10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 28, 2013 OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO ______.

Commission File Number: 1-12441

ST. JUDE MEDICAL, INC.

(Exact name of registrant as specified in its charter)

Minnesota	41-1276891
(State or other jurisdiction	(I.R.S. Employer
of incorporation or organization)	Identification No.)

One St. Jude Medical Drive, St. Paul, Minnesota 55117

(Address of principal executive offices, including zip code)

(651) 756-2000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer x	Accelerated filer ¨
Non-accelerated filer ¨ (Do not check if a smaller reporting company)	Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

¨ Yes x No

The number of shares of common stock, par value $.10 per share, outstanding on November 1, 2013 was 291,813,213.

TABLE OF CONTENTS

ITEM		DESCRIPTION	PAGE
	PART I – FINANCIAL INFORMATION
1.	Financial Statements
	Condensed Consolidated Statements of Earnings		1
	Condensed Consolidated Statements of Comprehensive Income		2
	Condensed Consolidated Balance Sheets		3
	Condensed Consolidated Statements of Cash Flows		4
	Note 1 – Basis of Presentation		5
	Note 2 – Business Combinations		6
	Note 3 – Goodwill and Other Intangible Assets		9
	Note 4 – Inventories		10
	Note 5 – Debt		10
	Note 6 – Commitments and Contingencies		12
	Note 7 – Special Charges		16
	Note 8 – Net Earnings Per Share		19
	Note 9 - Accumulated Other Comprehensive Income (Loss)		20
	Note 10 – Other Expense, Net		22
	Note 11 – Income Taxes		22
	Note 12 – Fair Value Measurements and Financial Instruments		22
	Note 13 – Derivative Financial Instruments		26
	Note 14 – Segment and Geographic Information		26
2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		29
	Overview		29
	New Accounting Pronouncements		31
	Critical Accounting Policies and Estimates		31
	Segment Performance		31
	Results of Operations		34
	Liquidity		37
	Debt and Credit Facilities		39
	Dividends and Share Repurchases		40
	Commitments and Contingencies		40
	Cautionary Statements		40
3.	Quantitative and Qualitative Disclosures About Market Risk		41
4.	Controls and Procedures		42
	PART II – OTHER INFORMATION
1.	Legal Proceedings		42
1A.	Risk Factors		42
6.	Exhibits		53
	Signature		54
	Index to Exhibits		55

PART I - FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

ST. JUDE MEDICAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In millions, except per share amounts)

(Unaudited)

	Three Months Ended					Nine Months Ended
	September 28, 2013			September 29, 2012		September 28, 2013			September 29, 2012
Net sales	$	1,338		$	1,326	$	4,079		$	4,131
Cost of sales:
Cost of sales before special charges	383			348		1,123			1,073
Special charges	2			7		21			46
Total cost of sales	385			355		1,144			1,119
Gross profit	953			971		2,935			3,012
Selling, general and administrative expense	452			456		1,409			1,440
Research and development expense	172			170		505			518
Special charges	16			110		118			179
Operating profit	313			235		903			875
Other expense, net	17			19		248			67
Earnings before noncontrolling interest and income taxes	296			216		655			808
Income tax expense	44			40		74			176
Net earnings before noncontrolling interest	252			176		581			632
Net loss attributable to noncontrolling interest	(10		)	—		(19		)	—
Net earnings attributable to St. Jude Medical, Inc.	$	262		$	176	$	600		$	632
Net earnings per share attributable to St. Jude Medical, Inc.:
Basic	$	0.91		$	0.56	$	2.10		$	2.01
Diluted	$	0.90		$	0.56	$	2.08		$	2.00
Cash dividends declared per share:	$	0.25		$	0.23	$	0.75		$	0.69
Weighted average shares outstanding:
Basic	287.5			314.7		285.6			314.8
Diluted	292.0			316.3		288.7			316.4

See notes to the condensed consolidated financial statements.

1

ST. JUDE MEDICAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012
Net earnings before noncontrolling interest	$	252		$	176		$	581		$	632
Other comprehensive income (loss), net of tax:
Unrealized gain on available-for-sale securities	—			4			1			10
Unrealized gain on derivative financial instruments	—			—			3			—
Reclassification of realized gain to net earnings on available-for-sale securities	(2		)	(3		)	(5		)	(8		)
Foreign currency translation adjustment	51			44			10			(2		)
Other comprehensive income	49			45			9			—
Total comprehensive income before noncontrolling interest	301			221			590			632
Total comprehensive loss attributable to noncontrolling interest	(10		)	—			(19		)	—
Total comprehensive income attributable to St. Jude Medical, Inc.	$	311		$	221		$	609		$	632

See notes to the condensed consolidated financial statements.

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ST. JUDE MEDICAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except par value and share amounts)

	September 28, 2013
	(Unaudited)			December 29, 2012
ASSETS
Current Assets
Cash and cash equivalents	$	1,245		$	1,194
Accounts receivable, less allowance for doubtful accounts of $46 million and $47 million at September 28, 2013 and December 29, 2012, respectively	1,399			1,349
Inventories	687			610
Deferred income taxes, net	211			220
Other current assets	203			178
Total current assets	3,745			3,551
Property, plant and equipment, at cost	2,776			2,629
Less accumulated depreciation	(1,349		)	(1,204		)
Net property, plant and equipment	1,427			1,425
Goodwill	3,383			2,961
Intangible assets, net	898			804
Other assets	512			530
TOTAL ASSETS	$	9,965		$	9,271
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Current debt obligations	$	66		$	530
Accounts payable	182			254
Dividends payable	72			68
Income taxes payable	—			142
Employee compensation and related benefits	285			299
Other current liabilities	437			482
Total current liabilities	1,042			1,775
Long-term debt	3,403			2,550
Deferred income taxes, net	357			323
Other liabilities	717			529
Total liabilities	5,519			5,177
Commitments and Contingencies (Note 6)	—			—
Shareholders’ Equity
Preferred stock ($1.00 par value; 25,000,000 shares authorized; none outstanding)	—			—
Common stock ($0.10 par value; 500,000,000 shares authorized; 288,968,747 and 295,648,327 shares issued and outstanding at September 28, 2013 and December 29, 2012, respectively)	29			30
Additional paid-in capital	292			—
Retained earnings	3,885			4,018
Accumulated other comprehensive income	55			46
Total shareholders' equity before noncontrolling interest	4,261			4,094
Noncontrolling interest	185			—
Total shareholders’ equity	4,446			4,094
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	9,965		$	9,271

See notes to the condensed consolidated financial statements.

3

ST. JUDE MEDICAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

Nine Months Ended	September 28, 2013			September 29, 2012
OPERATING ACTIVITIES
Net earnings before noncontrolling interest	$	581		$	632
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation and amortization	220			212
Amortization of debt premium, net	(4		)	(8		)
Stock-based compensation	50			54
Gain on sale of investment	(9		)	(14		)
Loss on retirement of long-term debt	161			—
Deferred income taxes	(1		)	(34		)
Other, net	37			73
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable	(70		)	13
Inventories	(77		)	(26		)
Other current assets	31			29
Accounts payable and accrued expenses	(94		)	(16		)
Income taxes payable	(154		)	24
Net cash provided by operating activities	671			939
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(171		)	(188		)
Business acquisition payments, net of cash acquired	(171		)	—
Proceeds from sale of investments	10			19
Other investing activities, net	(15		)	(28		)
Net cash used in investing activities	(347		)	(197		)
FINANCING ACTIVITIES
Exercise of stock options and stock issued, including excess tax benefits	275			107
Common stock repurchased, including related costs	(609		)	(300		)
Dividends paid	(210		)	(212		)
Issuances (payments) of commercial paper borrowings, net	(8		)	(272		)
Borrowings under debt facilities	2,092			—
Payments under debt facilities	(1,659		)	—
Other financing activities, net	(151		)	—
Net cash used in financing activities	(270		)	(677		)
Effect of currency exchange rate changes on cash and cash equivalents	(3		)	—
Net increase in cash and cash equivalents	51			65
Cash and cash equivalents at beginning of period	1,194			986
Cash and cash equivalents at end of period	$	1,245		$	1,051
Noncash investing activities:
Noncontrolling interest	$	204		$	—

See notes to the condensed consolidated financial statements.

4

ST. JUDE MEDICAL, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – BASIS OF PRESENTATION

Principles of Consolidation: The accompanying unaudited condensed consolidated financial statements of St. Jude Medical, Inc. (St. Jude Medical or the Company) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (U.S. generally accepted accounting principles) for complete financial statements. In the opinion of management, these statements include all adjustments (consisting of normal recurring adjustments) considered necessary to present a fair statement of the Company’s consolidated results of operations, financial position and cash flows. Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. Preparation of the Company’s financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the financial statements and footnotes. Actual results could differ from those estimates. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 29, 2012 (2012 Annual Report on Form 10-K).

The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and entities for which St. Jude Medical has a controlling financial interest. Intercompany transactions and balances have been eliminated in consolidation. For variable interest entities (VIEs), the Company assesses the terms of its interest in the entity to determine if St. Jude Medical is the primary beneficiary. Variable interests are ownership, contractual or other interests in an entity that change with increases or decreases in the fair value of the VIE's net assets exclusive of variable interests. The entity that consolidates the VIE is considered the primary beneficiary, and is defined as the party with (1) the power to direct activities of the VIE that most significantly affect the VIE's economic performance and (2) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. In the first quarter of 2013, the Company determined that CardioMEMS, Inc. (CardioMEMS) was a VIE for which the Company is the primary beneficiary and began consolidating their results effective February 27, 2013. Additionally, during the second quarter of 2013, the Company entered into a $40 million equity investment, contingent acquisition agreement and exclusive distribution agreement with Spinal Modulation, Inc. (Spinal Modulation) and determined it also was a VIE for which the Company is the primary beneficiary. The Company began consolidating Spinal Modulation's results effective June 7, 2013 (see Note 2).

On August 30, 2012, the Company announced the realignment of its product divisions into two new business units (or divisions): the Implantable Electronic Systems Division (IESD) (combining its legacy Cardiac Rhythm Management and Neuromodulation product divisions) and the Cardiovascular and Ablation Technologies Division (CATD) (combining its legacy Cardiovascular and Atrial Fibrillation product divisions). In addition, the Company centralized certain support functions, including information technology, human resources, legal, business development and certain marketing functions. The organizational changes were part of a comprehensive plan to accelerate the Company's growth, reduce costs, leverage economies of scale and increase its investment in product development. The Company began reporting under the new organizational structure as of the beginning of fiscal year 2013. As a result, certain prior period amounts have been recast to conform to the Company's new organizational structure in this Quarterly Report on Form 10-Q. See Note 14 for further information on the Company's segments.

New Accounting Pronouncements: In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-02: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02), an update to Comprehensive Income (Topic 220). ASU 2013-02 requires an entity to present either on the face of the statement where net income is presented or in the notes to the financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items in the statement presenting net income. Additionally, disclosures about the changes in each component of accumulated other comprehensive income are also required. ASU 2013-02 requires prospective application and is effective for all fiscal years and interim periods beginning after December 15, 2012. The Company adopted ASU 2013-02 in the first quarter of 2013 and there was no impact to the Company's financial statements. Refer to Note 9 for the Company's disclosures required by ASU 2013-02.

5

NOTE 2 – BUSINESS COMBINATIONS

Endosense S.A.: On August 19, 2013, the Company acquired all the outstanding shares of Endosense S.A. (Endosense) for the equivalent of $171 million (160 million Swiss Francs) in net cash consideration using available cash from outside the U.S. Endosense is based in Geneva, Switzerland and develops, manufactures and markets the TactiCath® irrigated ablation catheter to provide physicians a real-time, objective measure of the force to apply to the heart wall during a catheter ablation procedure. The Endosense force-sensing technology is CE Mark approved for atrial fibrillation and supra ventricular tachycarida ablation. Under the terms of the agreement, the transaction also provides for an additional cash payment of up to 150 million Swiss Francs (approximately $165 million at September 28, 2013), contingent upon both the achievement and timing of U.S. Food and Drug Administration (FDA) approval.

Consistent with the provisions of Accounting Standards Codification (ASC) Topic 805, Business Combinations (ASC Topic 805), the Company accrued the contingent payment after determining its fair value of $132 million in arriving at $303 million of total consideration, net of cash acquired. The contingent consideration accrual will be remeasured to fair value at each reporting period with changes in fair value reflected in the statement of earnings.

The preliminary allocation of the Endosense purchase price to the estimated fair values of net assets acquired was as follows (in millions):

	August 19, 2013
Assets acquired:
Current assets	$	2
Goodwill	258
Acquired in-process research and development (IPR&D)	33
Other intangible assets	20
Other long-term assets	1
Total assets acquired	314
Liabilities assumed:
Current liabilities	11
Net assets acquired	303
Cash paid	180
Cash acquired	(9		)
Net cash consideration	171
Contingent consideration	132
Total purchase consideration	$	303

The goodwill recorded as a result of the Endosense acquisition is not deductible for income tax purposes and was entirely allocated to the CATD reportable segment. The goodwill represents the strategic benefits of growing the Company's atrial fibrillation product portfolio and the expected revenue growth from increased market penetration from future products and customers. The Company now has the potential to integrate the force-sensing technology to offer a MediGuide™-enabled force-sensing ablation catheter and incorporate force sensing data into its EnSite Velocity™ Mapping System. In connection with the acquisition of Endosense, the Company recognized $20 million of developed technology intangible assets that have an estimated useful life of 7 years and $33 million of acquired in-process research and development (IPR&D) that was capitalized as an indefinite-lived intangible asset. Upon completion of the related development projects (when U.S. regulatory approval to market the product is obtained), the IPR&D will be amortized over its estimated useful life.

The results of Endosense since the date of acquisition and pro forma disclosures of the consolidated results of the Company with the full year effects of Endosense have not been separately presented since the impact to the Company's results of operations was not material.

6

Spinal Modulation, Inc.: On June 7, 2013, the Company made an equity investment of $40 million in Spinal Modulation, a privately-held company that is focused on the development of an intraspinal neuromodulation therapy that delivers spinal cord stimulation targeting the dorsal root ganglion to manage chronic pain. The investment agreement resulted in a 19% voting equity interest and provided the Company with the exclusive right, but not the obligation, to acquire Spinal Modulation for payments of up to $300 million during the period that extends through the completion of certain regulatory milestones. If the Company acquires Spinal Modulation, the contingent acquisition agreement also provides for additional consideration payments contingent upon the achievement of certain revenue-based milestones. In the event the Company acquires the noncontrolling interest of Spinal Modulation, the contingent payments would be recognized at the then-current fair value as an equity transaction. Additionally, in connection with the investment and contingent acquisition agreement, the Company also entered into an exclusive international distribution agreement, and obtained significant decision-making rights over Spinal Modulation's operations and economic performance. The Company also committed to providing additional debt financing to Spinal Modulation up to $15 million. Accordingly, effective June 7, 2013, the Company determined that Spinal Modulation was a VIE for which St. Jude Medical is the primary beneficiary. Therefore, as of June 7, 2013, the financial condition and results of operations of Spinal Modulation were included in St. Jude Medical's consolidated financial statements. The Company has a 19% voting equity interest in Spinal Modulation and allocates the losses attributable to Spinal Modulation's noncontrolling shareholders to noncontrolling interest in St. Jude Medical's statements of earnings and consolidated balance sheets. The results of Spinal Modulation since the date of its initial consolidation and pro forma disclosures of the consolidated results of the Company with the full year effects of Spinal Modulation have not been separately presented since the impact to the Company's results of operations was not material.

The initial consolidation of a VIE that is determined to be a business is accounted for as a business combination. The following table summarizes the estimated fair values of Spinal Modulation’s assets and liabilities included in St. Jude Medical's consolidated balance sheets as of the June 7, 2013 consolidation date, and as of September 28, 2013 after elimination of all intercompany balances and transactions (in millions):

	June 7, 2013		September 28, 2013
Cash and cash equivalents	$	41	$	31
Other current assets	9		6
Goodwill	82		82
Acquired in-process research and development (IPR&D)	45		45
Other intangible assets	7		7
Other long-term assets	1		1
Total assets	185		172
Current liabilities	6		5
Deferred income taxes, net	19		19
Total liabilities	25		24
Non-controlling interest	$	120	$	111

The initial allocation of Spinal Modulation’s assets and liabilities included in the Company’s consolidated balance sheet was based upon preliminary valuations, and the estimated fair values of assets and liabilities were subject to change as the valuations were finalized within the initial measurement period. In the three-month period ended September 28, 2013, the Company finalized the valuations and allocation of the estimated fair values of Spinal Modulation’s assets and liabilities and recorded a $35 million decrease to goodwill, a $5 million decrease to acquired IPR&D, a $3 million decrease to purchased technology intangible assets, a $3 million decrease to liabilities and a $40 million reduction to noncontrolling interest. These changes have been reflected retrospectively in the June 7, 2013 balances presented in the previous table.

The cash and cash equivalents balance of Spinal Modulation at June 7, 2013 includes $40 million of the Company’s equity investment proceeds. Assets recorded as a result of consolidating Spinal Modulation into the Company's consolidated balance sheet do not represent additional assets that could be used to satisfy claims against the Company's general assets. The creditors of Spinal Modulation do not have any recourse to the general credit of St. Jude Medical.

7

The goodwill recognized in connection with the Spinal Modulation transaction was not deductible for income tax purposes and was allocated entirely to the Company's IESD segment. The goodwill represents the strategic benefits of growing the Company's neuromodulation chronic pain portfolio as well as the expected revenue growth from increased market penetration. The Company recognized $45 million of indefinite-lived IPR&D intangible assets. Upon completion of the related development project (generally when regulatory approval to market the product is obtained), the IPR&D will be amortized over its estimated useful life. The Company also recognized $7 million of purchased technology intangible assets with an estimated useful life of 12 years.

CardioMEMS, Inc.: During 2010, the Company made an equity investment of $60 million in CardioMEMS, a privately-held company that is focused on the development of a wireless monitoring technology that can be placed directly into the pulmonary artery to assess cardiac performance via measurement of pulmonary artery pressure. The investment agreement resulted in a 19% voting equity interest and provided the Company with the exclusive right, but not the obligation, to acquire CardioMEMS for an additional payment of $375 million less any net debt payable to St. Jude Medical, Inc. during the period that extends through the completion of certain regulatory milestones.

In the first quarter of 2013, the Company obtained significant decision-making rights over CardioMEMS' operations and provided debt financing of $28 million to CardioMEMS which was collateralized by substantially all the assets of CardioMEMS including its intellectual property. In July 2013, the Company provided $9 million of additional debt financing to CardioMEMS. In accordance with ASC Topic 810, Consolidations (ASC Topic 810), the Company reconsidered and determined that effective February 27, 2013 CardioMEMS was a VIE for which St. Jude Medical is the primary beneficiary. As a result, as of February 27, 2013, the financial condition and results of operations of CardioMEMS were included in St. Jude Medical's consolidated financial statements. The Company recognized a $29 million charge to other expense (see Note 10) to adjust the carrying value of the pre-existing equity investment and fixed price purchase option to fair value. The Company continues to hold a 19% voting equity interest in CardioMEMS and allocates the losses attributable to CardioMEMS' noncontrolling shareholders to noncontrolling interest in St. Jude Medical's consolidated statements of earnings and consolidated balance sheets. The results of CardioMEMS since the date of acquisition and pro forma disclosures of the consolidated results of the Company with the full year effects of CardioMEMS have not been separately presented since the impact to the Company's results of operations was not material.

The initial consolidation of a VIE that is determined to be a business is accounted for as a business combination. The following table summarizes the estimated fair values of CardioMEMS’ assets and liabilities included in St. Jude Medical's consolidated balance sheets as of the February 27, 2013 consolidation date, and as of September 28, 2013 after elimination of all intercompany balances and transactions (in millions):

	February 27, 2013		September 28, 2013
Cash and cash equivalents	$	33	$	21
Other current assets	2		4
Goodwill	83		83
Acquired in-process research and development (IPR&D)	63		63
Other long-term assets	2		2
Total assets	183		173
Current liabilities	13		6
Deferred income taxes, net	23		23
Other liabilities	5		4
Total liabilities	41		33
Non-controlling interest	$	84	$	74

The initial allocation of CardioMEMS’ assets and liabilities included in the Company’s consolidated balance sheet was based upon preliminary valuations, and the estimated fair values of assets and liabilities were subject to change as the valuations were finalized within the initial measurement period. In the three-month period ended September 28, 2013, the Company finalized the valuations and allocation of the estimated fair values of CardioMEMS’ assets and liabilities and recorded a $1 million decrease to goodwill, a $6 million decrease to acquired IPR&D, a $2 million decrease to liabilities and a $5 million reduction to

8

noncontrolling interest. These changes have been reflected retrospectively in the February 27, 2013 balances presented in the previous table.

The cash and cash equivalents balance of CardioMEMS at February 27, 2013 includes $28 million of the Company’s debt financing proceeds. Assets recorded as a result of consolidating CardioMEMS into the Company's consolidated balance sheet do not represent additional assets that could be used to satisfy claims against the Company's general assets. The other creditors of CardioMEMS do not have any recourse to the general credit of St. Jude Medical.

The goodwill recognized in connection with the CardioMEMS transaction was not deductible for income tax purposes and was allocated entirely to the Company's IESD segment. The goodwill represents the strategic benefits of growing the Company's cardiac rhythm management and heart failure therapy product portfolio as well as the expected revenue growth from increased market penetration. The Company recognized $63 million of indefinite-lived IPR&D intangible assets. Upon completion of the related development projects (generally when regulatory approval to market the product is obtained), the IPR&D will be amortized over its estimated useful life.

Nanostim, Inc.: As of September 28, 2013, the Company held an investment in Nanostim, Inc. (Nanostim), which provided the Company with an 18% voting equity interest. Nanostim is a development stage company, based in Sunnyvale, California that has developed a miniaturized and the first leadless cardiac pacemaker system, which received CE mark approval in August 2013. The Nanostim™ leadless pacemaker also received FDA conditional approval for its Investigation Device Exemption application and pivotal clinical trial protocol to begin evaluating the technology in the U.S. The terms of the Company’s original investment agreement with Nanostim included an exclusive fixed price purchase option to acquire the remaining 82% interest in Nanostim. The Company previously concluded that Nanostim was a VIE, but that St. Jude Medical was not the primary beneficiary of Nanostim as it did not retain power to direct the activities of Nanostim that most significantly impacted its economic performance. The Company has reflected its investment in Nanostim as a cost method investment in other assets.

On October 11, 2013, the Company exercised it exclusive purchase option and acquired all the outstanding shares of Nanostim for $118 million in net cash consideration. The Company's 18% voting equity interest in Nanostim will be remeasured to fair value as part of the Company's acquisition accounting. Under the terms of the agreement, the transaction also provides for additional cash payments of up to $65 million, contingent upon the achievement and timing of certain revenue-based milestones. As of the date of these financial statements, the Company had not fully completed its valuation of the net assets acquired from Nanostim and is unable to reasonably disclose the effects this business combination will have on the Company’s consolidated balance sheet. A preliminary valuation of the Company’s pre-existing equity interest and an allocation of the total purchase consideration to the estimated fair values of net assets acquired is expected to be completed in the fourth quarter of 2013.

NOTE 3 – GOODWILL AND OTHER INTANGIBLE ASSETS

The changes in the carrying amount of goodwill for each of the Company’s reportable segments (see Note 14) for the nine months ended September 28, 2013 were as follows (in millions):

	IESD			CATD		Total
Balance at December 29, 2012	$	1,229		$	1,732	$	2,961
Endosense S.A.	—			258		258
Spinal Modulation, Inc.	82			—		82
CardioMEMS, Inc.	83			—		83
Foreign currency translation and other	(12		)	11		(1		)
Balance at September 28, 2013	$	1,382		$	2,001	$	3,383

9

The following table provides the gross carrying amount of other intangible assets and related accumulated amortization (in millions):

	September 28, 2013				December 29, 2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Definite-lived intangible assets:
Purchased technology and patents	$	954	$	374	$	947	$	336
Customer lists and relationships	22		16		57		36
Trademarks and tradenames	22		11		22		10
Licenses, distribution agreements and other	4		2		6		4
	$	1,002	$	403	$	1,032	$	386
Indefinite-lived intangible assets:
Acquired IPR&D	$	250			$	109
Trademarks and tradenames	49				49
	$	299			$	158

During the second quarter of 2013, the Company recognized a $13 million impairment charge primarily associated with customer relationship intangible assets (see Note 7). The gross carrying amounts and related accumulated amortization amounts for these impairment charges were written off accordingly.

