, some of which could adversely affect our
    business.





| |   |                                                                                               
| | - | ----------------------------------------------------------------------------------------------
| |  | development of large and sophisticated groups purchasing medical
    and surgical supplies;   
|
| |  | wider implementation of managed care;                                                         
|
| |  | legislative healthcare reform;                                                                
|
| |  | consolidation of pharmaceutical companies;                                                    
|
| |  | increased outsourcing of certain activities, including to
    low-cost offshore locations; and
|
| |  | consolidation of distributors of pharmaceutical, medical and
    surgical supplies.           





| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | We may incur unexpected costs from increases in fuel and
    raw material prices, which could reduce our earnings and cash
    flow.



Quantitative and Qualitative
Disclosures About Market Risk




| |                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we experience a significant disruption in our
    information technology systems or if we fail to implement new
    systems and software successfully, our business could be
    adversely affected.



15



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Exchange rate fluctuations may adversely affect our
business.


non-U.S.


Quantitative and Qualitative
Disclosures About Market Risk







|         |                          
|-------- | -------------------------
|Item 1B. | Unresolved Staff Comments








|        |           
|------- | ----------
|Item 2. | Properties





|                                 |  |                               
|-------------------------------- |  | ------------------------------
|Scientific Products and Services |  |                               
|Allentown, Pennsylvania(b)       |  | Manufacturing                 
|Basingstoke, United Kingdom(a)   |  | Manufacturing                 
|Dubuque, Iowa(b)                 |  | Manufacturing                 
|Geel, Belgium                    |  | Manufacturing                 
|Fair Lawn, New Jersey            |  | Manufacturing                 
|Horsham, United Kingdom(b)       |  | Laboratory                    
|Lenexa, Kansas(b)                |  | Manufacturing                 
|Logan, Utah(b)                   |  | Manufacturing                 
|Loughborough, United Kingdom(a)  |  | Manufacturing                 
|Milwaukee, Wisconsin             |  | Manufacturing                 
|Pittsburgh, Pennsylvania(a)      |  | Offices and Laboratory        
|Rochester, New York              |  | Manufacturing                 
|Rockwood, Tennessee(b)           |  | Manufacturing and Distribution
|Roskilde, Denmark                |  | Manufacturing                 
|San Diego, California(a)         |  | Distribution                  
|San Fernando, California(b)      |  | Manufacturing                 
|Schwerte, Germany(a)             |  | Offices and Distribution      
|Selangor, Malaysia               |  | Manufacturing                 
|Somerville, New Jersey           |  | Manufacturing                 
|Lancaster, Pennsylvania          |  | Laboratory                    

16



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|                                 |  |                               
|-------------------------------- |  | ------------------------------
|Vernon Hills, Illinois(a)        |  | Distribution                  
|Whitby, Canada                   |  | Distribution                  
|                                
|Healthcare Products and Services |  |                               
|Auburn, Alabama(b)               |  | Manufacturing and Distribution
|Fremont, California(a)           |  | Manufacturing                 
|Kalamazoo, Michigan(a)           |  | Manufacturing                 
|Middletown, Virginia             |  | Manufacturing                 
|Portsmouth, New Hampshire(b)     |  | Manufacturing                 
|Rockford, Illinois               |  | Manufacturing                 
|Romont, Switzerland              |  | Manufacturing                 
|Reynosa, Mexico                  |  | Manufacturing                 
|Two Rivers, Wisconsin            |  | Manufacturing                 
|                                
|Shared Properties                |  |                               
|Agawam, Massachusetts            |  | Distribution                  
|Chino, California(a)             |  | Distribution                  
|Denver, Colorado(a)              |  | Distribution                  
|Florence, Kentucky               |  | Distribution                  
|Hanover Park, Illinois           |  | Distribution                  
|Houston, Texas                   |  | Offices and Distribution      
|Pittsburgh, Pennsylvania(a)      |  | Offices                       
|Santa Clara, California(a)       |  | Distribution                  
|Suwanee, Georgia(a)              |  | Distribution                  
|                                
|Hampton, NH                      |  | Corporate Office              






|    |  |                                         
|--- |  | ----------------------------------------
|(a) |  | Leased                                  
|   
|(b) |  | Combination of property owned and leased






|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings







17



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|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders






PART II







|        |                                                                                                                      
|------- | ---------------------------------------------------------------------------------------------------------------------
|Item 5. | Market For Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities.

Market Information






Dividends




Equity Compensation Plans




|                                                           |  |                      |             |  |                     |                       |                    |                       |  |  |           | 
|---------------------------------------------------------- |  | -------------------- | ----------- |  | ------------------- | --------------------- | ------------------ | --------------------- |  |  | --------- | 
|                                                           |  |                      |             |  |                     | Number of Securities  |                   
|                                                           |  |                      |             |  |                     | Remaining for Future  |                   
|                                                           |  |                      |             |  |                     | Issuance Under Equity |                   
|                                                           |  | Number of Securities |             |  |                     |                       | Compensation Plans |                      
|                                                           |  | to be Issued Upon    |             |  | Weighted-Average    |                       |                    | (Excluding Securities | 
|                                                           |  | Exercise of          |             |  | Exercise Price of   |                       |                    | Reflected in          | 
|Plan Category                                              |  | Outstanding Options  |             |  | Outstanding Options |                       |                    | Column (a))           | 
|                                                           |  |                      |             |  |                     |                       |                    |                       | 
|                                                           |  | (a)(2)               |             |  | (b)                 |                       |                    | (c)(1)(2)             | 
|Equity compensation plans approved by security holders     |  |                      | 10,232, 866 |  |                     | $                     | 43.46              |                       |  |  | 5,031,260 | 
|Equity compensation plans not approved by security holders |  |                      |            |  |                     |                       |                   |                       |  |  |          | 
|                                                           |  |                      |             |  |                     |                       |                    |                       | 
|Total at December 31, 2005                                 |  |                      | 10,232,866  |  |                     | $                     | 43.46              |                       |  |  | 5,031,260 | 
|                                                           |  |                      |             |  |                     |                       |                    |                       | 






|    |                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | 2,795,144 of the shares listed in column (c) may be issued
    in the form of other stock-based awards, which include
    restricted or unrestricted stock, restricted or unrestricted
    stock units or dividend equivalents, pursuant to the 2005 Equity
    and Incentive Plan.

18



---



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|    |                                                                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Does not include 1,236,259 shares issuable upon the
    exercise of options under the plans assumed in connection with
    the merger with Apogent.

Share Repurchase Program









|        |                        
|------- | -----------------------
|Item 6. | Selected Financial Data



|                                                                                    |         |                                         |         |       |      |   |         |      |  |   |         |      |  |      |         |       |   |   |         |      | 
|----------------------------------------------------------------------------------- | ------- | --------------------------------------- | ------- | ----- | ---- | - | ------- | ---- |  | - | ------- | ---- |  | ---- | ------- | ----- | - | - | ------- | ---- | 
|                                                                                    |         | Year Ended December 31,                 |        
|                                                                                    |         |                                         |        
|                                                                                    |         | 2005                                    |         |       | 2004 |   |         | 2003 |  |   | 2002    |      |  | 2001 |        
|                                                                                    |         |                                         |         |       |      |   |         |      |  |   |         |      |  |      |        
|                                                                                    |         | (In millions, except per share amounts) |        
|Statement of Operations Data:                                                       |         |                                         |         |       |      |   |         |      |  |   |         |      |  |      |         |       |   |   |         |     
|Net sales                                                                           |         | $                                       | 5,579.4 |       |      | $ | 4,627.3 |      |  | $ | 3,554.0 |      |  | $    | 3,238.4 |       |   | $ | 2,880.0 |     
|Operating income(a)                                                                 |         |                                         | 657.7   |       |      |   | 281.5   |      |  |   | 256.7   |      |  |      | 245.1   |       |   |   | 131.1   |     
|Income from continuing operations before cumulative effect of
    accounting change |         |                                         | 371.9   |       |      |   | 161.8   |      |  |   | 76.5    |      |  |      | 96.7    |       |   |   | 16.4    |     
|Income from discontinued operations(b)                                              |         |                                         | 17.2    |       |      |   | 4.6     |      |  |   | 1.9     |      |  |      |        |       |   |   |        |     
|Net income(c)                                                                       |         |                                         | 389.1   |       |      |   | 166.4   |      |  |   | 78.4    |      |  |      | 50.6    |       |   |   | 16.4    |     
|Per Share Data:                                                                     |         |                                         |         |       |      |   |         |      |  |   |         |      |  |      |         |       |   |   |         |     
|Income from continuing operations:                                                  |         |                                         |         |       |      |   |         |      |  |   |         |      |  |      |         |       |   |   |         |     
|                                                                                    | Basic   |                                         | $       | 3.06  |      |   | $       | 1.88 |  |   | $       | 1.35 |  |      | $       | 1.77  |   |   | $       | 0.33 | 
|                                                                                    | Diluted |                                         |         | 2.92  |      |   |         | 1.75 |  |   |         | 1.26 |  |      |         | 1.67  |   |   |         | 0.31 | 
|Income from discontinued operations(b):                                             |         |                                         |         |       |      |   |         |      |  |   |         |      |  |      |         |       |   |   |         |     
|                                                                                    | Basic   |                                         | $       | 0.14  |      |   | $       | 0.05 |  |   | $       | 0.03 |  |      | $       |      |   |   | $       |     | 
|                                                                                    | Diluted |                                         |         | 0.13  |      |   |         | 0.05 |  |   |         | 0.03 |  |      |         |      |   |   |         |     | 
|Cumulative effect of accounting changes:                                            |         |                                         |         |       |      |   |         |      |  |   |         |      |  |      |         |       |   |   |         |     
|                                                                                    | Basic   |                                         | $       |      |      |   | $       |     |  |   | $       |     |  |      | $       | (0.84 | ) |   | $       |     | 
|                                                                                    | Diluted |                                         |         |      |      |   |         |     |  |   |         |     |  |      |         | (0.80 | ) |   |         |     | 
|Net income(c):                                                                      |         |                                         |         |       |      |   |         |      |  |   |         |      |  |      |         |       |   |   |         |     
|                                                                                    | Basic   |                                         | $       | 3.20  |      |   | $       | 1.93 |  |   | $       | 1.38 |  |      | $       | 0.93  |   |   | $       | 0.33 | 
|                                                                                    | Diluted |                                         |         | 3.05  |      |   |         | 1.80 |  |   |         | 1.29 |  |      |         | 0.87  |   |   |         | 0.31 | 
|Weighted average common shares outstanding:                                         |         |                                         |         |       |      |   |         |      |  |   |         |      |  |      |         |       |   |   |         |     
|                                                                                    | Basic   |                                         |         | 121.5 |      |   |         | 86.2 |  |   |         | 56.9 |  |      |         | 54.5  |   |   |         | 49.4 | 
|                                                                                    | Diluted |                                         |         | 127.5 |      |   |         | 92.2 |  |   |         | 60.6 |  |      |         | 57.9  |   |   |         | 53.0 | 
|Balance Sheet Data (at end of year):                                                |         |                                         |         |       |      |   |         |      |  |   |         |      |  |      |         |       |   |   |         |     
|Working capital(d)                                                                  |         | $                                       | 976.2   |       |      | $ | 721.4   |      |  | $ | 360.3   |      |  | $    | 186.1   |       |   | $ | 120.1   |     
|Total assets                                                                        |         |                                         | 8,430.3 |       |      |   | 8,090.2 |      |  |   | 2,860.8 |      |  |      | 1,871.4 |       |   |   | 1,839.2 |     
|Long-term debt                                                                      |         |                                         | 2,135.5 |       |      |   | 2,309.2 |      |  |   | 1,386.1 |      |  |      | 921.8   |       |   |   | 956.1   |     

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|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | In 2005, operating income includes the step up amortization of
    inventory to the acquired fair value related to the
    Companys acquisition of Apogent in the amount of
    $20.7 million ($13.3 million, net of tax), the
    integration costs of $25.0 million ($17.0 million, net
    of tax), restructuring charges of $22.8 million
    ($15.2 million, net of tax) and long-lived asset impairment
    and related charges of $8.6 million ($5.5 million, net
    of tax). In 2004, operating income includes the step up charges
    of the fair value of inventory from the Apogent, Oxoid,
    Dharmacon, and Perbio transactions of $82.9 million
    ($53.0 million, net of tax), integration costs of
    $25.0 million ($16.6 million, net of tax),
    restructuring charges of $7.8 million ($5.2 million,
    net of tax), a charitable contribution of $6.0 million
    ($3.8 million, net of tax), and impairment charges for
    goodwill and other long-lived assets of $67.6 million
    ($43.7 million, net of tax). Operating income also includes
    the step up charges of the fair value of inventory from the
    Perbio acquisition of $17.4 million ($11.0 million,
    net of tax) in 2003, restructuring credits relating to a
    reduction in estimated severance costs of $2.2 million
    ($1.4 million, net of tax) in 2002, and the restructuring
    and other charges of $61.2 million ($38.5 million, net
    of tax) in 2001. Refer to Item 7 
    Managements Discussion and Analysis of Financial Condition
    and Results of Operations.                                                                                                                                                                                                                                                                                                     
|   
|(b) |  | Income from discontinued operations includes the activities of
    Atos Medical Holding AB, which was sold on April 5, 2005.
    In 2005, income from discontinued operations comprised a gain on
    the disposal of $25.4 million ($17.0 million, net of
    tax) and discontinued operations of $0.4 million
    ($0.2 million, net of tax). In 2004, income from
    discontinued operations was $5.3 million
    ($4.6 million, net of tax). In 2003, income from
    discontinued operations was $1.9 million. Atos was acquired
    in September 2003 in connection with the Companys
    acquisition of Perbio Science AB; there were no discontinued
    operations in 2002 and 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(c) |  | In 2005, net income includes the charges described in
    (a) above, (b) above and debt refinancing and other
    related charges of $71.3 million ($45.6 million, net
    of tax), the gain on sale of investment of $3.3 million
    ($2.1 million, net of tax), other income of
    $0.5 million, the gain on the termination of the interest
    rate swaps of $5.3 million ($3.4 million, net of tax)
    and a tax provision credit related to finalizing certain
    domestic tax audits and negotiations of $6.8 million. In
    2004, net income includes the charges described in
    (a) above, (b) above and debt refinancing charges of
    $14.4 million ($9.0 million, net of tax), the gain on
    sale of investment of $22.7 million ($21.5 million,
    net of tax), the charge for the termination of a foreign
    currency contract of $2.2 million ($1.4 million, net
    of tax), and a tax provision credit related to finalizing
    certain domestic and foreign tax audits and negotiations of
    $10.9 million. Net income in 2003 includes the charges
    described in (a) above, (b) above and charges for call
    premiums of $43.8 million ($27.6 million, net of tax),
    the write-off of deferred financing fees of $22.1 million
    ($13.9 million, net of tax), and the purchase of options to
    hedge foreign currency exposure of $15.7 million
    ($9.9 million, net of tax) and charges for bridge financing
    fees for $2.8 million ($1.8 million, net of tax), each
    related to the Perbio acquisition. Net income in 2002 includes
    the amounts described in (a) above and includes a charge of
    $11.2 million ($7.1 million, net of tax) consisting of
    fixed-swap unwind costs of $7.1 million and the write-off
    of deferred financing and other costs associated with the
    refinancing of our term debt of $4.1 million.
|   
|(d) |  | Working capital excludes the accounts of Atos Medical Holding AB.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

20



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

Cautionary Factors Regarding Forward-Looking Statements


10-K 10-K


10-K,




| |   |                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the extent to which we undertake new acquisitions or enter into
    strategic joint ventures or partnerships, and our ability to
    realize the expected benefit of such acquisitions or strategic
    joint ventures or partnerships;
|
| |  | the loss of major customers or suppliers, including significant
    disruptions resulting from increases in the prices of raw
    materials or services provided by third-party package-delivery
    services;                         
|
| |  | the high degree of competition in the markets served by certain
    of our businesses, and the potential for new competitors to
    enter into these markets;                                                                          
|
| |  | our ability to generate free cash flow or to obtain sufficient
    resources to finance working capital and capital expenditure
    needs;                                                                                             
|
| |  | our outstanding indebtedness and leverage, and the restrictions
    imposed by our indebtedness;                                                                                                                                       
|
| |  | the ability to achieve earnings forecasts due to variability in
    the demand for our products and services;                                                                                                                          
|
| |  | availability, or increases in the cost of fuel or raw materials
    and other inputs used to make our products;                                                                                                                        
|
| |  | our ability to adjust to rapid changes in the healthcare
    industry;                                                                                                                                                                 
|
| |  | future modifications to existing laws and regulations,
    including, but not limited to, those regarding the environment;                                                                                                             
|
| |  | fluctuations in the amount our customers spend on research and
    development, and the corresponding effect on the demand for our
    products;                                                                                       
|
| |  | the effects of domestic and international economic and business
    conditions on our operations;                                                                                                                                      
|
| |  | the loss of key personnel;                                                                                                                                                                                                             
|
| |  | fluctuations in interest rates;                                                                                                                                                                                                        
|
| |  | fluctuations in foreign currency exchange rates; and                                                                                                                                                                                   
|
| |  | discovery of unknown contingent liabilities, including
    environmental contamination at our facilities or liability with
    respect to products we distribute and manufacture.                                                      

10-K


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##### Table of Contents



10-Q, 8-K


10-K.


Overview








Acquisitions and Divestiture












22



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##### Table of Contents









Results of Operations






| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. Scientific products and servicesmanufactures and
    sells products and services primarily to entities conducting
    scientific research, including drug discovery and drug
    development, quality and process control and basic research and
    development, as well as to third-party distributors. Our
    businesses in this segment manufacture and/or distribute a broad
    range of biochemicals and bioreagents; organic and inorganic
    chemicals; sera; cell-culture media; sterile liquid-handling
    systems; microbiology media and related products; and other
    scientific consumable products, instruments and equipment.
    Businesses in this segment also distribute safety-related
    products, such as personal-protection equipment,
    respiratory-protection systems, environmental monitoring and
    sampling equipment, and other safety and clean-room supplies.
    Additionally, businesses in this segment provide services to
    pharmaceutical and biotechnology companies engaged in clinical
    trials, including specialized packaging, over-encapsulation,
    labeling and distribution for phase III and phase IV
    clinical trials, analytical testing, biological-specimen
    management, as well as combinatorial chemistry, custom-chemical
    synthesis and supply-chain management.
|
| | 2. Healthcare products and servicesmanufactures and
    distributes an array of diagnostic kits and reagents, equipment,
    instruments and other consumable products to hospitals, clinical
    laboratories, reference laboratories and physicians
    offices, as well as third-party distributors located primarily
    in the U.S. Other businesses in this segment provide
    outsourced manufacturing services for diagnostic reagents,
    calibrators and controls to the healthcare and pharmaceutical
    industries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| | 3. Laboratory workstationsprimarily manufactures
    and sells workstations and fume hoods for laboratories. Our
    product offerings in this segment include steel, wood and
    plastic laminate casework systems, adaptable furniture systems,
    airflow products and various other fixtures and accessories.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   



| |                   
| | ------------------
| | Executive Overview





23



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##### Table of Contents







| |          
| | ---------
| | Net Sales



|                                 |       |           |         |         |        |  |       |           |       |   |         |         |  |           |         |       |  |   |         |         | 
|-------------------------------- | ----- | --------- | ------- | ------- | ------ |  | ----- | --------- | ----- | - | ------- | ------- |  | --------- | ------- | ----- |  | - | ------- | ------- | 
|                                 |       | 2005      |         |         | 2004   |  |       | 2003      |      
|                                 |       |           |         |         |        |  |       |           |      
|                                 |       |           |         | Sales   |        |  |       |           | Sales |   |         |        
|                                 |       | Net Sales |         |         | Growth |  |       | Net Sales |       |   | Growth  |         |  | Net Sales |        
|                                 |       |           |         |         |        |  |       |           |       |   |         |         |  |           |        
|Scientific products and services |       | $         | 4,141.2 |         |        |  | 19.9% |           |       | $ | 3,454.7 |         |  |           | 38.1%   |       |  | $ | 2,501.0 |        
|Healthcare products and services |       |           | 1,304.4 |         |        |  | 26.4% |           |       |   | 1,032.0 |         |  |           | 19.1%   |       |  |   | 866.8   |        
|Laboratory workstations          |       |           | 200.6   |         |        |  | 13.9% |           |       |   | 176.1   |         |  |           | (14.6)% |       |  |   | 206.1   |        
|Eliminations                     |       |           | (66.8   | )       |        |  |       |           |       |   | (35.5   | )       |  |           |         |       |  |   | (19.9   | )      
|                                 |       |           |         |         |        |  |       |           |       |   |         |         |  |           |        
|                                 | Total |           | $       | 5,579.4 |        |  |       | 20.6%     |       |   | $       | 4,627.3 |  |           |         | 30.2% |  |   | $       | 3,554.0 | 
|                                 |       |           |         |         |        |  |       |           |       |   |         |         |  |           |        

Consolidated.


Scientific Products and Services.


Healthcare Products and Services. drugs-of


Laboratory Workstations.


24



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| |                 
| | ----------------
| | Operating Income



|                                 |                   |                  |       |                 |              |   |       |                  |  |   |       |       |  |      |        |       |      |  |       |       |  |  |      |      | 
|-------------------------------- | ----------------- | ---------------- | ----- | --------------- | ------------ | - | ----- | ---------------- |  | - | ----- | ----- |  | ---- | ------ | ----- | ---- |  | ----- | ----- |  |  | ---- | ---- | 
|                                 |                   |                  |       |                 |              |   |       | Operating Income | 
|                                 |                   |                  |       | as a Percentage |             
|                                 |                   | Operating Income |       |                 | of Net Sales |  
|                                 |                   |                  |       |                 |              |  
|                                 |                   | 2005             |       |                 | 2004         |   |       | 2003             |  |   | 2005  |       |  | 2004 |        |       | 2003 | 
|                                 |                   |                  |       |                 |              |   |       |                  |  |   |       |       |  |      |        |       |      | 
|Scientific products and services |                   | $                | 562.7 |                 |              | $ | 375.5 |                  |  | $ | 229.6 |       |  |      | 13.6%  |       |      |  | 10.9% |       |  |  | 9.2% |     
|Healthcare products and services |                   |                  | 172.9 |                 |              |   | 92.8  |                  |  |   | 33.5  |       |  |      | 13.3%  |       |      |  | 9.0%  |       |  |  | 3.9% |     
|Laboratory workstations          |                   |                  | (0.7  | )               |              |   | 2.8   |                  |  |   | 11.1  |       |  |      | (0.3)% |       |      |  | 1.6%  |       |  |  | 5.4% |     
|Eliminations                     |                   |                  | (0.1  | )               |              |   | (0.3  | )                |  |   | (0.1  | )     |  |      |        |       |      |  |       |       |  |  |      |     
|                                 |                   |                  |       |                 |              |   |       |                  |  |   |       |       |  |      |        |       |      | 
|                                 | Segment sub-total |                  |       | 734.8           |              |   |       | 470.8            |  |   |       | 274.1 |  |      |        | 13.2% |      |  |       | 10.2% |  |  |      | 7.7% | 
|                                 |                   |                  |       |                 |              |   |       |                  |  |   |       |       |  |      |        |       |      | 
|Inventory step-up                |                   |                  | 20.7  |                 |              |   | 82.9  |                  |  |   | 17.4  |       |  |      |        |       |      |  |       |       |  |  |      |     
|Restructuring expense            |                   |                  | 22.8  |                 |              |   | 7.8   |                  |  |   |      |       |  |      |        |       |      |  |       |       |  |  |      |     
|Goodwill impairment              |                   |                  |      |                 |              |   | 64.9  |                  |  |   |      |       |  |      |        |       |      |  |       |       |  |  |      |     
|Other charges                    |                   |                  | 33.6  |                 |              |   | 33.7  |                  |  |   |      |       |  |      |        |       |      |  |       |       |  |  |      |     
|                                 |                   |                  |       |                 |              |   |       |                  |  |   |       |       |  |      |        |       |      | 
|                                 | Operating income  |                  | $     | 657.7           |              |   | $     | 281.5            |  |   | $     | 256.7 |  |      |        | 11.8% |      |  |       | 6.1%  |  |  |      | 7.2% | 
|                                 |                   |                  |       |                 |              |   |       |                  |  |   |       |       |  |      |        |       |      | 

Consolidated. step-up


Scientific Products and Services.


25



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##### Table of Contents





Healthcare Products and Services.


Laboratory Workstations. start-up




| |                              
| | -----------------------------
| | Restructuring Plan Activities





26



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##### Table of Contents





|                               |                     |              |     |     |         |   |      |          |  |   |       |       |              |      |      |      |   |   |     |     | 
|------------------------------ | ------------------- | ------------ | --- | --- | ------- | - | ---- | -------- |  | - | ----- | ----- | ------------ | ---- | ---- | ---- | - | - | --- | --- | 
|                               |                     | December 31, |     |     | 2005    |   |      | 2005     |  |   |       |       | December 31, |     
|                               |                     | 2004         |     |     | Charges |   |      | Payments |  |   | Other |       |              | 2005 |     
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |              |      |     
|2004 Plan termination benefits |                     | $            | 3.3 |     |         | $ | 16.6 |          |  | $ | (16.2 | )     |              | $    | (0.3 | )    |   | $ | 3.4 |    
|2004 Plan other charges        |                     |              | 1.5 |     |         |   | 3.3  |          |  |   | (1.5  | )     |              |      | (1.2 | )    |   |   | 2.1 |    
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |              |      |     
|                               | Total 2004 Plan     |              |     | 4.8 |         |   |      | 19.9     |  |   |       | (17.7 | )            |      |      | (1.5 | ) |   |     | 5.5 | 
|                              
|Other plans                    |                     |              | 1.5 |     |         |   | 2.9  |          |  |   | (3.4  | )     |              |      | (0.3 | )    |   |   | 0.7 |    
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |              |      |     
|                               | Total restructuring |              | $   | 6.3 |         |   | $    | 22.8     |  |   | $     | (21.1 | )            |      | $    | (1.8 | ) |   | $   | 6.2 | 
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |              |      |     

|                               |                     |              |     |     |         |   |     |          |  |   |              |      |   |   |     |     | 
|------------------------------ | ------------------- | ------------ | --- | --- | ------- | - | --- | -------- |  | - | ------------ | ---- | - | - | --- | --- | 
|                               |                     | December 31, |     |     | 2004    |   |     | 2004     |  |   | December 31, |     
|                               |                     | 2003         |     |     | Charges |   |     | Payments |  |   | 2004         |     
|                               |                     |              |     |     |         |   |     |          |  |   |              |     
|2004 Plan termination benefits |                     | $            |    |     |         | $ | 6.0 |          |  | $ | (2.7         | )    |   | $ | 3.3 |    
|2004 Plan other charges        |                     |              |    |     |         |   | 1.8 |          |  |   | (0.3         | )    |   |   | 1.5 |    
|                               |                     |              |     |     |         |   |     |          |  |   |              |     
|                               | Total 2004 Plan     |              |     |    |         |   |     | 7.8      |  |   |              | (3.0 | ) |   |     | 4.8 | 
|                              
|Other plans                    |                     |              | 2.2 |     |         |   |    |          |  |   | (0.7         | )    |   |   | 1.5 |    
|                               |                     |              |     |     |         |   |     |          |  |   |              |     
|                               | Total restructuring |              | $   | 2.2 |         |   | $   | 7.8      |  |   | $            | (3.7 | ) |   | $   | 6.3 | 
|                               |                     |              |     |     |         |   |     |          |  |   |              |     



| |                 
| | ----------------
| | Interest Expense

1 8 1 8




| |                            
| | ---------------------------
| | Other Expense (Income), Net



|                                            |                             |      |      |      |      |   |       |       |   |   |      |      | 
|------------------------------------------- | --------------------------- | ---- | ---- | ---- | ---- | - | ----- | ----- | - | - | ---- | ---- | 
|                                            |                             | 2005 |      |      | 2004 |   |       | 2003  |  
|                                            |                             |      |      |      |      |   |       |       |  
|Debt-refinancing costs                      |                             | $    | 70.3 |      |      | $ | 14.4  |       |   | $ | 65.9 |     
|Acquisition-related foreign currency hedges |                             |      |     |      |      |   | 2.2   |       |   |   | 15.7 |     
|Gain on sale of investment                  |                             |      | (3.3 | )    |      |   | (22.7 | )     |   |   |     |     
|Interest income and other                   |                             |      | (6.7 | )    |      |   | (4.3  | )     |   |   | (3.9 | )   
|                                            |                             |      |      |      |      |   |       |       |  
|                                            | Other expense (income), net |      | $    | 60.3 |      |   | $     | (10.4 | ) |   | $    | 77.7 | 
|                                            |                             |      |      |      |      |   |       |       |  

1 8


27



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| |                        
| | -----------------------
| | Discontinued Operations





| |                     
| | --------------------
| | Income Tax Provision



Liquidity and Capital Resources






28



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In April 2005, we commenced a cash tender offer for all
    $304 million aggregate principal amount outstanding of our
    81/8% Senior
    Subordinated Notes due 2012. We accepted for purchase
    approximately $290.1 million of the Notes in the tender
    offer. Subsequent to the tender offer, we purchased on the open
    market approximately $12.4 million of the Notes.                                                                                
|
| |  | In June 2005, we commenced a cash tender offer for all
    $300 million aggregate principal amount outstanding of our
    8% Senior Subordinated Notes due 2013. We accepted for
    purchase approximately $298.3 million of the Notes in the
    tender offer. On August 15, 2005, we redeemed the remaining
    balance of $1.7 million of the Notes.                                                                                                              
|
| |  | On July 15, 2005, we issued and sold pursuant to
    Rule 144A $500.0 million of
    61/8% Senior
    Subordinated Notes due 2015. We used the proceeds from this
    offering, in part, to complete a tender offer for approximately
    $298.3 million of the 8% Senior Subordinated Notes due
    2013. The remaining proceeds were used to fund a portion of the
    purchase price of Cellomics, Inc., Lancaster Laboratories, Inc.
    and McKesson BioServices.





| |   |                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On March 3, 2004, we sold $300 million of our
    3.25% Convertible Senior Subordinated Notes due 2024 and on
    March 23, 2004, we sold an additional $30 million
    principal amount upon exercise of the over-allotment option by
    the initial purchasers of the notes.
|
| |  | On March 31, 2004, we retired $80 million of bank debt
    outstanding under our term loan facility reducing the then
    outstanding balance to $360 million.                                                                                                                 
|
| |  | On August 3, 2004, we issued and sold pursuant to
    Rule 144A $300 million of our
    63/4% Senior
    Subordinated Notes due 2014. We used the proceeds from this
    offering to repay Apogents
    61/2% Senior
    Subordinated Notes due 2013.                         





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We entered into a new credit facility (the Credit
    Facility) to replace our existing credit facility, to pay
    off other existing indebtedness (including indebtedness of our
    subsidiaries), to provide working capital and for general
    corporate purposes. The Credit Facility consisted of (i) a
    $500 million revolving credit facility (the Revolving
    Credit Facility) and (ii) a $700 million term
    loan facility (the Term Facility) in three tranches:
    (a) a $250 million tranche
    (Tranche A-1),
    (b) a $300 million tranche
    (Tranche A-2)
    and (c) a $150 million tranche
    (Tranche B). The
    Tranche A-2 loan
    was unfunded at the closing of the Credit Facility and the
    lenders commitment to fund the
    Tranche A-2 loan
    was originally scheduled to expire on December 31, 2004. In
    December 2004, we amended the Credit Facility to extend the term
    of this commitment through December 31, 2005, and lower the
    interest rate on commitments and borrowings under the Credit
    Facility. In December 2005, we again amended the Credit Facility
    to increase the commitment under the Revolving Credit Facility
    to $800 million, terminate the commitment under the
    Tranche A-2 loan,
    refinance the Tranche B loan with an additional
    Tranche A-1 loan
    and further lower the interest rate on commitments and
    borrowings.
|
| |  | We completed an exchange offer for the $345 million
    aggregate principal amount of Floating Rate Senior Convertible
    Contingent Debt Securities due 2033 (the Floating Rate
    CODES) of Apogent. The exchange offer for the Floating
    Rate CODES aligned the conversion terms of Apogents
    convertible debt with Fishers currently outstanding
    convertible debt. A total of 99.9% of the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | outstanding principal amount of the Floating Rate CODES were
    tendered for exchange with a like principal amount of Floating
    Rate Convertible Senior Debentures.                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | We completed an exchange offer for the $300 million
    aggregate principal amount of 2.25% Senior Convertible
    Contingent Debt Securities due 2021 (the 2.25%
    CODES) of Apogent. The exchange offer for the 2.25% CODES
    aligned the conversion terms of Apogents convertible debt
    with Fishers currently outstanding convertible debt. A
    total of 99.6% of the outstanding principal amount of the 2.25%
    CODES were tendered for exchange with a like principal amount of
    2.25% Convertible Senior Debentures.
|
| |  | Concurrent with the two exchange offers, we completed a cash
    tender offer for the $250 million aggregate principal
    amount of the
    61/2% Senior
    Subordinated Notes due 2013 of Apogent. A total of 99.8% of the
    outstanding principal amount of the notes were tendered.                                                                                                                                                                                                                                                    
|
| |  | On September 20, 2004, we issued a notice of redemption for
    approximately $298.8 million of the 2.25% Convertible
    Senior Debentures and approximately $1.0 million of the
    2.25% CODES for cash. Noteholders had the option of converting
    their notes until October 18, 2004. Approximately
    $295.7 million of the notes were converted and settled in
    cash. Notes that were not converted were redeemed on
    October 20, 2004.                                                                                       





|                                            |                      |      |         |         |      |   |         |         | 
|------------------------------------------- | -------------------- | ---- | ------- | ------- | ---- | - | ------- | ------- | 
|                                            |                      | 2005 |         |         | 2004 |  
|                                            |                      |      |         |         |      |  
|Revolving Credit Facility(1)                |                      | $    |        |         |      | $ |        |        
|Term Facility                               |                      |      | 381.2   |         |      |   | 393.0   |        
|2.50% Convertible Senior Notes              |                      |      | 300.0   |         |      |   | 300.0   |        
|Floating Rate Convertible Senior Debentures |                      |      | 344.6   |         |      |   | 344.6   |        
|3.25% Convertible Senior Subordinated Notes |                      |      | 330.0   |         |      |   | 330.0   |        
|81/8% Senior
    Subordinated Notes         |                      |      | 1.5     |         |      |   | 309.9   |        
|8% Senior Subordinated Notes                |                      |      |        |         |      |   | 310.3   |        
|63/4% Senior
    Subordiated Notes          |                      |      | 300.0   |         |      |   | 300.0   |        
|61/8% Senior
    Subordinated Notes         |                      |      | 497.4   |         |      |   |        |        
|Other debt                                  |                      |      | 55.4    |         |      |   | 60.8    |        
|                                            |                      |      |         |         |      |  
|                                            | Total debt           |      |         | 2,210.1 |      |   |         | 2,348.6 | 
|Stockholders equity                        |                      |      | 4,304.3 |         |      |   | 3,870.0 |        
|                                            |                      |      |         |         |      |  
|                                            | Total capitalization |      | $       | 6,514.4 |      |   | $       | 6,218.6 | 
|                                            |                      |      |         |         |      |  






|    |                                                                                                                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Our revolving credit commitments were $800.0 million and
    $500.0 million at December 31, 2005 and 2004,
    respectively. As of December 31, 2005 and 2004,
    approximately $31.8 million and $38.1 million,
    respectively, of this facility were utilized for letters of
    credit outstanding, and no borrowings were outstanding.



30



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|                                      |                               |                        |         |           |        |   |       |           |           |   |           |       |  |         |       |       |  |   |         |         | 
|------------------------------------- | ----------------------------- | ---------------------- | ------- | --------- | ------ | - | ----- | --------- | --------- | - | --------- | ----- |  | ------- | ----- | ----- |  | - | ------- | ------- | 
|                                      |                               | Payments Due by Period |        
|                                      |                               |                        |        
|                                      |                               |                        |         | Less Than |        |   |       |           | More Than |  
|Contractual Obligations               |                               | Total                  |         |           | 1 Year |   |       | 1-3 Years |           |   | 3-5 Years |       |  | 5 Years |      
|                                      |                               |                        |         |           |        |   |       |           |           |   |           |       |  |         |      
|Debt, including short-term debt(a)    |                               | $                      | 2,204.0 |           |        | $ | 72.2  |           |           | $ | 70.8      |       |  | $       | 286.1 |       |  | $ | 1,774.9 |        
|Interest(b)                           |                               |                        | 1,173.3 |           |        |   | 100.2 |           |           |   | 196.4     |       |  |         | 167.9 |       |  |   | 708.8   |        
|Capital lease obligations             |                               |                        | 6.1     |           |        |   | 2.4   |           |           |   | 3.5       |       |  |         | 0.2   |       |  |   |        |        
|Operating leases                      |                               |                        | 211.3   |           |        |   | 50.1  |           |           |   | 75.7      |       |  |         | 44.7  |       |  |   | 40.8    |        
|Unconditional purchase obligations(c) |                               |                        | 15.7    |           |        |   | 15.7  |           |           |   |          |       |  |         |      |       |  |   |        |        
|Other(d)                              |                               |                        | 8.2     |           |        |   | 8.2   |           |           |   |          |       |  |         |      |       |  |   |        |        
|                                      |                               |                        |         |           |        |   |       |           |           |   |           |       |  |         |      
|                                      | Total contractual obligations |                        | $       | 3,618.6   |        |   | $     | 248.8     |           |   | $         | 346.4 |  |         | $     | 498.9 |  |   | $       | 2,524.5 | 
|                                      |                               |                        |         |           |        |   |       |           |           |   |           |       |  |         |      






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Amounts represent the expected cash payments for our debt and do
    not include any deferred issuance costs.                                                                                                                                                                                                                                                                                                                           
|   
|(b) |  | For the purpose of this calculation, amounts assume interest
    rates on floating rate obligations remain unchanged from levels
    at December 31, 2005, throughout the life of the obligation.                                                                                                                                                                                                                                       
|   
|(c) |  | Unconditional purchase obligations include agreements to
    purchase goods or services that are enforceable and legally
    binding and that specify all significant terms, including: fixed
    or minimum quantities to be purchased; fixed, minimum or
    variable price provisions; and the approximate timing of the
    transaction. Purchase obligations exclude agreements that are
    cancelable at anytime without penalty.
|   
|(d) |  | Obligation represents a funding commitment pursuant to an
    investment held by the Company.                                                                                                                                                                                                                                                                                                                                           







31



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| |           
| | ----------
| | Guarantees





Equity Investment in Affiliates and Other Investments




Investments


Description of Indebtedness




|                                            |  |                  |            |     |          |  |         |                |  |  |                 |  |  |            |                |  |  |                                       |           | 
|------------------------------------------- |  | ---------------- | ---------- | --- | -------- |  | ------- | -------------- |  |  | --------------- |  |  | ---------- | -------------- |  |  | ------------------------------------- | --------- | 
|                                            |  |                  |            |     |          |  |         | S&P, Fitch,    |  |  |                
|Instrument                                  |  | Interest Pricing |            |     | Maturity |  |         | First Put Date |  |  | Moodys Ratings |  |  | Collateral |               
|                                            |  |                  |            |     |          |  |         |                |  |  |                 |  |  |            |               
|Receivable Securitization Facility          |  |                  | CP+60      |     |          |  | 2008    |                |  |  | Not applicable  |  |  |            | Not applicable |  |  | Select accounts receivable           
|Revolving Credit Facility                   |  |                  | LIBOR+62.5 | (a) |          |  | 2009    |                |  |  | Not applicable  |  |  |            | BBB/BBB/Bal    |  |  | Stock of material direct subsidiaries
|Term Facility                               |  |                  | LIBOR+62.5 | (a) |          |  | 2009    |                |  |  | Not applicable  |  |  |            | BBB/BBB/Bal    |  |  | Stock of material direct subsidiaries
|2.50% Convertible Senior Notes              |  |                  | 2.5        | %   |          |  | 2023    |                |  |  | 2010            |  |  |            | BBB/BBB/Bal  |  |  |                                       | Unsecured | 
|Floating Rate Convertible Senior Debentures |  |                  | LIBOR-125  |     |          |  | 2033    |                |  |  | 2008            |  |  |            | BBB/BBB/Bal  |  |  |                                       | Unsecured | 
|3.25% Convertible Senior Subordinated Notes |  |                  | 3.25       | %   |          |  | 2024    |                |  |  | 2011            |  |  |            | BB+/BB+/Ba2    |  |  |                                       | Unsecured | 
|63/4% Senior
    Subordinated Notes         |  |                  | 6.75       | %   |          |  | 2014    |                |  |  | Not applicable  |  |  |            | BB+/BB+/Ba2    |  |  |                                       | Unsecured | 
|61/8% Senior
    Subordinated Notes         |  |                  | 6.125      | %   |          |  | 2015    |                |  |  | Not applicable  |  |  |            | BB+/BB+/Ba2    |  |  |                                       | Unsecured | 
|81/8% Senior
    Subordinated Notes         |  |                  | 8.125      | %   |          |  | 2012    |                |  |  | Not applicable  |  |  |            | BB+/BB+/Ba2    |  |  |                                       | Unsecured | 
|Other debt                                  |  |                  | Various    |     |          |  | Various |                |  |  | Not applicable  |  |  |            | Not applicable |  |  |                                       | Various   | 






|    |  |                                                                                                                
|--- |  | ---------------------------------------------------------------------------------------------------------------
|(a) |  | Interest rate is based on ratings. As of December 31, 2005,
    the interest rate is LIBOR + 62.5 basis points.

Receivables Securitization Facility


365-day


32



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Credit Facilities


A-1, A-2 A-2 A-1 A-1








Consolidated Interest Expense Coverage Ratio.


Total Leverage Ratio.


|                                          |  |       |              | 
|----------------------------------------- |  | ----- | ------------ | 
|Period                                    |  | Ratio |             
|                                          |  |       |             
|January 1, 2005 through December 31, 2005 |  |       | 4.25 to 1.00 | 
|Thereafter                                |  |       | 3.75 to 1.00 | 

Senior Leverage Ratio.


33



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|                                          |  |       |              | 
|----------------------------------------- |  | ----- | ------------ | 
|Period                                    |  | Ratio |             
|                                          |  |       |             
|January 1, 2005 through December 31, 2005 |  |       | 3.25 to 1.00 | 
|Thereafter                                |  |       | 3.00 to 1.00 | 



2.50% Convertible Senior Notes due 2023




Floating Rate Convertible Senior Debentures due 2033




3.25% Convertible Senior Subordinated Notes due 2024




34



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63/4% Senior
Subordinated Notes due 2014


3 4




61/8% Senior
Subordinated Notes due 2015


1 8




Critical Accounting Policies




35



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Revenue Recognition


Loss Contingencies


Warranty Obligations


Business Combinations


Goodwill and Indefinite Lived Intangibles


36



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Long-lived Tangible Assets and Definite-lived Intangible
Assets


Pension Plans and Retiree Benefits








Stock Options Accounting for Stock Issued to Employees Accounting for Stock-Based Compensation


37



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Income Taxes




non-U.S. non-U.S.




Recent Accounting Pronouncements


Share-Based Payment Accounting for Stock Issued to Employees Statement of Cash
Flows


38



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Inventory Costs







|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures About Market
    Risk

Financial Instruments






non-U.S.


39



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Interest Rate Risk and Management






Currency Risk and Management








Commodity Risk Management






40



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|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














Deloitte &
Touche LLP









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FISHER SCIENTIFIC INTERNATIONAL INC.


CONSOLIDATED STATEMENT OF OPERATIONS


|                                                                                                                              |                                     |                                      |         |       |      |   |         |      |  |   |         |      | 
|----------------------------------------------------------------------------------------------------------------------------- | ----------------------------------- | ------------------------------------ | ------- | ----- | ---- | - | ------- | ---- |  | - | ------- | ---- | 
|                                                                                                                              |                                     | Year Ended December 31,              |        
|                                                                                                                              |                                     |                                      |        
|                                                                                                                              |                                     | 2005                                 |         |       | 2004 |   |         | 2003 | 
|                                                                                                                              |                                     |                                      |         |       |      |   |         |      | 
|                                                                                                                              |                                     | (In millions, except per share data) |        
|Net sales                                                                                                                     |                                     | $                                    | 5,579.4 |       |      | $ | 4,627.3 |      |  | $ | 3,554.0 |     
|Cost of sales                                                                                                                 |                                     |                                      | 3,668.8 |       |      |   | 3,272.5 |      |  |   | 2,620.8 |     
|Selling, general and administrative expenses                                                                                  |                                     |                                      | 1,230.1 |       |      |   | 1,000.6 |      |  |   | 676.5   |     
|Impairment of goodwill                                                                                                        |                                     |                                      |        |       |      |   | 64.9    |      |  |   |        |     
|Restructuring expenses                                                                                                        |                                     |                                      | 22.8    |       |      |   | 7.8     |      |  |   |        |     
|                                                                                                                              |                                     |                                      |         |       |      |   |         |      | 
|Operating income                                                                                                              |                                     |                                      | 657.7   |       |      |   | 281.5   |      |  |   | 256.7   |     
|Interest expense                                                                                                              |                                     |                                      | 109.3   |       |      |   | 104.8   |      |  |   | 84.8    |     
|Other expense (income), net                                                                                                   |                                     |                                      | 60.3    |       |      |   | (10.4   | )    |  |   | 77.7    |     
|                                                                                                                              |                                     |                                      |         |       |      |   |         |      | 
|Income from continuing operations before income taxes                                                                         |                                     |                                      | 488.1   |       |      |   | 187.1   |      |  |   | 94.2    |     
|Income tax provision                                                                                                          |                                     |                                      | 116.2   |       |      |   | 25.3    |      |  |   | 17.7    |     
|                                                                                                                              |                                     |                                      |         |       |      |   |         |      | 
|Income from continuing operations                                                                                             |                                     |                                      | 371.9   |       |      |   | 161.8   |      |  |   | 76.5    |     
|Income from discontinued operations, including gain on disposal
    of $17.0, net of tax for the year ended December 31, 2005 |                                     |                                      | 17.2    |       |      |   | 4.6     |      |  |   | 1.9     |     
|                                                                                                                              |                                     |                                      |         |       |      |   |         |      | 
|Net income                                                                                                                    |                                     | $                                    | 389.1   |       |      | $ | 166.4   |      |  | $ | 78.4    |     
|                                                                                                                              |                                     |                                      |         |       |      |   |         |      | 
|Earnings per share:                                                                                                           |                                     |                                      |         |       |      |   |         |      |  |   |         |     
|Basic net income per common share:                                                                                            |                                     |                                      |         |       |      |   |         |      |  |   |         |     
|                                                                                                                              | Income from continuing operations   |                                      | $       | 3.06  |      |   | $       | 1.88 |  |   | $       | 1.35 | 
|                                                                                                                              | Income from discontinued operations |                                      |         | 0.14  |      |   |         | 0.05 |  |   |         | 0.03 | 
|                                                                                                                              |                                     |                                      |         |       |      |   |         |      | 
|                                                                                                                              | Net income                          |                                      | $       | 3.20  |      |   | $       | 1.93 |  |   | $       | 1.38 | 
|                                                                                                                              |                                     |                                      |         |       |      |   |         |      | 
|Diluted net income per common share:                                                                                          |                                     |                                      |         |       |      |   |         |      |  |   |         |     
|                                                                                                                              | Income from continuing operations   |                                      | $       | 2.92  |      |   | $       | 1.75 |  |   | $       | 1.26 | 
|                                                                                                                              | Income from discontinued operations |                                      |         | 0.13  |      |   |         | 0.05 |  |   |         | 0.03 | 
|                                                                                                                              |                                     |                                      |         |       |      |   |         |      | 
|                                                                                                                              | Net income                          |                                      | $       | 3.05  |      |   | $       | 1.80 |  |   | $       | 1.29 | 
|                                                                                                                              |                                     |                                      |         |       |      |   |         |      | 
|Weighted average common shares outstanding:                                                                                   |                                     |                                      |         |       |      |   |         |      |  |   |         |     
|                                                                                                                              | Basic                               |                                      |         | 121.5 |      |   |         | 86.2 |  |   |         | 56.9 | 
|                                                                                                                              |                                     |                                      |         |       |      |   |         |      | 
|                                                                                                                              | Diluted                             |                                      |         | 127.5 |      |   |         | 92.2 |  |   |         | 60.6 | 
|                                                                                                                              |                                     |                                      |         |       |      |   |         |      | 



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FISHER SCIENTIFIC INTERNATIONAL INC.


CONSOLIDATED BALANCE SHEET


|                                                                           |                                                                                                                                                                                                                  |                            |                                            |       |         |         |         |       |         |         | 
|-------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | ------------------------------------------ | ----- | ------- | ------- | ------- | ----- | ------- | ------- | 
|                                                                           |                                                                                                                                                                                                                  | December 31,               |                                           
|                                                                           |                                                                                                                                                                                                                  |                            |                                           
|                                                                           |                                                                                                                                                                                                                  | 2005                       |                                            |       | 2004    |        
|                                                                           |                                                                                                                                                                                                                  |                            |                                            |       |         |        
|                                                                           |                                                                                                                                                                                                                  | (In millions, except       |                                           
|                                                                           |                                                                                                                                                                                                                  | share data)                |                                           
|ASSETS                                                                    
|Current assets:                                                            |                                                                                                                                                                                                                  |                            |                                            |       |         |         |         |      
|                                                                           | Cash and cash equivalents                                                                                                                                                                                        |                            | $                                          | 407.2 |         |         | $       | 162.5 |        
|                                                                           | Accounts receivable, net                                                                                                                                                                                         |                            |                                            | 697.0 |         |         |         | 632.8 |        
|                                                                           | Inventories                                                                                                                                                                                                      |                            |                                            | 605.6 |         |         |         | 622.4 |        
|                                                                           | Other current assets                                                                                                                                                                                             |                            |                                            | 281.5 |         |         |         | 264.5 |        
|                                                                           | Assets held for sale                                                                                                                                                                                             |                            |                                            |      |         |         |         | 94.2  |        
|                                                                           |                                                                                                                                                                                                                  |                            |                                            |       |         |        
|                                                                           |                                                                                                                                                                                                                  | Total current assets       |                                            |       | 1,991.3 |         |         |       | 1,776.4 |        
|Property, plant and equipment, net                                         |                                                                                                                                                                                                                  |                            | 831.3                                      |       |         |         | 785.4   |      
|Goodwill                                                                   |                                                                                                                                                                                                                  |                            | 3,769.8                                    |       |         |         | 3,756.9 |      
|Intangible assets, net                                                     |                                                                                                                                                                                                                  |                            | 1,569.1                                    |       |         |         | 1,565.4 |      
|Other assets                                                               |                                                                                                                                                                                                                  |                            | 268.8                                      |       |         |         | 206.1   |      
|                                                                           |                                                                                                                                                                                                                  |                            |                                            |       |         |        
|                                                                           |                                                                                                                                                                                                                  | Total assets               |                                            | $     | 8,430.3 |         |         | $     | 8,090.2 |        
|                                                                           |                                                                                                                                                                                                                  |                            |                                            |       |         |        
|                                                                          
|LIABILITIES AND STOCKHOLDERS EQUITY                                      
|Current liabilities:                                                       |                                                                                                                                                                                                                  |                            |                                            |       |         |         |         |      
|                                                                           | Short-term debt                                                                                                                                                                                                  |                            | $                                          | 74.6  |         |         | $       | 39.4  |        
|                                                                           | Accounts payable                                                                                                                                                                                                 |                            |                                            | 501.1 |         |         |         | 468.5 |        
|                                                                           | Accrued and other current liabilities                                                                                                                                                                            |                            |                                            | 439.4 |         |         |         | 452.9 |        
|                                                                           | Liabilities held for sale                                                                                                                                                                                        |                            |                                            |      |         |         |         | 8.9   |        
|                                                                           |                                                                                                                                                                                                                  |                            |                                            |       |         |        
|                                                                           |                                                                                                                                                                                                                  | Total current liabilities  |                                            |       | 1,015.1 |         |         |       | 969.7   |        
|Long-term debt                                                             |                                                                                                                                                                                                                  |                            | 2,135.5                                    |       |         |         | 2,309.2 |      
|Other long-term liabilities                                                |                                                                                                                                                                                                                  |                            | 975.4                                      |       |         |         | 941.3   |      
|                                                                           |                                                                                                                                                                                                                  |                            |                                            |       |         |        
|                                                                           |                                                                                                                                                                                                                  | Total liabilities          |                                            |       | 4,126.0 |         |         |       | 4,220.2 |        
|                                                                           |                                                                                                                                                                                                                  |                            |                                            |       |         |        
|Commitments and contingencies                                              |                                                                                                                                                                                                                  |                            |                                            |       |         |         |         |      
|Stockholders equity:                                                      |                                                                                                                                                                                                                  |                            |                                            |       |         |         |         |      
|                                                                           | Preferred stock ($0.01 par value; 15,000,000 shares
    authorized; none outstanding)                                                                                                                            |                            |                                            |      |         |         |         |      |        
|                                                                           | Common stock ($0.01 par value; 500,000,000 shares
    authorized; 123,656,538 and 118,928,952 shares issued;
    123,401,563 and 118,673,977 shares outstanding at
    December 31, 2005 and 2004, respectively) |                            |                                            | 1.2   |         |         |         | 1.1   |        
|Capital in excess of par value                                             |                                                                                                                                                                                                                  |                            | 4,191.9                                    |       |         |         | 4,006.1 |      
|Retained earnings (Accumulated deficit)                                    |                                                                                                                                                                                                                  |                            | 129.0                                      |       |         |         | (260.1  | )    
|Accumulated other comprehensive (loss) income                              |                                                                                                                                                                                                                  |                            | (13.8                                      | )     |         |         | 126.9   |      
|Treasury stock, at cost (254,975 shares at
    December 31, 2005 and 2004) |                                                                                                                                                                                                                  |                            | (4.0                                       | )     |         |         | (4.0    | )    
|                                                                           |                                                                                                                                                                                                                  |                            |                                            |       |         |        
|                                                                           |                                                                                                                                                                                                                  | Total stockholders equity |                                            |       | 4,304.3 |         |         |       | 3,870.0 |        
|                                                                           |                                                                                                                                                                                                                  |                            |                                            |       |         |        
|                                                                           |                                                                                                                                                                                                                  |                            | Total liabilities and stockholders equity |       | $       | 8,430.3 |         |       | $       | 8,090.2 | 
|                                                                           |                                                                                                                                                                                                                  |                            |                                            |       |         |        



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FISHER SCIENTIFIC INTERNATIONAL INC.