NOTE 4 – INVENTORIES

The Company’s inventories consisted of the following (in millions):

	September 28, 2013		December 29, 2012
Finished goods	$	475	$	416
Work in process	59		50
Raw materials	153		144
	$	687	$	610

NOTE 5 – DEBT

The Company’s debt consisted of the following (in millions):

	September 28, 2013		December 29, 2012
2.20% senior notes due 2013 (retired September 2013)	$	—	$	454
3.75% senior notes due 2014 (redeemed May 2013)	—		699
2.50% senior notes due 2016	513		518
4.875% senior notes due 2019 (redeemed May 2013)	—		496
3.25% senior notes due 2023	896		—
4.75% senior notes due 2043	696		—
Term loan due 2015	500		—
1.58% Yen-denominated senior notes due 2017	83		95
2.04% Yen-denominated senior notes due 2020	130		149
Yen-denominated credit facilities	66		76
Commercial paper borrowings	585		593
Total debt	3,469		3,080
Less: current debt obligations	66		530
Long-term debt	$	3,403	$	2,550

Expected future minimum principal payments under the Company’s debt obligations as of September 28, 2013 are as follows: $66 million in 2014; $500 million in 2015; $500 million in 2016; $83 million in 2017; and $2,315 million in years thereafter.

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Senior Notes Due 2013: In March 2010, the Company issued $450 million principal amount of 3-year, 2.20% unsecured senior notes (2013 Senior Notes) that matured on September 15, 2013, which the Company paid in full utilizing commercial paper borrowings and cash generated from operations.

Senior Notes Due 2016: In December 2010, the Company issued $500 million principal amount of 5-year, 2.50% unsecured senior notes (2016 Senior Notes) that mature in January 2016. The majority of the net proceeds from the issuance of the 2016 Senior Notes was used for general corporate purposes including the repurchase of the Company’s common stock. Interest payments are required on a semi-annual basis. The 2016 Senior Notes were issued at a discount, yielding an effective interest rate of 2.54% at issuance. The debt discount is being amortized as interest expense through maturity. The Company may redeem the 2016 Senior Notes at any time at the applicable redemption price.

Concurrent with the issuance of the 2016 Senior Notes, the Company entered into a 5-year, $500 million notional amount interest rate swap designated as a fair value hedge of the changes in fair value of the Company’s fixed-rate 2016 Senior Notes. In June 2012, the Company terminated the interest rate swap and received a cash payment of $24 million. The gain from terminating the interest rate swap agreement has been reflected as an increase to the carrying value of the debt and is being amortized as a reduction of interest expense resulting in a net average interest rate of 1.3% that will be recognized over the remaining term of the 2016 Senior Notes.

Senior Notes Due 2023: In April 2013, the Company issued $900 million principal amount of 10-year, 3.25% unsecured senior notes (2023 Senior Notes) that mature in April 2023. Interest payments are required on a semi-annual basis. The 2023 Senior Notes were issued at a discount, yielding an effective interest rate of 3.31% at issuance. The debt discount is being amortized as interest expense through maturity. The Company may redeem the 2023 Senior Notes at any time at the applicable redemption price.

Senior Notes Due 2043: In April 2013, the Company issued $700 million principal amount of 30-year, 4.75% unsecured senior notes (2043 Senior Notes) that mature in April 2043. Interest payments are required on a semi-annual basis. The 2043 Senior Notes were issued at a discount, yielding an effective interest rate of 4.79% at issuance. The debt discount is being amortized as interest expense through maturity. The Company may redeem the 2043 Senior Notes at any time at the applicable redemption price.

In May 2013, the Company used the majority of the proceeds from the issuance of its 2023 Senior Notes and 2043 Senior Notes to redeem both $700 million principal amount of 5-year, 3.75% unsecured senior notes originally due in 2014 (2014 Senior Notes) and $500 million principal amount of 10-year, 4.875% unsecured senior notes originally due in 2019 (2019 Senior Notes). In connection with the redemption of these senior notes, the Company recognized an aggregate $161 million charge in the second quarter of 2013 primarily associated with required make-whole redemption payments to noteholders from the senior notes being retired prior to their scheduled maturity.

Term Loan Due 2015: In June 2013, the Company entered into a 2-year, $500 million unsecured term loan, the proceeds of which were used for general corporate purposes including the repayment of outstanding commercial paper borrowings of the Company. These borrowings bear interest at LIBOR plus 0.5%, subject to adjustment in the event of a change in the Company's credit ratings. The Company may make principal payments on the outstanding borrowings any time after June 26, 2014.

1.58% Yen-Denominated Senior Notes Due 2017: In April 2010, the Company issued 7-year, 1.58% unsecured senior notes in Japan (1.58% Yen Notes) totaling 8.1 billion Japanese Yen (the equivalent of $83 million at September 28, 2013 and $95 million at December 29, 2012). The principal amount of the 1.58% Yen Notes recorded on the balance sheet fluctuates based on the effects of foreign currency translation. Interest payments are required on a semi-annual basis and the entire principal balance is due on April 28, 2017.

2.04% Yen-Denominated Senior Notes Due 2020: In April 2010, the Company issued 10-year, 2.04% unsecured senior notes in Japan (2.04% Yen Notes) totaling 12.8 billion Japanese Yen (the equivalent of $130 million at September 28, 2013 and $149 million at December 29, 2012). The principal amount of the 2.04% Yen Notes recorded on the balance sheet fluctuates based on the effects of foreign currency translation. Interest payments are required on a semi-annual basis and the entire principal balance is due on April 28, 2020.

Yen–Denominated Credit Facilities: In March 2011, the Company borrowed 6.5 billion Japanese Yen (the equivalent of $66 million at September 28, 2013 and $76 million at December 29, 2012) under uncommitted credit facilities with two commercial Japanese banks that provide for borrowings up to a maximum of 11.25 billion Japanese Yen. The principal amount reflected on the balance sheet fluctuates based on the effects of foreign currency translation. Half of the borrowings bear interest at Yen LIBOR plus 0.25% and mature in March 2014 and the other half of the borrowings bear interest at Yen LIBOR plus 0.275% and mature in June 2014. The maturity dates of each credit facility automatically extend for a one-year period, unless the Company elects to terminate the credit facility.

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Other Available Borrowings: In May 2013, the Company entered into a $1.5 billion unsecured committed credit facility (Credit Facility) that it may draw on for general corporate purposes and to support its commercial paper program. The Credit Facility expires in May 2018. Borrowings under the Credit Facility bear interest initially at LIBOR plus 0.8%, subject to adjustment in the event of a change in the Company’s credit ratings. The Credit Facility replaces the Company's previous $1.5 billion credit facility that was scheduled to expire in February 2015. As of September 28, 2013 and December 29, 2012, the Company had no outstanding borrowings under either credit facility.

The Company’s commercial paper program provides for the issuance of unsecured commercial paper with maturities up to 270 days. As of September 28, 2013 and December 29, 2012, the Company's commercial paper borrowings were $585 million and $593 million, respectively. During the first nine months of 2013, the Company’s weighted average effective interest rate on its commercial paper borrowings was approximately 0.24%. Any future commercial paper borrowings would bear interest at the applicable then-current market rates. The Company classifies all of its commercial paper borrowings as long-term debt, as the Company has the ability and intent to repay any short-term maturity with available cash from its existing long-term, committed Credit Facility.

NOTE 6 – COMMITMENTS AND CONTINGENCIES

Product Liability Litigation

Riata® Litigation: In April 2013, a lawsuit seeking a class action was filed against the Company in the U.S. District Court for the Western District of Washington by plaintiffs alleging they suffered injuries caused by Riata® and Riata® ST Silicone Defibrillation Leads. The potential class of plaintiffs in this lawsuit is limited to residents of the State of Washington. The complaint seeks compensatory damages in unspecified amounts, punitive damages and a declaratory judgment that the Company is liable to the proposed class members for any past, present and future evaluative monitoring, and corrective medical, surgical and incidental expenses and losses.

As of November 1, 2013, the Company is aware of 35 lawsuits from plaintiffs alleging injuries caused by, and asserting product liability claims concerning, Riata® and Riata® ST Silicone Defibrillation Leads. Most of the lawsuits have been brought by a single plaintiff, but some of them name multiple individuals as plaintiffs. The action in Washington is the only case that seeks a class action. Outside of this class action, five separate multi-plaintiff lawsuits have been initiated against the Company that involve more than one unrelated plaintiff: a multi-plaintiff lawsuit joining 29 unrelated claimants was filed in the Superior Court of California for the city and county of Los Angeles on April 4, 2013; a multi-plaintiff lawsuit joining two unrelated claimants was filed in the Superior Court of California for the city and county of Los Angeles on April 4, 2013; a multi-plaintiff lawsuit joining two claimants was filed in the United States District Court for the Central District of California on April 4, 2013; a multi-plaintiff lawsuit joining three unrelated claimants was filed in the Superior Court of California for the city and county of Los Angeles on April 29, 2013; and a multi-plaintiff lawsuit joining 21 unrelated claimants was filed in the Superior Court of California for the city and county of Los Angeles on July 15, 2013. Of the 35 lawsuits, fourteen cases are pending in federal courts, including three in the U.S. District Court for the District of Minnesota, five in the U.S. District Court for the Central District of California, one in the U.S. District Court for the District of South Carolina, one in the U.S. District Court for the Northern District of Georgia, one in the U.S. District Court for the Northern District of New York, one in the U.S. District Court for the Western District of New York, one in the U.S. District Court for the Middle District of Tennessee and one discussed above pending in the U.S. District Court for the Western District of Washington. The remaining 21 lawsuits are pending in state courts across the country, including seven in Minnesota, ten in California, one in Indiana, two in Kentucky and one in Florida.

All but one of the claimants in the aforementioned suits allege bodily injuries as a result of surgical removal and replacement of Riata® leads, or other complications, which they attribute to the leads. The majority of the claimants who seek recovery for implantation and/or surgical removal of Riata® leads are seeking compensatory damages in unspecified amounts, and declaratory judgments that the Company is liable to the claimants for any past, present and future evaluative monitoring, and corrective medical, surgical and incidental expenses and losses. Several claimants also seek punitive damages. The Company is responsible for legal costs incurred in defense of the Riata product liability claims including any potential settlements, judgments and other legal defense costs.

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Silzone® Litigation and Insurance Receivables: The Company has been sued in various jurisdictions beginning in March 2000 by some patients who received a heart valve product with Silzone® coating, which the Company stopped selling in January 2000. The Company's outstanding Silzone cases consist of one class action in Ontario that has been appealed by the plaintiffs and one individual case in Ontario. In June 2012, the Ontario Court ruled in the Company's favor on all nine common class issues in a class action involving Silzone patients, and the case was dismissed. In September 2012, counsel for the class filed an appeal with the Court of Appeal for the Province of Ontario and filed their initial appellate brief in February 2013. The Company filed its responsive brief in August 2013. The oral argument concerning the appeal was expected to be heard in November 2013 but that hearing date has recently been adjourned and no new hearing date has been scheduled. The individual case in Ontario requests damages in excess of $1 million (claiming unspecified special damages, health care costs and interest). Based on the Company’s historical experience, the amount ultimately paid, if any, often does not bear any relationship to the amount claimed. To the extent that the Company’s future Silzone costs (inclusive of settlements, judgments, legal fees and other related defense costs) exceed its remaining historical insurance coverage of approximately $10 million, the Company would be responsible for such costs.

The Company intends to vigorously defend against the claims that have been asserted. The Company has not recorded an expense related to any potential damages in connection with these product liability litigation matters because any potential loss is not probable or reasonably estimable. Other than disclosed above, the Company cannot reasonably estimate a loss or range of loss, if any, that may result from these litigation matters.

Patent and Other Intellectual Property Litigation

Volcano Corporation & LightLab Imaging Litigation: The Company's subsidiary, LightLab Imaging, has pending litigation with Volcano Corporation (Volcano) and Axsun Technologies, Inc. (Axsun), a subsidiary of Volcano, in the Massachusetts state court and in state court in Delaware. LightLab Imaging makes and sells optical coherence tomography (OCT) imaging systems. Volcano is a LightLab Imaging competitor in medical imaging. Axsun makes and sells lasers and is a supplier of lasers to LightLab Imaging for use in OCT imaging systems. The lawsuits arise out of Volcano's acquisition of Axsun in December 2008. Before Volcano acquired Axsun, LightLab Imaging and Axsun had worked together to develop a tunable laser for use in OCT imaging systems. While the laser was in development, LightLab Imaging and Axsun entered into an agreement pursuant to which Axsun agreed to sell its tunable lasers exclusively to LightLab in the field of human coronary artery imaging for a certain period of time.

After Volcano acquired Axsun in December 2008, LightLab Imaging sued Axsun and Volcano in Massachusetts, asserting a number of claims arising out of Volcano's acquisition of Axsun. In January 2011, the Court ruled that Axsun's and Volcano's conduct constituted knowing and willful violations of a statute which prohibits unfair or deceptive acts or practices or acts of unfair competition, entitling LightLab Imaging to double damages, and furthermore, that LightLab Imaging was entitled to recover attorneys' fees. In February 2011, Volcano and Axsun were ordered to pay the Company for reimbursement of attorneys' fees and double damages, which Volcano paid to the Company in July 2011. The Court also issued certain injunctions and declaratory relief against Volcano. The Company has also appealed certain rulings relating to the trial court's exclusion of certain expert testimony and its refusal to enter permanent injunctions. In January 2013, the Supreme Judicial Court for Massachusetts granted the Company's request to bypass the intermediary appellate court and has accepted the matter for its direct review. Oral argument has been scheduled for December 2, 2013, and the appeal is expected to be finalized in 2014.

In May 2011, LightLab Imaging initiated a lawsuit against Volcano and Axsun in the Delaware state court. The suit seeks to enforce LightLab Imaging's exclusive contract with Axsun, and also alleges claims to prevent Volcano from interfering with that contract and to bar Axsun and Volcano from using LightLab Imaging confidential information and trade secrets, and to prevent Volcano and Axsun from violating a Massachusetts statute prohibiting unfair methods of competition and unfair or deceptive acts or practices relating to LightLab Imaging's tunable laser technology. In May 2012, the Court granted Volcano's motion to stay the proceedings until Volcano provides notice of its intent to begin clinical trials or engage in other public activities with an OCT imaging system that uses a type of light source that is in dispute in the lawsuit. Volcano is under an order to provide such a notice at least 45 days before beginning such trials or engaging in such activities. In April 2013, the Court denied a motion by the Company to lift the stay.

Volcano Corporation & St. Jude Medical Patent Litigation: In July 2010, the Company filed a lawsuit in federal district court in Delaware against Volcano for patent infringement. In the suit, the Company asserted certain patents against Volcano and seeks injunctive relief and monetary damages. The infringed patents are part of the St. Jude Medical PressureWire® technology platform, which was acquired as part of St. Jude Medical's purchase of Radi Medical Systems in December 2008. On October 19, 2012 a jury ruled in favor of Volcano finding that certain Volcano patents did not infringe the Company's patents and that certain St. Jude Medical patents were invalid. The Company has filed a motion for judgment as a matter of law and for a new trial. If necessary, the Company will appeal to the appellate court and raise challenges to various issues related to the trial that resulted in the October 19, 2012 jury decision. Volcano also filed counterclaims against the Company in this case, alleging

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certain St. Jude Medical patent claims are unenforceable and that certain St. Jude Medical products infringe certain Volcano patents. On October 25, 2012, a jury ruled that the Company did not infringe certain Volcano patents and entered judgment on both October jury verdicts in January 2013. The parties are moving forward with other post-trial proceedings.

On April 16, 2013, Volcano filed a lawsuit in federal district court in Delaware against the Company alleging that the Company is infringing two U.S. patents owned by Volcano which were issued that same day. The allegations relate to the Company's PressureWire® technology (Fractional Flow Reserve) FFR Platforms, including ILUMIEN^TM PCI Optimization System and Quantien^TM Integrated FFR platforms. In its complaint, Volcano seeks both injunctive relief and monetary damages. A hearing on claims construction has been scheduled for November 2013. The Company plans to vigorously defend against the claims asserted. The Company has not recorded an expense related to any potential damages in connection with this litigation matter because any potential loss is not probable or reasonably estimable. Other than disclosed above, the Company cannot reasonably estimate a loss or range of loss, if any, that may result from these litigation matters.

Securities and Other Shareholder Litigation

March 2010 Securities Class Action Litigation: In March 2010, a securities lawsuit seeking class action status was filed in federal district court in Minnesota against the Company and certain officers (collectively, the defendants) on behalf of purchasers of St. Jude Medical common stock between April 22, 2009 and October 6, 2009. The lawsuit relates to the Company's earnings announcements for the first, second and third quarters of 2009, as well as a preliminary earnings release dated October 6, 2009. The complaint, which seeks unspecified damages and other relief as well as attorneys' fees, alleges that the defendants failed to disclose that it was experiencing a slowdown in demand for its products and was not receiving anticipated orders for cardiac rhythm management devices. Class members allege that the defendant's failure to disclose the above information resulted in the class purchasing St. Jude Medical stock at an artificially inflated price. In December 2011, the Court issued a decision denying a motion to dismiss filed by the defendants in October 2010. In October 2012, the Court granted plaintiffs' motion to certify the case as a class action and the discovery phase of the case closed in September 2013. On October 15, 2013, the defendants filed a motion for summary judgment and a hearing is scheduled for January 2014 and a ruling is expected later in 2014. Subject to the outcome of this hearing, the trial of this class action matter is presently scheduled for July 2014. The defendants intend to continue to vigorously defend against the claims asserted in this lawsuit.

December 2012 Securities Class Action Litigation: On December 7, 2012, a securities class action lawsuit was filed

in federal district court in Minnesota against the Company and an officer (collectively, the defendants) for alleged violations of the federal securities laws, on behalf of all purchasers of the publicly traded securities of the defendants between October 17, 2012 and November 20, 2012. The complaint, which seeks unspecified damages and other relief as well as attorneys' fees, challenges the Company’s disclosures concerning its high voltage cardiac rhythm lead products during the purported class period. On December 10, 2012, a second securities class action lawsuit was filed in federal district court in Minnesota against the Company and certain officers for alleged violations of the federal securities laws, on behalf of all purchasers of the publicly traded securities of the Company between October 19, 2011 and November 20, 2012. The second complaint pursues similar claims and seeks unspecified damages and other relief as well as attorneys’ fees. In March 2013, the Court consolidated the two cases and appointed a lead counsel and lead plaintiff. In September 2013, the defendants filed a motion to dismiss the consolidated and amended complaint. Oral argument concerning this motion to dismiss is scheduled for early January 2014, and a ruling is expected later in 2014. The Company intends to vigorously defend against the claims asserted in this matter.

December 2012 Derivative Litigation: In December 2012, a shareholder derivative action was initiated in Minnesota state court in Ramsey County, on behalf of the Company, against members of St. Jude Medical’s Board of Directors as well as certain officers of the Company (collectively, the defendants). The plaintiffs in this action allege breach of fiduciary duty, waste of corporate assets and unjust enrichment. The claims center around and involve the Company’s high voltage cardiac rhythm lead products and related activities and events. No damages are sought against the Company. The defendants intend to vigorously defend against the claims asserted in this matter. In March 2013, the defendants filed a motion to dismiss the plaintiffs' complaint. No hearing on the motion has yet been scheduled.

The Company has not recorded an expense related to any potential damages in connection with these securities and other shareholder litigation matters because any potential loss is not probable or reasonably estimable. The Company cannot reasonably estimate a loss or range of loss, if any, that may result from these matters.

Governmental Investigations

In March 2010, the Company received a Civil Investigative Demand (CID) from the Civil Division of the Department of Justice (DOJ). The CID requests documents and sets forth interrogatories related to communications by and within the Company on various indications for tachycardia implantable cardioverter defibrillator systems (ICDs) and a National Coverage Decision issued by Centers for Medicare and Medicaid Services. Similar requests were made of the Company's major competitors. The Company provided its response to the DOJ in June 2010.

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On September 20, 2012, the Office of Inspector General for the Department of Health and Human Services (OIG) issued a subpoena requiring the Company to produce certain documents related to payments made by the Company to healthcare professionals practicing in California, Florida, and Arizona, as well as policies and procedures related to payments made by the Company to non-employee healthcare professionals. The Company has provided its response to the OIG.

The Company is cooperating with the two open investigations and is responding to these requests. However, the Company cannot predict when these investigations will be resolved, the outcome of these investigations or their impact on the Company. The Company has not recorded an expense related to any potential damages in connection with these governmental matters because any potential loss is not probable or reasonably estimable. The Company cannot reasonably estimate a loss or range of loss, if any, that may result from these matters.

Regulatory Matters

In late September 2012, the FDA commenced an inspection of the Company's Sylmar, California facility, and, following such inspection, issued eleven observations on a Form 483, which the Company disclosed on a Form 8-K filed on October 24, 2012 along with an exhibit containing a redacted version of the Form 483. The FDA subsequently released its own redacted version of the 483 Letter on November 20, 2012. The redacted version of the Form 483 that was released by the FDA on November 20, 2012 and included in its website at that time is attached as Exhibit 99.1 to the Company's Quarterly Report on Form 10-Q for the period ended June 29, 2013. In early November 2012, the Company provided written responses to the FDA on the Form 483 detailing proposed corrective actions and immediately initiated efforts to address the FDA's inspectional observations. The Company subsequently received a warning letter dated January 10, 2013 from the FDA relating to these inspectional observations with respect to its Sylmar, California facility. The warning letter does not identify any specific concerns regarding the performance of, or indicate the need for any field or other action regarding, any particular St. Jude Medical product. In July 2013, the FDA inspected the Company's Sylmar, California facility for progress made remediating the warning letter and Form 483 observations. No additional observations on Form 483 were issued following the July inspection. The Sylmar, California facility will continue to manufacture cardiac rhythm management devices while the Company works with the FDA to address its concerns.

The FDA inspected the Company's Plano, Texas manufacturing facility at various times between March 5 and April 6, 2009. On April 6, 2009, the FDA issued a Form 483 identifying certain inspectional observations with current Good Manufacturing Practice (cGMP). Following the receipt of the Form 483, the Company provided written responses to the FDA detailing proposed corrective actions and immediately initiated efforts to address the FDA's inspectional observations. The Company subsequently received a warning letter dated June 26, 2009 from the FDA relating to these inspectional observations with respect to its legacy Neuromodulation division's Plano, Texas and Hackettstown, New Jersey facilities.

With respect to both of these warning letters, the FDA notes that it will not grant requests for exportation certificates to foreign governments or approve pre-market approval applications for Class III devices to which the quality system regulation deviations are reasonably related until the violations have been corrected. The Company is working cooperatively with the FDA to resolve all of its concerns.

Customer orders have not been and are not expected to be impacted while the Company works to resolve the FDA's concerns. The Company is working diligently to respond timely and fully to the FDA's observations and requests. While the Company believes the issues raised by the FDA can be resolved without a material impact on the Company's financial results, the FDA has recently been increasing its scrutiny of the medical device industry and raising the threshold for compliance. The government is expected to continue to scrutinize the industry closely with inspections, and possibly enforcement actions, by the FDA or other agencies. The Company is regularly monitoring, assessing and improving its internal compliance systems and procedures to ensure that its activities are consistent with applicable laws, regulations and requirements, including those of the FDA.

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Product Warranties

The Company offers a warranty on various products, the most significant of which relates to its ICDs and pacemakers systems. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary.

Changes in the Company’s product warranty liability during the three and nine months ended September 28, 2013 and September 29, 2012 were as follows (in millions):

	Three Months Ended						Nine Months Ended
	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012
Balance at beginning of period	$	37		$	38		$	38		$	36
Warranty expense recognized	(2		)	2			1			5
Warranty credits issued	—			(1		)	(4		)	(2		)
Balance at end of period	$	35		$	39		$	35		$	39

NOTE 7 – SPECIAL CHARGES

The Company recognizes certain transactions and events as special charges in its consolidated financial statements. These charges (such as restructuring charges, impairment charges and certain settlement or litigation charges) result from facts and circumstances that vary in frequency and impact on the Company's results of operations. In order to enhance segment comparability and reflect management's focus on the ongoing operations of the Company, special charges are not reflected in the individual reportable segments operating results.