CONSOLIDATED STATEMENT OF CASH FLOWS


|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |        |       |      |          |        |       |  
|------------------------------------------------------------ | --------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------- | ------------------------------------------------------------ | ------ | ------ | ----- | ----- | -------- | ------ | ----- | ---- | -------- | ------ | ----- | -
|                                                             |                                                                                   | Year Ended December 31,                                                            |                                                             
|                                                             |                                                                                   |                                                                                    |                                                             
|                                                             |                                                                                   | 2005                                                                               |                                                              |        | 2004   |       |       | 2003     |       
|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |       
|                                                             |                                                                                   | (In millions)                                                                      |                                                             
|Cash flows from operating activities:                        |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |        |       |      |         
|                                                             | Net income                                                                        |                                                                                    | $                                                            | 389.1  |        |       | $     | 166.4    |        |       | $    | 78.4     |       
|                                                             | Adjustments to reconcile net income to cash provided by
    operating activities: |                                                                                    |                                                              |        |        |       |       |          |        |       |      |          |       
|                                                             |                                                                                   | Depreciation                                                                       |                                                              |        | 131.2  |       |       |          | 92.3   |       |      |          | 53.0   |      
|                                                             |                                                                                   | Amortization of intangible assets                                                  |                                                              |        | 53.3   |       |       |          | 32.6   |       |      |          | 12.1   |      
|                                                             |                                                                                   | Amortization  other                                                               |                                                              |        | 15.4   |       |       |          | 18.4   |       |      |          | 17.7   |      
|                                                             |                                                                                   | Debt redemption premiums and write off of amounts associated
    with debt tenders |                                                              |        | 70.3   |       |       |          | 9.3    |       |      |          | 65.9   |      
|                                                             |                                                                                   | Deferred income taxes                                                              |                                                              |        | 71.3   |       |       |          | (3.0   | )     |      |          | (0.5   | )    
|                                                             |                                                                                   | Other noncash items                                                                |                                                              |        | 12.9   |       |       |          | 8.8    |       |      |          | 18.8   |      
|                                                             |                                                                                   | Gain on sale of business and investments                                           |                                                              |        | (27.2  | )     |       |          | (22.7  | )     |      |          |       |      
|                                                             |                                                                                   | Impairment of goodwill                                                             |                                                              |        |       |       |       |          | 64.9   |       |      |          |       |      
|                                                             |                                                                                   | Changes in working capital:                                                        |                                                              |        |        |       |       |          |        |       |      |          |        |      
|                                                             |                                                                                   |                                                                                    | (Increase)/decrease in accounts receivables, net             |        |        | (57.7 | )     |          |        | 35.0  |      |          |        | (17.0 | )
|                                                             |                                                                                   |                                                                                    | (Increase)/decrease in inventories                           |        |        | (9.1  | )     |          |        | 54.6  |      |          |        | 37.6  |  
|                                                             |                                                                                   |                                                                                    | (Increase)/decrease in other current assets                  |        |        | 12.0  |       |          |        | (10.0 | )    |          |        | 4.3   |  
|                                                             |                                                                                   |                                                                                    | Increase in accounts payable                                 |        |        | 21.4  |       |          |        | 15.0  |      |          |        | 7.8   |  
|                                                             |                                                                                   |                                                                                    | (Decrease)/increase in accrued and other current liabilities |        |        | (16.6 | )     |          |        | 2.0   |      |          |        | 7.8   |  
|                                                             |                                                                                   | (Decrease) in other assets and liabilities                                         |                                                              |        | (54.3  | )     |       |          | (70.8  | )     |      |          | (67.9  | )    
|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |       
|                                                             |                                                                                   | Cash provided by operating activities                                              |                                                              |        | 612.0  |       |       |          | 392.8  |       |      |          | 218.0  |      
|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |       
|Cash flows from investing activities:                        |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |        |       |      |         
|                                                             | Acquisitions, net of cash acquired                                                |                                                                                    |                                                              | (278.8 | )      |       |       | (336.1   | )      |       |      | (672.0   | )     
|                                                             | Capital expenditures                                                              |                                                                                    |                                                              | (127.8 | )      |       |       | (93.4    | )      |       |      | (80.2    | )     
|                                                             | Proceeds from sale of a business                                                  |                                                                                    |                                                              | 111.3  |        |       |       |         |        |       |      |         |       
|                                                             | Other investing activities                                                        |                                                                                    |                                                              | 26.9   |        |       |       | 22.5     |        |       |      | (14.2    | )     
|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |       
|                                                             |                                                                                   | Cash used in investing activities                                                  |                                                              |        | (268.4 | )     |       |          | (407.0 | )     |      |          | (766.4 | )    
|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |       
|Cash flows from financing activities:                        |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |        |       |      |         
|                                                             | Proceeds from sale of common stock                                                |                                                                                    |                                                              |       |        |       |       |         |        |       |      | 260.6    |       
|                                                             | Proceeds from stock options exercised                                             |                                                                                    |                                                              | 148.1  |        |       |       | 136.0    |        |       |      | 19.8     |       
|                                                             | Long-term debt proceeds                                                           |                                                                                    |                                                              | 497.3  |        |       |       | 1,029.3  |        |       |      | 1,470.7  |       
|                                                             | Long-term debt payments                                                           |                                                                                    |                                                              | (634.6 | )      |       |       | (1,035.6 | )      |       |      | (1,077.9 | )     
|                                                             | Proceeds from Revolving Credit Facility                                           |                                                                                    |                                                              | 74.1   |        |       |       | 471.8    |        |       |      |         |       
|                                                             | Revolving Credit Facility payments                                                |                                                                                    |                                                              | (74.1  | )      |       |       | (471.8   | )      |       |      |         |       
|                                                             | Change in short-term debt, net                                                    |                                                                                    |                                                              | (15.2  | )      |       |       | (5.8     | )      |       |      | (16.2    | )     
|                                                             | Debt financing costs                                                              |                                                                                    |                                                              | (2.0   | )      |       |       | (26.9    | )      |       |      | (29.5    | )     
|                                                             | Debt redemption premiums and other financing                                      |                                                                                    |                                                              | (77.8  | )      |       |       | (13.8    | )      |       |      | (43.8    | )     
|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |       
|                                                             |                                                                                   | Cash (used in)/provided by financing activities                                    |                                                              |        | (84.2  | )     |       |          | 83.2   |       |      |          | 583.7  |      
|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |       
|Effect of exchange rate changes on cash and cash equivalents |                                                                                   |                                                                                    | (14.7                                                        | )      |        |       | 9.7   |          |        |       | 9.7  |         
|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |       
|Net change in cash and cash equivalents                      |                                                                                   |                                                                                    | 244.7                                                        |        |        |       | 78.7  |          |        |       | 45.0 |         
|Cash and cash equivalents  beginning of year                |                                                                                   |                                                                                    | 162.5                                                        |        |        |       | 83.8  |          |        |       | 38.8 |         
|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |       
|Cash and cash equivalents  end of year                      |                                                                                   | $                                                                                  | 407.2                                                        |        |        | $     | 162.5 |          |        | $     | 83.8 |         
|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |       
|Supplemental Cash Flow Information:                          |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |        |       |      |         
|                                                             | Cash paid during the year for:                                                    |                                                                                    |                                                              |        |        |       |       |          |        |       |      |          |       
|                                                             |                                                                                   | Income taxes, net of refunds                                                       |                                                              | $      | 37.5   |       |       | $        | 31.6   |       |      | $        | 11.7   |      
|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |       
|                                                             |                                                                                   | Interest                                                                           |                                                              | $      | 103.1  |       |       | $        | 90.4   |       |      | $        | 93.1   |      
|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |       
|                                                             | Acquisition of assets financed with debt                                          |                                                                                    | $                                                            | 21.0   |        |       | $     |         |        |       | $    |         |       
|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |       
|                                                             | Fair value of equity securities issued in connection with the
    Apogent merger  |                                                                                    | $                                                            |       |        |       | $     | 2,768.7  |        |       | $    |         |       
|                                                             |                                                                                   |                                                                                    |                                                              |        |        |       |       |          |       



44



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##### Table of Contents





FISHER SCIENTIFIC INTERNATIONAL INC.


CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS
EQUITY AND OTHER COMPREHENSIVE INCOME


|                                                    |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |   |   |      |      |   |   |         |        |   |   |       |        |  
|--------------------------------------------------- | ------------------------------------------------- | -------------------------------- | ----------- | --------- | ---------- | - | --- | --------- |  | -------- | ------------ | ----- | ----------- | ------------ | ----- | --- | ------------- | - | ---- | ----------------------- | - | - | ------ | ----- | ------------- | ------ | ----- | ------ | ----- |  | ------- | ------- | - | - | ---- | ---- | - | - | ------- | ------ | - | - | ----- | ------ | -
|                                                    |                                                   |                                  |             |           |            |   |     |           |  | Retained |              |       | Accumulated |              |       |     |               |   |      |                        
|                                                    |                                                   | Common Stock                     |             |           | Capital in |   |     | Shares    |  |          | Shares to be |       |             | Earnings/    |       |     | Other         |   |      | Treasury Stock, at cost |   |   |        |       | Other         |       
|                                                    |                                                   |                                  |             |           | Excess of  |   |     | Deposited |  |          | Distributed  |       |             | (Accumulated |       |     | Comprehensive |   |      |                         |   |   |        |       | Comprehensive |       
|                                                    |                                                   | Shares                           |             |           | Amount     |   |     | Par Value |  |          | in Trust     |       |             | from Trust   |       |     | Deficit)      |   |      | Income/(Loss)           |   |   | Shares |       |               | Amount |       |        | Total |  |         | Income  |  
|                                                    |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |  
|                                                    |                                                   | (In millions, except share data) |            
|Balance at January 1, 2003                          |                                                   |                                  | 54,675,513  |           |            | $ | 0.5 |           |  | $        | 676.4        |       |             | $            | (34.0 | )   |               | $ | 34.0 |                         |   | $ | (504.9 | )     |               | $      | (37.5 | )      |       |  | 36,606  |         |   | $ | (1.0 | )    |   | $ | 133.5   |        |   |   |       |       
|                                                    | Net income                                        |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        | 78.4  |               |        |       |       |       |  |         |        |   |   |      |     |   |   |         | 78.4   |   |   | $     | 78.4   |  
|                                                    | Foreign currency translation adjustment           |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       | 69.2   |       |  |         |        |   |   |      |     |   |   |         | 69.2   |   |   |       | 69.2   |  
|                                                    | Unrealized investment gain, net of tax            |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       | 1.8    |       |  |         |        |   |   |      |     |   |   |         | 1.8    |   |   |       | 1.8    |  
|                                                    | Unrealized gain on cash flow hedges, net of tax   |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       | 0.5    |       |  |         |        |   |   |      |     |   |   |         | 0.5    |   |   |       | 0.5    |  
|                                                    | Minimum pension liability, net of tax             |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       | 6.0    |       |  |         |        |   |   |      |     |   |   |         | 6.0    |   |   |       | 6.0    |  
|                                                    |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |  
|                                                    | Subtotal  other comprehensive income             |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |   |   |      |      |   |   |         |        |   |   | $     | 155.9  |  
|                                                    |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |  
|                                                    | Proceeds from issuance of common stock, net       |                                  |             | 6,634,526 |            |   |     | 0.1       |  |          |              | 260.5 |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       |       |       |  |         |        |   |   |      |     |   |   |         | 260.6  |   |   |       |        |  
|                                                    | Proceeds from stock options                       |                                  |             | 1,908,044 |            |   |     |          |  |          |              | 19.8  |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       |       |       |  |         |        |   |   |      |     |   |   |         | 19.8   |   |   |       |        |  
|                                                    | Tax benefit from stock options                    |                                  |             |          |            |   |     |          |  |          |              | 5.6   |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       |       |       |  |         |        |   |   |      |     |   |   |         | 5.6    |   |   |       |        |  
|                                                    | Acquisition of treasury stock                     |                                  |             |          |            |   |     |          |  |          |              | 2.2   |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       |       |       |  |         | 226,039 |   |   |      | (2.2 | ) |   |         |       |   |   |       |        |  
|                                                    | Trust activity                                    |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       | 8.5 |               |   |      | (8.5                    | ) |   |        |      |               |        |       |       |       |  |         |        |   |   |      |     |   |   |         |       |   |   |       |        |  
|                                                    |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |  
|Balance at December 31, 2003                        |                                                   |                                  | 63,218,083  |           |            | $ | 0.6 |           |  | $        | 964.5        |       |             | $            | (25.5 | )   |               | $ | 25.5 |                         |   | $ | (426.5 | )     |               | $      | 40.0  |        |       |  | 262,645 |         |   | $ | (3.2 | )    |   | $ | 575.4   |        |   |   |       |       
|                                                    |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |  
|                                                    | Net income                                        |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        | 166.4 |               |        |       |       |       |  |         |        |   |   |      |     |   |   |         | 166.4  |   |   | $     | 166.4  |  
|                                                    | Foreign currency translation adjustment           |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       | 89.9   |       |  |         |        |   |   |      |     |   |   |         | 89.9   |   |   |       | 89.9   |  
|                                                    | Unrealized investment gain, net of tax            |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       | 4.1    |       |  |         |        |   |   |      |     |   |   |         | 4.1    |   |   |       | 4.1    |  
|                                                    | Unrealized gain on cash flow hedges, net of tax   |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       | (4.3   | )     |  |         |        |   |   |      |     |   |   |         | (4.3   | ) |   |       | (4.3   | )
|                                                    | Minimum pension liability, net of tax             |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       | (2.8   | )     |  |         |        |   |   |      |     |   |   |         | (2.8   | ) |   |       | (2.8   | )
|                                                    |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |  
|Subtotal  other comprehensive income               |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |   |   |      |      |   |   |         |        |   | $ | 253.3 |       
|                                                    |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |  
|Acquisition of Apogent Technologies Inc. stock, net |                                                   |                                  | 50,634,510  |           |            |   | 0.5 |           |  |          | 2,868.6      |       |             |              |      |     |               |   |     |                         |   |   |       |       |               |        |      |        |       |  |        |         |   |   |     |      |   |   | 2,869.1 |        |   |   |       |       
|                                                    | Proceeds from stock options                       |                                  |             | 5,074,800 |            |   |     |          |  |          |              | 136.0 |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       |       |       |  |         |        |   |   |      |     |   |   |         | 136.0  |   |   |       |        |  
|                                                    | Tax benefit from stock options                    |                                  |             |          |            |   |     |          |  |          |              | 36.0  |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       |       |       |  |         |        |   |   |      |     |   |   |         | 36.0   |   |   |       |        |  
|                                                    | Shares issued upon conversion of debt             |                                  |             | 1,559     |            |   |     |          |  |          |              | 0.1   |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       |       |       |  |         |        |   |   |      |     |   |   |         | 0.1    |   |   |       |        |  
|                                                    | Acquisition of treasury stock                     |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       |       |       |  |         | 49,843  |   |   |      | (3.0 | ) |   |         | (3.0   | ) |   |       |        |  
|                                                    | Trust activity                                    |                                  |             |          |            |   |     |          |  |          |              | 0.9   |             |              |       | 1.5 |               |   |      | (1.5                    | ) |   |        |      |               |        |       |       |       |  |         | (57,513 | ) |   |      | 2.2  |   |   |         | 3.1    |   |   |       |        |  
|                                                    |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |  
|Balance at December 31, 2004                        |                                                   |                                  | 118,928,952 |           |            | $ | 1.1 |           |  | $        | 4,006.1      |       |             | $            | (24.0 | )   |               | $ | 24.0 |                         |   | $ | (260.1 | )     |               | $      | 126.9 |        |       |  | 254,975 |         |   | $ | (4.0 | )    |   | $ | 3,870.0 |        |   |   |       |       
|                                                    |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |  
|                                                    | Net income                                        |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                         |   |   |        | 389.1 |               |        |       |       |       |  |         |        |   |   |      |     |   |   |         | 389.1  |   |   | $     | 389.1  |  
|                                                    | Foreign currency translation adjustment           |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       | (138.2 | )     |  |         |        |   |   |      |     |   |   |         | (138.2 | ) |   |       | (138.2 | )
|                                                    | Unrealized investment losses, net of tax          |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       | (1.8   | )     |  |         |        |   |   |      |     |   |   |         | (1.8   | ) |   |       | (1.8   | )
|                                                    | Unrealized losses on cash flow hedges, net of tax |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       | (0.5   | )     |  |         |        |   |   |      |     |   |   |         | (0.5   | ) |   |       | (0.5   | )
|                                                    | Minimum pension liability, net of tax             |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       | (0.2   | )     |  |         |        |   |   |      |     |   |   |         | (0.2   | ) |   |       | (0.2   | )
|                                                    |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |  
|                                                    | Subtotal  other comprehensive income             |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |   |   |      |      |   |   |         |        |   |   | $     | 248.4  |  
|                                                    |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |  
|                                                    | Proceeds from stock options                       |                                  |             | 4,727,586 |            |   |     | 0.1       |  |          |              | 147.3 |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       |       |       |  |         |        |   |   |      |     |   |   |         | 147.4  |   |   |       |        |  
|                                                    | Tax benefit from stock options                    |                                  |             |          |            |   |     |          |  |          |              | 37.1  |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       |       |       |  |         |        |   |   |      |     |   |   |         | 37.1   |   |   |       |        |  
|                                                    | Compensation expense                              |                                  |             |          |            |   |     |          |  |          |              | 1.4   |             |              |       |    |               |   |      |                        |   |   |        |      |               |        |       |       |       |  |         |        |   |   |      |     |   |   |         | 1.4    |   |   |       |        |  
|                                                    | Trust activity                                    |                                  |             |          |            |   |     |          |  |          |              |      |             |              |       | 7.1 |               |   |      | (7.1                    | ) |   |        |      |               |        |       |       |       |  |         |        |   |   |      |     |   |   |         |       |   |   |       |        |  
|                                                    |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |  
|Balance at December 31, 2005                        |                                                   |                                  | 123,656,538 |           |            | $ | 1.2 |           |  | $        | 4,191.9      |       |             | $            | (16.9 | )   |               | $ | 16.9 |                         |   | $ | 129.0  |       |               | $      | (13.8 | )      |       |  | 254,975 |         |   | $ | (4.0 | )    |   | $ | 4,304.3 |        |   |   |       |       
|                                                    |                                                   |                                  |             |           |            |   |     |           |  |          |              |       |             |              |       |     |               |   |      |                         |   |   |        |       |               |        |       |        |       |  |         |         |  



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS


Note 1  Nature of Operations






| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. Scientific products and servicessegment
    manufactures and sells products and services primarily to
    entities conducting scientific research, including drug
    discovery and drug development, quality and process control and
    basic research and development, as well as to third-party
    distributors. The businesses in this segment manufacture and/or
    distribute a broad range of biochemicals and bioreagents;
    organic and inorganic chemicals; sera; cell-culture media;
    sterile liquid-handling systems; microbiology media and related
    products; and other scientific research related consumable
    products, instruments and equipment. The businesses in this
    segment also distribute safety-related products such as
    personal-protection equipment, respiratory protection systems,
    environmental monitoring and sampling equipment, and other
    safety and clean-room supplies. Additionally, businesses in this
    segment provide services to pharmaceutical and biotechnology
    companies engaged in clinical trials, including specialized
    packaging, over-encapsulation, labeling and distribution for
    phase III and phase IV clinical trials, analytical
    testing, biological-specimen management, as well as
    combinatorial chemistry, custom-chemical synthesis and
    supply-chain management.
|
| | 2. Healthcare products and servicessegment
    manufactures and distributes an array of diagnostic kits and
    reagents, equipment, instruments and other consumable products
    to hospitals, clinical laboratories, reference laboratories and
    physicians offices as well as third-party distributors,
    located primarily in the U.S. Other businesses in this
    segment provide outsourced manufacturing services for diagnostic
    reagents, calibrators and controls to the healthcare and
    pharmaceutical industries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | 3. Laboratory workstationssegment primarily
    manufactures and sells workstations and fume hoods for
    laboratories. The product offerings in this segment include
    steel, wood and plastic laminate casework systems, adaptable
    furniture systems, airflow products and various other laboratory
    fixtures and accessories.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

Note 2  Summary of Significant Accounting
Policies


Principles of Consolidation


Discontinued Operations Accounting for the Impairment or Disposal of
Long-Lived Assets


Cash and Cash Equivalents


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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


Allowance for Doubtful Accounts


Inventories first-in, last-in,


Investments








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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




Property, Plant and Equipment


Asset Retirement Obligations Accounting for Asset Retirement
Obligations Accounting for Conditional Asset Retirement
Obligations


Accounts Payable Offsetting of Amounts Related to Certain
Contracts


Goodwill and Other Intangible Assets


Goodwill and Other Intangible
Assets


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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


Accounting for the Impairment or
Disposal of Long-Lived Assets (SFAS No. 144).


Impairment of Long-Lived Assets


Deferred Financing Fees


Loss Contingencies


Advertising


Revenue Recognition


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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




percentage-of percentage-of


Warranty Obligations


European Electronic Equipment Waste
Obligation 143-1, Accounting for Electronic Equipment Waste Obligations, 143-1


Shipping and Handling


Research and Development


Income Taxes


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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)






Accounting
for Contingencies


Stock-Based Compensation


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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


Accounting for Stock-Based
Compensation  Transition and Disclosure


|                                                                                                                 |         |      |       |      |      |   |       |      |  |   |       |      | 
|---------------------------------------------------------------------------------------------------------------- | ------- | ---- | ----- | ---- | ---- | - | ----- | ---- |  | - | ----- | ---- | 
|                                                                                                                 |         | 2005 |       |      | 2004 |   |       | 2003 | 
|                                                                                                                 |         |      |       |      |      |   |       |      | 
|Net income, as reported                                                                                          |         | $    | 389.1 |      |      | $ | 166.4 |      |  | $ | 78.4  |     
|Add: stock-based employee compensation included in net income,
    net of tax(a)                                 |         |      | 2.2   |      |      |   | 0.8   |      |  |   |      |     
|Deduct: stock-based compensation expense determined using fair
    value based method for all awards, net of tax |         |      | (36.5 | )    |      |   | (30.2 | )    |  |   | (19.2 | )   
|                                                                                                                 |         |      |       |      |      |   |       |      | 
|Net income, pro forma                                                                                            |         | $    | 354.8 |      |      | $ | 137.0 |      |  | $ | 59.2  |     
|                                                                                                                 |         |      |       |      |      |   |       |      | 
|Net income per common share                                                                                      |         |      |       |      |      |   |       |      |  |   |       |     
|As reported:                                                                                                     |         |      |       |      |      |   |       |      |  |   |       |     
|                                                                                                                 | Basic   |      | $     | 3.20 |      |   | $     | 1.93 |  |   | $     | 1.38 | 
|                                                                                                                 |         |      |       |      |      |   |       |      | 
|                                                                                                                 | Diluted |      | $     | 3.05 |      |   | $     | 1.80 |  |   | $     | 1.29 | 
|                                                                                                                 |         |      |       |      |      |   |       |      | 
|Pro forma:                                                                                                       |         |      |       |      |      |   |       |      |  |   |       |     
|                                                                                                                 | Basic   |      | $     | 2.92 |      |   | $     | 1.59 |  |   | $     | 1.04 | 
|                                                                                                                 |         |      |       |      |      |   |       |      | 
|                                                                                                                 | Diluted |      | $     | 2.78 |      |   | $     | 1.48 |  |   | $     | 0.98 | 
|                                                                                                                 |         |      |       |      |      |   |       |      | 






|    |                                                                                                                                                                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Pro forma stock-based compensation expense includes
    $0.2 million and $0.1 million of compensation expense
    related to the Companys discontinued operations (Atos) in
    2004 and 2003, respectively. In conjunction with the sale of
    Atos in April 2005, the Company accelerated the vesting of
    approximately 42,000 unvested options of Atos employees.



|                        |  |      |            |  |      |  |            |      |  |  |            | 
|----------------------- |  | ---- | ---------- |  | ---- |  | ---------- | ---- |  |  | ---------- | 
|                        |  | 2005 |            |  | 2004 |  |            | 2003 | 
|                        |  |      |            |  |      |  |            |      | 
|Risk-free interest rate |  |      | 4.0%       |  |      |  | 3.3%       |      |  |  | 2.8%       | 
|Expected life of option |  |      | 4.7  years |  |      |  | 5.0  years |      |  |  | 5.0  years | 
|Volatility              |  |      | 28%        |  |      |  | 39%        |      |  |  | 41%        | 
|Expected dividend yield |  |      | 0.0%       |  |      |  | 0.0%       |      |  |  | 0.0%       | 

Foreign Currency Translation


Derivative Financial Instruments Accounting for Derivative Instruments and
Hedging Activities


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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)














Other Comprehensive Income


Earnings per Share


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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                                                                                                     |                               |      |       |     |      |   |       |      |  |   |      |     | 
|---------------------------------------------------------------------------------------------------- | ----------------------------- | ---- | ----- | --- | ---- | - | ----- | ---- |  | - | ---- | --- | 
|                                                                                                     |                               | 2005 |       |     | 2004 |   |       | 2003 | 
|                                                                                                     |                               |      |       |     |      |   |       |      | 
|Net income available to common shareholders                                                          |                               | $    | 389.1 |     |      | $ | 166.4 |      |  | $ | 78.4 |    
|                                                                                                     |                               |      |       |     |      |   |       |      | 
|Weighted average common shares outstanding used in computing
    basic net income per common share   |                               |      | 121.5 |     |      |   | 86.2  |      |  |   | 56.9 |    
|Dilutive securities:                                                                                 |                               |      |       |     |      |   |       |      |  |   |      |    
|                                                                                                     | Stock options and warrants(a) |      |       | 4.3 |      |   |       | 5.0  |  |   |      | 3.7 | 
|                                                                                                     | Convertible notes             |      |       | 1.7 |      |   |       | 1.0  |  |   |      |    | 
|                                                                                                     |                               |      |       |     |      |   |       |      | 
|Weighted average common shares outstanding used in computing
    diluted net income per common share |                               |      | 127.5 |     |      |   | 92.2  |      |  |   | 60.6 |    
|                                                                                                     |                               |      |       |     |      |   |       |      | 
|                                                                                                    
|Basic net income per common share                                                                    |                               | $    | 3.20  |     |      | $ | 1.93  |      |  | $ | 1.38 |    
|                                                                                                     |                               |      |       |     |      |   |       |      | 
|Diluted net income per common share                                                                  |                               | $    | 3.05  |     |      | $ | 1.80  |      |  | $ | 1.29 |    
|                                                                                                     |                               |      |       |     |      |   |       |      | 






|    |                                                                                                                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | The weighted average amount of outstanding antidilutive common
    stock options excluded from the computation of diluted net
    income per common share was 2.2 million, 0.9 million
    and 0.2 million at December 31, 2005, 2004 and 2003,
    respectively.

04-08 The
Effect of Contingently Convertible Instruments on Diluted
Earnings Per Share 90-19 Convertible Bonds with Issuer Option to Settle for Cash upon
Conversion




|                              |  |                    |       |  |                    |   |       |                    |  |   |       | 
|----------------------------- |  | ------------------ | ----- |  | ------------------ | - | ----- | ------------------ |  | - | ----- | 
|                              |  | 2.50%              |       |  | Floating Rate      |   |       | 3.25%              | 
|                              |  | Convertible Senior |       |  | Convertible Senior |   |       | Convertible Senior | 
|                              |  | Notes              |       |  | Debentures         |   |       | Subordinated Notes | 
|                              |  |                    |       |  |                    |   |       |                    | 
|Issuance amount (in millions) |  | $                  | 300.0 |  |                    | $ | 344.6 |                    |  | $ | 330.0 | 
|Conversion price per share    |  | $                  | 47.46 |  |                    | $ | 59.09 |                    |  | $ | 80.40 | 
|Trigger price                 |  | $                  | 56.96 |  |                    | $ | 76.82 |                    |  | $ | 96.48 | 

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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


|                   |  |                        |     |  |                    |  |     |                    |  |  |           |  |  |  |     | 
|------------------ |  | ---------------------- | --- |  | ------------------ |  | --- | ------------------ |  |  | --------- |  |  |  | --- | 
|                   |  | Total Potential Shares |    
|                   |  |                        |    
|                   |  | 2.50%                  |     |  | Floating Rate      |  |     | 3.25%              |  |  | Potential | 
|Future Fisher      |  | Convertible Senior     |     |  | Convertible Senior |  |     | Convertible Senior |  |  | Share     | 
|Common Stock Price |  | Notes                  |     |  | Debentures         |  |     | Subordinated Notes |  |  | Increase  | 
|                   |  |                        |     |  |                    |  |     |                    |  |  |           | 
|$47.46             |  |                        |    |  |                    |  |    |                    |  |  |          |  |  |  |    | 
|$48.46             |  |                        | 0.1 |  |                    |  |    |                    |  |  |          |  |  |  | 0.1 | 
|$59.09             |  |                        | 1.2 |  |                    |  |    |                    |  |  |          |  |  |  | 1.2 | 
|$60.09             |  |                        | 1.3 |  |                    |  | 0.1 |                    |  |  |          |  |  |  | 1.4 | 
|$80.40             |  |                        | 2.6 |  |                    |  | 1.5 |                    |  |  |          |  |  |  | 4.1 | 
|$81.40             |  |                        | 2.6 |  |                    |  | 1.6 |                    |  |  | 0.1       |  |  |  | 4.3 | 
|$90.00             |  |                        | 3.0 |  |                    |  | 2.0 |                    |  |  | 0.4       |  |  |  | 5.4 | 

Use of Estimates


Note 3  Business Combinations and
Divestiture




| |                     
| | --------------------
| | Acquisitions in 2005



|                    |                               |                           |       |       |       | 
|------------------- | ----------------------------- | ------------------------- | ----- | ----- | ----- | 
|Assets:             |                               |                           |       |      
|                    | Current assets                |                           | $     | 35.5  |      
|                    | Property, plant and equipment |                           |       | 63.7  |      
|                    | Intangible assets             |                           |       | 66.9  |      
|                    | Goodwill                      |                           |       | 141.8 |      
|                    | Other assets                  |                           |       | 1.3   |      
|                    |                               |                           |      
|                    |                               | Total assets acquired     |       |       | 309.2 | 
|                    |                               |                           |      
|                   
|Liabilities:        |                               |                           |       |      
|                    | Current liabilities           |                           | $     | 26.6  |      
|                    | Long-term debt                |                           |       | 2.1   |      
|                    | Other liabilities             |                           |       | 31.7  |      
|                    |                               |                           |      
|                    |                               | Total liabilities assumed |       |       | 60.4  | 
|                    |                               |                           |      
|Net assets acquired |                               | $                         | 248.8 |      
|                    |                               |                           |      

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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)












| |                                      
| | -------------------------------------
| | Merger with Apogent Technologies Inc.



step-up


|                             |         |              |         |      | 
|---------------------------- | ------- | ------------ | ------- | ---- | 
|                             |         | Year Ended   |        
|                             |         | December 31, |        
|                             |         | 2004         |        
|                             |         |              |        
|Net sales                    |         | $            | 5,237.5 |     
|Net income                   |         | $            | 219.3   |     
|Net income per common share: |         |              |         |     
|                             | Basic   |              | $       | 1.90 | 
|                             | Diluted |              | $       | 1.78 | 

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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




| |                               
| | ------------------------------
| | Acquisition of Dharmacon, Inc.





| |                                            
| | -------------------------------------------
| | Acquisition of Oxoid Group Holdings Limited







| |            
| | -----------
| | Divestiture





|                                      |                   |                    |      |      |                   |   |      |      | 
|------------------------------------- | ----------------- | ------------------ | ---- | ---- | ----------------- | - | ---- | ---- | 
|                                      |                   | (Divestiture Date) |      |      |                  
|                                      |                   | April 5, 2005      |      |      | December 31, 2004 |  
|                                      |                   |                    |      |      |                   |  
|Accounts receivable, net              |                   | $                  | 4.7  |      |                   | $ | 3.8  |     
|Inventories                           |                   |                    | 3.8  |      |                   |   | 3.3  |     
|Other current assets                  |                   |                    | 1.8  |      |                   |   | 1.7  |     
|Property, plant, and equipment        |                   |                    | 3.1  |      |                   |   | 3.2  |     
|Goodwill                              |                   |                    | 75.8 |      |                   |   | 75.8 |     
|Intangible assets                     |                   |                    | 6.1  |      |                   |   | 6.4  |     
|                                      |                   |                    |      |      |                   |  
|                                      | Total assets      |                    | $    | 95.3 |                   |   | $    | 94.2 | 
|                                      |                   |                    |      |      |                   |  
|Accounts payable                      |                   |                    | 1.9  |      |                   |   | 1.7  |     
|Accrued and other current liabilities |                   |                    | 5.3  |      |                   |   | 5.2  |     
|Other liabilities                     |                   |                    | 1.9  |      |                   |   | 2.0  |     
|                                      |                   |                    |      |      |                   |  
|                                      | Total liabilities |                    | $    | 9.1  |                   |   | $    | 8.9  | 
|                                      |                   |                    |      |      |                   |  

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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                                                |  |      |      |  |      |   |      | 
|----------------------------------------------- |  | ---- | ---- |  | ---- | - | ---- | 
|                                                |  | 2005 |      |  | 2004 |  
|                                                |  |      |      |  |      |  
|Net sales                                       |  | $    | 10.4 |  |      | $ | 35.4 | 
|Income before taxes                             |  |      | 0.4  |  |      |   | 5.3  | 
|Provision for income taxes                      |  |      | 0.2  |  |      |   | 0.7  | 
|Income from discontinued operations, net of tax |  |      | 0.2  |  |      |   | 4.6  | 

Note 4  Accounts Receivable




|                                |                          |      |       |       |      |   |       |       | 
|------------------------------- | ------------------------ | ---- | ----- | ----- | ---- | - | ----- | ----- | 
|                                |                          | 2005 |       |       | 2004 |  
|                                |                          |      |       |       |      |  
|Gross accounts receivable       |                          | $    | 721.3 |       |      | $ | 659.9 |      
|Allowance for doubtful accounts |                          |      | (24.3 | )     |      |   | (27.1 | )    
|                                |                          |      |       |       |      |  
|                                | Accounts receivable, net |      | $     | 697.0 |      |   | $     | 632.8 | 
|                                |                          |      |       |       |      |  



Note 5  Inventories




|                |       |      |       |       |      |   |       |       | 
|--------------- | ----- | ---- | ----- | ----- | ---- | - | ----- | ----- | 
|                |       | 2005 |       |       | 2004 |  
|                |       |      |       |       |      |  
|Raw materials   |       | $    | 146.7 |       |      | $ | 136.0 |      
|Work in process |       |      | 76.0  |       |      |   | 65.3  |      
|Finished goods  |       |      | 382.9 |       |      |   | 421.1 |      
|                |       |      |       |       |      |  
|                | Total |      | $     | 605.6 |      |   | $     | 622.4 | 
|                |       |      |       |       |      |  



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




Note 6  Other Current Assets




|                      |       |      |       |       |      |   |       |       | 
|--------------------- | ----- | ---- | ----- | ----- | ---- | - | ----- | ----- | 
|                      |       | 2005 |       |       | 2004 |  
|                      |       |      |       |       |      |  
|Deferred income taxes |       | $    | 169.3 |       |      | $ | 162.4 |      
|Other                 |       |      | 112.2 |       |      |   | 102.1 |      
|                      |       |      |       |       |      |  
|                      | Total |      | $     | 281.5 |      |   | $     | 264.5 | 
|                      |       |      |       |       |      |  

Note 7  Property, Plant and Equipment




|                                 |                                    |      |        |         |      |   |        |         | 
|-------------------------------- | ---------------------------------- | ---- | ------ | ------- | ---- | - | ------ | ------- | 
|                                 |                                    | 2005 |        |         | 2004 |  
|                                 |                                    |      |        |         |      |  
|Land, buildings and improvements |                                    | $    | 535.4  |         |      | $ | 485.2  |        
|Machinery, equipment and other   |                                    |      | 715.6  |         |      |   | 649.8  |        
|                                 |                                    |      |        |         |      |  
|                                 | Total                              |      |        | 1,251.0 |      |   |        | 1,135.0 | 
|Accumulated depreciation         |                                    |      | (419.7 | )       |      |   | (349.6 | )      
|                                 |                                    |      |        |         |      |  
|                                 | Property, plant and equipment, net |      | $      | 831.3   |      |   | $      | 785.4   | 
|                                 |                                    |      |        |         |      |  



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


Note 8  Goodwill and Other Intangible
Assets




| |         
| | --------
| | Goodwill



|                                |                             |              |         |         |              |   |         |              |   |   |       |       |   |   |         |         |  
|------------------------------- | --------------------------- | ------------ | ------- | ------- | ------------ | - | ------- | ------------ | - | - | ----- | ----- | - | - | ------- | ------- | -
|                                |                             | Scientific   |         |         | Healthcare   |   |         |              |   |  
|                                |                             | Products     |         |         | Products     |   |         | Laboratory   |   |   |      
|                                |                             | and Services |         |         | and Services |   |         | Workstations |   |   | Total |      
|                                |                             |              |         |         |              |   |         |              |   |   |       |      
|Balance as of December 31, 2003 |                             | $            | 803.5   |         |              | $ | 76.1    |              |   | $ | 53.0  |       |   | $ | 932.6   |        
|                                | Acquisition of goodwill     |              |         | 1,805.8 |              |   |         | 995.5        |   |   |       |      |   |   |         | 2,801.3 |  
|                                | Impairment of goodwill      |              |         | (11.9   | )            |   |         |             |   |   |       | (53.0 | ) |   |         | (64.9   | )
|                                | Adjustments and allocations |              |         | 43.4    |              |   |         | 4.9          |   |   |       |      |   |   |         | 48.3    |  
|                                | Effect of foreign currency  |              |         | 39.4    |              |   |         | 0.2          |   |   |       |      |   |   |         | 39.6    |  
|                                |                             |              |         |         |              |   |         |              |   |   |       |      
|Balance as of December 31, 2004 |                             | $            | 2,680.2 |         |              | $ | 1,076.7 |              |   | $ |      |       |   | $ | 3,756.9 |        
|                                | Acquisition of goodwill     |              |         | 146.1   |              |   |         | 10.3         |   |   |       |      |   |   |         | 156.4   |  
|                                | Adjustments and allocations |              |         | (58.0   | )            |   |         | (22.7        | ) |   |       |      |   |   |         | (80.7   | )
|                                | Effect of foreign currency  |              |         | (60.0   | )            |   |         | (2.8         | ) |   |       |      |   |   |         | (62.8   | )
|                                |                             |              |         |         |              |   |         |              |   |   |       |      
|Balance as of December 31, 2005 |                             | $            | 2,708.3 |         |              | $ | 1,061.5 |              |   | $ |      |       |   | $ | 3,769.8 |        
|                                |                             |              |         |         |              |   |         |              |   |   |       |      







| |                                   
| | ----------------------------------
| | Indefinite-lived intangible assets



|                                 |  |      |         |  |      |   |         | 
|-------------------------------- |  | ---- | ------- |  | ---- | - | ------- | 
|                                 |  | 2005 |         |  | 2004 |  
|                                 |  |      |         |  |      |  
|Scientific products and services |  | $    | 847.8   |  |      | $ | 859.0   | 
|Healthcare product and services  |  |      | 187.4   |  |      |   | 185.4   | 
|Laboratory workstations          |  |      |        |  |      |   |        | 
|                                 |  |      |         |  |      |  
|                                 |  | $    | 1,035.2 |  |      | $ | 1,044.4 | 
|                                 |  |      |         |  |      |  

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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




| |                        
| | -----------------------
| | Other intangible assets



|                                    |                                                       |                     |      |                   |          |   |                   |              |  |     |          |       |  |              |         |         |  |   |      |      | 
|----------------------------------- | ----------------------------------------------------- | ------------------- | ---- | ----------------- | -------- | - | ----------------- | ------------ |  | --- | -------- | ----- |  | ------------ | ------- | ------- |  | - | ---- | ---- | 
|                                    |                                                       |                     |      | December 31, 2005 |          |   | December 31, 2004 |             
|                                    |                                                       |                     |      |                   |          |   |                   |             
|                                    |                                                       | Weighted-Average    |      |                   | Net      |   |                   |              |  | Net |          |       | 
|                                    |                                                       | Amortization Period |      |                   | Carrying |   |                   | Accumulated  |  |     | Carrying |       |  | Accumulated  |        
|                                    |                                                       | (Years)             |      |                   | Amount   |   |                   | Amortization |  |     | Amount   |       |  | Amortization |        
|                                    |                                                       |                     |      |                   |          |   |                   |              |  |     |          |       |  |              |        
|Customer relationships              |                                                       |                     | 18.9 |                   |          | $ | 296.4             |              |  | $   | 41.0     |       |  | $            | 279.0   |         |  | $ | 20.4 |     
|Non-compete agreements              |                                                       |                     | 6.6  |                   |          |   | 1.7               |              |  |     | 22.1     |       |  |              | 0.5     |         |  |   | 21.5 |     
|Patents and tradenames              |                                                       |                     | 14.2 |                   |          |   | 13.3              |              |  |     | 9.9      |       |  |              | 9.4     |         |  |   | 9.0  |     
|Developed technology                |                                                       |                     | 9.0  |                   |          |   | 181.3             |              |  |     | 39.8     |       |  |              | 192.0   |         |  |   | 15.9 |     
|Supplier arrangements               |                                                       |                     | 9.2  |                   |          |   | 16.5              |              |  |     | 4.8      |       |  |              | 18.3    |         |  |   | 2.8  |     
|Other amortizable intangible assets |                                                       |                     | 13.1 |                   |          |   | 24.7              |              |  |     | 11.1     |       |  |              | 21.8    |         |  |   | 7.6  |     
|                                    |                                                       |                     |      |                   |          |   |                   |              |  |     |          |       |  |              |        
|                                    | Total other intangible assets subject to amortization |                     |      | 14.4              |          |   | $                 | 533.9        |  |     | $        | 128.7 |  |              | $       | 521.0   |  |   | $    | 77.2 | 
|                                    |                                                       |                     |      |                   |          |   |                   |              |  |     |          |       |  |              |        
|Indefinite-lived intangible assets  |                                                       |                     |      |                   |          |   | 1,035.2           |              |  |     |          |       |  |              | 1,044.4 |         |  |   |      |     
|                                    |                                                       |                     |      |                   |          |   |                   |              |  |     |          |       |  |              |        
|                                    | Total other intangible assets                         |                     |      |                   |          |   | $                 | 1,569.1      |  |     |          |       |  |              | $       | 1,565.4 |  |   |      |      | 
|                                    |                                                       |                     |      |                   |          |   |                   |              |  |     |          |       |  |              |        







|                                |  |   |       | 
|------------------------------- |  | - | ----- | 
|For the Year Ended December 31, |  |  
|                                |  |  
|2006                            |  | $ | 56.2  | 
|2007                            |  | $ | 54.0  | 
|2008                            |  | $ | 52.6  | 
|2009                            |  | $ | 49.2  | 
|2010                            |  | $ | 45.6  | 
|Thereafter                      |  | $ | 276.3 | 

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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


Note 9  Accrued and Other Current
Liabilities




|                   |       |      |       |       |      |   |       |       | 
|------------------ | ----- | ---- | ----- | ----- | ---- | - | ----- | ----- | 
|                   |       | 2005 |       |       | 2004 |  
|                   |       |      |       |       |      |  
|Wages and benefits |       | $    | 119.2 |       |      | $ | 102.2 |      
|Other              |       |      | 320.2 |       |      |   | 350.7 |      
|                   |       |      |       |       |      |  
|                   | Total |      | $     | 439.4 |      |   | $     | 452.9 | 
|                   |       |      |       |       |      |  

Note 10  Debt




|                                                                                                                                                                                  |                      |      |       |         |      |   |       |         | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------- | ---- | ----- | ------- | ---- | - | ----- | ------- | 
|                                                                                                                                                                                  |                      | 2005 |       |         | 2004 |  
|                                                                                                                                                                                  |                      |      |       |         |      |  
|Term Facility                                                                                                                                                                     |                      | $    | 381.2 |         |      | $ | 393.0 |        
|2.50% Convertible Senior Notes due 2023, convertible at
    $47.46 per share                                                                                                      |                      |      | 300.0 |         |      |   | 300.0 |        
|Floating Rate Convertible Senior Debentures due 2033,
    convertible at $59.09 per share                                                                                         |                      |      | 344.6 |         |      |   | 344.6 |        
|3.25% Convertible Senior Subordinated Notes due 2024,
    convertible at $80.40 per share                                                                                         |                      |      | 330.0 |         |      |   | 330.0 |        
|81/8% Senior
    Subordinated Notes due 2012 (includes $0 million and
    $5.9 million of unamortized debt premiums at
    December 31, 2005 and December 31, 2004, respectively) |                      |      | 1.5   |         |      |   | 309.9 |        
|8% Senior Subordinated Notes due 2013 (includes
    $0 million and $10.3 million of unamortized debt
    premium as of December 31, 2005 and December 31, 2004,
    respectively) |                      |      |      |         |      |   | 310.3 |        
|63/4% Senior
    Subordinated Notes due 2014                                                                                                                                      |                      |      | 300.0 |         |      |   | 300.0 |        
|61/8% Senior
    Subordinated Notes due 2015 (includes $2.6 million of
    unamortized debt discount at December 31, 2005)                                                        |                      |      | 497.4 |         |      |   |      |        
|                                                                                                                                                                                  | Other debt           |      |       | 55.4    |      |   |       | 60.8    | 
|                                                                                                                                                                                  |                      |      |       |         |      |  
|                                                                                                                                                                                  | Total debt           |      |       | 2,210.1 |      |   |       | 2,348.6 | 
|Less: short-term portion                                                                                                                                                          |                      |      | (74.6 | )       |      |   | (39.4 | )      
|                                                                                                                                                                                  |                      |      |       |         |      |  
|                                                                                                                                                                                  | Total long-term debt |      | $     | 2,135.5 |      |   | $     | 2,309.2 | 
|                                                                                                                                                                                  |                      |      |       |         |      |  



1 8




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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


1 8








| |   |                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On March 3, 2004, we sold $300 million of our
    3.25% Convertible Senior Subordinated Notes due 2024 and on
    March 23, 2004 sold an additional $30 million
    principal amount upon exercise of the over-allotment option by
    the initial purchasers of the notes.
|
| |  | On March 31, 2004, we retired $80 million of bank debt
    outstanding under our term-loan facility, reducing the then
    outstanding balance to $360 million.                                                                                                            
|
| |  | On August 3, 2004, we issued and sold pursuant to
    Rule 144A $300 million of our
    63/4% Senior
    Subordinated Notes due 2014. We used the proceeds from this
    offering to repay Apogents
    61/2% Senior
    Subordinated Notes due 2013.                     