2012 Business Realignment Plan

During 2012, the Company incurred charges of $185 million resulting from the realignment of its product divisions into two new operating divisions: the Implantable Electronic Systems Division (combining its legacy Cardiac Rhythm Management and Neuromodulation product divisions) and the Cardiovascular and Ablation Technologies Division (combining its legacy Cardiovascular and Atrial Fibrillation product divisions). In addition, the Company centralized certain support functions, including information technology, human resources, legal, business development and certain marketing functions. The organizational changes are part of a comprehensive plan to accelerate the Company's growth, reduce costs, leverage economies of scale and increase investment in product development. In connection with the realignment, the Company recognized $109 million of severance costs and other termination benefits after management determined that such severance and benefit costs were probable and estimable, in accordance with ASC Topic 712, Nonretirement Postemployment Benefits (ASC Topic 712). The 2012 business realignment plan reduced the Company's workforce by approximately 5%. The Company also recognized $17 million of inventory write-offs associated with discontinued CATD product lines and $41 million of accelerated depreciation charges and fixed asset write-offs, primarily associated with information technology assets no longer expected to be utilized or with a limited remaining useful life. Additionally, the Company recognized $18 million of other restructuring costs, which included $7 million of contract termination costs and $11 million of other costs.

During the first quarter of 2013, the Company incurred $34 million of special charges associated with the 2012 business realignment plan including $10 million of severance and other termination benefits after management determined that such costs were probable and estimable. The Company also recognized $18 million of inventory write-offs associated with discontinued CATD product lines, $2 million of fixed asset write-offs and $4 million of other restructuring costs, all as part of the Company's continued integration efforts.

During the second quarter of 2013, the Company recognized $39 million of special charges associated with the 2012 business realignment plan including $19 million of severance and other termination benefits after management determined that such costs were probable and estimable in accordance with ASC Topic 712. The Company also recognized $1 million of inventory write-offs primarily associated with discontinued IESD product lines, $2 million of fixed asset write-offs related to information technology assets no longer expected to be utilized and $17 million of other restructuring costs primarily related to distributor terminations and office consolidations, all as part of the Company's continued integration efforts.

During the third quarter of 2013, the Company recognized $13 million of special charges related to the 2012 business realignment plan. Of the $13 million recognized, $7 million related to other restructuring costs primarily associated with

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distributor terminations and office consolidations, $4 million related to severance and other termination benefits after management determined that such costs were probable and estimable in accordance with ASC Topic 712 and $2 million related to inventory write-offs associated with discontinued CATD product lines.

A summary of the activity related to the 2012 business realignment plan accrual is as follows (in millions):

	Employee Termination Costs			Inventory Charges			Fixed Asset Charges			Other Restructuring Costs			Total
Balance at December 31, 2011	$	—		$	—		$	—		$	—		$	—
Cost of sales special charges	5			17			—			2			24
Special charges	104			—			41			16			161
Non-cash charges used	—			(17		)	(41		)	(3		)	(61		)
Cash payments	(52		)	—			—			(7		)	(59		)
Foreign exchange rate impact	1			—			—			—			1
Balance at December 29, 2012	58			—			—			8			66
Cost of sales special charges	—			18			—			—			18
Special charges	10			—			2			4			16
Non-cash charges used	—			(18		)	(2		)	—			(20		)
Cash payments	(32		)	—			—			(3		)	(35		)
Foreign exchange rate impact	(1		)	—			—			—			(1		)
Balance at March 30, 2013	35			—			—			9			44
Cost of sales special charges	—			1			—			—			1
Special charges	19			—			2			17			38
Non-cash charges used	—			(1		)	(2		)	(4		)	(7		)
Cash payments	(17		)	—			—			(9		)	(26		)
Foreign exchange rate impact	1			—			—			—			1
Balance at June 29, 2013	38			—			—			13			51
Cost of sales special charges	—			2			—			—			2
Special charges	4			—			—			7			11
Non-cash charges used	—			(2		)	—			—			(2		)
Cash payments	(15		)	—			—			(7		)	(22		)
Foreign exchange rate impact	—			—			—			—			—
Balance at September 28, 2013	$	27		$	—		$	—		$	13		$	40

2011 Restructuring Plan

During 2011, the Company announced a restructuring plan to streamline certain activities in the Company's legacy cardiac rhythm management business and sales and selling support organizations. Specifically, the restructuring actions included phasing out cardiac rhythm management manufacturing and research and development (R&D) operations in Sweden, reductions in the Company's workforce and rationalizing product lines. During 2011, the Company incurred charges totaling $162 million related to the 2011 restructuring plan. During 2012, the Company incurred additional charges totaling $102 million related to the 2011 restructuring plan consisting of severance costs and other termination benefits of $38 million, $13 million of inventory obsolescence charges and $51 million of other restructuring charges, which included $37 million of restructuring related charges associated with the Company's legacy cardiac rhythm management business and sales and selling support organizations (of which $13 million primarily related to idle facility costs in Sweden). The remaining charges included $8 million of contract termination costs and $6 million of other costs.

During the first quarter of 2013, the Company recognized $9 million of restructuring charges associated with the 2011 restructuring plan. Of the $9 million incurred, $2 million related to severance costs and other termination benefits and $7 million related to other restructuring costs, primarily associated with idle facility costs.

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During the second quarter of 2013, the Company recognized $4 million of restructuring charges associated with the 2011 restructuring plan. Of the $4 million recognized, $1 million related to fixed asset write-offs as the Company finalizes the phase-out of operations in Sweden and $3 million related to other restructuring costs, primarily associated with idle facility costs.

During the third quarter of 2013, the Company recognized $6 million of restructuring charges associated with the 2011 restructuring plan. Of the $6 million recognized, $2 million related to severance costs and other termination benefits and $4 million related to other restructuring costs, primarily associated with idle facility costs.

A summary of the activity related to the 2011 restructuring plan accrual is as follows (in millions):

	Employee Termination Costs			Inventory Charges			Fixed Asset Charges			Other Restructuring Costs			Total
Balance at December 31, 2011	$	54		$	—		$	—		$	18		$	72
Cost of sales special charges	11			13			—			20			44
Special charges	27			—			—			31			58
Non-cash charges used	—			(13		)	—			(4		)	(17		)
Cash payments	(68		)	—			—			(47		)	(115		)
Foreign exchange rate impact	1			—			—			(1		)	—
Balance at December 29, 2012	25			—			—			17			42
Special charges	2			—			—			7			9
Cash payments	(13		)	—			—			(6		)	(19		)
Balance March 30, 2013	14			—			—			18			32
Special charges	—			—			1			3			4
Non-cash charges used	—			—			(1		)	—			(1		)
Cash payments	(5		)	—			—			(7		)	(12		)
Balance at June 29, 2013	9			—			—			14			23
Special charges	2			—			—			4			6
Cash payments	(1		)	—			—			(5		)	(6		)
Balance at September 28, 2013	$	10		$	—		$	—		$	13		$	23

Other Special Charges

During the second quarter of 2013, the Company agreed to settle a dispute on licensed technology associated with certain CATD product lines. In connection with the settlement, which resolved all disputed claims, the Company recognized a $22 million settlement expense. Also during the second quarter of 2013, the Company recognized $13 million of impairments associated with customer relationship intangible assets recognized in connection with legacy acquisitions involved in the distribution of the Company's products.

During the first nine months of 2012, the Company recognized a $23 million impairment charge for certain developed technology intangible assets in its neuromodulation business as the Company's updated expectations for the future undiscounted cash flows did not exceed the carrying value of the related assets. Additionally, the Company determined that certain CATD intangible assets were considered impaired as their future expected undiscounted cash flows did not exceed the carrying value of the related assets. As a result, the Company recognized a $5 million impairment charge to write-down the intangible assets to their fair value. The Company also agreed to settle a dispute on licensed technology for its Angio-Seal™ vascular closure devices. In connection with this settlement, which resolved all disputed claims and included a fully-paid perpetual license, the Company recognized a $28 million settlement expense which it classified as a special charge and also recognized a $12 million licensed technology intangible asset to be amortized over the technology's remaining patent life.

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NOTE 8 – NET EARNINGS PER SHARE

The table below sets forth the computation of basic and diluted net earnings per share attributable to St. Jude Medical, Inc. (in millions, except per share amounts):

	Three Months Ended				Nine Months Ended
	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
Numerator:
Net earnings attributable to St. Jude Medical, Inc.	$	262	$	176	$	600	$	632
Denominator:
Basic weighted average shares outstanding	287.5		314.7		285.6		314.8
Effect of dilutive securities:
Employee stock options	4.0		1.3		2.8		1.4
Restricted stock units	0.5		0.3		0.3		0.2
Diluted weighted average shares outstanding	292.0		316.3		288.7		316.4
Basic net earnings per share attributable to St. Jude Medical, Inc.	$	0.91	$	0.56	$	2.10	$	2.01
Diluted net earnings per share attributable to St. Jude Medical, Inc.	$	0.90	$	0.56	$	2.08	$	2.00

Approximately 2.2 million and 16.1 million shares of common stock subject to stock options and restricted stock units were excluded from the diluted net earnings per share computation for the three months ended September 28, 2013 and September 29, 2012, respectively, because they were not dilutive. Additionally, approximately 5.4 million and 16.7 million shares of common stock subject to stock options and restricted stock units were excluded from the diluted net earnings per share computation for the nine months ended September 28, 2013 and September 29, 2012, respectively, because they were not dilutive.

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NOTE 9 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The tables below present the changes in each component of accumulated other comprehensive income, including other comprehensive income and reclassifications out of accumulated other comprehensive income in to net earnings for the three and nine months ended September 28, 2013 (in millions):

	Unrealized			Unrealized		Foreign			Accumulated
	gain (loss) on			gain (loss) on		Currency			Other
	available-for-sale			derivative		Translation			Comprehensive
For the three months ended September 28, 2013	securities			instruments		Adjustment			Income (Loss)
Accumulated other comprehensive income (loss), net of tax, at June 29, 2013	$	18		$	3	$	(15	)	$	6
Other comprehensive income (loss) before reclassifications	—			—		51			51
Amounts reclassified to net earnings from accumulated other comprehensive income	(2		)	—		—			(2		)
Other comprehensive income (loss)	(2		)	—		51			49
Accumulated other comprehensive income (loss), net of tax, at September 28, 2013	$	16		$	3	$	36		$	55
	Unrealized			Unrealized		Foreign			Accumulated
	gain (loss) on			gain (loss) on		Currency			Other
	available-for-sale			derivative		Translation			Comprehensive
For the nine months ended September 28, 2013	securities			instruments		Adjustment			Income (Loss)
Accumulated other comprehensive income (loss), net of tax, at December 29, 2012	$	20		$	—	$	26		$	46
Other comprehensive income (loss) before reclassifications	1			3		10			14
Amounts reclassified to net earnings from accumulated other comprehensive income	(5		)	—		—			(5		)
Other comprehensive income (loss)	(4		)	3		10			9
Accumulated other comprehensive income (loss), net of tax, at September 28, 2013	$	16		$	3	$	36		$	55

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The tables below present the changes in each component of accumulated other comprehensive income, including other comprehensive income and reclassifications out of accumulated other comprehensive income in to net earnings for the three and nine months ended September 29, 2012 (in millions):

	Unrealized			Foreign			Accumulated
	gain (loss) on			Currency			Other
	available-for-sale			Translation			Comprehensive
For the three months ended September 29, 2012	securities			Adjustment			Income (Loss)
Accumulated other comprehensive income (loss), net of tax, at June 30, 2012	$	19		$	(48	)	$	(29	)
Other comprehensive income (loss) before reclassifications	4			44			48
Amounts reclassified to net earnings from accumulated other comprehensive income	(3		)	—			(3		)
Other comprehensive income (loss)	1			44			45
Accumulated other comprehensive income (loss), net of tax, at September 29, 2012	$	20		$	(4	)	$	16
	Unrealized			Foreign			Accumulated
	gain (loss) on			Currency			Other
	available-for-sale			Translation			Comprehensive
For the nine months ended September 29, 2012	securities			Adjustment			Income (Loss)
Accumulated other comprehensive income (loss), net of tax, at December 31, 2011	$	18		$	(2	)	$	16
Other comprehensive income (loss) before reclassifications	10			(2		)	8
Amounts reclassified to net earnings from accumulated other comprehensive income	(8		)	—			(8		)
Other comprehensive income (loss)	2			(2		)	—
Accumulated other comprehensive income (loss), net of tax, at September 29, 2012	$	20		$	(4	)	$	16

The table below provides details about reclassifications out of accumulated other comprehensive income and the line items impacted in the Company's Condensed Consolidated Statements of Earnings for the three and nine months ended September 28, 2013 and September 29, 2012 (in millions):

Details about accumulated	Amount reclassified from accumulated other comprehensive income
other comprehensive	Three Months Ended						Nine Months Ended
income components	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012			Statements of Earnings Classification
Unrealized gain (loss) on available-for-sale securities:
Gain on sale of available-for-sale securities	$	4		$	5		$	9		$	14		Other expense, net
	(2		)	(2		)	(4		)	(6		)	Income tax expense
	2			3			5			8			Net earnings before noncontrolling interest
	$	2		$	3		$	5		$	8		Net earnings attributable to St. Jude Medical, Inc.

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NOTE 10 – OTHER EXPENSE, NET

The Company’s other expense, net consisted of the following (in millions):

	Three Months Ended						Nine Months Ended
	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012
Interest income	$	(1	)	$	(1	)	$	(4	)	$	(3	)
Interest expense	21			18			60			55
Other	(3		)	2			192			15
Other expense, net	$	17		$	19		$	248		$	67

During the second quarter of 2013, the Company redeemed the full $700 million principal amount of the 2014 Senior Notes and the full $500 million principal amount of the 2019 Senior Notes. In connection with the redemption of these notes, prior to their scheduled maturities, the Company recognized a $161 million charge to other expense associated with make-whole redemption payments and the write-off of unamortized debt issuance costs (see Note 5).

During the first quarter of 2013, the Company recorded a $29 million charge to other expense to adjust the carrying value of the pre-existing CardioMEMS equity investment and fixed price purchase option to fair value. See Note 2 for further detail on the accounting for CardioMEMS as a variable interest entity, which has been consolidated into the Company's results in the first quarter of 2013.

NOTE 11 – INCOME TAXES

As of September 28, 2013, the Company had $265 million accrued for unrecognized tax benefits, all of which would affect the Company’s effective tax rate if recognized. Additionally, the Company had $35 million accrued for interest and penalties as of September 28, 2013. At December 29, 2012, the liability for unrecognized tax benefits was $314 million and the accrual for interest and penalties was $69 million. The Company recognizes interest and penalties related to income tax matters in income tax expense.

The Company is subject to U.S. federal income tax as well as income tax of multiple state and foreign jurisdictions. The Company has substantially concluded all material U.S. federal, state, foreign and local income tax matters for all tax years through 2004. The U.S. Internal Revenue Service (IRS) is currently auditing the Company’s 2008 and 2009 tax returns and an audit report is expected to be issued in 2013. In 2012, the Company recognized $46 million of additional tax expense related to a settlement reserve for certain prior period tax positions related to the 2002 through 2009 tax years. During the third quarter of 2013, the Company recognized a $15 million tax settlement benefit due to the resolution of the IRS audits of the 2002 through 2007 tax years. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months.

NOTE 12 – FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

The fair value measurement accounting standard, codified in ASC Topic 820, Fair Value Measurement (ASC Topic 820), provides a framework for measuring fair value and defines fair value as the price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. The standard establishes a valuation hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on independent market data sources. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available. The valuation hierarchy is composed of three categories. The categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement.

The categories within the valuation hierarchy are described as follows:

• Level 1 – Inputs to the fair value measurement are quoted prices in active markets for identical assets or liabilities.

• Level 2 – Inputs to the fair value measurement include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.

• Level 3 – Inputs to the fair value measurement are unobservable inputs or valuation techniques.

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Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The fair value measurement standard applies to certain financial assets and liabilities that are measured at fair value on a recurring basis (each reporting period). These financial assets and liabilities include money-market securities, trading marketable securities, available-for-sale marketable securities, derivative instruments and contingent consideration liabilities. The Company continues to record these items at fair value on a recurring basis and the fair value measurements are applied using ASC Topic 820. The Company does not have any material nonfinancial assets or liabilities that are measured at fair value on a recurring basis. A summary of the valuation methodologies used for the respective financial assets and liabilities measured at fair value on a recurring basis is as follows:

Money-Market Securities: The Company’s money-market securities include funds that are traded in active markets and are recorded at fair value based upon the quoted market prices. The Company classifies these securities as level 1.

Trading Securities: The Company’s trading securities include publicly-traded mutual funds that are traded in active markets and are recorded at fair value based upon quoted market prices of the net asset values of the funds. The Company classifies these securities as level 1.

Available-For-Sale Securities: The Company’s available-for-sale securities include publicly-traded equity securities that are traded in active markets and are recorded at fair value based upon the closing stock prices. The Company classifies these securities as level 1.

The following table summarizes the components of the balance of the Company’s available-for-sale securities at September 28, 2013 and December 29, 2012 (in millions):

	September 28, 2013		December 29, 2012
Adjusted cost	$	7	$	9
Gross unrealized gains	26		32
Fair value	$	33	$	41

Derivative Instruments: The Company’s derivative instruments consist of foreign currency exchange contracts. The Company classifies these instruments as level 2 as the fair value is determined using inputs other than observable quoted market prices. These inputs include spot and forward foreign currency exchange rates that the Company obtains from standard market data providers. The fair value of the Company’s outstanding foreign currency exchange contracts was not material at September 28, 2013 or December 29, 2012.

Contingent Consideration Liabilities: In connection with certain business combinations or purchases of intellectual property the Company may agree to provide potential future contingent consideration payments upon the achievement of certain product development milestones and/or various other favorable operating conditions. Payment of the additional consideration is generally contingent on the acquired company reaching certain performance milestones, including attaining specified revenue levels or achieving product development targets. Contingent consideration is recorded at the estimated fair value of the contingent milestone payments on the acquisition date. The fair value of the contingent milestone consideration is remeasured at the estimated fair value at each reporting period with the change in fair value recognized as income or expense within other expense, net in the Condensed Consolidated Statements of Earnings. The Company measures the liability on a recurring basis using Level 3 inputs including projected revenues, discount rates, probabilities of payment and projected payment dates. Projected contingent payment amounts are discounted back to the current period using a probability weighted discounted cash flow model. Projected revenues are based on the Company's most recent internal operating budgets and long-term strategic plans. Increases or decreases to any of the inputs may result in significantly higher or lower fair value measurements.

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A summary of financial assets measured at fair value on a recurring basis at September 28, 2013 and December 29, 2012 is as follows (in millions):

	Balance Sheet Classification	September 28, 2013		Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Money-market securities	Cash and cash equivalents	$	848	$	848	$	—	$	—
Available-for-sale securities	Other current assets	33		33		—		—
Trading securities	Other assets	254		254		—		—
Total assets		$	1,135	$	1,135	$	—	$	—
Liabilities
Contingent consideration	Other liabilities	$	136	$	—	$	—	$	136
Total liabilities		$	136	$	—	$	—	$	136

	Balance Sheet Classification	December 29, 2012		Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Money-market securities	Cash and cash equivalents	$	964	$	964	$	—	$	—
Available-for-sale securities	Other current assets	41		41		—		—
Trading securities	Other assets	231		231		—		—
Total assets		$	1,236	$	1,236	$	—	$	—

The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs (in millions):

Contingent Consideration Liability	Fair Value as of September 28, 2013		Valuation Technique	Unobservable Input	Range
Endosense regulatory-based milestone	$	136	Probability Weighted Discounted Cash Flow	Discount Rate	1.15%	-	1.71%
				Probability of Payment			90%
				Projected Year of Payment			2014

Additionally, the following table provides a reconciliation of the beginning and ending balances of the Company's contingent consideration liability associated with its Endosense acquisition subsequent to August 19, 2013 as of September 28, 2013 (in millions):

	Fiscal Year 2013
Beginning balance	$	—
Purchase price contingent consideration	132
Change in fair value of contingent consideration	1
Foreign currency translation	3
Ending balance	$	136

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Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis

The fair value measurement standard also applies to certain nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis. A summary of the valuation methodologies used for the respective nonfinancial assets and liabilities measured at fair value on a nonrecurring basis is as follows:

Long-Lived Assets: The Company reviews the carrying amount of its long-lived assets other than goodwill and indefinite-lived intangible assets for potential impairment whenever events or changes in circumstance include a significant decrease in market price, a significant adverse change in the extent or manner in which an asset is being used or a significant adverse change in the legal or business climate. The Company measures the fair value of its long-lived assets, such as its definite-lived intangible assets and property, plant and equipment using independent appraisals, market models and discounted cash flow models. A discounted cash flow model requires inputs to a present value cash flow calculation such as a risk-adjusted discount rate, terminal values, operating budgets, long-term strategic plans and remaining useful lives of the asset or asset group. If the carrying value of the Company’s long-lived assets (excluding goodwill and indefinite-lived intangible assets) exceeds the related undiscounted future cash flows, the carrying value is written down to the fair value in the period identified.

During the second quarter of 2013, the Company recognized $13 million of impairments associated with customer relationship intangible assets, as it determined that these intangible assets had no discrete future cash flows and were fully impaired. Refer to Note 7 for further details of these charges.

During the third quarter of 2012, the Company determined that certain purchased technology intangible assets in the Company's neuromodulation business were considered impaired as their future expected undiscounted cash flows did not exceed the carrying value of the related assets. As a result, the Company recognized a $23 million impairment charge to write-down the intangible assets to their estimated fair value of $3 million as of September 29, 2012. The fair value measurements of these intangible assets are considered Level 3 in the fair value hierarchy due to the use of unobservable inputs, specifically the discounted cash flows income approach method, to measure fair value.

During the second quarter of 2012, the Company determined that certain purchased technology intangible assets in CATD were considered impaired as their future expected undiscounted cash flows did not exceed the carrying value of the related assets. As a result, the Company recognized a $5 million impairment charge to write-down the intangible assets to their estimated fair value of $4 million as of June 30, 2012. The fair value measurements of these intangible assets are considered Level 3 in the fair value hierarchy due to the use of unobservable inputs, specifically the discounted cash flows income approach method, to measure fair value. The product lines were later discontinued in the fourth quarter of 2012, and the related remaining intangible asset value was fully impaired as there were no discrete future cash flows.

Cost Method Investments: The Company also holds investments in equity securities that are accounted for as cost method investments, which are classified as other assets and measured at fair value on a nonrecurring basis. The fair value of the Company’s cost method investments is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of these investments. When measured on a nonrecurring basis, the Company’s cost method investments are considered Level 3 in the fair value hierarchy due to the use of unobservable inputs to measure fair value.

The carrying value of these investments approximated $101 million and $151 million as of September 28, 2013 and December 29, 2012, respectively. The decrease in the Company's cost method investments since December 29, 2012 was primarily due to the consolidation of CardioMEMS and the elimination of the pre-existing equity investment which had been previously accounted for as a cost method investment. Effective February 27, 2013, the Company determined that CardioMEMS was a VIE for which the Company is considered the primary beneficiary (see Note 2).

Fair Value Measurements of Other Financial Instruments

The aggregate fair value of the Company’s fixed-rate senior notes at September 28, 2013 (measured using quoted prices in active markets) was $2,269 million compared to the aggregate carrying value of $2,317 million (inclusive of the terminated interest rate swaps). The fair value of the Company’s variable-rate debt obligations at September 28, 2013 approximated its aggregate $1,152 million carrying value due to the variable interest rate and short-term nature of these instruments.

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NOTE 13 – DERIVATIVE FINANCIAL INSTRUMENTS

The Company follows the provisions of ASC Topic 815, Derivatives and Hedging (ASC Topic 815) in accounting for and disclosing derivative instruments and hedging activities. All derivative financial instruments are recognized on the balance sheet at fair value. Changes in the fair value of derivatives are recognized in net earnings or other comprehensive income depending on whether the derivative is designated as part of a qualifying hedge transaction. Derivative assets and derivative liabilities are classified as other current assets, other assets, other current liabilities or other liabilities, as appropriate.