Credit Facilities


A-1, A-2 A-2 A-2 A-1 A-1






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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




2.50% Convertible Senior Notes due 2023




Floating Rate Convertible Senior Debentures due 2033




3.25% Convertible Senior Subordinated Notes due 2024




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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


63/4% Senior
Subordinated Notes due 2014


3 4




61/8% Senior
Subordinated Notes due 2015


1 8




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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                |  |          |       |       |              |               |             |            |             |        |              |     |              |              |       |              |              |   |       |          |  |   |       |     |  |   |      |  |  |   |         | 
|--------------- |  | -------- | ----- | ----- | ------------ | ------------- | ----------- | ---------- | ----------- | ------ | ------------ | --- | ------------ | ------------ | ----- | ------------ | ------------ | - | ----- | -------- |  | - | ----- | --- |  | - | ---- |  |  | - | ------- | 
|                |  |          |       |       |              |               |             | 3.25%      |             |        |              |     |              |              |       |              |             
|                |  |          |       |       |              | Floating Rate |             |            | Convertible |        |              |     |              |              |       |              |              |  
|                |  |          |       | 2.50% |              |               | Convertible |            |             | Senior |              |     | 63/4% Senior |              |       | 61/8% Senior |              |   |       |          | 
|                |  | Term     |       |       | Convertible  |               |             | Senior     |             |        | Subordinated |     |              | Subordinated |       |              | Subordinated |   |       |          |  |  
|                |  | Facility |       |       | Senior Notes |               |             | Debentures |             |        | Notes        |     |              | Notes        |       |              | Notes        |   |       | Other(1) |  |   | Total |    
|                |  |          |       |       |              |               |             |            |             |        |              |     |              |              |       |              |              |   |       |          |  |   |       |    
|2006            |  | $        | 28.6  |       |              | $             |            |            |             | $      |             |     |              | $            |      |              |              | $ |      |          |  | $ |      |     |  | $ | 46.0 |  |  | $ | 74.6    | 
|2007            |  |          | 28.6  |       |              |               |            |            |             |        |             |     |              |              |      |              |              |   |      |          |  |   |      |     |  |   | 3.1  |  |  |   | 31.7    | 
|2008            |  |          | 38.1  |       |              |               |            |            |             |        |             |     |              |              |      |              |              |   |      |          |  |   |      |     |  |   | 4.5  |  |  |   | 42.6    | 
|2009            |  |          | 285.9 |       |              |               |            |            |             |        |             |     |              |              |      |              |              |   |      |          |  |   |      |     |  |   | 0.4  |  |  |   | 286.3   | 
|2010            |  |          |      |       |              |               |            |            |             |        |             |     |              |              |      |              |              |   |      |          |  |   |      |     |  |   |     |  |  |   |        | 
|2011 and beyond |  |          |      |       |              |               | 300.0       | (2)        |             |        | 344.6        | (3) |              |              | 330.0 |              |              |   | 300.0 |          |  |   | 497.4 | (4) |  |   | 2.9  |  |  |   | 1,774.9 | 
|                |  |          |       |       |              |               |             |            |             |        |              |     |              |              |       |              |              |   |       |          |  |   |       |    
|Total           |  | $        | 381.2 |       |              | $             | 300.0       |            |             | $      | 344.6        |     |              | $            | 330.0 |              |              | $ | 300.0 |          |  | $ | 497.4 |     |  | $ | 56.9 |  |  | $ | 2,210.1 | 
|                |  |          |       |       |              |               |             |            |             |        |              |     |              |              |       |              |              |   |       |          |  |   |       |    






|    |                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Other debt primarily consists of
    81/8
    Senior Subordinated Notes, capital lease obligations and
    borrowings at subsidiary levels.
|   
|(2) | The 2.50% Convertible Senior Notes mature in 2023 but can
    be put to the Company by the Note holders in 2010.                           
|   
|(3) | The Floating Rate Convertible Senior Debentures mature in 2033,
    but can be put to the Company by the debenture holders in 2008.        
|   
|(4) | The
    61/8% Senior
    Subordinated Notes include debt discounts of $2.6 million.                                                        

Note 11  Other Long-Term Liabilities




|               |       |      |       |       |      |   |       |       | 
|-------------- | ----- | ---- | ----- | ----- | ---- | - | ----- | ----- | 
|               |       | 2005 |       |       | 2004 |  
|               |       |      |       |       |      |  
|Deferred taxes |       | $    | 637.8 |       |      | $ | 627.0 |      
|Other          |       |      | 337.6 |       |      |   | 314.3 |      
|               |       |      |       |       |      |  
|               | Total |      | $     | 975.4 |      |   | $     | 941.3 | 
|               |       |      |       |       |      |  

Note 12  Fair Value of Financial
Instruments




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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                                               |                      |          |      |         |            |   |          |         |  |   |            |         |  |   |      |         | 
|---------------------------------------------- | -------------------- | -------- | ---- | ------- | ---------- | - | -------- | ------- |  | - | ---------- | ------- |  | - | ---- | ------- | 
|                                               |                      | 2005     |      |         | 2004       |  
|                                               |                      |          |      |         |            |  
|                                               |                      | Carrying |      |         |            |   | Carrying |         |  |  
|                                               |                      | Amount   |      |         | Fair Value |   |          | Amount  |  |   | Fair Value |        
|                                               |                      |          |      |         |            |   |          |         |  |   |            |        
|Long-term debt:                                |                      |          |      |         |            |   |          |         |  |   |            |         |  |   |      |        
|                                               | Convertible debt     |          | $    | 974.6   |            |   | $        | 1,157.5 |  |   | $          | 974.6   |  |   | $    | 1,254.6 | 
|                                               | Other                |          |      | 1,160.9 |            |   |          | 1,177.7 |  |   |            | 1,334.6 |  |   |      | 1,419.5 | 
|                                               |                      |          |      |         |            |   |          |         |  |   |            |        
|                                               | Total long-term debt |          | $    | 2,135.5 |            |   | $        | 2,335.2 |  |   | $          | 2,309.2 |  |   | $    | 2,674.1 | 
|                                               |                      |          |      |         |            |   |          |         |  |   |            |        
|Foreign currency forward and options contracts |                      | $        | 0.3  |         |            | $ | 0.3      |         |  | $ |           |         |  | $ |     |        
|                                               |                      |          |      |         |            |   |          |         |  |   |            |        
|Interest rate swap agreements                  |                      | $        |     |         |            | $ |         |         |  | $ | 1.7        |         |  | $ | 1.7  |        
|                                               |                      |          |      |         |            |   |          |         |  |   |            |        
|Commodities swap and options contracts         |                      | $        | (0.4 | )       |            | $ | (0.4     | )       |  | $ | (0.1       | )       |  | $ | (0.1 | )      
|                                               |                      |          |      |         |            |   |          |         |  |   |            |        







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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


Note 13  Commitments and Contingencies




|                                        |  |         |     |  |           |   |       | 
|--------------------------------------- |  | ------- | --- |  | --------- | - | ----- | 
|                                        |  | Capital |     |  | Operating |  
|                                        |  | Leases  |     |  | Leases    |  
|                                        |  |         |     |  |           |  
|2006                                    |  | $       | 2.6 |  |           | $ | 50.1  | 
|2007                                    |  |         | 2.1 |  |           |   | 41.4  | 
|2008                                    |  |         | 1.6 |  |           |   | 34.3  | 
|2009                                    |  |         | 0.4 |  |           |   | 26.2  | 
|2010                                    |  |         |    |  |           |   | 18.5  | 
|Thereafter                              |  |         |    |  |           |   | 40.8  | 
|                                        |  |         |     |  |           |  
|Net minimum lease payments              |  | $       | 6.7 |  |           | $ | 211.3 | 
|                                        |  |         |     |  |           |  
|Less amount representing interest       |  |         | 0.6 |  |           |   |       | 
|                                        |  |         |     |  |           |  
|Present value of minimum lease payments |  | $       | 6.1 |  |           |   |       | 
|                                        |  |         |     |  |           |  













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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)










Note 14  Stockholders Equity




| |                           
| | --------------------------
| | Preferred and Common Stock



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)






S-3






| |            
| | -----------
| | Stock Plans







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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)






10-year




|                                               |  |            |        |          |          |   |       |            |          |  |          |   |  |            |       |  |          |  |        |   |  |   |       | 
|---------------------------------------------- |  | ---------- | ------ | -------- | -------- | - | ----- | ---------- | -------- |  | -------- | - |  | ---------- | ----- |  | -------- |  | ------ | - |  | - | ----- | 
|                                               |  | 2005       |        |          | 2004     |   |       | 2003       |         
|                                               |  |            |        |          |          |   |       |            |         
|                                               |  |            |        | Weighted |          |   |       |            | Weighted |  |          |   |  | Weighted   |      
|                                               |  |            |        | Average  |          |   |       |            | Average  |  |          |   |  | Average    |      
|                                               |  | Shares     |        |          | Exercise |   |       | Shares     |          |  | Exercise |   |  | Shares     |       |  | Exercise | 
|                                               |  | (in 000s) |        |          | Price    |   |       | (in 000s) |          |  | Price    |   |  | (in 000s) |       |  | Price    | 
|                                               |  |            |        |          |          |   |       |            |          |  |          |   |  |            |       |  |          | 
|Outstanding at beginning of year               |  |            | 13,005 |          |          | $ | 33.22 |            |          |  | 11,039   |   |  | $          | 25.77 |  |          |  | 7,740  |   |  | $ | 19.73 | 
|Granted                                        |  |            | 3,938  |          |          |   | 62.90 |            |          |  | 1,462    |   |  |            | 55.47 |  |          |  | 4,883  |   |  |   | 34.49 | 
|Converted Apogent Options                      |  |            |       |          |          |   |      |            |          |  | 6,263    |   |  |            | 36.05 |  |          |  |       |   |  |   |      | 
|Exercised                                      |  |            | (4,728 | )        |          |   | 31.14 |            |          |  | (5,075   | ) |  |            | 26.78 |  |          |  | (978   | ) |  |   | 20.24 | 
|Canceled/ Expired/ Forfeited                   |  |            | (746   | )        |          |   | 52.39 |            |          |  | (684     | ) |  |            | 34.29 |  |          |  | (606   | ) |  |   | 27.93 | 
|                                               |  |            |        |          |          |   |       |            |          |  |          |   |  |            |       |  |          | 
|Outstanding at end of year                     |  |            | 11,469 |          |          | $ | 43.01 |            |          |  | 13,005   |   |  | $          | 33.22 |  |          |  | 11,039 |   |  | $ | 25.77 | 
|                                               |  |            |        |          |          |   |       |            |          |  |          |   |  |            |       |  |          | 
|Exercisable at end of year                     |  |            | 7,140  |          |          | $ | 34.96 |            |          |  | 9,803    |   |  | $          | 30.31 |  |          |  | 5,402  |   |  | $ | 18.65 | 
|Weighted average fair value of options granted |  |            |        |          |          | $ | 19.68 |            |          |  |          |   |  | $          | 18.37 |  |          |  |        |   |  | $ | 13.96 | 

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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                        |               |                     |            |          |                     |                  |  |          |          |  |             |            |       |          |       |  |       |  |  |   |       | 
|----------------------- | ------------- | ------------------- | ---------- | -------- | ------------------- | ---------------- |  | -------- | -------- |  | ----------- | ---------- | ----- | -------- | ----- |  | ----- |  |  | - | ----- | 
|                        |               | Options Outstanding |            |          | Options Exercisable |                 
|                        |               |                     |            |          |                     |                 
|                        |               |                     |            | Weighted |                     |                  |  |          | Weighted | 
|                        |               | Number              |            |          | Weighted Average    |                  |  | Average  |          |  | Number      |            |       | Average  |      
|                        |               | Outstanding         |            |          | Remaining           |                  |  | Exercise |          |  | Exercisable |            |       | Exercise |      
|Range of Exercise Price |               |                     | (in 000s) |          |                     | Contractual Life |  |          | Price    |  |             | (in 000s) |       |          | Price | 
|                        |               |                     |            |          |                     |                  |  |          |          |  |             |            |       |          |       | 
|$                       | 9.00  $13.00 |                     |            |          | 877                 |                  |  |          | 2.1      |  |             | $          | 9.50  |          |       |  | 877   |  |  | $ | 9.50  | 
|                        | 13.01  17.00 |                     |            |          | 4                   |                  |  |          | 1.6      |  |             |            | 15.23 |          |       |  | 4     |  |  |   | 15.23 | 
|                        | 17.01  21.00 |                     |            |          | 82                  |                  |  |          | 3.1      |  |             |            | 18.23 |          |       |  | 82    |  |  |   | 18.23 | 
|                        | 21.01  25.00 |                     |            |          | 802                 |                  |  |          | 5.2      |  |             |            | 23.97 |          |       |  | 802   |  |  |   | 23.97 | 
|                        | 25.01  29.00 |                     |            |          | 1,580               |                  |  |          | 6.2      |  |             |            | 28.44 |          |       |  | 1,058 |  |  |   | 28.47 | 
|                        | 29.01  33.00 |                     |            |          | 722                 |                  |  |          | 5.5      |  |             |            | 30.21 |          |       |  | 703   |  |  |   | 30.18 | 
|                        | 33.01  37.00 |                     |            |          | 203                 |                  |  |          | 3.3      |  |             |            | 34.86 |          |       |  | 188   |  |  |   | 34.89 | 
|                        | 37.01  41.00 |                     |            |          | 1,804               |                  |  |          | 3.3      |  |             |            | 39.19 |          |       |  | 1,696 |  |  |   | 39.20 | 
|                        | 41.01  45.00 |                     |            |          | 656                 |                  |  |          | 5.2      |  |             |            | 44.22 |          |       |  | 560   |  |  |   | 44.20 | 
|                        | 45.01  49.00 |                     |            |          | 128                 |                  |  |          | 5.9      |  |             |            | 47.88 |          |       |  | 124   |  |  |   | 47.92 | 
|                        | 49.01  54.00 |                     |            |          | 65                  |                  |  |          | 8.1      |  |             |            | 53.45 |          |       |  | 22    |  |  |   | 53.47 | 
|                        | 54.01  59.00 |                     |            |          | 790                 |                  |  |          | 8.5      |  |             |            | 56.63 |          |       |  | 184   |  |  |   | 56.59 | 
|                        | 59.01  64.00 |                     |            |          | 1,908               |                  |  |          | 9.1      |  |             |            | 61.32 |          |       |  | 137   |  |  |   | 61.80 | 
|                        | 64.01  69.00 |                     |            |          | 1,848               |                  |  |          | 9.5      |  |             |            | 64.61 |          |       |  | 703   |  |  |   | 64.60 | 
|                        |               |                     |            |          |                     |                  |  |          |          |  |             |            |       |          |       | 
|                        |               |                     |            |          | 11,469              |                  |  |          |          |  |             |            |       |          |       |  | 7,140 |  |  |   |       | 
|                        |               |                     |            |          |                     |                  |  |          |          |  |             |            |       |          |       | 

Note 15  Other Expense (Income), Net




|                                            |                             |      |      |      |      |   |       |       |   |   |      |      | 
|------------------------------------------- | --------------------------- | ---- | ---- | ---- | ---- | - | ----- | ----- | - | - | ---- | ---- | 
|                                            |                             | 2005 |      |      | 2004 |   |       | 2003  |  
|                                            |                             |      |      |      |      |   |       |       |  
|Debt-refinancing costs                      |                             | $    | 70.3 |      |      | $ | 14.4  |       |   | $ | 65.9 |     
|Acquisition-related foreign currency hedges |                             |      |     |      |      |   | 2.2   |       |   |   | 15.7 |     
|Gain on sale of investment                  |                             |      | (3.3 | )    |      |   | (22.7 | )     |   |   |     |     
|Interest income and other                   |                             |      | (6.7 | )    |      |   | (4.3  | )     |   |   | (3.9 | )   
|                                            |                             |      |      |      |      |   |       |       |  
|                                            | Other expense (income), net |      | $    | 60.3 |      |   | $     | (10.4 | ) |   | $    | 77.7 | 
|                                            |                             |      |      |      |      |   |       |       |  

1 8 1 8




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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


Note 16  Income Taxes




|                                                      |  |      |       |  |      |   |       |      |  |   |      | 
|----------------------------------------------------- |  | ---- | ----- |  | ---- | - | ----- | ---- |  | - | ---- | 
|                                                      |  | 2005 |       |  | 2004 |   |       | 2003 | 
|                                                      |  |      |       |  |      |   |       |      | 
|Domestic                                              |  | $    | 300.6 |  |      | $ | 76.1  |      |  | $ | 37.1 | 
|Foreign                                               |  |      | 187.5 |  |      |   | 111.0 |      |  |   | 57.1 | 
|                                                      |  |      |       |  |      |   |       |      | 
|Income from continuing operations before income taxes |  | $    | 488.1 |  |      | $ | 187.1 |      |  | $ | 94.2 | 
|                                                      |  |      |       |  |      |   |       |      | 



|                                       |         |                |       |      |      |   |      |       |      |   |      |      |      |  
|-------------------------------------- | ------- | -------------- | ----- | ---- | ---- | - | ---- | ----- | ---- | - | ---- | ---- | ---- | -
|                                       |         | 2005           |       |      | 2004 |   |      | 2003  |     
|                                       |         |                |       |      |      |   |      |       |     
|Current income tax expense:            |         |                |       |      |      |   |      |       |      |   |      |     
|                                       | Federal |                | $     | 16.4 |      |   | $    | 4.8   |      |   | $    | 11.2 |     
|                                       | State   |                |       | 7.0  |      |   |      | 2.3   |      |   |      | 2.3  |     
|                                       | Foreign |                |       | 21.5 |      |   |      | 21.2  |      |   |      | 4.7  |     
|                                       |         |                |       |      |      |   |      |       |     
|                                       |         | Total current  |       |      | 44.9 |   |      |       | 28.3 |   |      |      | 18.2 |  
|                                       |         |                |       |      |      |   |      |       |     
|Deferred income tax expense (benefit): |         |                |       |      |      |   |      |       |      |   |      |     
|                                       | Federal |                |       | 74.6 |      |   |      | 6.6   |      |   |      | 0.7  |     
|                                       | State   |                |       | 6.5  |      |   |      | 0.4   |      |   |      | 0.2  |     
|                                       | Foreign |                |       | (9.8 | )    |   |      | (10.0 | )    |   |      | (1.4 | )   
|                                       |         |                |       |      |      |   |      |       |     
|                                       |         | Total deferred |       |      | 71.3 |   |      |       | (3.0 | ) |      |      | (0.5 | )
|                                       |         |                |       |      |      |   |      |       |     
|Total income tax provision             |         | $              | 116.2 |      |      | $ | 25.3 |       |      | $ | 17.7 |     
|                                       |         |                |       |      |      |   |      |       |     



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                                                                       |                      |      |       |       |   |  |      |      |   |   |       |      |  |      |       |      |   |   |       |      |  |  |       |      |  
|---------------------------------------------------------------------- | -------------------- | ---- | ----- | ----- | - |  | ---- | ---- | - | - | ----- | ---- |  | ---- | ----- | ---- | - | - | ----- | ---- |  |  | ----- | ---- | -
|                                                                       |                      | 2005 |       |       | % |  |      | 2004 |   |   | %     |      |  | 2003 |       |      | % |  
|                                                                       |                      |      |       |       |   |  |      |      |   |   |       |      |  |      |       |      |   |  
|Taxes computed at statutory federal rate                               |                      | $    | 170.8 |       |   |  | 35.0 | %    |   | $ | 65.5  |      |  |      | 35.0  | %    |   | $ | 32.9  |      |  |  | 35.0  | %   
|Foreign tax rate differential and foreign losses not tax
    benefited |                      |      | (47.4 | )     |   |  | (9.7 | )%   |   |   | (19.5 | )    |  |      | (10.4 | )%   |   |   | (16.7 | )    |  |  | (17.7 | )%  
|American Jobs Creation Act of 2004 Repatriation                        |                      |      | 4.2   |       |   |  | 0.9  | %    |   |   |      |      |  |      | 0.0   | %    |   |   |      |      |  |  | 0.0   | %   
|Extraterritorial income exclusion                                      |                      |      | (5.4  | )     |   |  | (1.1 | )%   |   |   |      |      |  |      | 0.0   | %    |   |   |      |      |  |  | 0.0   | %   
|State income taxes, net of federal benefit                             |                      |      | 9.8   |       |   |  | 2.0  | %    |   |   | 1.6   |      |  |      | 0.8   | %    |   |   | 1.6   |      |  |  | 1.6   | %   
|Nondeductible permanent items, net                                     |                      |      | 1.9   |       |   |  | 0.4  | %    |   |   |      |      |  |      | 0.0   | %    |   |   | 0.7   |      |  |  | 0.7   | %   
|Basis difference investment disposed or settled                        |                      |      | (6.6  | )     |   |  | (1.4 | )%   |   |   | (6.8  | )    |  |      | (3.6  | )%   |   |   |      |      |  |  | 0.0   | %   
|Tax audits settled                                                     |                      |      | (6.8  | )     |   |  | (1.4 | )%   |   |   | (10.9 | )    |  |      | (5.8  | )%   |   |   |      |      |  |  | 0.0   | %   
|Foreign tax credits benefited                                          |                      |      | (1.9  | )     |   |  | (0.4 | )%   |   |   | (4.1  | )    |  |      | (2.2  | )%   |   |   |      |      |  |  | 0.0   | %   
|Other                                                                  |                      |      | (2.4  | )     |   |  | (0.5 | )%   |   |   | (0.5  | )    |  |      | (0.3  | )%   |   |   | (0.8  | )    |  |  | (0.8  | )%  
|                                                                       |                      |      |       |       |   |  |      |      |   |   |       |      |  |      |       |      |   |  
|                                                                       | Income tax provision |      | $     | 116.2 |   |  |      | 23.8 | % |   | $     | 25.3 |  |      |       | 13.5 | % |   | $     | 17.7 |  |  |       | 18.8 | %
|                                                                       |                      |      |       |       |   |  |      |      |   |   |       |      |  |      |       |      |   |  



|                     |                                                   |                           |   |        |       |  |   |       |       | 
|-------------------- | ------------------------------------------------- | ------------------------- | - | ------ | ----- |  | - | ----- | ----- | 
|                     |                                                   | 2005                      |   |        | 2004  | 
|                     |                                                   |                           |   |        |       | 
|Deferred tax assets: |                                                   |                           |   |        |       |  |   |      
|                     | Net operating loss and capital loss carryforwards |                           | $ | 175.5  |       |  | $ | 147.8 |      
|                     | Postretirement benefit costs other than pension   |                           |   | 20.1   |       |  |   | 20.5  |      
|                     | Pension                                           |                           |   | 26.4   |       |  |   | 11.6  |      
|                     | Accrued employee benefits                         |                           |   | 18.6   |       |  |   | 22.7  |      
|                     | Environmental accruals                            |                           |   | 10.8   |       |  |   | 11.2  |      
|                     | Reserves and other accruals                       |                           |   | 36.7   |       |  |   | 40.4  |      
|                     | Inventory reserves                                |                           |   | 26.4   |       |  |   | 28.9  |      
|                     | Allowance for doubtful accounts                   |                           |   | 4.6    |       |  |   | 4.7   |      
|                     | Investments                                       |                           |   | 7.2    |       |  |   | 7.4   |      
|                     | Property, plant and equipment                     |                           |   | 4.7    |       |  |   | 7.2   |      
|                     | Goodwill and other intangibles                    |                           |   | 16.8   |       |  |   |      |      
|                     | Charitable loss                                   |                           |   | 4.4    |       |  |   | 5.1   |      
|                     | Tax credits                                       |                           |   | 10.8   |       |  |   | 6.1   |      
|                     | Other                                             |                           |   | 39.9   |       |  |   | 31.2  |      
|                     |                                                   |                           |   |        |       | 
|                     | Gross deferred tax assets                         |                           |   | 402.9  |       |  |   | 344.8 |      
|                     | Less valuation allowance                          |                           |   | (110.9 | )     |  |   | (72.1 | )    
|                     |                                                   |                           |   |        |       | 
|                     |                                                   | Total deferred tax assets |   |        | 292.0 |  |   |       | 272.7 | 
|                     |                                                   |                           |   |        |       | 

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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


|                             |                                |                                |       |       |       |   |       |       |       | 
|---------------------------- | ------------------------------ | ------------------------------ | ----- | ----- | ----- | - | ----- | ----- | ----- | 
|                             |                                | 2005                           |       |       | 2004  |  
|                             |                                |                                |       |       |       |  
|Deferred tax liabilities:    |                                |                                |       |       |       |   |       |      
|                             | Goodwill and other intangibles |                                |       | 600.2 |       |   |       | 608.1 |      
|                             | Property, plant and equipment  |                                |       | 69.8  |       |   |       | 58.5  |      
|                             | Pension                        |                                |       | 28.7  |       |   |       | 33.1  |      
|                             | Inventory                      |                                |       | 0.2   |       |   |       | 5.0   |      
|                             | Other                          |                                |       | 42.2  |       |   |       | 22.7  |      
|                             |                                |                                |       |       |       |  
|                             |                                | Total deferred tax liabilities |       |       | 741.1 |   |       |       | 727.4 | 
|                             |                                |                                |       |       |       |  
|Net deferred tax assets      |                                | $                              |      |       |       | $ |      |      
|                             |                                |                                |       |       |       |  
|Net deferred tax liabilities |                                | $                              | 449.1 |       |       | $ | 454.7 |      
|                             |                                |                                |       |       |       |  







|                                     |  |               |       |  |                |   |        |               |  |   |       | 
|------------------------------------ |  | ------------- | ----- |  | -------------- | - | ------ | ------------- |  | - | ----- | 
|                                     |  | Net Operating |       |  | Less Valuation |   |        | Net Operating | 
|                                     |  | Loss (Gross)  |       |  | Allowance      |   |        | Loss (Net)    | 
|                                     |  |               |       |  |                |   |        |               | 
|2006                                 |  | $             | 12.2  |  |                | $ | (3.6   | )             |  | $ | 8.6   | 
|2007                                 |  |               | 19.7  |  |                |   | (12.1  | )             |  |   | 7.6   | 
|2008                                 |  |               | 10.9  |  |                |   | (8.4   | )             |  |   | 2.5   | 
|2009                                 |  |               | 9.2   |  |                |   | (5.9   | )             |  |   | 3.3   | 
|2010                                 |  |               | 10.8  |  |                |   | (7.8   | )             |  |   | 3.0   | 
|Thereafter                           |  |               | 754.4 |  |                |   | (494.6 | )             |  |   | 259.8 | 
|                                     |  |               |       |  |                |   |        |               | 
|Total accumulated net operating loss |  | $             | 817.2 |  |                | $ | (532.4 | )             |  | $ | 284.8 | 
|                                     |  |               |       |  |                |   |        |               | 