Foreign Currency Forward Contracts

The Company hedges a portion of its foreign currency exchange rate risk through the use of forward exchange contracts. The Company uses forward exchange contracts to manage foreign currency exposures related to intercompany receivables and payables arising from intercompany purchases of manufactured products. These forward contracts are not designated as qualifying hedging relationships under ASC Topic 815. The Company measures its foreign currency exchange contracts at fair value on a recurring basis. The fair value of outstanding contracts was immaterial as of September 28, 2013 and December 29, 2012. During the third quarter of 2013 the amount of net losses the Company recorded to other expense for its forward currency exchange contracts not designated as hedging instruments under ASC Topic 815 was insignificant. During the third quarter of 2012 the amount of net losses the Company recorded to other expense for its forward currency exchange contracts not designated as hedging instruments under ASC Topic 815 was a net loss of $4 million. During the first nine months of 2013 and 2012, the net amount of gains the Company recorded to other expense for its forward currency exchange contracts not designated as hedging instruments under ASC Topic 815 were net gains of $13 million and $1 million, respectively. These net gains/losses were almost entirely offset by corresponding net losses/gains on the foreign currency exposures being managed. The Company does not enter into contracts for trading or speculative purposes. The Company’s policy is to enter into hedging contracts with major financial institutions that have at least an “A” (or equivalent) credit rating.

Interest Rate Contracts

During the first quarter of 2013, the Company entered into and settled treasury rate lock agreements in anticipation of issuing $900 million principal amount of 10-year senior notes and $700 million principal amount of 30-year senior notes. Prior to the issuance of the senior notes, the Company was subject to changes in treasury benchmark interest rates, and therefore locked into fixed-rate coupons to hedge against the interest rate fluctuations. The Company designated the treasury rate lock agreements as cash flow hedges under ASC Topic 815. Upon settlement, the $3 million gain was recognized as a component of other comprehensive income, and will be recognized as a reduction to interest expense over the life of the senior notes. The amount of hedge ineffectiveness was immaterial.

In prior periods, the Company has chosen to hedge the fair value of certain debt obligations through the use of interest rate swap contracts. For interest rate swap contracts that are designated and qualify as fair value hedges, changes in the value of the fair value hedge are recognized as an asset or liability, as applicable, offsetting the changes in the fair value of the hedged debt instrument. When outstanding, the Company’s swap contracts are recorded on the consolidated balance sheet as a component of other current assets, other assets, other accrued expenses or other liabilities based on the gain or loss position of the contract and the contract maturity date. Additionally, any payments made or received under the swap contracts are accrued and recognized as interest expense. In June 2012, the Company terminated the interest rate swap it had entered into concurrent with the March 2010 issuance of the 2016 Senior Notes and received a cash payment of $24 million. The gain from terminating the interest rate swap agreement has been reflected as an increase to the carrying value of the debt and is being amortized as a reduction of interest expense resulting in a net average interest rate of 1.3% that will be recognized over the remaining term of the 2016 Senior Notes.

NOTE 14 – SEGMENT AND GEOGRAPHIC INFORMATION

Segment Information

On August 30, 2012, the Company announced the realignment of its product divisions into two new business units (or divisions): the Implantable Electronic Systems Division (combining its legacy Cardiac Rhythm Management and Neuromodulation product divisions) and the Cardiovascular and Ablation Technologies Division (combining its legacy Cardiovascular and Atrial Fibrillation product divisions). In addition, the Company centralized certain support functions, including information technology, human resources, legal, business development and certain marketing functions. The organizational changes were part of a comprehensive plan to accelerate our growth, reduce costs, leverage economies of scale and increase investment in product development. The Company began reporting under the new organizational structure as of the beginning of fiscal year 2013. Prior period amounts in the tables below have been recast to conform to the Company's new reportable segment structure.

26

The Company's principal products in each business unit are as follows: Implantable Electronic Systems Division (IESD) – tachycardia implantable cardioverter defibrillator systems (ICDs), bradycardia pacemaker systems (pacemakers) and neurostimulation products (spinal cord and deep brain stimulation devices); and Cardiovascular and Ablation Technologies Division (CATD) – vascular products (vascular closure products, pressure measurement guidewires, optical coherence tomography (OCT) imaging products, vascular plugs and other vascular accessories), structural heart products (heart valve replacement and repair products and structural heart defect devices) and atrial fibrillation (AF) products (electrophysiology (EP) introducers and catheters, advanced cardiac mapping, navigation and recording systems and ablation systems).

IESD and CATD are considered the Company's reportable segments. Net sales of the Company’s reportable segments include end-customer revenues from the sale of products they each develop and manufacture or distribute. The costs included in each of the reportable segments’ operating results include the direct costs of the products sold to customers and operating expenses managed by each of the reportable segments. Certain expenses managed by the Company’s selling and corporate functions, including all stock-based compensation expense, impairment charges, certain acquisition-related charges, IPR&D charges, excise tax expense, special charges and centralized support groups' operating expenses are not recorded in the IESD and CATD reportable segments. As a result, reportable segment operating profit is not representative of the operating profit of the products in these reportable segments. Additionally, certain assets are managed by the Company’s selling and corporate functions, principally including trade receivables, inventory, cash and cash equivalents, certain marketable securities and certain deferred income taxes. For management reporting purposes, the Company does not compile capital expenditures by reportable segment; therefore, this information has not been presented, as it is impracticable to do so.

The following table presents net sales and operating profit by reportable segment (in millions):

	IESD		CATD		Other			Total
Three Months ended September 28, 2013:
Net sales	$	786	$	552	$	—		$	1,338
Operating profit	534		321		(542		)	313
Three Months ended September 29, 2012:
Net sales	$	792	$	534	$	—		$	1,326
Operating profit	547		319		(631		)	235
Nine Months ended September 28, 2013:
Net sales	$	2,389	$	1,690	$	—		$	4,079
Operating profit	1,630		995		(1,722		)	903
Nine Months ended September 29, 2012:
Net sales	$	2,482	$	1,649	$	—		$	4,131
Operating profit	1,720		980		(1,825		)	875

The following table presents the Company’s total assets by reportable segment (in millions):

Total Assets	September 28, 2013		December 29, 2012
IESD	$	2,644	$	2,320
CATD	3,301		2,967
Other	4,020		3,984
	$	9,965	$	9,271

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Geographic Information

The following table presents net sales by geographic location of the customer (in millions):

	Three Months Ended				Nine Months Ended
Net Sales	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
United States	$	646	$	640	$	1,955	$	1,969
International
Europe	333		311		1,066		1,059
Japan	142		172		418		500
Asia Pacific	125		118		362		339
Other	92		85		278		264
	692		686		2,124		2,162
	$	1,338	$	1,326	$	4,079	$	4,131

The amounts for long-lived assets by significant geographic market include net property, plant and equipment by physical location of the asset as follows (in millions):

Long-Lived Assets	September 28, 2013		December 29, 2012
United States	$	1,046	$	1,036
International
Europe	81		82
Japan	34		32
Asia Pacific	77		82
Other	189		193
	381		389
	$	1,427	$	1,425

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

Our business is focused on the development, manufacture and distribution of cardiovascular medical devices for the global cardiac rhythm management, cardiovascular and atrial fibrillation therapy areas and implantable neurostimulation medical devices for the management of chronic pain. We sell our products in more than 100 countries around the world. Our largest geographic markets are the United States, Europe, Japan and Asia Pacific. On August 30, 2012, we announced the realignment of our product divisions into two new business units (or divisions): the Implantable Electronic Systems Division (combining our legacy Cardiac Rhythm Management and Neuromodulation product divisions) and the Cardiovascular and Ablation Technologies Division (combining our legacy Cardiovascular and Atrial Fibrillation product divisions). In addition, we centralized certain support functions, including information technology, human resources, legal, business development and certain marketing functions. The organizational changes were part of a comprehensive plan to accelerate our growth, reduce costs, leverage economies of scale and increase investment in product development. We began reporting under the new organizational structure as of the beginning of fiscal year 2013.

Our principal products in each business unit are as follows: Implantable Electronic Systems Division (IESD) – tachycardia implantable cardioverter defibrillator systems (ICDs), bradycardia pacemaker systems (pacemakers) and neurostimulation products (spinal cord and deep brain stimulation devices); and Cardiovascular and Ablation Technologies Division (CATD) – vascular products (vascular closure products, pressure measurement guidewires, optical coherence tomography (OCT) imaging products, vascular plugs and other vascular accessories), structural heart products (heart valve replacement and repair products and structural heart defect devices) and atrial fibrillation (AF) products (electrophysiology (EP) introducers and catheters, advanced cardiac mapping, navigation and recording systems and ablation systems). References to “St. Jude Medical,” “St. Jude,” “the Company,” “we,” “us” and “our” are to St. Jude Medical, Inc. and its subsidiaries.

Our industry has undergone significant consolidation in the last decade and is highly competitive. Our strategy requires significant investment in research and development in order to introduce new products. We are focused on improving our operating margins through a variety of techniques, including the production of high quality products, the development of leading edge technology, the enhancement of our existing products and continuous improvement of our manufacturing processes. We expect competitive pressures in the industry, global economic conditions, cost containment pressure on healthcare systems and the implementation of U.S. healthcare reform legislation to continue to place downward pressure on prices for our products, impact reimbursement for our products and potentially reduce medical procedure volumes.

In March 2010, significant U.S. healthcare reform legislation, the Patient Protection and Affordable Care Act (PPACA) along with the Health Care and Education Reconciliation Act of 2010, was enacted into law. As a U.S. headquartered company with significant sales in the United States, this health care reform law will materially impact us. Certain provisions of this health care reform law are not yet effective and there are many programs and requirements for which the details have not yet been fully established or consequences not fully understood, and it is unclear what the full impact will be from the legislation. The law levies a 2.3% excise tax on all U.S. medical device sales, which we began paying effective January 1, 2013. The law also focuses on a number of Medicare provisions aimed at improving quality and decreasing costs. It is uncertain at this point what impact these provisions will have on patient access to new technologies. The Medicare provisions also include value-based payment programs, increased funding of comparative effectiveness research, reduced hospital payments for avoidable readmissions and hospital acquired conditions, and pilot programs to evaluate alternative payment methodologies that promote care coordination (such as bundled physician and hospital payments). Additionally, the law includes a reduction in the annual rate of inflation for hospitals that began in 2011 and the establishment of an independent payment advisory board to recommend ways of reducing the rate of growth in Medicare spending beginning in 2014. We cannot predict what healthcare programs and regulations will be ultimately implemented at the federal or state level, or the effect of any future legislation or regulation. However, any changes that lower reimbursement for our products or reduce medical procedure volumes could adversely affect our business and results of operations.

We participate in several different medical device markets, each of which has its own expected growth rate. A significant portion of our consolidated net sales are comprised of cardiac rhythm management devices – ICDs and pacemakers. During 2011, the ICD market in the United States was negatively impacted by a decline in implant volumes and pricing resulting from the publication of an ICD utilization article in January 2011 in the Journal of the American Medical Association (JAMA) and subsequent hospital investigation by the U.S. Department of Justice (DOJ). The U.S. ICD market continued to experience some of the negative impacts, and from the end of 2010 through the end of 2012 we estimated the U.S. ICD market contracted at a mid single-digit percentage rate each year. Recently, however, the U.S. ICD market appears to be stabilizing, with contraction in the first nine months of 2013 in the low single-digit percentage rates. Management remains focused on increasing our worldwide market share, as we are one of three principal manufacturers and suppliers in the global cardiac rhythm management

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market. We are also investing in our other therapy areas – cardiovascular, atrial fibrillation and neuromodulation – to increase our market share and grow sales through continued market penetration. In August 2013, we acquired Endosense S.A. (Endosense) for net cash consideration of $171 million plus an additional consideration payment upon U.S. Food and Drug Administration (FDA) approval. This acquisition expands the product offerings under our AF therapy area to include the TactiCath® irrigated ablation catheter, which has force-sensing technology that is CE Mark approved for AF and supra ventricular tachycardia ablation.

Net sales in the third quarter of 2013 increased 1% to $1,338 million compared to the third quarter of 2012. During the first nine months of 2013, net sales decreased 1% to $4,079 million over the first nine months of 2012. Foreign currency translation comparisons unfavorably decreased our third quarter and first nine months 2013 net sales by $26 million (2 percentage points) and $74 million (2 percentage points), respectively, compared to the same prior year periods. Although our net sales have been impacted by unfavorable foreign currency translation, overall ICD market contraction and average selling price declines in the cardiac rhythm management market, we have experienced net sales benefits in our AF business due to the continued increase in EP catheter ablation procedures, further market penetration of our EnSite® Velocity System and related connectivity tools as well as our intracardiac echocardiography imaging product offerings. Additionally, we have begun to experience a net sales benefit from our recent 2013 product launches including our next-generation Ellipse™ and Assura™ devices FDA approved in June 2013 and CE Mark approved in May 2013), our Accent MRI™ Pacemaker and the Tendril MRI™ lead (Japan regulatory approved in June 2013) and our Allure Quadra™ Cardiac Resynchronization Therapy Pacemaker (CRT-P), (CE Mark approved in April 2013). We have also experienced incremental net sales in the third quarter of 2013 due to our consolidation of Spinal Modulation Inc. (Spinal Modulation) in June 2013 as we are the primary beneficiary, contributing net sales from distribution of its Axium™ Neurostimulator System, a targeted therapy for chronic pain, and we continue to experience a full nine month benefit from our deep brain stimulation business, as we continue to penetrate the international market during 2013. Refer to the Segment Performance section for a more detailed discussion of the results of our reportable segments.

Our third quarter 2013 net earnings of $262 million and diluted net earnings per share of $0.90 increased 49% and 61%, respectively, compared to our third quarter 2012 net earnings of $176 million and diluted net earnings per share of $0.56. Third quarter 2013 net earnings were negatively impacted by after-tax charges of $15 million, or $0.05 per diluted share, associated with additional charges related to our previously announced 2012 business realignment and 2011 restructuring plans and acquisition-related costs. Third quarter 2012 net earnings were negatively impacted by after-tax special charges of $80 million, or $0.25 per diluted share, related primarily to the 2012 business realignment plan announced in August 2012 as well as ongoing restructuring charges related to the 2011 restructuring plan. Net earnings and diluted net earnings per share for the first nine months of 2013 were $600 million and $2.08, respectively, a 5% decrease and 4% increase, respectively, compared to net earnings of $632 million and diluted net earnings per share of $2.00 for the first nine months of 2012. The decrease in net earnings for the first nine months of 2013 over the same prior year period was due to after-tax charges totaling $236 million, or $0.81 per diluted share, which included after-tax charges of $101 million related to make-whole redemption charges and after-tax charges of $106 million associated with our previously discussed business realignment and restructuring plans, a license dispute settlement charge, an intangible asset impairment charge and other acquisition-related charges. Additionally, we recognized after-tax charges of $29 million to adjust the carrying value of our pre-existing CardioMEMS, Inc. (CardioMEMS)equity investment and fixed price purchase option to fair value during the first quarter of 2013. These charges were partially offset by a $21 million income tax benefit related to the 2012 federal research and development tax credit extended in the first quarter of 2013, retroactive to the beginning of our 2012 tax year, and a $15 million tax benefit related to the settlement and resolution of domestic tax audits with the U.S. Internal Revenue Service (IRS) during the third quarter of 2013. During the first nine months of 2012, net earnings were negatively impacted by after-tax charges of $161 million, or $0.51 per diluted share, primarily associated with business realignment and restructuring charges and a license dispute settlement charge. Refer to the Results of Operations section for a more detailed discussion of these charges.

We generated $671 million of operating cash flows during the first nine months of 2013, compared to $939 million of operating cash flows during the first nine months of 2012, with higher tax payments from the settlement of tax audits accounting for much of the decrease. We ended the third quarter with $1,245 million of cash and cash equivalents and $3,469 million of total debt. We issued $900 million principal amount of 10-year, 3.25% unsecured senior notes (2023 Senior Notes) and $700 million principal amount of 30-year, 4.75% unsecured senior notes (2043 Senior Notes) that mature on April 15, 2023 and April 15, 2043, respectively. We used a portion of the proceeds to redeem both our $700 million principal amount of 5-year, 3.75% unsecured senior notes due in 2014 (2014 Senior Notes) and our $500 million principal amount of 10-year, 4.875% unsecured senior notes due in 2019 (2019 Senior Notes). We also repaid our $450 million principal amount of 3-year, 2.20% unsecured senior notes (2013 Senior Notes) that matured on September 15, 2013.

We also repurchased 13.9 million shares of our common stock for $542 million at an average repurchase price of $38.83 per share during the first quarter of 2013. Additionally, on February 23, 2013, May 1, 2013 and July 30, 2013 our Board of

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Directors authorized quarterly cash dividends of $0.25 per share payable on April 30, 2013, July 31, 2013 and October 31, 2013, respectively, to shareholders of record as of March 29, 2013, June 28, 2013 and September 30, 2013, respectively. Our dividends represent a 9% per share increase over the same periods in 2012.

NEW ACCOUNTING PRONOUNCEMENTS

Information regarding new accounting pronouncements that impacted 2013 or our historical consolidated financial statements and related disclosures is included in Note 1 to the Condensed Consolidated Financial Statements.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

We have adopted various accounting policies in preparing the consolidated financial statements in accordance with U.S. generally accepted accounting principles. Our significant accounting policies are disclosed in Note 1 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 29, 2012 (2012 Annual Report on Form 10-K).

Preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles requires us to adopt various accounting policies and to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and assumptions, including those related to accounts receivable allowance for doubtful accounts; inventory reserves; goodwill and intangible assets; income taxes; litigation reserves and insurance receivables; and stock-based compensation. We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, and the results form the basis for making judgments about the reported values of assets, liabilities, revenues and expenses. Actual results may differ from these estimates. There have been no material changes to our critical accounting policies and estimates from the information provided in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2012 Annual Report on Form 10-K.

SEGMENT PERFORMANCE

Our reportable segments consist of our Implantable Electronic Systems Division (IESD) and our Cardiovascular and Ablation Technologies Division (CATD). Our principal products in each segment are as follows: IESD – tachycardia implantable cardioverter defibrillator systems (ICDs), bradycardia pacemaker systems (pacemakers) and neurostimulation products (spinal cord and deep brain stimulation devices); and CATD – vascular products (vascular closure products, pressure measurement guidewires, optical coherence tomography (OCT) imaging products, vascular plugs and other vascular accessories), structural heart products (heart valve replacement and repair products and structural heart defect devices) and AF products (EP introducers and catheters, advanced cardiac mapping, navigation and recording systems and ablation systems).

Net sales of our reportable segments include end-customer revenues from the sale of products they each develop and manufacture or distribute. The costs included in each of the reportable segments’ operating results include the direct costs of the products sold to customers and operating expenses managed by each of the reportable segments. Certain expenses managed by our selling and corporate functions, including all stock-based compensation expense, impairment charges, certain acquisition-related expenses, in-process research and development (IPR&D) charges, excise tax expense, special charges and centralized support groups' operating expenses are not recorded in the IESD and CATD reportable segments. As a result, reportable segment operating profit is not representative of the operating profit of the products in these reportable segments.

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The following table presents net sales and operating profit by reportable segment (in millions):

	IESD		CATD		Other			Total
Three Months ended September 28, 2013:
Net sales	$	786	$	552	$	—		$	1,338
Operating profit	534		321		(542		)	313
Three Months ended September 29, 2012:
Net sales	$	792	$	534	$	—		$	1,326
Operating profit	547		319		(631		)	235
Nine Months ended September 28, 2013:
Net sales	$	2,389	$	1,690	$	—		$	4,079
Operating profit	1,630		995		(1,722		)	903
Nine Months ended September 29, 2012:
Net sales	$	2,482	$	1,649	$	—		$	4,131
Operating profit	1,720		980		(1,825		)	875

The following discussion of the changes in our net sales is provided by class of similar products within our reportable segments.

Implantable Electronic Systems Division

	Three Months Ended						Nine Months Ended
(in millions)	September 28, 2013		September 29, 2012		% Change		September 28, 2013		September 29, 2012		% Change
ICD systems	$	418	$	412	1.5	%	$	1,299	$	1,321	(1.7	)%
Pacemaker systems	264		279		(5.4	)%	779		851		(8.5	)%
Neuromodulation products	104		101		3.0	%	311		310		0.3	%
	$	786	$	792	(0.8	)%	$	2,389	$	2,482	(3.7	)%

IESD's net sales decreased 1% and 4% during the third quarter and first nine months of 2013 compared to the same prior year periods. During the third quarter and first nine months of 2013, foreign currency translation had a $9 million (1 percentage point) and $27 million (1 percentage point), respectively, unfavorable impact on net sales compared to the same prior year periods.

ICD net sales increased 2% during the third quarter of 2013 and decreased 2% during the first nine months of 2013 compared to the same prior year periods. Our U.S. 2013 third quarter ICD net sales of $253 million increased 2% compared to the same prior year period, and our U.S. ICD net sales during the first nine months of 2013 of $778 million were flat compared to the same period in 2012. Although the ICD market has been experiencing low to mid-single digit percentage rate declines in average selling prices, we have begun to experience a sales volume benefit from our June 2013 FDA approval of our next-generation Ellipse™ and Assura™ devices featuring DynamicTx™ Over-Current Detection Algorithm, which automatically adjusts shock configurations and utilizes a new low friction coating on the device can to reduce the risk for lead-to-can abrasion, the most common type of lead insulation failure in the industry. Internationally, our third quarter and first nine months of 2013 ICD net sales of $165 million and $521 million, respectively, were flat and decreased 4%, respectively, compared to the same prior year periods. Foreign currency translation had a $3 million (1 percentage point) and $13 million (1 percentage point) unfavorable impact on international ICD net sales in the third quarter and first nine months of 2013, respectively, compared to the same periods in 2012 primarily as a result of the strengthening U.S. Dollar against the Japanese Yen. Going forward, we expect to benefit from our next-generation Ellipse™ and Assura™ devices featuring DynamicTx™ Over-Current Detection Algorithm, which received CE mark approval in May 2013.

Pacemaker systems net sales decreased 5% and 9% during the third quarter and first nine months of 2013, respectively, compared to the same prior year periods primarily driven by overall market declines in average selling prices and unfavorable foreign currency translation. In the United States, our third quarter 2013 pacemaker systems net sales of $107 million decreased

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6% compared to the same prior year period. During the first nine months of 2013, U.S. pacemaker systems net sales of $324 million decreased 7% compared to the same period in 2012. Internationally, our 2013 net sales during the third quarter of $157 million and first nine months net sales of $455 million decreased 5% and 10%, respectively, compared to the same prior year periods. Foreign currency translation had a $6 million (2 percentage points) and $14 million (2 percentage points) unfavorable impact on international pacemaker systems net sales during the third quarter and first nine months of 2013 compared to the same prior year periods. International pacemaker sales began to benefit from our July 2013 launch of our Accent MRI™ Pacemaker and the Tendril MRI™ lead, which received regulatory approval from the Japanese Ministry of Health, Labor and Welfare in June 2013, partially offsetting the impact of average selling price declines and unfavorable foreign currency translation. We also benefited from sales of our Allure Quadra™ CRT-P, which received CE Mark approval in April 2013.

Neuromodulation products net sales increased 3% during the third quarter of 2013 and were flat during the first nine months of 2013 compared to the same prior year periods. The increase in net sales during the third quarter of 2013 compared to the same prior year period was driven by our investment in Spinal Modulation and the net sales benefit from their Axium™ Neurostimulator System, for which we are the exclusive distributor. The Axium™ Neurostimulator System provides a more targeted therapy for patients suffering with chronic pain and is available for sale in Europe and Australia. Additionally, we continued to benefit from our deep brain stimulation business for patients suffering from Parkinson's disease, essential tremor or dystonia, as we continue to penetrate the international market. Foreign currency translation did not have a significant impact during the third quarter and the first nine months of 2013 compared to the same prior year periods.

Cardiovascular and Ablation Technologies Division

	Three Months Ended						Nine Months Ended
(in millions)	September 28, 2013		September 29, 2012		% Change		September 28, 2013		September 29, 2012		% Change
Atrial fibrillation (AF) products	$	235	$	220	6.8	%	$	705	$	659	7.0	%
Vascular products	168		169		(0.6	)%	521		530		(1.7	)%
Structural heart products	149		145		2.8	%	464		460		0.9	%
	$	552	$	534	3.4	%	$	1,690	$	1,649	2.5	%

CATD net sales increased 3% during both the third quarter and first nine months of 2013, respectively, compared to the same prior year periods. Foreign currency translation unfavorably impacted CATD net sales by $17 million (3 percentage points) and $47 million (3 percentage points) during the third quarter and first nine months of 2013 compared to the same periods in 2012.