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




Accounting for
Contingencies




Note 17  Employee Benefit Plans








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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                                                                 |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |      |   |   |       |      |   |   |       |      |  
|---------------------------------------------------------------- | -------------------------------- | ---------------- | ----- | ----- | --------------- | - | ----- | ------------- | - | -------------- | -------- | ----- | - | ---- | ----- | ---- | ---- | - | ----- | ---- | - | - | ----- | ---- | - | - | ----- | ---- | - | - | ----- | ---- | -
|                                                                 |                                  |                  |       |       |                 |   |       |               |   | Other          |         
|                                                                 |                                  | Domestic Pension |       |       | Foreign Pension |   |       |               |   | Postretirement |         
|                                                                 |                                  | Benefits         |       |       | Benefits        |   |       | SERP Benefits |   |                | Benefits |      
|                                                                 |                                  |                  |       |       |                 |   |       |               |   |                |          |      
|                                                                 |                                  | 2005             |       |       | 2004            |   |       | 2005          |   |                | 2004     |       |   | 2005 |       |      | 2004 |   |       | 2005 |   |   | 2004  |     
|                                                                 |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |     
|Change in projected benefit obligations                          |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |      |   |   |       |      |   |   |       |     
|Benefit obligation at beginning of year                          |                                  | $                | 344.3 |       |                 | $ | 215.9 |               |   | $              | 218.7    |       |   | $    | 103.2 |      |      | $ | 48.7  |      |   | $ | 24.5  |      |   | $ | 36.7  |      |   | $ | 28.2  |     
|                                                                 | Business combination             |                  |       |      |                 |   |       | 96.5          |   |                |          | 12.2  |   |      |       | 86.5 |      |   |       |     |   |   |       | 4.9  |   |   |       | (0.7 | ) |   |       | 7.0  |  
|                                                                 | Service costs                    |                  |       | 13.7  |                 |   |       | 10.0          |   |                |          | 12.1  |   |      |       | 7.2  |      |   |       | 2.5  |   |   |       | 1.6  |   |   |       | 0.5  |   |   |       | 0.4  |  
|                                                                 | Interest costs                   |                  |       | 19.3  |                 |   |       | 15.7          |   |                |          | 11.3  |   |      |       | 9.7  |      |   |       | 2.9  |   |   |       | 2.4  |   |   |       | 2.1  |   |   |       | 1.9  |  
|                                                                 | Plan amendment                   |                  |       |      |                 |   |       |              |   |                |          |      |   |      |       |     |      |   |       | 0.5  |   |   |       | 12.9 |   |   |       | (8.3 | ) |   |       |     |  
|                                                                 | Special termination benefits     |                  |       |      |                 |   |       |              |   |                |          | 1.6   |   |      |       |     |      |   |       | 0.3  |   |   |       |     |   |   |       |     |   |   |       |     |  
|                                                                 | Curtailment                      |                  |       |      |                 |   |       |              |   |                |          | (0.5  | ) |      |       |     |      |   |       |     |   |   |       |     |   |   |       |     |   |   |       |     |  
|                                                                 | Plan participants contribution  |                  |       |      |                 |   |       |              |   |                |          | 2.6   |   |      |       | 1.9  |      |   |       |     |   |   |       |     |   |   |       | 2.9  |   |   |       | 2.0  |  
|                                                                 | Actuarial (gains) losses         |                  |       | 2.1   |                 |   |       | 22.1          |   |                |          | 19.7  |   |      |       | (0.7 | )    |   |       | (0.8 | ) |   |       | 2.7  |   |   |       | 0.7  |   |   |       | 0.8  |  
|                                                                 | Benefits paid                    |                  |       | (21.2 | )               |   |       | (15.9         | ) |                |          | (6.6  | ) |      |       | (2.7 | )    |   |       | (1.4 | ) |   |       | (0.3 | ) |   |       | (5.1 | ) |   |       | (3.9 | )
|                                                                 | Currency translation and other   |                  |       |      |                 |   |       |              |   |                |          | (12.5 | ) |      |       | 13.6 |      |   |       |     |   |   |       |     |   |   |       | 0.2  |   |   |       | 0.3  |  
|                                                                 |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |     
|Benefit obligation at end of year                                |                                  | $                | 358.2 |       |                 | $ | 344.3 |               |   | $              | 258.6    |       |   | $    | 218.7 |      |      | $ | 52.7  |      |   | $ | 48.7  |      |   | $ | 29.0  |      |   | $ | 36.7  |     
|                                                                 |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |     
|Change in fair value of plan assets                              |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |      |   |   |       |      |   |   |       |     
|Fair value of plan assets at beginning of year                   |                                  | $                | 351.4 |       |                 | $ | 237.8 |               |   | $              | 162.7    |       |   | $    | 91.4  |      |      | $ |      |      |   | $ |      |      |   |   |       |      |   |   |       |     
|                                                                 | Business combination             |                  |       |      |                 |   |       | 63.5          |   |                |          | 12.2  |   |      |       | 48.7 |      |   |       |     |   |   |       |     |   |   |       |      |   |   |       |      |  
|                                                                 | Actual return on plan assets     |                  |       | 22.7  |                 |   |       | 25.5          |   |                |          | 22.7  |   |      |       | 6.1  |      |   |       |     |   |   |       |     |   |   |       |      |   |   |       |      |  
|                                                                 | Employer contribution            |                  |       | 9.6   |                 |   |       | 40.5          |   |                |          | 24.6  |   |      |       | 5.9  |      |   |       | 1.4  |   |   |       | 0.3  |   |   |       |      |   |   |       |      |  
|                                                                 | Plan participants contributions |                  |       |      |                 |   |       |              |   |                |          | 2.6   |   |      |       | 1.9  |      |   |       |     |   |   |       |     |   |   |       |      |   |   |       |      |  
|                                                                 | Benefits paid                    |                  |       | (21.2 | )               |   |       | (15.9         | ) |                |          | (6.6  | ) |      |       | (2.7 | )    |   |       | (1.4 | ) |   |       | (0.3 | ) |   |       |      |   |   |       |      |  
|                                                                 | Currency translation and other   |                  |       |      |                 |   |       |              |   |                |          | (9.8  | ) |      |       | 11.4 |      |   |       |     |   |   |       |     |   |   |       |      |   |   |       |      |  
|                                                                 |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |     
|Fair value of plan assets at end of year                         |                                  | $                | 362.5 |       |                 | $ | 351.4 |               |   | $              | 208.4    |       |   | $    | 162.7 |      |      | $ |      |      |   | $ |      |      |   |   |       |      |   |   |       |     
|                                                                 |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |     
|Funded status                                                    |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |      |   |   |       |      |   |   |       |     
|Funded status                                                    |                                  | $                | 4.3   |       |                 | $ | 7.1   |               |   | $              | (49.8    | )     |   | $    | (56.0 | )    |      | $ | (52.7 | )    |   | $ | (48.7 | )    |   | $ | (29.0 | )    |   | $ | (36.7 | )   
|Unrecognized net actuarial (gain) loss                           |                                  |                  | 67.2  |       |                 |   | 64.2  |               |   |                | 40.9     |       |   |      | 37.4  |      |      |   | 7.4   |      |   |   | 8.8   |      |   |   | (16.7 | )    |   |   | (19.2 | )   
|Unrecognized prior service costs                                 |                                  |                  | 0.1   |       |                 |   | (4.3  | )             |   |                |         |       |   |      |      |      |      |   | 11.6  |      |   |   | 12.7  |      |   |   | (9.2  | )    |   |   | (2.5  | )   
|Unrecognized net transition obligation                           |                                  |                  |      |       |                 |   |      |               |   |                | 0.5      |       |   |      | 0.5   |      |      |   |      |      |   |   |      |      |   |   |      |      |   |   |      |     
|                                                                 |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |     
|Net amount recognized                                            |                                  | $                | 71.6  |       |                 | $ | 67.0  |               |   | $              | (8.4     | )     |   | $    | (18.1 | )    |      | $ | (33.7 | )    |   | $ | (27.2 | )    |   | $ | (54.9 | )    |   | $ | (58.4 | )   
|                                                                 |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |     
|Amounts recognized in consolidated balance sheet consist
    of: |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |      |   |   |       |      |   |   |       |     
|Prepaid benefit asset                                            |                                  | $                | 74.8  |       |                 | $ | 70.6  |               |   | $              | 35.4     |       |   | $    | 22.4  |      |      |   |      |      |   | $ |      |      |   |   |       |      |   |   |       |     
|Accrued benefit liability                                        |                                  |                  | (3.7  | )     |                 |   | (4.2  | )             |   |                | (51.0    | )     |   |      | (46.5 | )    |      |   | (49.9 | )    |   |   | (45.3 | )    |   |   |       |      |   |   |       |     
|Intangible asset                                                 |                                  |                  |      |       |                 |   |      |               |   |                |         |       |   |      |      |      |      |   | 11.6  |      |   |   | 12.7  |      |   |   |       |      |   |   |       |     
|Accumulated other comprehensive income                           |                                  |                  | 0.5   |       |                 |   | 0.6   |               |   |                | 7.2      |       |   |      | 6.0   |      |      |   | 4.6   |      |   |   | 5.4   |      |   |   |       |      |   |   |       |     
|                                                                 |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |     
|Net amount recognized                                            |                                  | $                | 71.6  |       |                 | $ | 67.0  |               |   | $              | (8.4     | )     |   | $    | (18.1 | )    |      | $ | (33.7 | )    |   | $ | (27.2 | )    |   |   |       |      |   |   |       |     
|                                                                 |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |     
|Accumulated benefit obligation                                   |                                  | $                | 338.0 |       |                 | $ | 325.5 |               |   | $              | 217.6    |       |   | $    | 179.8 |      |      | $ | 49.2  |      |   | $ | 45.0  |      |   |   |       |      |   |   |       |     
|                                                                 |                                  |                  |       |       |                 |   |       |               |   |                |          |       |   |      |       |      |      |   |       |      |   |   |       |     

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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


|                                                                                 |  |                  |      |   |                 |  |      |               |  |  |      |   |  |      |      |   |      |  |      |   |  |  |      |  
|-------------------------------------------------------------------------------- |  | ---------------- | ---- | - | --------------- |  | ---- | ------------- |  |  | ---- | - |  | ---- | ---- | - | ---- |  | ---- | - |  |  | ---- | -
|                                                                                 |  | Domestic Pension |      |   | Foreign Pension |  |      |              
|                                                                                 |  | Benefits         |      |   | Benefits        |  |      | SERP Benefits | 
|                                                                                 |  |                  |      |   |                 |  |      |               | 
|                                                                                 |  | 2005             |      |   | 2004            |  |      | 2005          |  |  | 2004 |   |  | 2005 |      |   | 2004 | 
|                                                                                 |  |                  |      |   |                 |  |      |               |  |  |      |   |  |      |      |   |      | 
|Weighted-average assumptions used to determine projected
    benefit obligations |  |                  |      |   |                 |  |      |               |  |  |      |   |  |      |      |   |      |  |      |   |  |  |      |  
|Discount rate                                                                    |  |                  | 5.75 | % |                 |  | 5.75 | %             |  |  | 4.94 | % |  |      | 5.44 | % |      |  | 5.75 | % |  |  | 5.75 | %
|Average rate of increase in employee compensation                                |  |                  | 4.00 | % |                 |  | 4.00 | %             |  |  | 3.95 | % |  |      | 3.95 | % |      |  | 4.00 | % |  |  | 4.00 | %
|Weighted-average assumptions used to determine the net
    benefit cost (income) |  |                  |      |   |                 |  |      |               |  |  |      |   |  |      |      |   |      |  |      |   |  |  |      |  
|Discount rate                                                                    |  |                  | 5.75 | % |                 |  | 6.10 | %             |  |  | 5.44 | % |  |      | 5.51 | % |      |  | 5.75 | % |  |  | 6.23 | %
|Average rate of increase in employee compensation                                |  |                  | 4.00 | % |                 |  | 4.00 | %             |  |  | 3.95 | % |  |      | 3.95 | % |      |  | 4.00 | % |  |  | 4.00 | %
|Expected long-term rate of return on assets                                      |  |                  | 7.75 | % |                 |  | 8.00 | %             |  |  | 6.65 | % |  |      | 6.93 | % |      |  |      |   |  |  |      |  



|                                                                              |  |                  |       |  |      |   |       | 
|----------------------------------------------------------------------------- |  | ---------------- | ----- |  | ---- | - | ----- | 
|                                                                              |  | Pension Benefits |      
|                                                                              |  |                  |      
|                                                                              |  | 2005             |       |  | 2004 |  
|                                                                              |  |                  |       |  |      |  
|Pension plans with projected benefit obligations in excess of
    plan assets |  |                  |       |  |      |   |       | 
|Projected benefit obligation                                                  |  | $                | 423.6 |  |      | $ | 367.5 | 
|Fair value of plan assets                                                     |  |                  | 292.1 |  |      |   | 240.9 | 



|                                                                                |  |                  |       |  |      |   |       | 
|------------------------------------------------------------------------------- |  | ---------------- | ----- |  | ---- | - | ----- | 
|                                                                                |  | Pension Benefits |      
|                                                                                |  |                  |      
|                                                                                |  | 2005             |       |  | 2004 |  
|                                                                                |  |                  |       |  |      |  
|Pension plans with accumulated benefit obligations in excess
    of plan assets |  |                  |       |  |      |   |       | 
|Accumulated benefit obligation                                                  |  | $                | 186.5 |  |      | $ | 233.3 | 
|Fair value of plan assets                                                       |  |                  | 100.4 |  |      |   | 162.9 | 



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                                                   |                                    |                           |       |     |                          |   |       |                      |  |   |          |     |  |      |       |      |      |   |       |      |  |   |      |     |  |      |     |     |      |   |     |      |  |   |      |     |  |   |      |      |   |   |      |      |   |   |      |      |  
|-------------------------------------------------- | ---------------------------------- | ------------------------- | ----- | --- | ------------------------ | - | ----- | -------------------- |  | - | -------- | --- |  | ---- | ----- | ---- | ---- | - | ----- | ---- |  | - | ---- | --- |  | ---- | --- | --- | ---- | - | --- | ---- |  | - | ---- | --- |  | - | ---- | ---- | - | - | ---- | ---- | - | - | ---- | ---- | -
|                                                   |                                    |                           |       |     |                          |   |       | Other Postretirement | 
|                                                   |                                    | Domestic Pension Benefits |       |     | Foreign Pension Benefits |   |       | SERP Benefits        |  |   | Benefits |    
|                                                   |                                    |                           |       |     |                          |   |       |                      |  |   |          |    
|                                                   |                                    | 2005                      |       |     | 2004                     |   |       | 2003                 |  |   | 2005     |     |  | 2004 |       |      | 2003 |   |       | 2005 |  |   | 2004 |     |  | 2003 |     |     | 2005 |   |     | 2004 |  |   | 2003 |    
|                                                   |                                    |                           |       |     |                          |   |       |                      |  |   |          |     |  |      |       |      |      |   |       |      |  |   |      |     |  |      |     |     |      |   |     |      |  |   |      |    
|Components of net periodic benefit cost (income)   |                                    |                           |       |     |                          |   |       |                      |  |   |          |     |  |      |       |      |      |   |       |      |  |   |      |     |  |      |     |     |      |   |     |      |  |   |      |     |  |   |      |      |   |   |      |      |   |   |      |     
|Service cost-benefits earned                       |                                    | $                         | 13.7  |     |                          | $ | 10.0  |                      |  | $ | 7.7      |     |  | $    | 12.1  |      |      | $ | 7.2   |      |  | $ | 3.4  |     |  | $    | 2.5 |     |      | $ | 1.6 |      |  | $ | 1.5  |     |  | $ | 0.5  |      |   | $ | 0.4  |      |   | $ | 0.4  |     
|Interest cost on benefit obligation                |                                    |                           | 19.3  |     |                          |   | 15.7  |                      |  |   | 13.1     |     |  |      | 11.3  |      |      |   | 9.7   |      |  |   | 4.5  |     |  |      | 2.9 |     |      |   | 2.4 |      |  |   | 1.4  |     |  |   | 2.1  |      |   |   | 1.9  |      |   |   | 1.6  |     
|Expected return on plan assets                     |                                    |                           | (27.6 | )   |                          |   | (22.9 | )                    |  |   | (19.3    | )   |  |      | (11.1 | )    |      |   | (10.4 | )    |  |   | (5.8 | )   |  |      |    |     |      |   |    |      |  |   |     |     |  |   |     |      |   |   |     |      |   |   |     |     
|Amortization of unrecognized net (gain) loss       |                                    |                           | 1.9   |     |                          |   |      |                      |  |   |         |     |  |      | 1.4   |      |      |   | 0.8   |      |  |   | 0.7  |     |  |      | 0.6 |     |      |   | 0.3 |      |  |   | 0.4  |     |  |   | (1.8 | )    |   |   | (1.9 | )    |   |   | (2.3 | )   
|Amortization of unrecognized prior service benefit |                                    |                           | (0.6  | )   |                          |   | (0.6  | )                    |  |   | (0.6     | )   |  |      |      |      |      |   |      |      |  |   |     |     |  |      | 1.7 |     |      |   | 1.6 |      |  |   | 0.1  |     |  |   | (1.6 | )    |   |   | (2.2 | )    |   |   | (1.5 | )   
|Amortization of unrecognized net transition asset  |                                    |                           |      |     |                          |   |      |                      |  |   |         |     |  |      |      |      |      |   | (0.1  | )    |  |   | (0.1 | )   |  |      |    |     |      |   |    |      |  |   |     |     |  |   |     |      |   |   |     |      |   |   |     |     
|Settlement/curtailment (gain) loss                 |                                    |                           | (1.7  | )   |                          |   | 1.2   |                      |  |   | 1.3      |     |  |      | (0.3  | )    |      |   |      |      |  |   |     |     |  |      | 0.3 |     |      |   |    |      |  |   |     |     |  |   |     |      |   |   |     |      |   |   |     |     
|Special termination benefit recognized             |                                    |                           |      |     |                          |   |      |                      |  |   |         |     |  |      | 1.5   |      |      |   |      |      |  |   |     |     |  |      |    |     |      |   |    |      |  |   |     |     |  |   |     |      |   |   |     |      |   |   |     |     
|                                                   |                                    |                           |       |     |                          |   |       |                      |  |   |          |     |  |      |       |      |      |   |       |      |  |   |      |     |  |      |     |     |      |   |     |      |  |   |      |    
|                                                   | Net periodic benefit cost (income) |                           | $     | 5.0 |                          |   | $     | 3.4                  |  |   | $        | 2.2 |  |      | $     | 14.9 |      |   | $     | 7.2  |  |   | $    | 2.7 |  |      | $   | 8.0 |      |   | $   | 5.9  |  |   | $    | 3.4 |  |   | $    | (0.8 | ) |   | $    | (1.8 | ) |   | $    | (1.8 | )
|                                                   |                                    |                           |       |     |                          |   |       |                      |  |   |          |     |  |      |       |      |      |   |       |      |  |   |      |     |  |      |     |     |      |   |     |      |  |   |      |    





|                      |  |                  |       |  |                 |   |      |               |  |            |          |  |  |   |      | 
|--------------------- |  | ---------------- | ----- |  | --------------- | - | ---- | ------------- |  | ---------- | -------- |  |  | - | ---- | 
|                      |  |                  |       |  |                 |   |      | Other Post-   | 
|                      |  | Domestic Pension |       |  | Foreign Pension |   |      |               |  | retirement |         
|                      |  | Benefits         |       |  | Benefits        |   |      | SERP Benefits |  |            | Benefits | 
|                      |  |                  |       |  |                 |   |      |               |  |            |          | 
|Year end December 31, |  |                  |       |  |                 |   |      |               |  |            |          |  |  |   |      | 
|2006                  |  | $                | 19.4  |  |                 | $ | 6.4  |               |  | $          | 0.2      |  |  | $ | 2.4  | 
|2007                  |  |                  | 19.5  |  |                 |   | 6.6  |               |  |            | 2.0      |  |  |   | 2.4  | 
|2008                  |  |                  | 19.8  |  |                 |   | 6.7  |               |  |            | 2.6      |  |  |   | 2.4  | 
|2009                  |  |                  | 20.6  |  |                 |   | 7.3  |               |  |            | 2.7      |  |  |   | 2.3  | 
|2010                  |  |                  | 20.7  |  |                 |   | 7.4  |               |  |            | 3.1      |  |  |   | 2.4  | 
|2011-2015             |  |                  | 115.4 |  |                 |   | 44.1 |               |  |            | 20.5     |  |  |   | 11.1 | 



non-U.S.


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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                      |       |      |    |     |      |  |    |     |  
|--------------------- | ----- | ---- | -- | --- | ---- |  | -- | --- | -
|Asset Category        |       | 2005 |    |     | 2004 | 
|                      |       |      |    |     |      | 
|Equity securities     |       |      | 48 | %   |      |  | 47 | %  
|Debt securities       |       |      | 47 | %   |      |  | 48 | %  
|Real estate and other |       |      | 5  | %   |      |  | 5  | %  
|                      |       |      |    |     |      | 
|                      | Total |      |    | 100 | %    |  |    | 100 | %
|                      |       |      |    |     |      | 





|                                                        |  |          |     |  |          |   |     | 
|------------------------------------------------------- |  | -------- | --- |  | -------- | - | --- | 
|One Percentage Point                                    |  | Increase |     |  | Decrease |  
|                                                        |  |          |     |  |          |  
|Effect on total of service and interest cost components |  | $        | 0.2 |  |          | $ | 0.2 | 
|Effect on postretirement healthcare benefit obligation  |  | $        | 2.1 |  |          | $ | 1.6 | 



Note 18  Restructuring Charges




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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                               |                     |              |     |     |         |   |      |          |  |   |       |       |              |      |      |      |   |   |     |     | 
|------------------------------ | ------------------- | ------------ | --- | --- | ------- | - | ---- | -------- |  | - | ----- | ----- | ------------ | ---- | ---- | ---- | - | - | --- | --- | 
|                               |                     | December 31, |     |     | 2005    |   |      | 2005     |  |   |       |       | December 31, |     
|                               |                     | 2004         |     |     | Charges |   |      | Payments |  |   | Other |       |              | 2005 |     
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |              |      |     
|2004 Plan termination benefits |                     | $            | 3.3 |     |         | $ | 16.6 |          |  | $ | (16.2 | )     |              | $    | (0.3 | )    |   | $ | 3.4 |    
|2004 Plan other charges        |                     |              | 1.5 |     |         |   | 3.3  |          |  |   | (1.5  | )     |              |      | (1.2 | )    |   |   | 2.1 |    
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |              |      |     
|                               | Total 2004 Plan     |              |     | 4.8 |         |   |      | 19.9     |  |   |       | (17.7 | )            |      |      | (1.5 | ) |   |     | 5.5 | 
|Other plans                    |                     |              | 1.5 |     |         |   | 2.9  |          |  |   | (3.4  | )     |              |      | (0.3 | )    |   |   | 0.7 |    
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |              |      |     
|                               | Total restructuring |              | $   | 6.3 |         |   | $    | 22.8     |  |   | $     | (21.1 | )            |      | $    | (1.8 | ) |   | $   | 6.2 | 
|                               |                     |              |     |     |         |   |      |          |  |   |       |       |              |      |     

|                               |                     |              |     |     |         |   |     |          |  |   |              |      |   |   |     |     | 
|------------------------------ | ------------------- | ------------ | --- | --- | ------- | - | --- | -------- |  | - | ------------ | ---- | - | - | --- | --- | 
|                               |                     | December 31, |     |     | 2004    |   |     | 2004     |  |   | December 31, |     
|                               |                     | 2003         |     |     | Charges |   |     | Payments |  |   | 2004         |     
|                               |                     |              |     |     |         |   |     |          |  |   |              |     
|2004 Plan termination benefits |                     | $            |    |     |         | $ | 6.0 |          |  | $ | (2.7         | )    |   | $ | 3.3 |    
|2004 Plan other charges        |                     |              |    |     |         |   | 1.8 |          |  |   | (0.3         | )    |   |   | 1.5 |    
|                               |                     |              |     |     |         |   |     |          |  |   |              |     
|                               | Total 2004 Plan     |              |     |    |         |   |     | 7.8      |  |   |              | (3.0 | ) |   |     | 4.8 | 
|Other plans                    |                     |              | 2.2 |     |         |   |    |          |  |   | (0.7         | )    |   |   | 1.5 |    
|                               |                     |              |     |     |         |   |     |          |  |   |              |     
|                               | Total restructuring |              | $   | 2.2 |         |   | $   | 7.8      |  |   | $            | (3.7 | ) |   | $   | 6.3 | 
|                               |                     |              |     |     |         |   |     |          |  |   |              |     

Note 19  Segment and Geographic Financial
Information






|                                 |                   |           |         |         |                  |   |         |         |  |   |         |         |  |      |       |       |      |   |       |       |  |   |       |       | 
|-------------------------------- | ----------------- | --------- | ------- | ------- | ---------------- | - | ------- | ------- |  | - | ------- | ------- |  | ---- | ----- | ----- | ---- | - | ----- | ----- |  | - | ----- | ----- | 
|                                 |                   | Net Sales |         |         | Operating Income |  
|                                 |                   |           |         |         |                  |  
|                                 |                   | 2005      |         |         | 2004             |   |         | 2003    |  |   | 2005    |         |  | 2004 |       |       | 2003 |  
|                                 |                   |           |         |         |                  |   |         |         |  |   |         |         |  |      |       |       |      |  
|Scientific products and services |                   | $         | 4,141.2 |         |                  | $ | 3,454.7 |         |  | $ | 2,501.0 |         |  | $    | 562.7 |       |      | $ | 375.5 |       |  | $ | 229.6 |      
|Healthcare products and services |                   |           | 1,304.4 |         |                  |   | 1,032.0 |         |  |   | 866.8   |         |  |      | 172.9 |       |      |   | 92.8  |       |  |   | 33.5  |      
|Laboratory workstations          |                   |           | 200.6   |         |                  |   | 176.1   |         |  |   | 206.1   |         |  |      | (0.7  | )     |      |   | 2.8   |       |  |   | 11.1  |      
|Eliminations                     |                   |           | (66.8   | )       |                  |   | (35.5   | )       |  |   | (19.9   | )       |  |      | (0.1  | )     |      |   | (0.3  | )     |  |   | (0.1  | )    
|                                 |                   |           |         |         |                  |   |         |         |  |   |         |         |  |      |       |       |      |  
|                                 | Segment sub-total |           |         | 5,579.4 |                  |   |         | 4,627.3 |  |   |         | 3,554.0 |  |      |       | 734.8 |      |   |       | 470.8 |  |   |       | 274.1 | 
|Other charges:                   |                   |           |         |         |                  |   |         |         |  |   |         |         |  |      |       |       |      |   |       |       |  |   |       |      
|Inventory step-up                |                   |           |        |         |                  |   |        |         |  |   |        |         |  |      | 20.7  |       |      |   | 82.9  |       |  |   | 17.4  |      
|Restructuring expense            |                   |           |        |         |                  |   |        |         |  |   |        |         |  |      | 22.8  |       |      |   | 7.8   |       |  |   |      |      
|Goodwill impairment              |                   |           |        |         |                  |   |        |         |  |   |        |         |  |      |      |       |      |   | 64.9  |       |  |   |      |      
|Other charges                    |                   |           |        |         |                  |   |        |         |  |   |        |         |  |      | 33.6  |       |      |   | 33.7  |       |  |   |      |      
|                                 |                   |           |         |         |                  |   |         |         |  |   |         |         |  |      |       |       |      |  
|                                 | Total             |           | $       | 5,579.4 |                  |   | $       | 4,627.3 |  |   | $       | 3,554.0 |  |      | $     | 657.7 |      |   | $     | 281.5 |  |   | $     | 256.7 | 
|                                 |                   |           |         |         |                  |   |         |         |  |   |         |         |  |      |       |       |      |  