AF products net sales increased 7% during both the third quarter and first nine months of 2013, respectively, compared to the same prior year periods primarily due to the continued increase in EP catheter ablation procedures, the continued market penetration of our EnSite® Velocity System and related connectivity tools (EnSite Connect™, EnSite Courier™ and EnSite Derexi™ modules) and our intracardiac echocardiography imaging product offerings, which provide physicians a clear picture of the inner workings of the heart through an ultrasound probe. Foreign currency translation had a $7 million (3 percentage points) and $19 million (3 percentage points) unfavorable impact on AF products net sales during the third quarter and first nine months of 2013 compared to the same periods in 2012. Going forward we expect to benefit from our recent European launch of our TactiCath® irrigated ablation catheter, acquired through our Endosense acquisition in August 2013. The TactiCath® irrigated ablation catheter provides physicians a real-time, objective measure of the force to apply to the heart wall during a catheter ablation procedure.

Vascular products net sales decreased 1% and 2% during the third quarter and first nine months of 2013, respectively, compared to the same prior year periods primarily due to unfavorable foreign currency translation of $7 million (4 percentage points) and $18 million (3 percentage points) during the third quarter and first nine months of 2013, respectively, and net sales declines related to our third party products we distribute in Japan compared to the same periods last year. As a result of the economic pressures and average selling price declines in the Japan market, many third party manufacturers have migrated to a direct selling model with end customers, which resulted in a revenue decrease during the third quarter and first nine months of 2013 compared to the same prior year periods. These decreases were partially offset by increased revenues in our Fractional Flow Reserve FFR technology products and OCT imaging products during the third quarter and first nine months of 2013 compared to the same prior year periods. Going forward we expect to benefit from our recent European launch of our next-generation EnligHTN™ Renal Denervation System for treating patients with drug-resistant, uncontrolled hypertension, which received CE Mark approval in late August 2013.

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Structural heart products net sales increased 3% and 1% during the third quarter and first nine months of 2013, respectively, compared to the same periods in 2012. The increases were primarily driven by sales of our Trifecta™ pericardial stented tissue valve and our AMPLATZER™ occluder products, partially offset by a net sales decrease in our mechanical valves due to market preference for tissue valves. Additionally, foreign currency translation had a $3 million (2 percentage points) and $10 million (2 percentage points) unfavorable impact on structural heart products net sales during the third quarter and first nine months of 2013, respectively, compared to the same periods in 2012.

RESULTS OF OPERATIONS

Net sales

	Three Months Ended						Nine Months Ended
(in millions)	September 28, 2013		September 29, 2012		% Change		September 28, 2013		September 29, 2012		% Change
Net sales	$	1,338	$	1,326	0.9	%	$	4,079	$	4,131	(1.3	)%

Overall, net sales increased 1% during the third quarter of 2013 and decreased 1% during the first nine months of 2013 compared to the same prior year periods. Foreign currency translation had an unfavorable impact of $26 million (2 percentage points) and $74 million (2 percentage points) on the third quarter and first nine months of 2013 net sales, respectively, compared to the same periods in 2012 due primarily to the strengthening of the U.S. Dollar against the Japanese Yen. This amount is not indicative of the net earnings impact of foreign currency translation for the third quarter and first nine months of 2013 due to partially offsetting foreign currency translation impacts on cost of sales and operating expenses.

Net sales by geographic location of the customer were as follows (in millions):

	Three Months Ended				Nine Months Ended
Net Sales	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
United States	$	646	$	640	$	1,955	$	1,969
International
Europe	333		311		1,066		1,059
Japan	142		172		418		500
Asia Pacific	125		118		362		339
Other	92		85		278		264
	692		686		2,124		2,162
	$	1,338	$	1,326	$	4,079	$	4,131

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Gross profit
	Three Months Ended						Nine Months Ended
(in millions)	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012
Gross profit	$	953		$	971		$	2,935		$	3,012
Percentage of net sales	71.2		%	73.2		%	72.0		%	72.9		%

Gross profit for the third quarter of 2013 totaled $953 million, or 71.2% of net sales, compared to $971 million, or 73.2% of net sales for the third quarter of 2012. Gross profit for the first nine months of 2013 totaled $2,935 million, or 72.0% of net sales, compared to $3,012 million, or 72.9% of net sales for the first nine months of 2012. Our gross profit percentage (or gross margin) for the third quarter and first nine months of 2013 were negatively impacted by special charges of $2 million and $21 million (or 0.2 percentage points and 0.5 percentage points, respectively) related to our previously announced 2012 business realignment plan. Our gross margin for the third quarter and first nine months of 2012 was negatively impacted by special charges of $7 million (0.6 percentage points) and $46 million (1.1 percentage points), respectively, associated with our previously announced 2012 business realignment plan and ongoing charges related to our 2011 restructuring plan. Refer to “Special Charges” within the Results of Operations section for a more detailed discussion of these charges. Compared to the prior year periods, our 2013 gross margin includes excise taxes assessed on the sale of our products, negatively impacting gross margin by 1.3 percentage points and 0.7 percentage points for the third quarter and first nine months of 2013, respectively. For the full year 2013, we expect excise taxes, including the U.S. medical device excise tax and Puerto Rico excise tax, to negatively impact our 2013 gross margin by 0.8 to 1.0 percentage points compared to fiscal year 2012.

Selling, general and administrative (SG&A) expense
	Three Months Ended						Nine Months Ended
(in millions)	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012
Selling, general and administrative	$	452		$	456		$	1,409		$	1,440
Percentage of net sales	33.8		%	34.4		%	34.5		%	34.9		%

SG&A expense for the third quarter of 2013 totaled $452 million, or 33.8% of net sales, compared to $456 million, or 34.4% of net sales for the third quarter of 2012. SG&A expense for the first nine months of 2013 totaled $1,409 million, or 34.5% of net sales, compared to $1,440 million, or 34.9% of net sales for the first nine months of 2012. The decrease in our SG&A expense during both the third quarter and first nine months of 2013 was primarily driven by cost savings initiatives, including the realignment plan initiated in August 2012.

Research and development (R&D) expense
	Three Months Ended						Nine Months Ended
(in millions)	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012
Research and development expense	$	172		$	170		$	505		$	518
Percentage of net sales	12.9		%	12.8		%	12.4		%	12.5		%

R&D expense in the third quarter of 2013 totaled $172 million, or 12.9% of net sales, compared to $170 million, or 12.8% of net sales for the third quarter of 2012. R&D expense in the first nine months of 2013 totaled $505 million, or 12.4% of net sales, compared to $518 million, or 12.5% of net sales for the first nine months of 2012. We remain committed to funding future long-term growth opportunities. We will continue to balance delivering short-term results with our investments in long-term growth drivers.

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Special charges
	Three Months Ended				Nine Months Ended
(in millions)	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
Cost of sales special charges	$	2	$	7	$	21	$	46
Special charges	16		110		118		179
	$	18	$	117	$	139	$	225

We recognize certain transactions and events as special charges in our consolidated financial statements. These charges (such as restructuring charges, impairment charges and certain settlement or litigation charges) result from facts and circumstances that vary in frequency and impact on our results of operations. In order to enhance segment comparability and reflect management’s focus on the ongoing operations, special charges are not reflected in the individual reportable segments operating results.

During the third quarter and first nine months of 2013, we incurred special charges totaling $18 million and $139 million, respectively. Of the special charges incurred during the third quarter and first nine months of 2013, $13 million and $86 million, respectively, related to additional 2012 business realignment plan costs initiated in August of 2012 to realign our product divisions and centralize certain support functions, including information technology, human resources, legal, business development and certain marketing functions. The organizational changes have been part of a comprehensive plan to accelerate growth, reduce costs, leverage economies of scale and increase investment in product development. Of the total $13 million and $86 million incurred, $2 million and $21 million, respectively, was recorded to cost of sales, which primarily related to inventory write-offs associated with discontinued CATD product lines.

Additionally, we incurred $6 million and $19 million of special charges during the third quarter and first nine months of 2013, respectively, associated with our 2011 restructuring plan, which primarily related to idle facility costs. The formalized plan for these actions was announced in the second quarter of 2011 and included phasing out our cardiac rhythm management manufacturing and R&D operations in Sweden, reducing our workforce and rationalizing product lines.

During the second quarter of 2013, we also agreed to settle a dispute on licensed technology associated with certain CATD product lines. In connection with the settlement, which resolved all disputed claims, we recognized a $22 million settlement expense. We also recognized $13 million of impairments associated with customer relationship intangible assets recognized in connection with legacy acquisitions involved in the distribution of our products.

During the third quarter and first nine months of 2012, we incurred special charges totaling $117 million and $225 million, respectively. Of the special charges incurred during the third quarter and first nine months of 2012, $23 million and $95 million, respectively, related to the 2011 restructuring plan discussed previously. Of the total $23 million and $95 million incurred, $4 million and $41 million, respectively, was recorded to cost of sales and primarily related to IESD inventory obsolescence charges (as product lines were rationalized), employee termination costs and idle facility costs. We also incurred $74 million of special charges during both the third quarter and first nine months of 2012 related to our 2012 business realignment plan initiated in August 2012, as discussed previously. Of the $74 million in special charges, $52 million was recognized for severance costs and other termination benefits and $22 million was recognized for accelerated depreciation charges and other costs, of which $3 million of these charges were classified to cost of sales. The remaining $20 million of special charges incurred during both the third quarter and first nine months of 2012 primarily related to an impairment charge for certain developed technology intangible assets in our neuromodulation business after updating our expectations for the future undiscounted cash flows, which did not exceed the carrying value of the related assets. The remaining special charges incurred during the first nine months of 2012 were primarily associated with an agreement to settle a dispute on licensed technology for our Angio-Seal™ vascular closure devices. In connection with this settlement, which resolved all disputed claims and included a fully-paid perpetual license, we recognized a $28 million settlement expense. We also recognized a $12 million licensed technology intangible asset to be amortized over the technology's remaining patent life.

Refer to Note 7 of the Condensed Consolidated Financial Statements for additional detail associated with these special charges.

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Other expense, net
	Three Months Ended						Nine Months Ended
(in millions)	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012
Interest income	$	(1	)	$	(1	)	$	(4	)	$	(3	)
Interest expense	21			18			60			55
Other	(3		)	2			192			15
Other expense, net	$	17		$	19		$	248		$	67

In the second quarter of 2013, we redeemed the full $700 million principal amount of the 2014 Senior Notes and the full $500 million principal amount of the 2019 Senior Notes. In connection with the redemption of these notes prior to their scheduled maturities, we recognized a $161 million charge to other expense associated with make-whole redemption payments and the write-off of unamortized debt issuance costs. As a result, we experienced an unfavorable change in other expense, net during the first nine months of 2013 compared to the same prior year period. Additionally, we recognized a $29 million charge to adjust the carrying value of our pre-existing CardioMEMS equity investment and fixed price purchase option to fair value, resulting in an unfavorable change to other expense, net during the first nine months of 2013 compared to the first nine months of 2012.

Income taxes

	Three Months Ended				Nine Months Ended
(as a percent of pre-tax income)	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
Effective tax rate	14.9	%	18.5	%	11.3	%	21.8	%

Our effective income tax rate was 14.9% and 18.5% for the third quarter of 2013 and 2012, respectively, and 11.3% and 21.8% for the first nine months of 2013 and 2012, respectively. Special charges recognized during the third quarter of 2013 and a $15 million tax benefit related to the resolution of certain income tax audits favorably impacted our effective tax rate by 6.2 percentage points. Additionally, debt redemption charges and special charges recognized during the first nine months of 2013 favorably impacted our effective tax rate by 7.7 percentage points. Additionally, our effective tax rate for the first nine months of 2013 includes the full year 2012 benefit of the federal research and development tax credit (R&D tax credit), which was extended for 2012 in January 2013. As a result, our effective tax rate for the first nine months of 2013 was favorably impacted by 2.1 percentage points. Our effective tax rate for the third quarter and first nine months of 2012 does not include the impact of the R&D tax credit, as the R&D tax credit was not extended until January 2013, as discussed. As a result, our effective tax rate for the third quarter and first nine months of 2012 was negatively impacted by 1.5 percentage points and 1.6 percentage points, respectively.

LIQUIDITY

We believe that our existing cash balances, future cash generated from operations and available borrowing capacity under our $1.5 billion long-term committed credit facility (Credit Facility) and related commercial paper program will be sufficient to fund our operating needs, working capital requirements, R&D opportunities, capital expenditures, debt service requirements and shareholder dividends over the next 12 months and in the foreseeable future thereafter.

We believe that our earnings, cash flows and balance sheet position will permit us to obtain additional debt financing or equity capital should suitable investment and growth opportunities arise. Our credit ratings are investment grade. We monitor capital markets regularly and may raise additional capital when market conditions or interest rate environments are favorable.

At September 28, 2013, substantially all of our cash and cash equivalents was held by our non-U.S. subsidiaries. A portion of these foreign cash balances are associated with earnings that are permanently reinvested and which we plan to use to support our continued growth plans outside the United States through funding of operating expenses, capital expenditures and other investment and growth opportunities. The majority of these funds are only available for use by our U.S. operations if they are repatriated into the United States. The funds repatriated would be subject to additional U.S. taxes upon repatriation; however, it is not practical to estimate the amount of additional U.S. tax liabilities we would incur. We currently have no plans to repatriate funds held by our non-U.S. subsidiaries.

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We use two primary measures that focus on accounts receivable and inventory – days sales outstanding (DSO) and days inventory on hand (DIOH). We use DSO as a measure that places emphasis on how quickly we collect our accounts receivable balances from customers. We use DIOH, which can also be expressed as a measure of the estimated number of days of cost of sales on hand, as a measure that places emphasis on how efficiently we are managing our inventory levels. These measures may not be computed the same as similarly titled measures used by other companies. Our DSO (ending net accounts receivable divided by average daily sales for the most recently completed quarter) increased from 89 days at December 29, 2012 to 95 days at September 28, 2013. Our DIOH (ending net inventory divided by average daily cost of sales for the most recently completed six months) increased from 143 days at December 29, 2012 to 163 days at September 28, 2013. Special charges recognized in cost of sales in the six months ended September 28, 2013 reduced our September 28, 2013 DIOH by 1 day. Special charges recognized in cost of sales in the last half of 2012 reduced our December 29, 2012 DIOH by 11 days.

A summary of our cash flows from operating, investing and financing activities is provided in the following table (in millions):

	Nine Months Ended
	September 28, 2013			September 29, 2012
Net cash provided by (used in):
Operating activities	$	671		$	939
Investing activities	(347		)	(197		)
Financing activities	(270		)	(677		)
Effect of currency exchange rate changes on cash and cash equivalents	(3		)	—
Net increase in cash and cash equivalents	$	51		$	65

Operating Cash Flows

Cash provided by operating activities was $671 million during the first nine months of 2013, compared to $939 million during the first nine months of 2012. Operating cash flows can fluctuate significantly from period to period due to payment timing differences of working capital accounts such as accounts receivable, accounts payable, accrued liabilities and income taxes payable. During the first nine months of 2013, we made a $106 million payment to the IRS to suspend interest charges on prior period tax positions related to our 2002 through 2009 tax years.

Investing Cash Flows

Cash used in investing activities was $347 million during the first nine months of 2013 compared to $197 million during the same period last year. Our purchases of property, plant and equipment totaled $171 million and $188 million during the first nine months of 2013 and 2012, respectively, primarily reflecting our continued investment in our product growth platforms currently in place. Additionally, during the first nine months of 2013, we acquired Endosense for $171 million in net cash consideration.

Financing Cash Flows

Cash used in financing activities was $270 million during the first nine months of 2013 compared to $677 million during the first nine months of 2012. Our financing cash flows can fluctuate significantly depending upon our liquidity needs, stock repurchases and the amount of stock option exercises. During the first nine months of 2013, we paid $609 million for repurchases of our common stock, which was financed with cash generated from operations. Additionally, we issued $900 million principal amount 2023 Senior Notes and $700 million principal amount 2043 Senior Notes. We used the majority of the proceeds to redeem both our $700 million principal amount 2014 Senior Notes and our $500 million principal amount 2019 Senior Notes. We intend to use the remaining proceeds from the issuance of our 2023 Senior Notes and 2043 Senior Notes for general corporate purposes. We also entered into a 2-year, $500 million unsecured term loan, which can be used for general corporate purposes or to refinance certain of our other outstanding borrowings. We also paid $210 million of cash dividends to shareholders and received $275 million of proceeds from the exercise of stock options and stock issued during the first nine months of 2013.

During the first nine months of 2012, we paid $300 million for repurchases of our common stock, which was financed with cash generated from operations and made $272 million of net commercial paper borrowing payments. We also paid $212 million of cash dividends to shareholders during the first nine months of 2012. Proceeds from the exercise of stock options and stock issued provided cash inflows of $107 million during the first nine months of 2012.

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DEBT AND CREDIT FACILITIES

In May 2013, we entered into a long-term $1.5 billion committed Credit Facility used to support our commercial paper program and for general corporate purposes. The Credit Facility expires in May 2018. Borrowings under this facility bear interest initially at LIBOR plus 0.8%, subject to adjustment in the event of a change in our credit ratings. Commitment fees under this Credit Facility are not material. The Credit Facility replaces our previous $1.5 billion credit facility that was scheduled to expire in February 2015. There were no outstanding borrowings under either facility as of September 28, 2013 or December 29, 2012.

Our commercial paper program provides for the issuance of unsecured commercial paper with maturities up to 270 days. At September 28, 2013 and December 29, 2012, we had outstanding commercial paper balances of $585 million and $593 million, respectively. Any future commercial paper borrowings would bear interest at the applicable then-current market rates. Our predominant historical practice has been to issue commercial paper (up to the amount backed by available borrowings capacity under the Credit Facility), as our commercial paper has historically been issued at lower interest rates.

In March 2010, we issued $450 million principal amount of 3-year, 2.20% senior notes that matured on September 15, 2013, which we paid in full utilizing our commercial paper borrowings and cash generated from operations.

In December 2010, we issued our $500 million principal amount 5-year, 2.50% unsecured senior notes (2016 Senior Notes). The majority of the net proceeds from the issuance of the 2016 Senior Notes was used for general corporate purposes including the repurchase of our common stock. Interest payments are required on a semi-annual basis. We may redeem the 2016 Senior Notes at any time at the applicable redemption price. The 2016 Senior Notes are senior unsecured obligations and rank equally with all of our existing and future senior unsecured indebtedness.

Concurrent with the issuance of the 2016 Senior Notes, we entered into a 5-year, $500 million notional amount interest rate swap designated as a fair value hedge of the changes in fair value of our fixed-rate 2016 Senior Notes. In June 2012, we terminated the interest rate swap and received a cash payment of $24 million. The gain from terminating the interest rate swap agreement is reflected as an increase to the carrying value of the debt and is being amortized as a reduction of interest expense over the remaining life of the 2016 Senior Notes.

In April 2013, we issued $900 million principal amount of 2023 Senior Notes and $700 million principal amount of 2043 Senior Notes. We used a portion of the proceeds to redeem our $700 million principal amount of 5-year, 3.75% unsecured senior notes due in 2014 and our $500 million principal amount of 10-year, 4.875% unsecured senior notes due in 2019. We intend to use the remaining proceeds for general corporate purposes. Interest payments are required on a semi-annual basis. We may redeem the 2023 Senior Notes or the 2043 Senior Notes at any time at the applicable redemption prices. Both the 2023 Senior Notes and 2043 Senior Notes are senior unsecured obligations and rank equally with all of our existing and future senior unsecured indebtedness.

In June 2013, we entered into a 2-year, $500 million unsecured term loan, the proceeds of which were used for general corporate purposes, including the repayment of outstanding commercial paper borrowings. These borrowings bear interest at LIBOR plus 0.5%, subject to adjustment in the event of a change in our credit ratings. We may make principal payments on the outstanding borrowings any time after June 26, 2014.

In April 2010, we issued 10-year, 2.04% unsecured senior notes in Japan (2.04% Yen Notes) totaling 12.8 billion Japanese Yen (the equivalent of $130 million at September 28, 2013) and 7-year, 1.58% unsecured senior notes in Japan (1.58% Yen Notes) totaling 8.1 billion Japanese Yen (the equivalent of $83 million at September 28, 2013). Interest payments on the 2.04% Yen Notes and 1.58% Yen Notes are required on a semi-annual basis and the principal amounts recorded on the balance sheet fluctuate based on the effects of foreign currency translation.

In March 2011, we borrowed 6.5 billion Japanese Yen under uncommitted credit facilities with two commercial Japanese banks that provide for borrowings up to a maximum of 11.25 billion Japanese Yen. The outstanding 6.5 billion Japanese Yen balance was the equivalent of $66 million at September 28, 2013. The principal amount reflected on the balance sheet fluctuates based on the effects of foreign currency translation. Half of the borrowings bear interest at the Yen LIBOR plus 0.25% and mature in March 2014, and the other half of the borrowings bear interest at the Yen LIBOR plus 0.275% and mature in June 2014. The maturity dates of each credit facility automatically extend for a one-year period, unless we elect to terminate the credit facility.

Our Credit Facility and Yen Notes contain certain operating and financial covenants. Specifically, the Credit Facility requires that we have a leverage ratio (defined as the ratio of total debt to EBITDA (net earnings before interest, income taxes, depreciation and amortization)) not exceeding 3.0 to 1.0. The Yen Notes require that we have a ratio of total debt to total capitalization not exceeding 60% and a ratio of consolidated EBIT (net earnings before interest and income taxes) to consolidated interest expense of at least 3.5 to 1.0. Under the Credit Facility, our senior notes and Yen Notes we also have certain limitations on how we conduct our business, including limitations on additional liens or indebtedness and limitations on

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certain acquisitions, mergers, investments and dispositions of assets. We were in compliance with all of our debt covenants as of September 28, 2013.

DIVIDENDS AND SHARE REPURCHASES

During the three and nine months ended September 28, 2013, the Company declared a quarterly cash dividend of $0.25 and $0.75 per common share, respectively, for a total of $72 million and $214 million, respectively. During the three and nine months ended September 29, 2012, the Company declared a quarterly cash dividend of $0.23 and $0.69 per common share, respectively, for a total of $73 million and $217 million, respectively. We expect to continue to pay quarterly cash dividends in the foreseeable future, subject to declaration by the Board of Directors.

Dividend Authorization Date	Shareholders’ Record Date	Dividend Payable Date	Cash Dividends Declared Per Share
February 23, 2013	March 29, 2013	April 30, 2013	$	0.25
May 1, 2013	June 28, 2013	July 31, 2013	0.25
July 30, 2013	September 30, 2013	October 31, 2013	0.25
Dividends declared per share during the nine months ended September 28, 2013			$	0.75

On November 29, 2012, our Board of Directors authorized a share repurchase program of up to $1.0 billion of our outstanding common stock. We began repurchasing shares on December 5, 2012 and completed the repurchases under the program on February 5, 2013. From December 30, 2012 to February 5, 2013, we repurchased 13.9 million shares for $542 million at an average repurchase price of $38.83 per share.

On December 12, 2011, our Board of Directors authorized a share repurchase program of up to $300 million of our outstanding common stock. We began repurchasing shares on January 27, 2012 and completed the repurchases under the program on February 8, 2012, repurchasing 7.1 million shares for $300 million at an average repurchase price of $42.14 per share.

COMMITMENTS AND CONTINGENCIES

A description of our contractual obligations and other commitments is contained in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations– Off-Balance Sheet Arrangements and Contractual Obligations, included in our 2012 Annual Report on Form 10-K. We have no off-balance sheet financing arrangements other than that previously disclosed in our 2012 Annual Report on Form 10-K. Our significant legal proceedings are discussed in Note 6 to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q.

CAUTIONARY STATEMENTS

In this Quarterly Report on Form 10-Q and in other written or oral statements made from time to time, we have included and may include statements that constitute “forward-looking statements” with respect to the financial condition, results of operations, plans, objectives, new products, future performance and business of St. Jude Medical, Inc. and its subsidiaries. Statements preceded by, followed by or that include words such as “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “forecast,” “project,” “believe” or similar expressions are intended to identify some of the forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are included, along with this statement, for purposes of complying with the safe harbor provisions of that Act. These forward-looking statements involve risks and uncertainties. By identifying these statements for you in this manner, we are alerting you to the possibility that actual results may differ, possibly materially, from the results indicated by these forward-looking statements. We undertake no obligation to update any forward-looking statements. Actual results may differ materially from those contemplated by the forward-looking statements due to, among other factors, the risks and uncertainties discussed in the sections entitled Off-Balance Sheet Arrangements and Contractual Obligations and Market Risk in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations of our 2012 Annual Report on Form 10-K and in the section entitled Risk Factors in Part II, Item 1A of this Quarterly Report on Form 10-Q as well as the various factors described below. Since it is not possible to foresee all such factors, you should not consider these factors to be a complete list of all risks or uncertainties. We believe the most significant factors that could affect our future operations and results are set forth as follows.

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1	.	Any legislative or administrative reform to the U.S. Medicare or Medicaid systems or international reimbursement systems that significantly reduces reimbursement for procedures using our medical devices or denies coverage for such procedures, as well as adverse decisions relating to our products by administrators of such systems on coverage or reimbursement issues.
2	.	Assertion, acquisition or grant of key patents by or to others that have the effect of excluding us from market segments or requiring us to pay royalties.
3	.	Economic factors, including inflation, contraction in capital markets, changes in interest rates and changes in foreign currency exchange rates.
4	.	Product introductions by competitors that have advanced technology, better features or lower pricing.
5	.	The loss of, or price increases by, suppliers of key components, some of which are sole-sourced.
6	.	A reduction in the number of procedures using our devices caused by cost-containment pressures, publication of adverse study results, initiation of investigations of our customers related to our devices or the development of or preferences for alternative therapies.
7	.	Safety, performance or efficacy concerns about our products, many of which are expected to be implanted for many years, some of which may lead to recalls and/or advisories with the attendant expenses and declining sales.
8	.	Declining industry-wide sales caused by product quality issues or recalls or advisories by us or our competitors that result in loss of physician and/or patient confidence in the safety, performance or efficacy of sophisticated medical devices in general and/or the types of medical devices recalled in particular.
9	.	Changes in laws, regulations or administrative practices affecting government regulation of our products, such as FDA regulations, including those that decrease the probability or increase the time and/or expense of obtaining approval for products or impose additional burdens on the manufacture and sale of medical devices.
10	.	Regulatory actions arising from concern over Bovine Spongiform Encephalopathy, sometimes referred to as “mad cow disease,” that have the effect of limiting our ability to market products using bovine collagen, such as Angio-Seal™, or products using bovine pericardial material, such as our Biocor®, Epic™ and Trifecta™ tissue heart valves, or that impose added costs on the procurement of bovine collagen or bovine pericardial material.
11	.	Our ability to fund future product liability losses related to claims made subsequent to becoming self-insured.
12	.	Severe weather or other natural disasters that can adversely impact customers purchasing patterns and/or patient implant procedures or cause damage to the facilities of our critical suppliers or one or more of our facilities, such as an earthquake affecting our facilities in California or a hurricane affecting our facilities in Puerto Rico.
13	.	Healthcare industry changes leading to demands for price concessions and/or limitations on, or the elimination of, our ability to sell in significant market segments.
14	.	Adverse developments in investigations and governmental proceedings.
15	.	Adverse developments in litigation, including product liability litigation, patent or other intellectual property litigation, qui tam litigation or shareholder litigation.
16	.	Inability to successfully integrate the businesses that we have acquired in recent years and that we plan to acquire.
17	.	Failure to successfully complete, or unfavorable data from, clinical trials for our products or new indications for our products and/or failure to successfully develop markets for such new indications.
18	.	Changes in accounting rules or tax laws that adversely affect our results of operations, financial position or cash flows.
19	.	The disruptions in the financial markets and the economic downturn that adversely impact the availability and cost of credit and customer purchasing and payment patterns, including the collectability of customer accounts receivable.
20	.	Conditions imposed in resolving, or any inability to timely resolve, any regulatory issues raised by the FDA, including Form 483 observations or warning letters, as well as risks generally associated with our regulatory compliance and quality systems.
21	.	Governmental legislation, including the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act, and/or regulation that significantly impacts the healthcare system in the United States or in international markets and that results in lower reimbursement for procedures using our products, reduces medical procedure volumes or otherwise adversely affects our business and results of operations, including the U.S. medical device excise tax.
22	.	Our inability to realize the expected benefits from our restructuring initiatives and continuous improvement efforts and the negative unintended consequences such activity could have.
23	.	Our inability to maintain, protect and enhance our existing information technology systems and to develop new systems.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes since December 29, 2012 in our market risk. For further information on market risk, refer to Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk in our 2012 Annual Report on Form 10-K.

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Item 4. CONTROLS AND PROCEDURES

As of September 28, 2013, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the Exchange Act)). Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of September 28, 2013.

There were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the third quarter of 2013 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II -OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

We are the subject of various pending or threatened legal actions and proceedings, including those that arise in the ordinary course of our business. Such matters are subject to many uncertainties and to outcomes that are not predictable with assurance and that may not be known for extended periods of time. We record a liability in our consolidated financial statements for costs related to claims, including future legal costs, settlements and judgments, where we have assessed that a loss is probable and an amount can be reasonably estimated. Our significant legal proceedings are discussed in Note 6 to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q and are incorporated herein by reference. While it is not possible to predict the outcome for most of the legal proceedings discussed in Note 6, the costs associated with such proceedings could have a material adverse effect on our consolidated earnings, financial position or cash flows of a future period.

Item 1A.     RISK FACTORS

Our business faces many risks. Any of the risks discussed below, or elsewhere in this Form 10-Q or our other SEC filings, could have a material impact on our business, financial condition or results of operations.

We face intense competition and may not be able to keep pace with the rapid technological changes in the medical devices industry.

The medical device market is intensely competitive and is characterized by extensive research and development and rapid technological change. Our customers consider many factors when choosing suppliers, including product reliability, clinical outcomes, product availability, inventory consignment, price and product services provided by the manufacturer, and market share can shift as a result of technological innovation and other business factors. Major shifts in industry market share have occurred in connection with product problems, physician advisories and safety alerts, reflecting the importance of product quality in the medical device industry, and any quality problems with our processes, goods and services could harm our reputation for producing high-quality products and erode our competitive advantage, sales and market share. Our competitors range from small start-up companies to larger companies which have significantly greater resources and broader product offerings than us, and we anticipate that in the coming years, other large companies will enter certain markets in which we currently hold a strong position. In addition, we expect that competition will continue to intensify with the increased use of strategies such as consigned inventory, and we have seen increasing price competition as a result of managed care, consolidation among healthcare providers, increased competition and declining reimbursement rates. Product introductions or enhancements by competitors which have advanced technology, better features or lower pricing may make our products or proposed products obsolete or less competitive. As a result, we will be required to devote continued efforts and financial resources to bring our products under development to market, enhance our existing products and develop new products for the medical marketplace. If we fail to develop new products, enhance existing products or compete effectively, our business, financial condition and results of operations will be adversely affected.

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We are subject to stringent domestic and foreign medical device regulation and any adverse regulatory action may materially adversely affect our financial condition and business operations.

Our products, development activities and manufacturing processes are subject to extensive and rigorous regulation by numerous government agencies, including the FDA and comparable foreign agencies. To varying degrees, each of these agencies monitors and enforces our compliance with laws and regulations governing the development, testing, manufacturing, labeling, marketing and distribution of our medical devices. The process of obtaining marketing approval or clearance from the FDA and comparable foreign bodies for new products, or for enhancements or modifications to existing products, could:

— take a significant amount of time,

— require the expenditure of substantial resources,

— involve rigorous pre-clinical and clinical testing, as well as increased post-market surveillance,

— involve modifications, repairs or replacements of our products, and

— result in limitations on the indicated uses of our products.

We cannot be certain that we will receive required approval or clearance from the FDA and foreign regulatory agencies for new products or modifications to existing products on a timely basis. The failure to receive approval or clearance for significant new products or modifications to existing products on a timely basis could have a material adverse effect on our financial condition and results of operations.

Both before and after a product is commercially released, we have ongoing responsibilities under FDA regulations. For example, we are required to comply with the FDA's Quality System Regulation (QSR), which mandates that manufacturers of medical devices adhere to certain quality assurance requirements pertaining to, among other things, validation of manufacturing processes, controls for purchasing product components, and documentation practices. As another example, the Federal Medical Device Reporting regulation requires us to provide information to the FDA whenever there is evidence that reasonably suggests that a device may have caused or contributed to a death or serious injury or, that a malfunction occurred which would be likely to cause or contribute to a death or serious injury upon recurrence. Compliance with applicable regulatory requirements is subject to continual review and is monitored rigorously through periodic inspections by the FDA, which may result in observations on Form 483, and in some cases warning letters, that require corrective action. If the FDA were to conclude that we are not in compliance with applicable laws or regulations, or that any of our medical devices are ineffective or pose an unreasonable health risk, the FDA could ban such medical devices, detain or seize such medical devices, order a recall, repair, replacement, or refund of such devices, or require us to notify health professionals and others that the devices present unreasonable risks of substantial harm to the public health. The FDA has been increasing its scrutiny of the medical device industry and the government is expected to continue to scrutinize the industry closely with inspections, and possibly enforcement actions, by the FDA or other agencies. Additionally, the FDA may restrict manufacturing and impose other operating restrictions, enjoin and restrain certain violations of applicable law pertaining to medical devices, and assess civil or criminal penalties against our officers, employees, or us. The FDA may also recommend prosecution to the Department of Justice. Any adverse regulatory action, depending on its magnitude, may restrict us from effectively manufacturing, marketing and selling our products. In addition, negative publicity and product liability claims resulting from any adverse regulatory action could have a material adverse effect on our financial condition and results of operations.

In addition, the FDCA permits device manufacturers to promote products solely for the uses and indications set forth in the approved product labeling. A number of enforcement actions have been taken against manufacturers that promote products for “off-label” uses, including actions alleging that federal health care program reimbursement of products promoted for "off-label" uses are false and fraudulent claims to the government. The failure to comply with “off-label” promotion restrictions can result in significant financial penalties and a required corporate integrity agreement with the federal government imposing significant administrative obligations and costs, and potential evaluation from federal health care programs.

Foreign governmental regulations have become increasingly stringent and more common, and we may become subject to even more rigorous regulation by foreign governmental authorities in the future. Penalties for a company's noncompliance with foreign governmental regulation could be severe, including revocation or suspension of a company's business license and criminal sanctions. Any domestic or foreign governmental medical device law or regulation imposed in the future may have a material adverse effect on our financial condition and business operations.

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Our products are continually the subject of clinical trials conducted by us, our competitors or other third parties, the results of which may be unfavorable, or perceived as unfavorable by the market, and could have a material adverse effect on our business, financial condition and results of operations.

As a part of the regulatory process of obtaining marketing clearance for new products and new indications for existing products, we conduct and participate in numerous clinical trials with a variety of study designs, patient populations and trial endpoints. Unfavorable or inconsistent clinical data from existing or future clinical trials conducted by us, by our competitors or by third parties, or the market's or FDA's perception of this clinical data, may adversely impact our ability to obtain product approvals, the size of the markets in which we participate, our position in, and share of, the markets in which we participate and our business, financial condition and results of operations.

If we are unable to protect our intellectual property effectively, our financial condition and results of operations could be adversely affected.

Patents and other proprietary rights are essential to our business and our ability to compete effectively with other companies is dependent upon the proprietary nature of our technologies. We also rely upon trade secrets, know-how, continuing technological innovations and licensing opportunities to develop, maintain and strengthen our competitive position. We seek to protect these, in part, through confidentiality agreements with certain employees, consultants and other parties. We pursue a policy of generally obtaining patent protection in both the United States and in key foreign countries for patentable subject matter in our proprietary devices and also attempt to review third-party patents and patent applications to the extent publicly available to develop an effective patent strategy, avoid infringement of third-party patents, identify licensing opportunities and monitor the patent claims of others. We currently own numerous United States and foreign patents and have numerous patent applications pending. We are also a party to various license agreements pursuant to which patent rights have been obtained or granted in consideration for cash, cross-licensing rights or royalty payments. We cannot be certain that any pending or future patent applications will result in issued patents, that any current or future patents issued to or licensed by us will not be challenged, invalidated or circumvented or that the rights granted thereunder will provide a competitive advantage to us or prevent competitors from entering markets which we currently serve. Any required license may not be available to us on acceptable terms, if at all. In addition, some licenses may be non-exclusive, and therefore our competitors may have access to the same technologies as us. In addition, we may have to take legal action in the future to protect our trade secrets or know-how or to defend them against claimed infringement of the rights of others. Any legal action of that type could be costly and time consuming to us and we cannot be certain of the outcome. The invalidation of key patents or proprietary rights which we own or an unsuccessful outcome in lawsuits to protect our intellectual property could have a material adverse effect on our financial condition and results of operations.

Pending and future patent litigation could be costly and disruptive to us and may have an adverse effect on our financial condition and results of operations.

We operate in an industry that is susceptible to significant patent litigation and, in recent years, it has been common for companies in the medical device field to aggressively challenge the rights of other companies to prevent the marketing of new devices. Companies that obtain patents for products or processes that are necessary for or useful to the development of our products may bring legal actions against us claiming infringement and at any given time, we generally are involved as both a plaintiff and a defendant in a number of patent infringement and other intellectual property-related actions. Defending intellectual property litigation is expensive and complex and outcomes are difficult to predict. Any pending or future patent litigation may result in significant royalty or other payments or injunctions that can prevent the sale of products and may cause a significant diversion of the efforts of our technical and management personnel. While we intend to defend any such lawsuits vigorously, we cannot be certain that we will be successful. In the event that our right to market any of our products is successfully challenged or if we fail to obtain a required license or are unable to design around a patent, our financial condition and results of operations could be materially adversely affected.

Pending and future product liability claims and other litigation, including private securities litigation, shareholder derivative suits and contract litigation, may adversely affect our financial condition and results of operations.

The design, manufacture and marketing of the medical devices we produce entail an inherent risk of product liability claims. Our products are often used in intensive care settings with seriously ill patients, and many of the medical devices we manufacture and sell are designed to be implanted in the human body for long periods of time or indefinitely. There are a number of factors that could result in an unsafe condition or injury to, or death of, a patient with respect to these or other products which we manufacture or sell, including component failures, manufacturing flaws, design defects or inadequate disclosure of product-related risks or product-related information. Product liability claims may be brought by individuals or by groups seeking to represent a class.

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We are currently the subject of product liability litigation proceedings and other proceedings the outcome of which, particularly class action lawsuits, is difficult to assess or quantify. Plaintiffs in these types of lawsuits often seek recovery of very large or indeterminate monetary amounts, and the magnitude of the potential loss relating to such lawsuits may remain unknown for substantial periods of time. The final resolution of these types of litigation matters may take a number of years and we cannot reasonably estimate the time frame in which any potential settlements or judgments would be paid out or the amounts of any such settlements or judgments. In addition, the cost to defend any future product liability claims may be significant. Product liability claims, securities and commercial litigation and other current or future litigation, including any costs (the material components of which are settlements, judgments, legal fees and other related defense costs) not covered under our previously-issued product liability insurance policies and existing litigation reserves, could have a material adverse effect on our results of operations, financial position and cash flows.

Our self-insurance program may not be adequate to cover future losses.

Consistent with the predominant practice in our industry, we do not currently maintain or intend to maintain any insurance policies with respect to product liability in the future. We will continue to monitor the insurance marketplace to evaluate the value to us of obtaining insurance coverage in the future. We believe that our self-insurance program, which is based on historical loss trends, will be adequate to cover future losses, although we can provide no assurances that this will remain true, as historical trends may not be indicative of future losses. These losses could have a material adverse impact on our results of operations, financial condition and cash flows.

The loss of any of our sole-source suppliers or an increase in the price of inventory supplied to us could have an adverse effect on our business, financial condition and results of operations.

We purchase certain supplies used in our manufacturing processes from single sources due to quality considerations, costs or constraints resulting from regulatory requirements. Agreements with certain suppliers are terminable by either party upon short notice and we have been advised periodically by some suppliers that in an effort to reduce their potential product liability exposure, they may terminate sales of products to customers that manufacture implantable medical devices. While some of these suppliers have modified their positions and have indicated a willingness to continue to provide a product temporarily until an alternative vendor or product can be qualified (or even to reconsider the supply relationship), where a particular single-source supply relationship is terminated, we may not be able to establish additional or replacement suppliers for certain components or materials quickly. This is largely due to the FDA approval system, which mandates validation of materials prior to use in our products, and the complex nature of manufacturing processes employed by many suppliers. In addition, we may lose a sole-source supplier due to, among other things, the acquisition of such a supplier by a competitor (which may cause the supplier to stop selling its products to us) or the bankruptcy of such a supplier, which may cause the supplier to cease operations. A reduction or interruption by a sole-source supplier of the supply of materials or key components used in the manufacturing of our products or an increase in the price of those materials or components could adversely affect our business, financial condition and results of operations.

Cost containment pressures and domestic and foreign legislative or administrative reforms resulting in restrictive reimbursement practices of third-party payors or preferences for alternate therapies could decrease the demand for products purchased by our customers, the prices which they are willing to pay for those products and the number of procedures using our devices.

Our products are purchased principally by healthcare providers that typically bill various third-party payors, such as governmental programs (e.g., Medicare and Medicaid), private insurance plans and managed care plans, for the healthcare services provided to their patients. The ability of customers to obtain appropriate reimbursement for their services and the products they provide from government and third-party payors is critical to the success of medical technology companies. The availability of reimbursement affects which products customers purchase and the prices they are willing to pay. Reimbursement varies from country to country and can significantly impact the acceptance of new technology. After we develop a promising new product, we may find limited demand for the product unless reimbursement approval is obtained from private and governmental third-party payors.

Major third-party payors for healthcare provider services in the United States and abroad continue to work to contain healthcare costs. The introduction of cost containment incentives, combined with closer scrutiny of healthcare expenditures by both private health insurers and employers, has resulted in increased discounts and contractual adjustments to healthcare provider charges for services performed and in the shifting of services between inpatient and outpatient settings. Initiatives to limit the growth of healthcare costs, including price regulation, are also underway in several countries in which we do business. Implementation of healthcare reforms in the United States and in significant overseas markets such as Germany, Japan and

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other countries may limit the price or the level at which reimbursement is provided for our products and adversely affect both our pricing flexibility and the demand for our products. Healthcare providers may respond to such cost-containment pressures by substituting lower cost products or other therapies for our products.

In March 2010, the Patient Protection and Affordable Care Act and Health Care and Education Reconciliation Act were enacted into law in the United States, which included a number of provisions aimed at improving the quality and decreasing the costs of healthcare. The healthcare reform statutes have already resulted in significant reimbursement cuts in Medicare payments to hospitals and other healthcare providers. It is uncertain what consequences these provisions will have on patient access to new technologies and what impacts these provisions will have on Medicare reimbursement rates. Legislative or administrative reforms to the U.S. or international reimbursement systems that significantly reduce reimbursement for procedures using our medical devices or deny coverage for such procedures, or adverse decisions relating to our products by administrators of such systems in coverage or reimbursement issues, would have an adverse impact on the products, including clinical products, purchased by our customers and the prices our customers are willing to pay for them. This in turn would have an adverse effect on our financial condition and results of operations.

Our failure to comply with restrictions relating to reimbursement and regulation of healthcare goods and services may subject us to penalties and adversely affect our financial condition and results of operations.

Our devices are subject to regulation regarding quality and cost by the United States Department of Health and Human Services, including the Centers for Medicare and Medicaid Services (CMS), as well as comparable state and foreign agencies responsible for reimbursement and regulation of healthcare goods and services. Foreign governments also impose regulations in connection with their healthcare reimbursement programs and the delivery of healthcare goods and services. U.S. federal government healthcare laws apply when we submit a claim on behalf of a U.S. federal healthcare program beneficiary, or when a customer submits a claim for an item or service that is reimbursed under a U.S. federal government funded healthcare program, such as Medicare or Medicaid. The principal U.S. federal laws implicated include those that prohibit the filing of false or improper claims for federal payment, those that prohibit unlawful inducements for the referral of business reimbursable under federally-funded healthcare programs, known as the anti-kickback laws, and those that prohibit healthcare service providers seeking reimbursement for providing certain services to a patient who was referred by a physician that has certain types of direct or indirect financial relationships with the service provider, known as the Stark law.

The laws applicable to us are subject to evolving interpretations. If a governmental authority were to conclude that we are not in compliance with applicable laws and regulations, we and our officers and employees could be subject to severe criminal and civil penalties, including, for example, exclusion from participation as a supplier of product to beneficiaries covered by CMS. If we are excluded from participation based on such an interpretation, it could adversely affect our financial condition and results of operations.

Consolidation in the healthcare industry could lead to demands for price concessions or limit or eliminate our ability to sell to certain of our significant market segments.

The cost of healthcare has risen significantly over the past decade and numerous initiatives and reforms initiated by legislators, regulators and third-party payors to curb these costs have resulted in a consolidation trend in the medical device industry as well as among our customers, including healthcare providers. This in turn has resulted in greater pricing pressures and limitations on our ability to sell to important market segments, as group purchasing organizations, independent delivery networks and large single accounts, such as the Veterans Administration in the United States, continue to consolidate purchasing decisions for some of our healthcare provider customers. We expect that market demand, government regulation, third-party reimbursement policies and societal pressures will continue to change the worldwide healthcare industry, resulting in further business consolidations and alliances which may exert further downward pressure on the prices of our products and adversely impact our business, financial condition and results of operations.

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Failure to integrate acquired businesses into our operations successfully could adversely affect our business.

As part of our strategy to develop and identify new products and technologies, we have made several acquisitions in recent years and may make additional acquisitions in the future. Our integration of the operations of acquired businesses requires significant efforts, including the coordination of information technologies, research and development, sales and marketing, operations, manufacturing and finance. These efforts result in additional expenses and involve significant amounts of management's time that cannot then be dedicated to other projects. Our failure to manage successfully and coordinate the growth of the combined company could also have an adverse impact on our business. In addition, we cannot be certain that the businesses we acquire will become profitable or remain so. If our acquisitions are not successful, we may record unexpected impairment charges. Factors that will affect the success of our acquisitions include:

— the presence or absence of adequate internal controls and/or significant fraud in the financial systems of acquired companies;

— adverse developments arising out of investigations by governmental entities of the business practices of acquired companies;

— any decrease in customer loyalty and product orders caused by dissatisfaction with the combined companies' product lines and sales and marketing practices, including price increases;

— our ability to retain key employees; and

— the ability of the combined company to achieve synergies among its constituent companies, such as increasing sales of the combined company's products, achieving cost savings and effectively combining technologies to develop new products.

We may not realize the expected benefits from our restructuring initiatives and continuous improvement efforts, and they may result in unintended adverse impacts to our business.

In May 2011, we announced a restructuring plan that included phasing out CRM manufacturing and research and development operations in Sweden, reducing our workforce and rationalizing product lines. Additionally, in August 2012, we announced a business realignment plan to restructure our product divisions into two new operating divisions as well as restructure certain support functions by centralizing information technology, human resources, legal, business development and certain marketing functions. The actions initiated under these restructuring plans included workforce reductions, the transfer of certain product lines, the disposal of inventory and long-lived assets and other efforts to streamline our business.

While these changes are part of a comprehensive plan to, among other things, accelerate our growth, reduce costs and leverage economies of scale, we may not realize the expected benefits of our restructuring initiatives and continuous improvement efforts. In addition, these actions and potential future restructuring actions could yield unintended consequences, such as distraction of management and employees, business disruption, reduced employee morale and productivity and unexpected additional employee attrition, including the inability to attract or retain key personnel. These consequences could negatively affect our business, financial condition and results of operations. We cannot guarantee that these recent restructuring measures, or other restructuring actions and expense reduction measures we take in the future, will result in the expected cost savings and additional operating efficiency we hope to achieve.

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The success of many of our products depends upon strong relationships with physicians and other healthcare professionals.

If we fail to maintain our working relationships with physiciansand other healthcare professionals, many of our products may not be developed and marketed in line with the needs and expectations of the professionals who use and support our products. The research, development, marketing and sales of many of our new and improved products is dependent upon our maintaining working relationships with physiciansas well as other healthcare professionals, including hospital purchasing agents, who are becoming increasingly instrumental in making purchasing decisions for our products. We rely on these professionals to provide us with considerable knowledge and experience regarding our products and the marketing and sale of our products. Physicians also assist us as researchers, marketing consultants, product consultants, inventors and as public speakers. If we are unable to maintain our strong relationships with these professionals and continue to receive their advice and input, the development and marketing and sales of our products could suffer, which could have a material adverse effect on our financial condition and results of operations. Our relationships with physicians and other healthcare professionals and other providers that use our products are regulated under the U.S. federal anti-kickback statute and similar state and foreign laws. We operate consistent with the AdvaMed Code of Ethics on Interactions with Health Care Professionals which provides guidance on marketing and other practices in our relationships with healthcare professionals and/or product purchasers. We also adhere to many similar codes in countries outside the United States. In addition, we have in place and are continuously improving our internal business integrity and compliance program and policies. Failure to comply with the federal anti-kickback law or similar state or foreign law could result in criminal or civil penalties.