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


step-up step-up




|                                 |       |        |         |         |                      |                  |         |              |  |   |         |         |  |      |      |       |      |   |      |      |  |   |      |      |  |      |       |       |  |   |       |       |  |   |      |      | 
|-------------------------------- | ----- | ------ | ------- | ------- | -------------------- | ---------------- | ------- | ------------ |  | - | ------- | ------- |  | ---- | ---- | ----- | ---- | - | ---- | ---- |  | - | ---- | ---- |  | ---- | ----- | ----- |  | - | ----- | ----- |  | - | ---- | ---- | 
|                                 |       |        |         |         |                      | Depreciation and |        
|                                 |       | Assets |         |         | Capital Expenditures |                  |         | Amortization | 
|                                 |       |        |         |         |                      |                  |         |              | 
|                                 |       | 2005   |         |         | 2004                 |                  |         | 2003         |  |   | 2005    |         |  | 2004 |      |       | 2003 |   |      | 2005 |  |   | 2004 |      |  | 2003 |      
|                                 |       |        |         |         |                      |                  |         |              |  |   |         |         |  |      |      |       |      |   |      |      |  |   |      |      |  |      |      
|Scientific products and services |       | $      | 6,355.7 |         |                      | $                | 5,900.5 |              |  | $ | 2,293.6 |         |  | $    | 78.0 |       |      | $ | 70.1 |      |  | $ | 63.1 |      |  | $    | 152.4 |       |  | $ | 111.7 |       |  | $ | 67.2 |     
|Healthcare products and services |       |        | 1,974.3 |         |                      |                  | 2,015.9 |              |  |   | 350.4   |         |  |      | 39.7 |       |      |   | 11.0 |      |  |   | 11.5 |      |  |      | 41.8  |       |  |   | 25.2  |       |  |   | 11.0 |     
|Laboratory workstations          |       |        | 70.3    |         |                      |                  | 59.5    |              |  |   | 105.7   |         |  |      | 10.1 |       |      |   | 10.9 |      |  |   | 5.5  |      |  |      | 5.1   |       |  |   | 4.2   |       |  |   | 4.0  |     
|All Other                        |       |        | 30.0    |         |                      |                  | 114.3   |              |  |   | 109.7   |         |  |      |     |       |      |   | 1.4  |      |  |   | 0.1  |      |  |      | 0.6   |       |  |   | 2.2   |       |  |   | 0.6  |     
|                                 |       |        |         |         |                      |                  |         |              |  |   |         |         |  |      |      |       |      |   |      |      |  |   |      |      |  |      |      
|                                 | Total |        | $       | 8,430.3 |                      |                  | $       | 8,090.2      |  |   | $       | 2,859.4 |  |      | $    | 127.8 |      |   | $    | 93.4 |  |   | $    | 80.2 |  |      | $     | 199.9 |  |   | $     | 143.3 |  |   | $    | 82.8 | 
|                                 |       |        |         |         |                      |                  |         |              |  |   |         |         |  |      |      |       |      |   |      |      |  |   |      |      |  |      |      









|                                      |       |                   |         |         |      |   |         |         | 
|------------------------------------- | ----- | ----------------- | ------- | ------- | ---- | - | ------- | ------- | 
|                                      |       | Long-Lived Assets |        
|                                      |       |                   |        
|                                      |       | 2005              |         |         | 2004 |  
|                                      |       |                   |         |         |      |  
|Long-lived assets by geographic area: |       |                   |         |         |      |   |         |        
|Domestic                              |       | $                 | 4,925.2 |         |      | $ | 4,986.9 |        
|International                         |       |                   | 1,245.0 |         |      |   | 1,120.8 |        
|                                      |       |                   |         |         |      |  
|                                      | Total |                   | $       | 6,170.2 |      |   | $       | 6,107.7 | 
|                                      |       |                   |         |         |      |  

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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


|                              |       |           |         |         |      |   |         |         |  |   |         |         | 
|----------------------------- | ----- | --------- | ------- | ------- | ---- | - | ------- | ------- |  | - | ------- | ------- | 
|                              |       | Net sales |        
|                              |       |           |        
|                              |       | 2005      |         |         | 2004 |   |         | 2003    | 
|                              |       |           |         |         |      |   |         |         | 
|Net sales by geographic area: |       |           |         |         |      |   |         |         |  |   |         |        
|Domestic                      |       | $         | 4,369.6 |         |      | $ | 3,618.1 |         |  | $ | 2,916.3 |        
|International                 |       |           | 1,421.8 |         |      |   | 1,123.4 |         |  |   | 684.4   |        
|Eliminations                  |       |           | (212.0  | )       |      |   | (114.2  | )       |  |   | (46.7   | )      
|                              |       |           |         |         |      |   |         |         | 
|                              | Total |           | $       | 5,579.4 |      |   | $       | 4,627.3 |  |   | $       | 3,554.0 | 
|                              |       |           |         |         |      |   |         |         | 



Note 20  Related Parties




Note 21  Recent Accounting Pronouncements


Share-Based Payment


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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)






Inventory Costs


Note 22  Unaudited Quarterly Financial
Information




|                                       |                                     |       |         |       |        |   |         |       |  |   |         |       |  |      |         |       |  |   |         |       | 
|-------------------------------------- | ----------------------------------- | ----- | ------- | ----- | ------ | - | ------- | ----- |  | - | ------- | ----- |  | ---- | ------- | ----- |  | - | ------- | ----- | 
|                                       |                                     | 2005  |        
|                                       |                                     |       |        
|                                       |                                     | First |         |       | Second |   |         | Third |  |   | Fourth  |       |  | Year |        
|                                       |                                     |       |         |       |        |   |         |       |  |   |         |       |  |      |        
|Net sales                              |                                     | $     | 1,351.2 |       |        | $ | 1,391.3 |       |  | $ | 1,413.0 |       |  | $    | 1,423.9 |       |  | $ | 5,579.4 |      
|Gross profit(a)                        |                                     |       | 449.4   |       |        |   | 480.3   |       |  |   | 483.0   |       |  |      | 497.9   |       |  |   | 1,910.6 |      
|Income from continuing operations      |                                     |       | 76.1    |       |        |   | 85.4    |       |  |   | 93.2    |       |  |      | 117.2   |       |  |   | 371.9   |      
|Income from discontinued operations(b) |                                     |       | 0.9     |       |        |   | 16.0    |       |  |   | 0.3     |       |  |      |        |       |  |   | 17.2    |      
|Net income(c)                          |                                     | $     | 77.0    |       |        | $ | 101.4   |       |  | $ | 93.5    |       |  | $    | 117.2   |       |  | $ | 389.1   |      
|Basic net income per common share:     |                                     |       |         |       |        |   |         |       |  |   |         |       |  |      |         |       |  |   |         |      
|                                       | Income from continuing operations   |       | $       | 0.63  |        |   | $       | 0.71  |  |   | $       | 0.77  |  |      | $       | 0.95  |  |   | $       | 3.06  | 
|                                       | Income from discontinued operations |       |         | 0.01  |        |   |         | 0.13  |  |   |         |      |  |      |         |      |  |   |         | 0.14  | 
|                                       |                                     |       |         |       |        |   |         |       |  |   |         |       |  |      |        
|                                       | Net income                          |       | $       | 0.64  |        |   | $       | 0.84  |  |   | $       | 0.77  |  |      | $       | 0.95  |  |   | $       | 3.20  | 
|Diluted net income per common share:   |                                     |       |         |       |        |   |         |       |  |   |         |       |  |      |         |       |  |   |         |      
|                                       | Income from continuing operations   |       | $       | 0.60  |        |   | $       | 0.67  |  |   | $       | 0.73  |  |      | $       | 0.91  |  |   | $       | 2.92  | 
|                                       | Income from discontinued operations |       |         | 0.01  |        |   |         | 0.13  |  |   |         |      |  |      |         |      |  |   |         | 0.13  | 
|                                       |                                     |       |         |       |        |   |         |       |  |   |         |       |  |      |        
|                                       | Net income                          |       | $       | 0.61  |        |   | $       | 0.80  |  |   | $       | 0.73  |  |      | $       | 0.91  |  |   | $       | 3.05  | 
|Market price:                          |                                     |       |         |       |        |   |         |       |  |   |         |       |  |      |         |       |  |   |         |      
|                                       | High                                |       | $       | 64.75 |        |   | $       | 64.90 |  |   | $       | 67.12 |  |      | $       | 65.50 |  |   | $       | 67.12 | 
|                                       | Low                                 |       | $       | 56.92 |        |   | $       | 55.88 |  |   | $       | 61.20 |  |      | $       | 54.27 |  |   | $       | 54.27 | 

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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


|                                           |                                     |       |         |       |        |   |         |       |  |   |         |       |  |      |         |       |  |   |         |       | 
|------------------------------------------ | ----------------------------------- | ----- | ------- | ----- | ------ | - | ------- | ----- |  | - | ------- | ----- |  | ---- | ------- | ----- |  | - | ------- | ----- | 
|                                           |                                     | 2004  |        
|                                           |                                     |       |        
|                                           |                                     | First |         |       | Second |   |         | Third |  |   | Fourth  |       |  | Year |        
|                                           |                                     |       |         |       |        |   |         |       |  |   |         |       |  |      |        
|Net sales                                  |                                     | $     | 1,003.1 |       |        | $ | 1,048.6 |       |  | $ | 1,254.3 |       |  | $    | 1,321.3 |       |  | $ | 4,627.3 |      
|Gross profit(d)                            |                                     |       | 270.6   |       |        |   | 302.3   |       |  |   | 357.4   |       |  |      | 424.5   |       |  |   | 1,354.8 |      
|Income from continuing operations(b)       |                                     |       | 32.8    |       |        |   | 43.5    |       |  |   | 34.9    |       |  |      | 50.6    |       |  |   | 161.8   |      
|Income from discontinued operations        |                                     |       | 1.8     |       |        |   | 1.2     |       |  |   | 1.2     |       |  |      | 0.4     |       |  |   | 4.6     |      
|Net income(e)(f)                           |                                     | $     | 34.6    |       |        | $ | 44.7    |       |  | $ | 36.1    |       |  | $    | 51.0    |       |  | $ | 166.4   |      
|Basic net income per common share:(f)(g)   |                                     |       |         |       |        |   |         |       |  |   |         |       |  |      |         |       |  |   |         |      
|                                           | Income from continuing operations   |       | $       | 0.52  |        |   | $       | 0.68  |  |   | $       | 0.35  |  |      | $       | 0.43  |  |   | $       | 1.88  | 
|                                           | Income from discontinued operations |       |         | 0.02  |        |   |         | 0.02  |  |   |         | 0.01  |  |      |         |      |  |   |         | 0.05  | 
|                                           |                                     |       |         |       |        |   |         |       |  |   |         |       |  |      |        
|                                           | Net income                          |       | $       | 0.54  |        |   | $       | 0.70  |  |   | $       | 0.36  |  |      | $       | 0.43  |  |   | $       | 1.93  | 
|Diluted net income per common share:(f)(g) |                                     |       |         |       |        |   |         |       |  |   |         |       |  |      |         |       |  |   |         |      
|                                           | Income from continuing operations   |       | $       | 0.48  |        |   | $       | 0.62  |  |   | $       | 0.33  |  |      | $       | 0.41  |  |   | $       | 1.75  | 
|                                           | Income from discontinued operations |       |         | 0.03  |        |   |         | 0.02  |  |   |         | 0.01  |  |      |         |      |  |   |         | 0.05  | 
|                                           |                                     |       |         |       |        |   |         |       |  |   |         |       |  |      |        
|                                           | Net income                          |       | $       | 0.51  |        |   | $       | 0.64  |  |   | $       | 0.34  |  |      | $       | 0.41  |  |   | $       | 1.80  | 
|Market price:                              |                                     |       |         |       |        |   |         |       |  |   |         |       |  |      |         |       |  |   |         |      
|                                           | High                                |       | $       | 56.20 |        |   | $       | 60.10 |  |   | $       | 59.61 |  |      | $       | 62.60 |  |   | $       | 62.60 | 
|                                           | Low                                 |       | $       | 39.76 |        |   | $       | 54.15 |  |   | $       | 53.26 |  |      | $       | 53.49 |  |   | $       | 39.76 | 






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | During 2005, the Company recorded charges totaling
    $31.5 million, consisting of $20.7 million to step up
    the fair value of inventory from the Apogent transaction,
    $7.3 million of integration costs, and $3.5 million of
    long-lived asset impairment and other related charges.                                                                                                                                                                                                                                                                                                                                                   
|   
|(b) |  | Income from discontinued operations includes the activities of
    Atos Medical Holding AB.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(c) |  | During 2005, the Company recorded charges totaling
    $67.5 million, net of tax, consisting of the items noted in
    (a) above as well as $17.7 million of integration
    costs, $5.1 million of long-lived asset impairment and
    other charges, $22.8 million of restructuring charges,
    $5.3 million of gain on the termination of the interest
    rate swaps, $71.3 million of debt refinancing and other
    related charges, $3.3 million gain on sale of investment,
    $0.5 million of other income and $6.8 million tax
    provision credit related to finalizing certain domestic and
    foreign tax audits and negotiations.
|   
|(d) |  | During 2004, the Company recorded charges totaling
    $90.4 million consisting of $82.9 million to step up
    the fair value of inventory from the Apogent, Oxoid, Dharmacon,
    and Perbio acquisitions, $5.6 million of integration costs,
    and $1.9 million of impairment charges for fixed assets.                                                                                                                                                                                                                                                                                                                                       
|   
|(e) |  | During 2004, the Company recorded charges totaling
    $100.3 million, net of tax, consisting of the items noted
    in (d) above as well as $19.4 million of integration
    costs, $7.8 million of restructuring charges,
    $6.0 million charitable contribution, $65.7 million
    impairment charge for long-lived assets, $16.6 million of
    refinancing charges, $22.7 million gain on sale of
    investment, and $10.9 million tax provision credit related
    to finalizing certain domestic and foreign tax audits and
    negotiations.                                                                                            
|   
|(f) |  | Reflects adjustments as disclosed in
    Form 10-Q/ A for
    the quarter ended September 30, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(g) |  | The Company adopted the provisions of EITF Issue No. 04-8
    (EITF 04-8),
    The Effect of Contingently Convertible Debt on Diluted
    Earnings Per Share in calculating quarterly diluted earnings
    per common share for 2004.                                                                                                                                                                                                                                                                                                                                                                                                              

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|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

10-K, 13a-15(e) 13a-15(f)


Managements Report on Internal Control over Financial
Reporting


Internal Control  Integrated Framework







|         |                  
|-------- | -----------------
|Item 9B. | Other Information



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM






Internal Control  Integrated Framework








Internal
Control  Integrated Framework Internal Control  Integrated
Framework


87



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Deloitte &
Touche LLP









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PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant



Compliance with Section 16(a) of the Exchange Act.


Code of Conduct.







|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation








|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters








|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions








|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accountant Fees and Services



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PART IV







|         |                                          
|-------- | -----------------------------------------
|Item 15. | Exhibit and Financial Statement Schedules

10-K




| |     |                                                                                                                                              
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Financial Statements: The following consolidated
    financial statements of Fisher Scientific International Inc. are
    included in Item 8.

|                                                                                                                                                      |  |      |    | 
|----------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                                                                                      |  | Page |   
|                                                                                                                                                      |  |      |   
|Report of Independent Registered Public Accounting Firm                                                                                               |  |      | 41 | 
|Consolidated Statement of Operations for the years ended
    December 31, 2005, 2004 and 2003                                                         |  |      | 42 | 
|Consolidated Balance Sheets as of December 31, 2005 and 2004                                                                                          |  |      | 43 | 
|Consolidated Statement of Cash Flows for the years ended
    December 31, 2005, 2004 and 2003                                                         |  |      | 44 | 
|Consolidated Statement of Changes in Stockholders Equity
    and Other Comprehensive Income for the years ended
    December 31, 2005, 2004 and 2003 |  |      | 45 | 
|Notes to Consolidated Financial Statements                                                                                                            |  |      | 46 | 



| |                                  
| | ---------------------------------
| | (2) Financial Statement Schedule:

|                                                                                                                          |  |  |     | 
|------------------------------------------------------------------------------------------------------------------------- |  |  | --- | 
|Schedule II  Valuation and Qualifying Accounts
    and reserves for the year ended December 31, 2005, 2004 and
    2003. |  |  | 100 | 

S-X.




| |                                                                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (3) Exhibits. Exhibits 10.1 through 10.72
    constitute all of the management contracts and compensation
    plans and arrangements of the Company required to be filed as
    exhibits to this Annual Report.

|        |      |             |  |                                                                                                                                                                                                                                                                
|------- | ---- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |      |            
|Number  |      | Description
|        |      |            
|        | 3.01 |             |  | Restated Certificate of Incorporation of Fisher Scientific
    International Inc. Incorporated by reference to the
    Companys Quarterly Report on Form 10-Q filed with the
    Securities and Exchange Commission on August 4, 2005.                        
|        | 3.02 |             |  | Amended and Restated Certificate of Incorporation of the
    registrant, as amended. Incorporated by reference to
    Exhibit 3.1 to the registrants Quarterly Report on
    Form 10-Q filed on May 15, 2002.                                                 
|        | 3.03 |             |  | Certificate of Designation of Non-Voting Stock of the
    registrant. Incorporated by reference to Exhibit 3.3 to the
    registrants Annual Report on Form 10-K filed on
    March 31, 1999.                                                                 
|        | 3.04 |             |  | Certificate of Designation of Series B Non-Voting Common
    Stock. Incorporated by reference to Exhibit 3.4 to the
    registrants Annual Report on Form 10-K filed on
    March 31, 1999.                                                                   
|        | 3.05 |             |  | Bylaws of the registrant. Incorporated by reference to
    Exhibit 3.2 to the registrants Registration Statement
    on Form S-4 (Registration no. 333-44400) filed on
    August 24, 2000.                                                                   
|        | 3.06 |             |  | Certificate of Correction to the Restated Certificate of
    Incorporation of Fisher Scientific International Inc.
    Incorporated by reference to Exhibit 3.6 to the
    registrants Annual Report on Form 10-K filed on
    March 28, 2002.                
|        | 3.07 |             |  | Certificate of Amendment of Restated Certificate of
    Incorporation of Fisher Scientific International Inc.
    Incorporated by reference to the Companys Registration
    Statement on Form S-3 (Registration no. 333-108448), dated
    September 3, 2003.
|        | 4.01 |             |  | Specimen Certificate of Common Stock, $.01 par value per
    share, of the Company incorporated by reference to
    Exhibit 4.1 to the registrants Annual Report on Form
    10-K filed on March 28, 2002.                                                    
|        | 4.02 |             |  | Certificate of Designation of Non-Voting Stock (see
    Exhibit 3.02).                                                                                                                                                                                         

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|        |       |             |  |                                                                                                                                                                                                                                                                                                                                                                              
|------- | ----- | ----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |            
|Number  |       | Description
|        |       |            
|        | 4.03  |             |  | Certificate of Designation of Series B Non-Voting Common
    Stock (see Exhibit 3.03).                                                                                                                                                                                                                                                                                       
|        | 4.04  |             |  | Indenture dated as of April 24, 2002 between the Company
    and J.P. Morgan Trust Company, National Association, as
    Trustee, relating to the
    81/8
    percent Senior Subordinated Notes due 2012. Incorporated by
    reference to Exhibit 4.1 to the registrants
    Registration Statement on Form S-4 (Registration no.
    333-88362) filed on May 15, 2002.   
|        | 4.05  |             |  | Supplemental Indenture No. 1 dated as of March 7, 2003
    between the Company and J.P. Morgan Trust Company, National
    Association. Incorporated by reference to Exhibit 4.7 to
    the registrants Registration Statement on Form S-4
    (Registration no. 333-104361) filed on April 7, 2003.                                                                        
|        | 4.06  |             |  | Indenture, dated as of July 7, 2003, by and between the
    Company and J.P. Morgan Trust Company, National
    Association, as Trustee. Incorporated by reference to
    Exhibit 4.11 to the Registration Statement on Form S-4
    (Registration no. 333-104361) filed on July 10, 2003.                                                                                   
|        | 4.07  |             |  | Indenture, dated as of August 3, 2004, among Apogent
    Technologies Inc., the Company and The Bank of New York as
    Trustee, relating to Apogent Technologies Inc.s Floating
    Rate Convertible Senior Debentures due 2033. Incorporated by
    reference to Exhibit 4.1 to Apogent Technologies
    Inc.s Quarterly Report on Form 10-Q filed on
    August 9, 2004.
|        | 4.08  |             |  | Supplemental Indenture No. 1, dated as of March 3,
    2004, between Fisher Scientific International Inc. and
    J.P. Morgan Trust Company, National Association.
    Incorporated by reference to the Companys Current Report
    on Form 8-K filed with the Securities and Exchange
    Commission on March 5, 2004.                                                     
|        | 4.09  |             |  | Indenture, dated as of August 3, 2004, between the Company
    and The Bank of New York as Trustee, relating to the
    Companys
    63/4% Senior
    Subordinated Notes due 2014. Incorporated by reference to
    Exhibit 4.15 to the Companys Registration Statement
    on Form S-4 (Registration No. 333-120864) filed on
    November 30, 2004.                      
|        | 4.10  |             |  | Supplemental Indenture No. 2, dated as of April 29,
    2005, by and between the Company and J.P. Morgan Trust
    Company, National Association. Incorporated by reference to the
    Companys Current Report on Form 8-K, filed with the
    Securities and Exchange Commission on May 2, 2005.                                                                           
|        | 4.11  |             |  | Indenture, dated as of July 15, 2005, by and between Fisher
    Scientific International Inc. and The Bank of New York Trust
    Company, N.A., as trustee. Incorporated by reference to the
    Companys Current Report on Form 8-K filed with the
    Securities and Exchange Commission on July 21, 2005.                                                                
|        | 4.12  |             |  | Form of Senior Indenture. Incorporated by reference to the
    Companys Registration Statement on Form S-3
    (Registration no. 333-124738), filed with the Securities
    and Exchange Commission on August 1, 2005.                                                                                                                                                      
|        | 4.13  |             |  | Form of Subordinated Indenture. Incorporated by reference to the
    Companys Registration Statement on Form S-3
    (Registration no. 333-124738), filed with the Securities
    and Exchange Commission on August 1, 2005.                                                                                                                                                
|        | 4.14  |             |  | Form of Junior Subordinated Indenture. Incorporated by reference
    to the Companys Registration Statement on Form S-3
    (Registration no. 333-124738), filed with the Securities
    and Exchange Commission on August 1, 2005.                                                                                                                                         
|        | 10.01 |             |  | Amended and Restated Employment Agreement, dated as of
    December 31, 2003, between the Company and Paul M.
    Montrone. Incorporated by reference to Exhibit 10.01 to the
    Companys Registration Statement on Form S-3
    (Registration no. 333-110038) filed on January 6, 2004.                                                                                   
|        | 10.02 |             |  | Amendment to Employment Agreement, dated as of August 2,
    2005, between Fisher Scientific International Inc. and Paul M.
    Montrone. Incorporated by reference to the Companys
    Quarterly Report on Form 10-Q filed with the Securities and
    Exchange Commission on August 4, 2005.                                                                              
|        | 10.03 |             |  | Amended and Restated Employment Agreement, dated as of
    December 31, 2003, between the Company and Paul M. Meister.
    Incorporated by reference to Exhibit 10.02 to the
    Companys Registration Statement on Form S-3
    (Registration no. 333-110038) filed on January 6, 2004.                                                                                    
|        | 10.04 |             |  | Amendment to Employment Agreement, dated as of August 2,
    2005, between Fisher Scientific International Inc. and Paul M.
    Meister. Incorporated by reference to the Companys
    Quarterly Report on Form 10-Q filed with the Securities and
    Exchange Commission on August 4, 2005.                                                                               

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|        |       |             |  |                                                                                                                                                                                                                                                                                                                                                         
|------- | ----- | ----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |            
|Number  |       | Description
|        |       |            
|        | 10.05 |             |  | Employment Agreement, dated as of March 31, 1998, between the
    Company and David T. Della Penta. Incorporated by reference
    to the Companys Quarterly Report on Form 10-Q, filed
    with the Securities and Exchange Commission on August 14,
    1998.                                                                                         
|        | 10.06 |             |  | Amendment to Employment Agreement, dated as of December 31,
    2003, between the Company and David T. Della Penta. Incorporated
    by reference to Exhibit 10.03 to the Companys
    Registration Statement on Form S-3 (Registration no.
    333-110038) filed on January 6, 2004.                                                                  
|        | 10.07 |             |  | Second Amendment to Employment Agreement, dated as of August 2,
    2005, between Fisher Scientific International Inc. and David T.
    Della Penta. Incorporated by reference to the Companys
    Quarterly Report on Form 10-Q filed with the Securities and
    Exchange Commission on August 4, 2005.                                              
|        | 10.08 |             |  | Employment Agreement, dated March 14, 2005, between the Company
    and Mark D. Roellig. Incorporated by reference to the
    Companys Current Report on Form 8-K filed with the
    Securities and Exchange Commission on March 14, 2005.                                                                                                             
|        | 10.09 |             |  | Amendment to Employment Agreement, dated as of August 2, 2005,
    between Fisher Scientific International Inc. and Mark D.
    Roellig. Incorporated by reference to the Companys
    Quarterly Report on Form 10-Q filed with the Securities and
    Exchange Commission on August 4, 2005.                                                          
|        | 10.10 |             |  | Employment Agreement, dated as of August 2, 2005, between Fisher
    Scientific International Inc. and Kevin P. Clark. Incorporated
    by reference to the Companys Quarterly Report on Form 10-Q
    filed with the Securities and Exchange Commission on August 4,
    2005.                                                                        
|        | 10.11 |             |  | Separation Agreement, dated March 9, 2005, between the Company
    and Todd M. DuChene. Incorporated by reference to the
    Companys Current Report on Form 8-K filed with the
    Securities and Exchange Commission on March 14, 2005.                                                                                                              
|        | 10.12 |             |  | Fisher Scientific International Inc. Incentive Compensation
    Plan, as amended and restated effective as of January 1,
    2002. Incorporated by reference to the Companys Annual
    Report on Form 10-K for the year ended December 31, 2002,
    filed with the Securities and Exchange Commission on
    March 24, 2003.                         
|        | 10.13 |             |  | Fisher Scientific International Inc. Deferred Compensation Plan
    for Non-Employee Directors. Incorporated by reference to the
    Companys Annual Report on Form 10-K for the year ended
    December 31, 1992, filed with the Securities and Exchange
    Commission on March 24, 1993.                                                            
|        | 10.14 |             |  | Retirement Plan for Non-Employee Directors of Fisher Scientific
    International Inc. Incorporated by reference to the
    Companys Annual Report on Form 10-K for the year ended
    December 31, 1992, filed with the Securities and Exchange
    Commission on March 24, 1993.                                                                     
|        | 10.15 |             |  | Fisher Scientific International Inc. 1998 Equity and Incentive
    Plan. Incorporated by reference to Post-Effective Amendment
    No. 1 to the Companys Registration Statement on
    Form S-4 (Registration No. 333-42777) filed with the
    Securities and Exchange Commission on February 2, 1998.                                                
|        | 10.16 |             |  | Fisher Scientific International Inc. 2003 Equity and Incentive
    Plan, effective as of May 2, 2003. Incorporated by
    reference to Annex II to the Companys definitive
    proxy statement filed with the Securities and Exchange
    Commission on April 10, 2003.                                                                                
|        | 10.17 |             |  | Fisher Scientific International Inc. 2001 Equity and Incentive
    Plan, effective as of May 16, 2001. Incorporated by
    reference to Annex I to the Companys definitive proxy
    statement filed with the Securities and Exchange Commission on
    April 12, 2001.                                                                                
|        | 10.18 |             |  | Fisher Scientific International Inc. Long-Term Incentive Plan,
    effective January 1, 1990. Incorporated by reference to the
    Companys Annual Report on Form 10-K for the year ended
    December 31, 1992, filed with the Securities and Exchange
    Commission on March 24, 1993.                                                              
|        | 10.19 |             |  | Form of Fisher Scientific International Inc. Non-Qualified Stock
    Option Award Agreement (Management Options  Fisher
    Scientific International Inc. 2001 Equity and Incentive Plan).
    Incorporated by reference to the Companys Quarterly Report
    on Form 10-Q, filed with the Securities and Exchange Commission
    on November 9, 2004.

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|        |       |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|------- | ----- | ----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |            
|Number  |       | Description
|        |       |            
|        | 10.20 |             |  | Form of Fisher Scientific International Inc. Non-Qualified Stock
    Option Award Agreement (Management Options  Fisher
    Scientific International Inc. 2003 Equity and Incentive Plan).
    Incorporated by reference to the Companys Quarterly Report
    on Form 10-Q, filed with the Securities and Exchange Commission
    on November 9, 2004.                                                                                                                                                                                                                                                                                                                                                     
|        | 10.21 |             |  | Form of Non-qualified Stock Option Agreement pursuant to the
    Fisher Scientific International Inc. 2001 Equity and Incentive
    Plan and 2003 Equity and Incentive Plan. Incorporated by
    reference to the Companys Current Report on Form 8-K
    filed with the Securities and Exchange Commission on
    March 9, 2005.                                                                                                                                                                                                                                                                                                                                                                           
|        | 10.22 |             |  | Fisher Scientific International Inc. 2005 Equity and Incentive
    Plan, effective as of May 6, 2005. Incorporated by
    reference to the Companys definitive proxy statement filed
    with the Securities and Exchange Commission on April 4,
    2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|        | 10.23 |             |  | First Amendment to the Fisher Scientific International Inc.
    Retirement Plan for non-employee directors. Incorporated by
    reference to the Companys Quarterly Report on
    Form 10-Q filed with the Securities and Exchange Commission
    on May 10, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 10.24 |             |  | Form of 2005 Equity and Incentive Plan Non-Qualified Stock
    Option Award Agreement. Incorporated by reference to the
    Companys Current Report on Form 8-K filed with the
    Securities and Exchange Commission on June 10, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        | 10.25 |             |  | Form of 2005 Equity and Incentive Plan Restricted Stock
    Agreement. Incorporated by reference to the Companys
    Current Report on Form 8-K filed with the Securities and
    Exchange Commission on June 10, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        | 10.26 |             |  | Form of Indemnification Agreement. Incorporated by reference to
    the Companys Quarterly Report on Form 10-Q filed with
    the Securities and Exchange Commission on August 4, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        | 10.27 |             |  | Form of Fisher Scientific International Inc. 2005 Equity and
    Incentive Plan Restricted Stock Unit Agreement. Incorporated by
    reference to the Companys Quarterly Report on
    Form 10-Q filed with the Securities and Exchange Commission
    on November 9, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | 10.28 |             |  | Form of Performance Based Restricted Stock Unit Agreement.
    Incorporated by reference to the Companys Current Report
    on Form 8-K filed with the Securities and Exchange
    Commission on December 19, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 10.29 |             |  | Form of Performance Based Restricted Stock Unit Purchase
    Agreement. Incorporated by reference to the Companys
    Current Report on Form 8-K filed with the Securities and
    Exchange Commission on December 19, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 10.30 |             |  | Fisher Scientific International Inc. Deferred Compensation Plan.
    Incorporated by reference to the Companys Current Report
    on Form 8-K filed with the Securities and Exchange
    Commission on December 19, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 10.31 |             |  | Credit Agreement, dated as of August 2, 2004, among the
    Company, each lender from time to time party thereto, Bank of
    America, N.A., as Administrative Agent and Swing Line Lender,
    Banc of America Securities LLC, Deutsche Bank Securities Inc.
    and Credit Suisse First Boston, acting through its Cayman
    Islands Branch or one of its affiliates, ABN Amro Bank, N.V. and
    Merrill Lynch Capital Corporation, as Co-Syndication and
    Co-Documentation Agents. Incorporated by reference to the
    Companys Quarterly Report on Form 10-Q filed on
    August 9, 2004.                                                                                                         
|        | 10.32 |             |  | First Amendment to Credit Agreement, dated as of
    December 29, 2004, among the Company, each lender from time
    to time party thereto, Bank of America, N.A., as Administrative
    Agent and Swing Line Lender, Banc of America Securities LLC,
    Deutsche Bank Securities Inc. and Credit Suisse First Boston,
    acting through its Cayman Islands Branch or one of its
    affiliates, ABN Amro Bank, N.V. and Merrill Lynch Capital
    Corporation, as Co-Syndication and Co-Documentation Agents.
    Incorporated by reference to the Companys Annual Report on
    Form 10-K for the year ended December 31, 2004, filed with the
    Securities and Exchange Commission on March 16, 2005.

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|        |       |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|------- | ----- | ----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |            
|Number  |       | Description
|        |       |            
|        | 10.33 | *           |  | Second Amendment to Credit Agreement and Limited Waiver, dated
    as of December 14, 2005, among the Company, each lender from
    time to time party thereto, Bank of America, N.A., as
    Administrative Agent and Swing Line Lender, Banc of America
    Securities LLC, Deutsche Bank Securities Inc. and Credit Suisse
    First Boston, acting through its Cayman Islands Branch or one of
    its affiliates, ABN Amro Bank, N.V. and Merrill Lynch Capital
    Corporation, as Co-Syndication and Co-Documentation Agents.                                                                                      
|        | 10.34 |             |  | Receivables Transfer Agreement dated as of February 14,
    2003 among FSI Receivables Company LLC, as Transferor, the
    Company, as Servicer, Blue Ridge Asset Funding Corporation,
    Wachovia Bank, National Association, Liberty Street Funding
    Corp., The Bank of Nova Scotia, and Wachovia Bank, National
    Association, as Administrative Agent. Incorporated by reference
    to the Companys Registration Statement on Form S-4
    (Registration no. 333-104361) filed on April 7, 2003.                                                                                                              
|        | 10.35 |             |  | First Amendment to Receivables Transfer Agreement, dated as of
    February 12, 2004, among FSI Receivables Company LLC, as
    Transferor, the Company, as Servicer, Blue Ridge Asset Funding
    Corporation, Liberty Street Funding Corp., Wachovia Bank,
    National Association, The Bank of Nova Scotia, and Wachovia
    Bank, National Association, as Administrative Agent.
    Incorporated by reference to the Registration Statement on
    Form S-4 (Registration No. 333-113225) filed with the
    Securities and Exchange Commission on March 2, 2004.                                                   
|        | 10.36 |             |  | Amended and Restated Receivables Transfer Agreement, dated as of
    February 4, 2005 among FSI Receivables Company LLC, as
    Transferor, Fisher Scientific International Inc., as Servicer,
    Liberty Street Funding Corp., The Bank of Nova Scotia, Atlantic
    Asset Securitization Corp., Calyon New York Branch and The Bank
    of Nova Scotia, as Administrative Agent. Incorporated by
    reference to the Companys Annual Report on Form 10-K for
    the year ended December 31, 2004, filed with the Securities and
    Exchange Commission on March 16, 2005.                                          
|        | 10.37 | *           |  | First Amendment to Amended and Restated Receivables Transfer
    Agreement, dated as of October 1, 2005 among FSI
    Receivables Company LLC, as Transferor, Fisher Scientific
    International Inc., as Servicer, Liberty Street Funding Corp.,
    The Bank of Nova Scotia, Atlantic Asset Securitization Corp.,
    Calyon New York Branch and The Bank of Nova Scotia, as
    Administrative Agent.                                                                                                                                                                                                                 
|        | 10.38 |             |  | Amended and Restated Receivables Purchase Agreement dated as of
    February 14, 2003 among Cole-Parmer Instrument Company,
    Fisher Clinical Services Inc., Fisher Hamilton L.L.C, and Fisher
    Scientific Company L.L.C., as Originators, the Company, as
    Originator Agent and FSI Receivables Company LLC, as Buyer.
    Incorporated by reference to Exhibit 10.19 to the
    registrants Registration Statement on Form S-4
    (Registration no. 333-104361) filed on April 7, 2003.                                                                                                                       
|        | 10.39 |             |  | First Amendment to Amended and Restated Receivables Purchase
    Agreement, dated as of February 4, 2005 among Cole-Palmer
    Instrument Company, Fisher Clinical Services Inc., Fisher
    Hamilton L.L.C. and Fisher Scientific Company L.L.C. as
    Originators, Fisher Scientific International Inc., as Originator
    Agent and FSI Receivables Company LLC, as Buyer. Incorporated by
    reference to the Companys Annual Report on Form 10-K for
    the year ended December 31, 2004, filed with the Securities
    and Exchange Commission on March 16, 2005.                                               
|        | 10.40 | *           |  | Waiver and Omnibus Second Amendment to the Receivables Purchase
    Agreement and Receivables Transfer Agreement, dated as of
    October 11, 2005 among Cole-Palmer Instrument Company,
    Fisher Clinical Services Inc., Fisher Hamilton L.L.C. and Fisher
    Scientific Company L.L.C. as Originators, Fisher Scientific
    International Inc., as Servicer and Originator Agent and FSI
    Receivables Company LLC, as Buyer, Liberty Street Funding Corp.,
    The Bank of Nova Scotia, Atlantic Asset Securitization Corp.,
    Calyon New York Branch and The Bank of Nova Scotia, as
    Administrative Agent.
|        | 10.41 |             |  | Sybron Acquisition Company 1990 Stock Option Plan. Incorporated
    by reference to Exhibit 99.1 to the registrants
    Registration Statement on Form S-8 (Registration No.
    333-118239).                                                                                                                                                                                                                                                                                                                                                                                                                            
|        | 10.42 |             |  | Sybron Corporation 1993 Long-Term Incentive Plan, as amended and
    restated through January 30, 1998. Incorporated by
    reference to Exhibit 99.2 to the registrants
    Registration Statement on Form S-8 (Registration
    No. 333-118239).                                                                                                                                                                                                                                                                                                                                                                       

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|        |       |             |  |                                                                                                                                                                                                                                                                                                                       
|------- | ----- | ----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |            
|Number  |       | Description
|        |       |            
|        | 10.43 |             |  | Sybron International Corporation Amended and Restated 1994
    Outside Directors Stock Option Plan. Incorporated by
    reference to Exhibit 99.3 to the registrants
    Registration Statement on Form S-8 (Registration
    No. 333-118239) and incorporated herein by reference.                                 
|        | 10.44 |             |  | Sybron International Corporation 1999 Outside Directors
    Stock Option Plan. Incorporated by reference to
    Exhibit 99.4 to the registrants Registration
    Statement on Form S-8 (Registration No. 333-118239).                                                                                               
|        | 10.45 |             |  | Apogent Technologies Inc. 2001 Equity Incentive Plan.
    Incorporated by reference to Exhibit 99.5 to the
    registrants Registration Statement on Form S-8
    (Registration No. 333-118239).                                                                                                                     
|        | 10.46 |             |  | Share Sale and Purchase Agreement Between Perbio Science
    International Netherlands B.V. and Cidron Group AB. Incorporated
    by reference to the Companys Quarterly Report on
    Form 10-Q filed with the Securities and Exchange Commission
    on May 1.                                                     
|        | 10.47 |             |  | Amended and restated Fisher Scientific International Inc.
    Retirement Plan. Incorporated by reference to the Companys
    Annual Report on Form 10-K for the year ended December 31,
    2004, filed with the Securities and Exchange Commission on
    March 16, 2005.                                           
|        | 10.48 |             |  | First amendment to the amended and restated Fisher Scientific
    International Inc. Retirement Plan. Incorporated by reference to
    the Companys Annual Report on Form 10-K for the year ended
    December 31, 2004, filed with the Securities and Exchange
    Commission on March 16, 2005.                    
|        | 10.49 |             |  | Second amendment to the amended and restated Fisher Scientific
    International Inc. Retirement Plan. Incorporated by reference to
    the Companys Annual Report on Form 10-K for the year ended
    December 31, 2004, filed with the Securities and Exchange
    Commission on March 16, 2005.                   
|        | 10.50 |             |  | Third amendment to the amended and restated Fisher Scientific
    International Inc. Retirement Plan. Incorporated by reference to
    the Companys Annual Report on Form 10-K for the year
    ended December 31, 2004, filed with the Securities and
    Exchange Commission on March 16, 2005.                    
|        | 10.51 |             |  | Fourth amendment to the amended and restated Fisher Scientific
    International Inc. Retirement Plan. Incorporated by reference to
    the Companys Annual Report on Form 10-K for the year
    ended December 31, 2004, filed with the Securities and
    Exchange Commission on March 16, 2005.                   
|        | 10.52 |             |  | Fifth amendment to the amended and restated Fisher Scientific
    International Inc. Retirement Plan. Incorporated by reference to
    the Companys Annual Report on Form 10-K for the year
    ended December 31, 2004, filed with the Securities and
    Exchange Commission on March 16, 2005.                    
|        | 10.53 |             |  | Sixth amendment to the amended and restated Fisher Scientific
    International Inc. Retirement Plan. Incorporated by reference to
    the Companys Annual Report on Form 10-K for the year
    ended December 31, 2004, filed with the Securities and
    Exchange Commission on March 16, 2005.                    
|        | 10.54 |             |  | Seventh amendment to the amended and restated Fisher Scientific
    International Inc. Retirement Plan. Incorporated by reference to
    the Companys Annual Report on Form 10-K for the year
    ended December 31, 2004, filed with the Securities and
    Exchange Commission on March 16, 2005.                  
|        | 10.55 |             |  | Eighth amendment to the amended and restated Fisher Scientific
    International Inc. Retirement Plan. Incorporated by reference to
    the Companys Annual Report on Form 10-K for the year
    ended December 31, 2004, filed with the Securities and
    Exchange Commission on March 16, 2005.                   
|        | 10.56 |             |  | Ninth amendment to the amended and restated Fisher Scientific
    International Inc. Retirement Plan. Incorporated by reference to
    the Companys Annual Report on Form 10-K for the year
    ended December 31, 2004, filed with the Securities and
    Exchange Commission on March 16, 2005.                    
|        | 10.57 |             |  | Amended and Restated Fisher Scientific International Inc.
    Savings and Profit Sharing Plan. Incorporated by reference to
    the Companys Annual Report on Form 10-K for the year
    ended December 31, 2004, filed with the Securities and
    Exchange Commission on March 16, 2005.                           
|        | 10.58 |             |  | First amendment to the amended and restated Fisher Scientific
    International Inc. Savings and Profit Sharing Plan. Incorporated
    by reference to the Companys Annual Report on
    Form 10-K for the year ended December 31, 2004, filed
    with the Securities and Exchange Commission on March 16,
    2005.

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|        |       |             |  |                                                                                                                                                                                                                                                                                                                                                              
|------- | ----- | ----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |            
|Number  |       | Description
|        |       |            
|        | 10.59 |             |  | Second amendment to the amended and restated Fisher Scientific
    International Inc. Savings and Profit Sharing Plan. Incorporated
    by reference to the Companys Annual Report on
    Form 10-K for the year ended December 31, 2004, filed
    with the Securities and Exchange Commission on March 16,
    2005.                                      
|        | 10.60 |             |  | Third amendment to the amended and restated Fisher Scientific
    International Inc. Savings and Profit Sharing Plan. Incorporated
    by reference to the Companys Annual Report on
    Form 10-K for the year ended December 31, 2004, filed
    with the Securities and Exchange Commission on March 16,
    2005.                                       
|        | 10.61 |             |  | Fourth amendment to the amended and restated Fisher Scientific
    International Inc. Savings and Profit Sharing Plan. Incorporated
    by reference to the Companys Annual Report on
    Form 10-K for the year ended December 31, 2004, filed
    with the Securities and Exchange Commission on March 16,
    2005.                                      
|        | 10.62 |             |  | Fifth amendment to the amended and restated Fisher Scientific
    International Inc. Savings and Profit Sharing Plan. Incorporated
    by reference to the Companys Annual Report on
    Form 10-K for the year ended December 31, 2004, filed
    with the Securities and Exchange Commission on March 16,
    2005.                                       
|        | 10.63 |             |  | Sixth amendment to the amended and restated Fisher Scientific
    International Inc. Savings and Profit Sharing Plan. Incorporated
    by reference to the Companys Annual Report on
    Form 10-K for the year ended December 31, 2004, filed
    with the Securities and Exchange Commission on March 16,
    2005.                                       
|        | 10.64 |             |  | Seventh amendment to the amended and restated Fisher Scientific
    International Inc. Savings and Profit Sharing Plan. Incorporated
    by reference to the Companys Annual Report on
    Form 10-K for the year ended December 31, 2004, filed
    with the Securities and Exchange Commission on March 16,
    2005.                                     
|        | 10.65 |             |  | Eighth amendment to the amended and restated Fisher Scientific
    International Inc. Savings and Profit Sharing Plan. Incorporated
    by reference to the Companys Annual Report on
    Form 10-K for the year ended December 31, 2004, filed
    with the Securities and Exchange Commission on March 16,
    2005.                                      
|        | 10.66 |             |  | Ninth amendment to the amended and restated Fisher Scientific
    International Inc. Savings and Profit Sharing Plan. Incorporated
    by reference to the Companys Annual Report on
    Form 10-K for the year ended December 31, 2004, filed
    with the Securities and Exchange Commission on March 16,
    2005.                                       
|        | 10.67 |             |  | Tenth amendment to the amended and restated Fisher Scientific
    International Inc. Savings and Profit Sharing Plan. Incorporated
    by reference to the Companys Annual Report on
    Form 10-K for the year ended December 31, 2004, filed
    with the Securities and Exchange Commission on March 16,
    2005.                                       
|        | 10.68 |             |  | Eleventh amendment to the amended and restated Fisher Scientific
    International Inc. Savings and Profit Sharing Plan. Incorporated
    by reference to the Companys Annual Report on
    Form 10-K for the year ended December 31, 2004, filed
    with the Securities and Exchange Commission on March 16,
    2005.                                    
|        | 10.69 |             |  | Fisher Scientific International Inc. Executive Retirement and
    Savings Program, originally effective August 1, 1992, as
    restated effective June 23, 1997. Incorporated by reference
    to the Companys Annual Report on Form 10-K for the
    year ended December 31, 2004, filed with the Securities and
    Exchange Commission on March 16, 2005.
|        | 10.70 |             |  | First amendment to the Fisher Scientific International Inc.
    Executive Retirement and Savings Program. Incorporated by
    reference to the Companys Annual Report on Form 10-K
    for the year ended December 31, 2004, filed with the
    Securities and Exchange Commission on March 16, 2005.                                                       
|        | 10.71 |             |  | Second Amendment to the Fisher Scientific International Inc.
    Executive Retirement and Savings Program. Incorporated by
    reference to the Companys Quarterly Report on
    Form 10-Q filed with the Securities and Exchange Commission
    on May 10, 2005.                                                                                           
|        | 12.01 | *           |  | Statement re computation of Ratios of Earnings to Fixed Charges
    and Earnings to Fixed Charges.                                                                                                                                                                                                                                                           

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|        |       |             |  |                                                                                                                                                                                                                      
|------- | ----- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |            
|Number  |       | Description
|        |       |            
|        | 21.01 | *           |  | List of Subsidiaries of the registrant.                                                                                                                                                                              
|        | 23.01 | *           |  | Consent of Deloitte & Touche LLP.                                                                                                                                                                                    
|        | 31.01 | *           |  | Certification of Chief Executive Officer pursuant to Rule
    13a-14(a)/15(d)-14(a) of the Securities Exchange Act of 1934, as
    amended, as adopted pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002.
|        | 31.02 | *           |  | Certification of Chief Financial Officer pursuant to Rule
    13a-14(a)/15(d)-14(a) of the Securities Exchange Act of 1934, as
    amended, as adopted pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002.
|        | 32.01 | *           |  | Certification of Chief Executive Officer pursuant to
    18 U.S.C. 1350, as adopted pursuant to Section 906 of
    the Sarbanes-Oxley Act of 2002.                                                                   
|        | 32.02 | *           |  | Certification of Chief Financial Officer pursuant to
    18 U.S.C. 1350, as adopted pursuant to Section 906 of
    the Sarbanes-Oxley Act of 2002.                                                                   






|  |               
|- | --------------
|* | Filed herewith

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SIGNATURES






| |                                     
| | ------------------------------------
| | FISHER SCIENTIFIC INTERNATIONAL INC.



| |     |                   
| | --- | ------------------
| | By: | /s/ Kevin P. Clark

| |                                             
| | --------------------------------------------
| |                                             
| | Vice President and Chief Financial Officer  
| | (Principal Financial and Accounting Officer)





|                                               |  |                                                                                             |  | 
|---------------------------------------------- |  | ------------------------------------------------------------------------------------------- |  | 
|Signature                                      |  | Title                                                                                      
|                                               |  |                                                                                            
|                                              
|/s/ Paul M. MontronePaul M. Montrone           |  | Chief Executive Officer and Director
    (Principal Executive Officer)                     
|                                              
|/s/ Paul M. MeisterPaul M. Meister             |  | Director                                                                                   
|                                              
|/s/ Kevin P. ClarkKevin P. Clark               |  | Vice President and Chief Financial Officer
    (Principal Financial and Accounting Officer)
|                                              
|/s/ Michael D. DingmanMichael D. Dingman       |  | Director                                                                                   
|                                              
|/s/ Simon B. RichSimon B. Rich                 |  | Director                                                                                   
|                                              
|/s/ Charles A. SandersCharles A. Sanders, M.D. |  | Director                                                                                   
|                                              
|/s/ Scott M. SperlingScott M. Sperling         |  | Director                                                                                   
|                                              
|/s/ W. Clayton StephensW. Clayton Stephens     |  | Director                                                                                   
|                                              
|/s/ Richard W. VieserRichard W. Vieser         |  | Director                                                                                   

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|                                         |  |          |  | 
|---------------------------------------- |  | -------- |  | 
|Signature                                |  | Title   
|                                         |  |         
|                                        
|/s/ Rosanne F. CoppolaRosanne F. Coppola |  | Director
|                                        
|/s/ Bruce L. KoepfgenBruce L. Koepfgen   |  | Director

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SCHEDULE II


VALUATION AND QUALIFYING ACCOUNTS AND RESERVES


For the Three Years Ended December 31, 2005


(In millions):


|                                |  |              |      |  |            |   |     |            |  |   |               |   |  |                |      |   |  |   |      | 
|------------------------------- |  | ------------ | ---- |  | ---------- | - | --- | ---------- |  | - | ------------- | - |  | -------------- | ---- | - |  | - | ---- | 
|                                |  | Balance at   |      |  | Charged to |   |     | Charged to |  |   |               |   | 
|                                |  | Beginning of |      |  | Costs and  |   |     | Other      |  |   | Deduction and |   |  | Balance at End |     
|Allowance for Doubtful Accounts |  | Period       |      |  | Expenses   |   |     | Accounts   |  |   | Write-offs    |   |  | of Period      |     
|                                |  |              |      |  |            |   |     |            |  |   |               |   |  |                |     
|December 31, 2003               |  | $            | 28.9 |  |            | $ | 4.9 |            |  | $ | 0.5           |   |  | $              | (4.5 | ) |  | $ | 29.8 | 
|December 31, 2004               |  | $            | 29.8 |  |            | $ | 2.6 |            |  | $ | (9.9          | ) |  | $              | (3.0 | ) |  | $ | 19.5 | 
|December 31, 2005               |  | $            | 19.5 |  |            | $ | 4.6 |            |  | $ | 2.8           |   |  | $              | (2.6 | ) |  | $ | 24.3 | 

|                            |  |              |     |  |            |   |      |            |  |   |               |  |  |                |       |   |  |   |      | 
|--------------------------- |  | ------------ | --- |  | ---------- | - | ---- | ---------- |  | - | ------------- |  |  | -------------- | ----- | - |  | - | ---- | 
|                            |  | Balance at   |     |  | Charged to |   |      | Charged to |  |   |               |  | 
|                            |  | Beginning of |     |  | Costs and  |   |      | Other      |  |   | Deduction and |  |  | Balance at End |      
|Allowance for Sales Returns |  | Period       |     |  | Expenses   |   |      | Accounts   |  |   | Write-offs    |  |  | of Period      |      
|                            |  |              |     |  |            |   |      |            |  |   |               |  |  |                |      
|December 31, 2003           |  | $            | 6.7 |  |            | $ | 41.4 |            |  | $ |              |  |  | $              | (41.3 | ) |  | $ | 6.8  | 
|December 31, 2004           |  | $            | 6.8 |  |            | $ | 46.5 |            |  | $ | 0.2           |  |  | $              | (45.9 | ) |  | $ | 7.6  | 
|December 31, 2005           |  | $            | 7.6 |  |            | $ | 61.0 |            |  | $ | 0.1           |  |  | $              | (57.7 | ) |  | $ | 11.0 | 

|                   |  |              |      |  |            |   |      |            |  |   |               |   |  |                |       |   |  |   |      | 
|------------------ |  | ------------ | ---- |  | ---------- | - | ---- | ---------- |  | - | ------------- | - |  | -------------- | ----- | - |  | - | ---- | 
|                   |  | Balance at   |      |  | Charged to |   |      | Charged to |  |   |               |   | 
|                   |  | Beginning of |      |  | Costs and  |   |      | Other      |  |   | Deduction and |   |  | Balance at End |      
|Inventory Reserves |  | Period       |      |  | Expenses   |   |      | Accounts   |  |   | Write-offs    |   |  | of Period      |      
|                   |  |              |      |  |            |   |      |            |  |   |               |   |  |                |      
|December 31, 2003  |  | $            | 35.4 |  |            | $ | 5.1  |            |  | $ | 2.1           |   |  | $              | (8.2  | ) |  | $ | 34.4 | 
|December 31, 2004  |  | $            | 34.4 |  |            | $ | 14.6 |            |  | $ | 0.5           |   |  | $              | (8.7  | ) |  | $ | 40.8 | 
|December 31, 2005  |  | $            | 40.8 |  |            | $ | 16.9 |            |  | $ | (1.3          | ) |  | $              | (11.3 | ) |  | $ | 45.1 | 

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