Instability in international markets or foreign currency fluctuations could adversely affect our results of operations.

Our products are currently marketed in more than 100 countries around the world, with our largest geographic markets outside of the United States being Europe, Japan and Asia Pacific. As a result, we face currency and other risks associated with our international sales. We are exposed to foreign currency exchange rate fluctuations due to transactions denominated primarily in Euros, Japanese Yen, Canadian Dollars, Australian Dollars, Brazilian Reals, British Pounds and Swedish Kronor, which may potentially reduce the U.S. Dollars we receive for sales denominated in any of these foreign currencies and/or increase the U.S. Dollars we report as expenses in these currencies, thereby affecting our reported consolidated revenues, profit margins and results of operations. Fluctuations between the currencies in which we do business have caused and will continue to cause foreign currency transaction gains and losses. We cannot predict the effects of currency exchange rate fluctuations upon our future operating results because of the number of currencies involved, the variability of currency exposures and the volatility of currency exchange rates.

In addition to foreign currency exchange rate fluctuations, there are a number of additional risks associated with our international operations, including those related to:

— the imposition of, or increase in, import or export duties, surtaxes, tariffs or customs duties;

— the imposition of import or export quotas or other trade restrictions;

— foreign tax laws and potential increased costs associated with overlapping tax structures;

— compliance with various U.S. and foreign laws, including the Foreign Corrupt Practices Act, the UK Anti-Bribery Act and import/export laws;

— longer accounts receivable cycles in certain foreign countries, whether due to cultural, economic or other factors;

— changes in medical reimbursement programs and regulatory requirements in international markets in which we operate; and

— economic and political instability in foreign countries, including concerns over excessive levels of sovereign debt and budget deficits in countries where we market our products that could result in an inability to pay or timely pay outstanding payables.

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Current economic conditions could adversely affect our results of operations.

During 2008 and 2009, the global economy experienced a severe downturn due to the sequential effects of the subprime lending crisis, the credit market crisis, collateral effects on the finance and banking industries, slower economic activity, decreased consumer confidence, adverse business conditions and liquidity concerns. More recently, credit and sovereign debt issues have destabilized certain European economies and thereby increased global macroeconomic uncertainties. On August 5, 2011, Standard & Poor's downgraded the U.S. credit rating to AA+ from its top rank of AAA. The current budget deficit concerns have increased the possibility of other credit rating agency downgrades which could have a material adverse effect on the financial markets and economic conditions in the United States and throughout the world. Uncertainty about current global economic conditions continue to pose a risk as these and other factors beyond our control may adversely affect our ability to borrow money in the credit markets and to obtain financing for acquisitions or other general corporate and commercial purposes.

Upheaval in the global economy and financial markets can also affect our business through its effects on general levels of economic activity, employment and customer behavior. The recovery from the recent recession in the United States has been below historic averages and the unemployment rate is expected to remain high for some time. Inflation has fallen over the last several years, but is now rising, and Central Banks around the world have begun tightening monetary conditions to attempt to control inflation. Proposed cuts in federal spending in the United States over the next decade could result in cuts to, and restructuring of, entitlement programs such as Medicare and aid to states for Medicaid programs. Our hospital customers rely heavily on Medicare and Medicaid programs to fund their operations. Any cuts to these programs could negatively affect the business of our customers and our business. As a result of recent or future poor economic conditions, our customers may experience financial difficulties or be unable to borrow money to fund their operations which may adversely impact their ability or decision to purchase our products or to pay for products they do purchase or have purchased on a timely basis, if at all. While the economic environment has begun to show signs of improvement, the strength and timing of any economic recovery remains uncertain, and we cannot predict to what extent the global economic slowdown may negatively impact our net sales, average selling prices, profit margins, procedural volumes and reimbursement rates from third party payors. In addition, the current economic conditions may adversely affect our suppliers, leading them to experience financial difficulties or to be unable to borrow money to fund their operations, which could cause disruptions in our ability to produce our products.

On February 21, 2012, an agreement was reached between the Greek government and the European Union and International Monetary Fund whereby creditors would swap existing Greek government bonds for new bonds with a significant reduction in face value, a longer term and lower interest rates. This agreement, among other macroeconomic and factors specific to the distributor, negatively impacted the solvency and liquidity of our Greek distributor, resulting in a $57 million accounts receivable allowance charge recognized in our consolidated financial statements for the fiscal year ended December 31, 2011, which was subsequently written off during 2012. Although no significant accounts receivable allowance charges were made in 2012, we continue to experience longer collection cycles for trade receivables in certain European member states, particularly in Southern Europe. We still expect to fully collect these receivables, however, there can be no assurances that additional negative economic disruptions and slowdowns in Europe may result in us not fully collecting these receivables, adversely affecting our cash flows, financial position and results of operations. Additional prolongation of the economic disruptions in Europe may negatively impact reimbursement rates and procedural volumes and adversely affect our business and results of operations.

The medical device industry and its customers are often the subject of governmental investigations into marketing and other business practices. Investigations against us could result in the commencement of civil and/or criminal proceedings, substantial fines, penalties and/or administrative remedies, divert the attention of our management and have an adverse effect on our financial condition and results of operations. Investigations of our customers may adversely affect the size of our markets.

We are subject to rigorous regulation by the FDA and numerous other federal, state and foreign governmental authorities. These authorities have been increasing their scrutiny of our industry. We have received subpoenas and other requests for information from state and federal governmental agencies, including, among others, the U.S. Department of Justice (DOJ) and the Office of Inspector General of the Department of Health and Human Services (OIG). These investigations have related primarily to financial arrangements with health care providers, regulatory compliance and product promotional practices.

In March 2010, we received a Civil Investigative Demand (CID) from the DOJ. The CID requests documents and sets forth interrogatories related to communications by and within our Company on various indications for tachycardia implantable cardioverter defibrillator systems (ICDs) and a National Coverage Decision issued by Centers for Medicare and Medicaid Services. Similar requests were made of our major competitors. In September 2012, the OIG issued a subpoena requiring us to

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produce certain documents related to payments made by our Company to healthcare professionals practicing in California, Florida, and Arizona, as well as policies and procedures related to payments made by our Company to non-employee healthcare professionals.

We are fully cooperating with these investigations and are responding to these requests. However, we cannot predict when these investigations will be resolved, the outcome of these investigations or their impact on the Company. An adverse outcome in one or more of these investigations could include the commencement of civil and/or criminal proceedings, substantial fines, penalties and/or administrative remedies, including exclusion from government reimbursement programs. In addition, resolution of any of these matters could involve the imposition of additional and costly compliance obligations. Finally, if these investigations continue over a long period of time, they could divert the attention of management from the day-to-day operations of our business and impose significant administrative burdens on us. These potential consequences, as well as any adverse outcome from these investigations or other investigations initiated by the government at any time, could have a material adverse effect on our financial condition and results of operations.

Further, governmental investigations involving our customers, such as the DOJ investigation of hospitals related to ICD utilization, may have a negative impact on the size of the CRM market. Our U.S. ICD sales represented approximately 18% of our worldwide consolidated net sales in 2012, and any changes in this market could have a material adverse effect on our financial condition and results of operations.

Regulatory actions arising from the concern over Bovine Spongiform Encephalopathy (BSE) may limit our ability to market products containing bovine material.

Our Angio-Seal™ vascular closure device, as well as our vascular graft products, contain bovine collagen. In addition, some of the tissue heart valves we market, such as our Biocor®, Epic™ and Trifecta™ tissue heart valves, incorporate bovine pericardial material. Certain medical device regulatory agencies may prohibit the sale of medical devices that incorporate any bovine material because of concerns over BSE, sometimes referred to as “mad cow disease,” a disease which may be transmitted to humans through the consumption of beef. While we are not aware of any reported cases of transmission of BSE through medical products that are made of bovine material and are cooperating with regulatory agencies considering these issues, the suspension or revocation of authority to manufacture, market or distribute products containing bovine material, or the imposition of a regulatory requirement that we procure material for these products from alternate sources, could result in lost market opportunities, harm the continued commercialization and distribution of such products and impose additional costs on us. Any of these consequences could in turn have a material adverse effect on our financial condition and results of operations.

We are not insured against all potential losses. Natural disasters or other catastrophes could adversely affect our business, financial condition and results of operations.

The occurrence of one or more natural disasters, such as hurricanes, cyclones, typhoons, tropical storms, floods, earthquakes and tsunamis, severe changes in climate and geo-political events, such as acts of war, civil unrest or terrorist attacks, in a country in which we operate or in which our suppliers are located could adversely affect our operations and financial performance. For example, we have significant facilities located in Sylmar and Sunnyvale, California, Puerto Rico and Costa Rica. Earthquake insurance is currently difficult to obtain, extremely costly and restrictive with respect to scope of coverage. Our earthquake insurance for our California facilities provides $10 million of insurance coverage in the aggregate, with a deductible equal to 5% of the total value of the facility and contents involved in the claim. Consequently, despite this insurance coverage, we could incur uninsured losses and liabilities arising from an earthquake near one or both of our California facilities as a result of various factors, including the severity and location of the earthquake, the extent of any damage to our facilities, the impact of an earthquake on our California workforce and on the infrastructure of the surrounding communities and the extent of damage to our inventory and work in process. While we believe that our exposure to significant losses from an earthquake could be partially mitigated by our ability to manufacture some of our products at our other manufacturing facilities, the losses could have a material adverse effect on our business for an indeterminate period of time before this manufacturing transition is complete and operates without significant problems. Furthermore, our manufacturing facilities in Puerto Rico may suffer damage as a result of hurricanes which are frequent in the Caribbean and which could result in lost production and additional expenses to us to the extent any such damage is not fully covered by our hurricane and business interruption insurance. Even with insurance coverage, natural disasters or other catastrophic events, including acts of war, could cause us to suffer substantial losses in our operational capacity and could also lead to a loss of opportunity and to a potential adverse impact on our relationships with our existing customers resulting from our inability to produce products for them, for which we would not be compensated by existing insurance. This in turn could have a material adverse effect on our financial condition and results of operations.

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Further, when natural disasters result in wide-spread destruction, the adverse impact on the operations of our customers in those affected locations could result in a material adverse effect on our results of operations in that region or on the consolidated operations of our business.

Our operations are subject to environmental, health and safety laws and regulations that could require us to incur material costs.

Our operations are subject to environmental, health and safety laws and regulations concerning, among other things, the generation, handling, transportation and disposal of hazardous substances or wastes, particularly ethylene oxide, the cleanup of hazardous substance releases, and emissions or discharges into the air or water. We have incurred and expect to incur expenditures in the future in connection with compliance with environmental, health and safety laws and regulations. New laws and regulations, violations of these laws or regulations, stricter enforcement of existing requirements, or the discovery of previously unknown contamination could require us to incur costs or become the basis for new or increased liabilities that could be material.

We are increasingly dependent on sophisticated information technology, and if we fail to properly maintain the integrity of our data or if our products do not operate as intended, our business could be materially affected.

We are increasingly dependent on sophisticated information technology for our products and infrastructure. We have been consolidating and integrating the number of systems we operate and have upgraded and expanded our information systems capabilities, including the conversion to a new enterprise resource planning system. Our information and manufacturing systems require an ongoing commitment of significant resources to maintain, protect and enhance existing systems and develop new systems to keep pace with continuing changes in information processing technology, mobile device technology, evolving systems and regulatory standards and the increasing need to protect patient and customer information. In addition, third parties may attempt to hack into our products or systems and may obtain data relating to patients with our products or the Company's proprietary information. If we fail to maintain or protect our information and manufacturing systems and data integrity effectively, we could lose existing customers, have difficulty attracting new customers, have difficulty manufacturing product, have difficulty preventing, detecting, and controlling fraud, become subject to regulatory sanctions or penalties, experience increases in operating expenses, incur expenses or lose revenues as a result of a data privacy breach or suffer other adverse consequences. There can be no assurance that our process of consolidating the number of systems we operate, upgrading and expanding our information systems capabilities, protecting and enhancing our systems and developing new systems to keep pace with continuing changes in information processing technology will be successful or that additional systems issues will not arise in the future. Any significant breakdown, intrusion, interruption, corruption or destruction of these systems, as well as any data breaches, could have a material adverse effect on our business.

Our business, financial condition, results of operations and cash flows could be significantly and adversely affected by recent healthcare reform legislation and other administration and legislative proposals.

The Patient Protection and Affordable Care Act and Health Care and Education Reconciliation Act were enacted into law in March 2010. As a U.S. headquartered company with significant sales in the United States, this health care reform law will materially impact us as well as the U.S. economy. Certain provisions of the law will not be effective for a number of years and there are many programs and requirements for which the details have not yet been fully established or consequences not fully understood, and it is unclear what the full impacts will be from the law. Beginning in 2013, the law levies a 2.3% excise tax on the majority of our U.S. medical device sales, which has materially impacted our cash flows and results of operations. The law also focuses on a number of Medicare provisions aimed at improving quality and decreasing costs. It is uncertain at this point what negative unintended consequences these provisions will have on patient access to new technologies. The Medicare provisions include value‐based payment programs, increased funding of comparative effectiveness research, reduced hospital payments for avoidable readmissions and hospital acquired conditions, and pilot programs to evaluate alternative payment methodologies that promote care coordination (such as bundled physician and hospital payments). Additionally, the law includes a reduction in the annual rate of inflation for Medicare payments to hospitals that began in 2011 and the establishment of an independent payment advisory board to recommend ways of reducing the rate of growth in Medicare spending beginning in 2014. We cannot predict what healthcare programs and regulations will be ultimately implemented at the federal or state level, or the effect of any future legislation or regulation. However, any changes that lower reimbursement for our products or reduce medical procedure volumes could adversely affect our business and results of operations.

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Changes in tax laws or exposure to additional income tax liabilities could have a material impact on our financial condition and results of operations.

We are subject to income taxes as well as non-income based taxes, in both the United States and various foreign jurisdictions. We are subject to ongoing tax audits in various jurisdictions. Tax authorities may disagree with certain positions we have taken and assess additional taxes. We regularly assess the likely outcomes of these audits in order to determine the appropriateness of our tax provision. However, there can be no assurance that we will accurately predict the outcomes of these audits, and the actual outcomes of these audits could have a material impact on our results of operations and financial condition. Additionally, changes in tax laws or tax rulings could materially impact our effective tax rate. For example, proposals for fundamental U.S. international tax reform, such as past proposals by the Obama administration, if enacted, could have a significant adverse impact on our future results of operations.

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Item 6. EXHIBITS

Exhibit
No.	Description
12	Computation of Ratio of Earnings to Fixed Charges.
31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Financial statements from the quarterly report on Form 10-Q of St. Jude Medical, Inc. for the quarter ended September 28, 2013, formatted in XBRL: (i) the Condensed Consolidated Statements of Earnings, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows and (v) the Notes to the Condensed Consolidated Financial Statements.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ST. JUDE MEDICAL, INC.
November 5, 2013	/s/ DONALD J. ZURBAY
DATE	DONALD J. ZURBAY
	Vice President, Finance
	and Chief Financial Officer
	(Duly Authorized Officer and
	Principal Financial and
	Accounting Officer)

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INDEX TO EXHIBITS

Exhibit
No.	Description
12	Computation of Ratio of Earnings to Fixed Charges. #
31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. #
31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. #
32.1	Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. #
32.1	Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. #
101	Financial statements from the quarterly report on Form 10-Q of St. Jude Medical, Inc. for the quarter ended September 28, 2013, formatted in XBRL: (i) the Condensed Consolidated Statements of Earnings, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows and (v) the Notes to the Condensed Consolidated Financial Statements.

# Filed as an exhibit to this Quarterly Report on Form 10-Q.

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EX-12

EXHIBIT 12

ST. JUDE MEDICAL, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(amounts in millions of dollars)

	Nine Months Ended		FISCAL YEAR
	September 28, 2013		2012		2011		2010		2009		2008
EARNINGS
Earnings before income taxes	$	655	$	1,005	$	1,019	$	1,209	$	1,057	$	581
Plus fixed charges:
Interest expense (1)	60		73		70		67		46		73
Rent interest factor (2)	11		15		15		12		11		9
TOTAL FIXED CHARGES	71		88		85		79		57		82
EARNINGS BEFORE INCOME TAXES AND FIXED CHARGES	$	726	$	1,093	$	1,104	$	1,288	$	1,114	$	663
RATIO OF EARNINGS TO FIXED CHARGES	10.2		12.4		13.0		16.3		19.5		8.1

(1) Interest expense consists of interest on indebtedness and amortization of debt issuance costs.

(2) Approximately one-third of rental expense is deemed representative of the interest factor.

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Daniel J. Starks, certify that:
1.	I have reviewed this quarterly report on Form 10-Q of St. Jude Medical, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 5, 2013

/s/ DANIEL J. STARKS

Daniel J. Starks

Chairman, President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Donald J. Zurbay, certify that:
1.	I have reviewed this quarterly report on Form 10-Q of St. Jude Medical, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 5, 2013

/s/ DONALD J. ZURBAY

Donald J. Zurbay

Vice President, Finance and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of St. Jude Medical, Inc. (the Company) on Form 10-Q for the period ended September 28, 2013 as filed with the Securities and Exchange Commission (the Report), I, Daniel J. Starks, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ DANIEL J. STARKS

Daniel J. Starks

Chairman, President and Chief

Executive Officer

November 5, 2013

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of St. Jude Medical, Inc. (the Company) on Form 10-Q for the period ended September 28, 2013 as filed with the Securities and Exchange Commission (the Report), I, Donald J. Zurbay, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ DONALD J. ZURBAY

Donald J. Zurbay

Vice President, Finance and

Chief Financial Officer

November 5, 2013

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Income Taxes

3 Months Ended

Sep. 28, 2013

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

As of September 28, 2013, the Company had $265 million accrued for unrecognized tax benefits, all of which would affect the Company’s effective tax rate if recognized. Additionally, the Company had $35 million accrued for interest and penalties as of September 28, 2013. At December 29, 2012, the liability for unrecognized tax benefits was $314 million and the accrual for interest and penalties was $69 million. The Company recognizes interest and penalties related to income tax matters in income tax expense.

The Company is subject to U.S. federal income tax as well as income tax of multiple state and foreign jurisdictions. The Company has substantially concluded all material U.S. federal, state, foreign and local income tax matters for all tax years through 2004. The U.S. Internal Revenue Service (IRS) is currently auditing the Company’s 2008 and 2009 tax returns and an audit report is expected to be issued in 2013. In 2012, the Company recognized $46 million of additional tax expense related to a settlement reserve for certain prior period tax positions related to the 2002 through 2009 tax years. During the third quarter of 2013, the Company recognized a $15 million tax settlement benefit due to the resolution of the IRS audits of the 2002 through 2007 tax years. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months.

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Fair Value Measurements And Financial Instruments (Summary of Financial Assets Measured at Fair Value, Recurring Basis) (Details) (USD $)	Sep. 28, 2013	Dec. 29, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 33,000,000	$ 41,000,000
Total assets	1,135,000,000	1,236,000,000
Fair Value, Measurement with Unobservable Inputs, Recurring Basis, Liability Value	136,000,000	0
Liabilities, Fair Value Disclosure, Recurring	136,000,000
Quoted Prices In Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	1,135,000,000	1,236,000,000
Liabilities, Fair Value Disclosure, Recurring	0
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Liabilities, Fair Value Disclosure, Recurring	0
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Liabilities, Fair Value Disclosure, Recurring	136,000,000
Contingent Consideration Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs, Recurring Basis, Liability Value	136,000,000
Contingent Consideration Liability [Member] | Quoted Prices In Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs, Recurring Basis, Liability Value	0
Contingent Consideration Liability [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs, Recurring Basis, Liability Value	0
Contingent Consideration Liability [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs, Recurring Basis, Liability Value	136,000,000
Cash And Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money-market securities	848,000,000	964,000,000
Cash And Cash Equivalents [Member] | Quoted Prices In Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money-market securities	848,000,000	964,000,000
Cash And Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money-market securities	0	0
Cash And Cash Equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money-market securities	0	0
Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	33,000,000	41,000,000
Other Current Assets [Member] | Quoted Prices In Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	33,000,000	41,000,000
Other Current Assets [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Other Current Assets [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Other Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities	254,000,000	231,000,000
Other Assets [Member] | Quoted Prices In Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities	254,000,000	231,000,000
Other Assets [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities	0	0
Other Assets [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities	$ 0	$ 0

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Condensed Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Sep. 28, 2013	Dec. 29, 2012
Assets
Cash and cash equivalents	$ 1,245	$ 1,194
Accounts receivable, less allowance for doubtful accounts of $46 million and $47 million at September 28, 2013 and December 29, 2012, respectively	1,399	1,349
Inventories	687	610
Deferred income taxes, net	211	220
Other current assets	203	178
Total current assets	3,745	3,551
Property, plant and equipment, at cost	2,776	2,629
Less accumulated depreciation	(1,349)	(1,204)
Net property, plant and equipment	1,427	1,425
Goodwill	3,383	2,961
Intangible assets, net	898	804
Other assets	512	530
TOTAL ASSETS	9,965	9,271
Liabilities and Shareholders' Equity
Current debt obligations	66	530
Accounts payable	182	254
Dividends payable	72	68
Income taxes payable	0	142
Employee compensation and related benefits	285	299
Other current liabilities	437	482
Total current liabilities	1,042	1,775
Long-term debt	3,403	2,550
Deferred income taxes, net	357	323
Other liabilities	717	529
Total liabilities	5,519	5,177
Commitments and Contingencies (Note 6)	0	0
Shareholders' Equity
Preferred stock ($1.00 par value; 25,000,000 shares authorized; none outstanding)	0	0
Common stock ($0.10 par value; 500,000,000 shares authorized; 288,968,747 and 295,648,327 shares issued and outstanding at September 28, 2013 and December 29, 2012, respectively)	29	30
Additional paid-in capital	292	0
Retained earnings	3,885	4,018
Accumulated other comprehensive income	55	46
Total shareholders' equity before noncontrolling interest	4,261	4,094
Noncontrolling interest	185	0
Total shareholders' equity	4,446	4,094
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 9,965	$ 9,271

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Inventories

9 Months Ended

Sep. 28, 2013

Inventory, Net [Abstract]

Inventory Disclosure

INVENTORIES

The Company’s inventories consisted of the following (in millions):

	September 28, 2013		December 29, 2012
Finished goods	$	475	$	416
Work in process	59		50
Raw materials	153		144
	$	687	$	610

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Debt (Tables)

9 Months Ended

Sep. 28, 2013

Debt Disclosure [Abstract]

Schedule Of Long-Term Debt

The Company’s debt consisted of the following (in millions):

	September 28, 2013		December 29, 2012
2.20% senior notes due 2013 (retired September 2013)	$	—	$	454
3.75% senior notes due 2014 (redeemed May 2013)	—		699
2.50% senior notes due 2016	513		518
4.875% senior notes due 2019 (redeemed May 2013)	—		496
3.25% senior notes due 2023	896		—
4.75% senior notes due 2043	696		—
Term loan due 2015	500		—
1.58% Yen-denominated senior notes due 2017	83		95
2.04% Yen-denominated senior notes due 2020	130		149
Yen-denominated credit facilities	66		76
Commercial paper borrowings	585		593
Total debt	3,469		3,080
Less: current debt obligations	66		530
Long-term debt	$	3,403	$	2,550

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Fair Value Measurements And Financial Instruments Fair Value Measurements And Financial Instruments (Narrative) (Details) (USD $) In Millions, unless otherwise specified				3 Months Ended		3 Months Ended
	Sep. 28, 2013	Dec. 29, 2012	Sep. 29, 2012 IESD [Member]	Sep. 29, 2012 IESD [Member] Intangible Asset Charges [Member]	Jun. 30, 2012 CATD [Member]	Jun. 30, 2012 CATD [Member] Intangible Asset Charges [Member]	Jun. 29, 2013 Customer Relationships [Member] Intangible Asset Charges [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impairment of Intangible Assets, Finite-lived				$ 23		$ 5	$ 13
Other Assets, Fair Value Disclosure			3		4
Fair Value, Estimate Not Practicable, Cost Method Investments	101	151
Fixed rate debt obligations fair value disclosure	2,269
Fixed rate debt obligations carrying value	2,317
Other debt carrying value	$ 1,152

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Fair Value Measurements And Financial Instruments

9 Months Ended

Sep. 28, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements And Financial Instruments

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

The fair value measurement accounting standard, codified in ASC Topic 820, Fair Value Measurement (ASC Topic 820), provides a framework for measuring fair value and defines fair value as the price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. The standard establishes a valuation hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on independent market data sources. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available. The valuation hierarchy is composed of three categories. The categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement.

The categories within the valuation hierarchy are described as follows:

• Level 1 – Inputs to the fair value measurement are quoted prices in active markets for identical assets or liabilities.

• Level 2 – Inputs to the fair value measurement include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.

• Level 3 – Inputs to the fair value measurement are unobservable inputs or valuation techniques.

Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The fair value measurement standard applies to certain financial assets and liabilities that are measured at fair value on a recurring basis (each reporting period). These financial assets and liabilities include money-market securities, trading marketable securities, available-for-sale marketable securities, derivative instruments and contingent consideration liabilities. The Company continues to record these items at fair value on a recurring basis and the fair value measurements are applied using ASC Topic 820. The Company does not have any material nonfinancial assets or liabilities that are measured at fair value on a recurring basis. A summary of the valuation methodologies used for the respective financial assets and liabilities measured at fair value on a recurring basis is as follows:

Money-Market Securities: The Company’s money-market securities include funds that are traded in active markets and are recorded at fair value based upon the quoted market prices. The Company classifies these securities as level 1.

Trading Securities: The Company’s trading securities include publicly-traded mutual funds that are traded in active markets and are recorded at fair value based upon quoted market prices of the net asset values of the funds. The Company classifies these securities as level 1.

Available-For-Sale Securities: The Company’s available-for-sale securities include publicly-traded equity securities that are traded in active markets and are recorded at fair value based upon the closing stock prices. The Company classifies these securities as level 1.

The following table summarizes the components of the balance of the Company’s available-for-sale securities at September 28, 2013 and December 29, 2012 (in millions):

	September 28, 2013		December 29, 2012
Adjusted cost	$	7	$	9
Gross unrealized gains	26		32
Fair value	$	33	$	41

Derivative Instruments: The Company’s derivative instruments consist of foreign currency exchange contracts. The Company classifies these instruments as level 2 as the fair value is determined using inputs other than observable quoted market prices. These inputs include spot and forward foreign currency exchange rates that the Company obtains from standard market data providers. The fair value of the Company’s outstanding foreign currency exchange contracts was not material at September 28, 2013 or December 29, 2012.

Contingent Consideration Liabilities: In connection with certain business combinations or purchases of intellectual property the Company may agree to provide potential future contingent consideration payments upon the achievement of certain product development milestones and/or various other favorable operating conditions. Payment of the additional consideration is generally contingent on the acquired company reaching certain performance milestones, including attaining specified revenue levels or achieving product development targets. Contingent consideration is recorded at the estimated fair value of the contingent milestone payments on the acquisition date. The fair value of the contingent milestone consideration is remeasured at the estimated fair value at each reporting period with the change in fair value recognized as income or expense within other expense, net in the Condensed Consolidated Statements of Earnings. The Company measures the liability on a recurring basis using Level 3 inputs including projected revenues, discount rates, probabilities of payment and projected payment dates. Projected contingent payment amounts are discounted back to the current period using a probability weighted discounted cash flow model. Projected revenues are based on the Company's most recent internal operating budgets and long-term strategic plans. Increases or decreases to any of the inputs may result in significantly higher or lower fair value measurements.

A summary of financial assets measured at fair value on a recurring basis at September 28, 2013 and December 29, 2012 is as follows (in millions):

	Balance Sheet Classification	September 28, 2013		Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Money-market securities	Cash and cash equivalents	$	848	$	848	$	—	$	—
Available-for-sale securities	Other current assets	33		33		—		—
Trading securities	Other assets	254		254		—		—
Total assets		$	1,135	$	1,135	$	—	$	—
Liabilities
Contingent consideration	Other liabilities	$	136	$	—	$	—	$	136
Total liabilities		$	136	$	—	$	—	$	136

	Balance Sheet Classification	December 29, 2012		Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Money-market securities	Cash and cash equivalents	$	964	$	964	$	—	$	—
Available-for-sale securities	Other current assets	41		41		—		—
Trading securities	Other assets	231		231		—		—
Total assets		$	1,236	$	1,236	$	—	$	—

The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs (in millions):

Contingent Consideration Liability	Fair Value as of September 28, 2013		Valuation Technique	Unobservable Input	Range
Endosense regulatory-based milestone	$	136	Probability Weighted Discounted Cash Flow	Discount Rate	1.15%	-	1.71%
				Probability of Payment			90%
				Projected Year of Payment			2014

Additionally, the following table provides a reconciliation of the beginning and ending balances of the Company's contingent consideration liability associated with its Endosense acquisition subsequent to August 19, 2013 as of September 28, 2013 (in millions):

	Fiscal Year 2013
Beginning balance	$	—
Purchase price contingent consideration	132
Change in fair value of contingent consideration	1
Foreign currency translation	3
Ending balance	$	136

Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis

The fair value measurement standard also applies to certain nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis. A summary of the valuation methodologies used for the respective nonfinancial assets and liabilities measured at fair value on a nonrecurring basis is as follows:

Long-Lived Assets: The Company reviews the carrying amount of its long-lived assets other than goodwill and indefinite-lived intangible assets for potential impairment whenever events or changes in circumstance include a significant decrease in market price, a significant adverse change in the extent or manner in which an asset is being used or a significant adverse change in the legal or business climate. The Company measures the fair value of its long-lived assets, such as its definite-lived intangible assets and property, plant and equipment using independent appraisals, market models and discounted cash flow models. A discounted cash flow model requires inputs to a present value cash flow calculation such as a risk-adjusted discount rate, terminal values, operating budgets, long-term strategic plans and remaining useful lives of the asset or asset group. If the carrying value of the Company’s long-lived assets (excluding goodwill and indefinite-lived intangible assets) exceeds the related undiscounted future cash flows, the carrying value is written down to the fair value in the period identified.

During the second quarter of 2013, the Company recognized $13 million of impairments associated with customer relationship intangible assets, as it determined that these intangible assets had no discrete future cash flows and were fully impaired. Refer to Note 7 for further details of these charges.

During the third quarter of 2012, the Company determined that certain purchased technology intangible assets in the Company's neuromodulation business were considered impaired as their future expected undiscounted cash flows did not exceed the carrying value of the related assets. As a result, the Company recognized a $23 million impairment charge to write-down the intangible assets to their estimated fair value of $3 million as of September 29, 2012. The fair value measurements of these intangible assets are considered Level 3 in the fair value hierarchy due to the use of unobservable inputs, specifically the discounted cash flows income approach method, to measure fair value.

During the second quarter of 2012, the Company determined that certain purchased technology intangible assets in CATD were considered impaired as their future expected undiscounted cash flows did not exceed the carrying value of the related assets. As a result, the Company recognized a $5 million impairment charge to write-down the intangible assets to their estimated fair value of $4 million as of June 30, 2012. The fair value measurements of these intangible assets are considered Level 3 in the fair value hierarchy due to the use of unobservable inputs, specifically the discounted cash flows income approach method, to measure fair value. The product lines were later discontinued in the fourth quarter of 2012, and the related remaining intangible asset value was fully impaired as there were no discrete future cash flows.

Cost Method Investments: The Company also holds investments in equity securities that are accounted for as cost method investments, which are classified as other assets and measured at fair value on a nonrecurring basis. The fair value of the Company’s cost method investments is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of these investments. When measured on a nonrecurring basis, the Company’s cost method investments are considered Level 3 in the fair value hierarchy due to the use of unobservable inputs to measure fair value.

The carrying value of these investments approximated $101 million and $151 million as of September 28, 2013 and December 29, 2012, respectively. The decrease in the Company's cost method investments since December 29, 2012 was primarily due to the consolidation of CardioMEMS and the elimination of the pre-existing equity investment which had been previously accounted for as a cost method investment. Effective February 27, 2013, the Company determined that CardioMEMS was a VIE for which the Company is considered the primary beneficiary (see Note 2).

Fair Value Measurements of Other Financial Instruments

The aggregate fair value of the Company’s fixed-rate senior notes at September 28, 2013 (measured using quoted prices in active markets) was $2,269 million compared to the aggregate carrying value of $2,317 million (inclusive of the terminated interest rate swaps). The fair value of the Company’s variable-rate debt obligations at September 28, 2013 approximated its aggregate $1,152 million carrying value due to the variable interest rate and short-term nature of these instruments.

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Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Schedule of Reclassification of Accumulated Other Comprehensive Income to Net Earnings Statement) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification adjustment from AOCI for Sale of Securities, Net of Tax	$ (2)	$ (3)	$ (5)	$ (8)
Other expense, net [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax	4	5	9	14
Income tax expense [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	(2)	(2)	(4)	(6)
Net earnings before noncontrolling interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification adjustment from AOCI for Sale of Securities, Net of Tax	2	3	5	8
Net earnings attributable to St. Jude Medical, Inc. [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification adjustment from AOCI for Sale of Securities, Net of Tax	$ 2	$ 3	$ 5	$ 8

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Derivative Financial Instruments (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended				9 Months Ended		9 Months Ended
	Mar. 30, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013 Three point twenty-five percent Senior Notes Due Two Thousand Twenty-three [Member]	Apr. 02, 2013 Three point twenty-five percent Senior Notes Due Two Thousand Twenty-three [Member]	Sep. 28, 2013 Four point seventy-five percent Senior Notes Due Two Thousand Fourty-three [Member] [Member]	Apr. 02, 2013 Four point seventy-five percent Senior Notes Due Two Thousand Fourty-three [Member] [Member]	Sep. 28, 2013 Two point five percent Senior Notes Due Two Thousand Sixteen [Member]	Jun. 30, 2012 Two point five percent Senior Notes Due Two Thousand Sixteen [Member]
Derivatives, Fair Value [Line Items]
The net amount of gains/(loss) recorded to other income (expense)		$ (4)	$ 13	$ 1
Proceeds from Hedge, Financing Activities	3
Debt Instrument, Face Amount						900		700	500
Debt instrument term, years					10 years		30 years		5 years
Proceeds from termination of interest rate swap										$ 24
Net average interest rate									1.30%

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Goodwill And Other Intangible Assets Goodwill And Other Intangible Assets (Narrative) (Details) (Intangible Asset Charges [Member], Customer Relationships [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Jun. 29, 2013
Intangible Asset Charges [Member] | Customer Relationships [Member]
Impairment of Intangible Assets, Finite-lived	$ 13

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Net Earnings Per Share (Tables)

9 Months Ended

Sep. 28, 2013

Earnings Per Share [Abstract]

Schedule Of Computation Of Basic And Diluted Net Earnings Per Share

The table below sets forth the computation of basic and diluted net earnings per share attributable to St. Jude Medical, Inc. (in millions, except per share amounts):

	Three Months Ended				Nine Months Ended
	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
Numerator:
Net earnings attributable to St. Jude Medical, Inc.	$	262	$	176	$	600	$	632
Denominator:
Basic weighted average shares outstanding	287.5		314.7		285.6		314.8
Effect of dilutive securities:
Employee stock options	4.0		1.3		2.8		1.4
Restricted stock units	0.5		0.3		0.3		0.2
Diluted weighted average shares outstanding	292.0		316.3		288.7		316.4
Basic net earnings per share attributable to St. Jude Medical, Inc.	$	0.91	$	0.56	$	2.10	$	2.01
Diluted net earnings per share attributable to St. Jude Medical, Inc.	$	0.90	$	0.56	$	2.08	$	2.00

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Special Charges (Tables)

9 Months Ended

Sep. 28, 2013

2012 Business Realignment Restructuring Plan [Member]

Restructuring Cost and Reserve [Line Items]

Summary Of Activity Related To Special Charge Restructuring Accrual

A summary of the activity related to the 2012 business realignment plan accrual is as follows (in millions):

	Employee Termination Costs			Inventory Charges			Fixed Asset Charges			Other Restructuring Costs			Total
Balance at December 31, 2011	$	—		$	—		$	—		$	—		$	—
Cost of sales special charges	5			17			—			2			24
Special charges	104			—			41			16			161
Non-cash charges used	—			(17		)	(41		)	(3		)	(61		)
Cash payments	(52		)	—			—			(7		)	(59		)
Foreign exchange rate impact	1			—			—			—			1
Balance at December 29, 2012	58			—			—			8			66
Cost of sales special charges	—			18			—			—			18
Special charges	10			—			2			4			16
Non-cash charges used	—			(18		)	(2		)	—			(20		)
Cash payments	(32		)	—			—			(3		)	(35		)
Foreign exchange rate impact	(1		)	—			—			—			(1		)
Balance at March 30, 2013	35			—			—			9			44
Cost of sales special charges	—			1			—			—			1
Special charges	19			—			2			17			38
Non-cash charges used	—			(1		)	(2		)	(4		)	(7		)
Cash payments	(17		)	—			—			(9		)	(26		)
Foreign exchange rate impact	1			—			—			—			1
Balance at June 29, 2013	38			—			—			13			51
Cost of sales special charges	—			2			—			—			2
Special charges	4			—			—			7			11
Non-cash charges used	—			(2		)	—			—			(2		)
Cash payments	(15		)	—			—			(7		)	(22		)
Foreign exchange rate impact	—			—			—			—			—
Balance at September 28, 2013	$	27		$	—		$	—		$	13		$	40

2011 Restructuring Plan [Member]

Restructuring Cost and Reserve [Line Items]

Summary Of Activity Related To Special Charge Restructuring Accrual

A summary of the activity related to the 2011 restructuring plan accrual is as follows (in millions):

	Employee Termination Costs			Inventory Charges			Fixed Asset Charges			Other Restructuring Costs			Total
Balance at December 31, 2011	$	54		$	—		$	—		$	18		$	72
Cost of sales special charges	11			13			—			20			44
Special charges	27			—			—			31			58
Non-cash charges used	—			(13		)	—			(4		)	(17		)
Cash payments	(68		)	—			—			(47		)	(115		)
Foreign exchange rate impact	1			—			—			(1		)	—
Balance at December 29, 2012	25			—			—			17			42
Special charges	2			—			—			7			9
Cash payments	(13		)	—			—			(6		)	(19		)
Balance March 30, 2013	14			—			—			18			32
Special charges	—			—			1			3			4
Non-cash charges used	—			—			(1		)	—			(1		)
Cash payments	(5		)	—			—			(7		)	(12		)
Balance at June 29, 2013	9			—			—			14			23
Special charges	2			—			—			4			6
Cash payments	(1		)	—			—			(5		)	(6		)
Balance at September 28, 2013	$	10		$	—		$	—		$	13		$	23

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Net Earnings Per Share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012
Net Earnings Per Share [Line Items]
Net earnings attributable to St. Jude Medical, Inc.	$ 262	$ 176	$ 600	$ 632
Basic weighted average shares outstanding	287.5	314.7	285.6	314.8
Diluted weighted average shares outstanding	292.0	316.3	288.7	316.4
Basic net earnings per share attributable to St. Jude Medical, Inc.	$ 0.91	$ 0.56	$ 2.10	$ 2.01
Diluted net earnings per share attributable to St. Jude Medical, Inc.	$ 0.90	$ 0.56	$ 2.08	$ 2.00
Common stock subject to stock options and restricted stock units excluded from the diluted net earnings per share computation	2.2	16.1	5.4	16.7
Employee Stock Options [Member]
Net Earnings Per Share [Line Items]
Effect of dilutive securities	4.0	1.3	2.8	1.4
Restricted Stock Units [Member]
Net Earnings Per Share [Line Items]
Effect of dilutive securities	0.5	0.3	0.3	0.2

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Business Combinations Business Combinations (Schedule of Variable Interest Entities) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended				3 Months Ended	9 Months Ended
	Jun. 29, 2013 Spinal Modulation [Member]	Sep. 28, 2013 Spinal Modulation [Member]	Jun. 07, 2013 Spinal Modulation [Member]	Sep. 28, 2013 Spinal Modulation [Member] In Process Research and Development [Member]	Jun. 07, 2013 Spinal Modulation [Member] In Process Research and Development [Member]	Mar. 30, 2013 CardioMEMS, Inc. [Member]	Sep. 28, 2013 CardioMEMS, Inc. [Member]	Feb. 27, 2013 CardioMEMS, Inc. [Member]	Sep. 28, 2013 CardioMEMS, Inc. [Member] In Process Research and Development [Member]	Feb. 27, 2013 CardioMEMS, Inc. [Member] In Process Research and Development [Member]	Sep. 28, 2013 Patented Technology [Member] Spinal Modulation [Member]	Jun. 07, 2013 Patented Technology [Member] Spinal Modulation [Member]
Variable Interest Entity [Line Items]
Business Combination, Cash and Equivalents		$ 31	$ 41				$ 21	$ 33
Business Combination, Current Assets, Other		6	9				4	2
Goodwill, Acquired During Period	82	82				83	83
Business Combination, Indefinite-Lived Intangible Assets				45	45				63	63
Business Combination, Intangible Assets, Other than Goodwill											7	7
Business Combination, Other Noncurrent Assets		1	1				2	2
Business Combination, Total Assets		172	185				173	183
Business Combination, Current Liabilities		5	6				6	13
Business Combination, Deferred Tax Liabilities Noncurrent		19	19				23	23
Business Combination, Noncurrent Liabilities, Other							4	5
Business Combination, Total Liabilities		24	25				33	41
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value		$ 111	$ 120				$ 74	$ 84

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Debt (Schedule Of Long-Term Debt) (Details) (USD $) In Millions, unless otherwise specified	Sep. 28, 2013	Dec. 29, 2012
Debt Instrument [Line Items]
Debt	$ 3,469	$ 3,080
Less: current debt obligations	66	530
Long-term debt	3,403	2,550
2.20% Senior Notes Due 2013 [Member]
Debt Instrument [Line Items]
Debt	0	454
Three point seven five percent Senior Notes Due Two Thousand Fourteen [Member]
Debt Instrument [Line Items]
Debt	0	699
Two point five percent Senior Notes Due Two Thousand Sixteen [Member]
Debt Instrument [Line Items]
Debt	513	518
Four point eight seven five percent Senior Notes Due Two Thousand Nineteen [Member]
Debt Instrument [Line Items]
Debt	0	496
Three point twenty-five percent Senior Notes Due Two Thousand Twenty-three [Member]
Debt Instrument [Line Items]
Debt	896	0
Four point seventy-five percent Senior Notes Due Two Thousand Fourty-three [Member] [Member]
Debt Instrument [Line Items]
Debt	696	0
Term loan due 2015 [Member]
Debt Instrument [Line Items]
Debt	500	0
1.58% Yen-Denominated Senior Notes Due 2017 [Member]
Debt Instrument [Line Items]
Debt	83	95
2.04% Yen-Denominated Senior Notes Due 2020 [Member]
Debt Instrument [Line Items]
Debt	130	149
Yen Denominated Credit Facilities [Member]
Debt Instrument [Line Items]
Debt	66	76
Commercial paper borrowings [Member]
Debt Instrument [Line Items]
Debt	$ 585	$ 593

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Other Expense, Net (Schedule Of Other Expense, Net) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012
Other Nonoperating Income (Expense) [Abstract]
Interest income	$ (1)	$ (1)	$ (4)	$ (3)
Interest expense	21	18	60	55
Other	(3)	2	192	15
Total other expense, net	$ 17	$ 19	$ 248	$ 67

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Segment And Geographic Information (Tables)

9 Months Ended

Sep. 28, 2013

Segment Reporting [Abstract]

Schedule Of Net Sales And Operating Profit By Reportable Segment

The following table presents net sales and operating profit by reportable segment (in millions):

	IESD		CATD		Other			Total
Three Months ended September 28, 2013:
Net sales	$	786	$	552	$	—		$	1,338
Operating profit	534		321		(542		)	313
Three Months ended September 29, 2012:
Net sales	$	792	$	534	$	—		$	1,326
Operating profit	547		319		(631		)	235
Nine Months ended September 28, 2013:
Net sales	$	2,389	$	1,690	$	—		$	4,079
Operating profit	1,630		995		(1,722		)	903
Nine Months ended September 29, 2012:
Net sales	$	2,482	$	1,649	$	—		$	4,131
Operating profit	1,720		980		(1,825		)	875

Schedule Of Total Assets By Reportable Segment

The following table presents the Company’s total assets by reportable segment (in millions):

Total Assets	September 28, 2013		December 29, 2012
IESD	$	2,644	$	2,320
CATD	3,301		2,967
Other	4,020		3,984
	$	9,965	$	9,271

Net Sales By Geographic Location

The following table presents net sales by geographic location of the customer (in millions):

	Three Months Ended				Nine Months Ended
Net Sales	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
United States	$	646	$	640	$	1,955	$	1,969
International
Europe	333		311		1,066		1,059
Japan	142		172		418		500
Asia Pacific	125		118		362		339
Other	92		85		278		264
	692		686		2,124		2,162
	$	1,338	$	1,326	$	4,079	$	4,131

Schedule Of Long-Lived Assets By Geographic Location

The amounts for long-lived assets by significant geographic market include net property, plant and equipment by physical location of the asset as follows (in millions):

Long-Lived Assets	September 28, 2013		December 29, 2012
United States	$	1,046	$	1,036
International
Europe	81		82
Japan	34		32
Asia Pacific	77		82
Other	189		193
	381		389
	$	1,427	$	1,425

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Commitments And Contingencies (Schedule Of Product Warranty Liability) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012
Commitments and Contingencies Disclosure [Abstract]
Balance at beginning of period	$ 37	$ 38	$ 38	$ 36
Warranty expense recognized	(2)	2	1	5
Warranty credits issued	0	(1)	(4)	(2)
Balance at end of period	$ 35	$ 39	$ 35	$ 39

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Commitments And Contingencies (Tables)

9 Months Ended

Sep. 28, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule Of Product Warranty Liability

Changes in the Company’s product warranty liability during the three and nine months ended September 28, 2013 and September 29, 2012 were as follows (in millions):

	Three Months Ended						Nine Months Ended
	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012
Balance at beginning of period	$	37		$	38		$	38		$	36
Warranty expense recognized	(2		)	2			1			5
Warranty credits issued	—			(1		)	(4		)	(2		)
Balance at end of period	$	35		$	39		$	35		$	39

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Condensed Consolidated Statements Of Cash Flows (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012
OPERATING ACTIVITIES
Net earnings before noncontrolling interest	$ 581	$ 632
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation and amortization	220	212
Amortization of debt premium	(4)	(8)
Share-based compensation	50	54
Gain on sale of investment	(9)	(14)
Loss on retirement of long-term debt	161	0
Deferred income taxes	(1)	(34)
Other, net	37	73
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable	(70)	13
Inventories	(77)	(26)
Other current assets	31	29
Accounts payable and accrued expenses	(94)	(16)
Income taxes payable	(154)	24
Net cash provided by operating activities	671	939
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(171)	(188)
Payments to Acquire Businesses, Net of Cash Acquired	(171)	0
Proceeds from sale of investments	10	19
Other investing activities, net	(15)	(28)
Net cash used in investing activities	(347)	(197)
FINANCING ACTIVITIES
Exercise of stock options and stock issued, including excess tax benefits	275	107
Common stock repurchased, including related costs	(609)	(300)
Dividends paid	(210)	(212)
Issuances (payments) of commercial paper borrowings, net	(8)	(272)
Borrowings under debt facilities	2,092	0
Payments under debt facilities	(1,659)	0
Other financing activities, net	(151)	0
Net cash used in financing activities	(270)	(677)
Effect of currency exchange rate changes on cash and cash equivalents	(3)	0
Net increase in cash and cash equivalents	51	65
Cash and cash equivalents at beginning of period	1,194	986
Cash and cash equivalents at end of period	1,245	1,051
Noncontrolling interest	$ 204	$ 0

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Business Combinations Business Combinations

9 Months Ended

Sep. 28, 2013

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

BUSINESS COMBINATIONS

Endosense S.A.: On August 19, 2013, the Company acquired all the outstanding shares of Endosense S.A. (Endosense) for the equivalent of $171 million (160 million Swiss Francs) in net cash consideration using available cash from outside the U.S. Endosense is based in Geneva, Switzerland and develops, manufactures and markets the TactiCath® irrigated ablation catheter to provide physicians a real-time, objective measure of the force to apply to the heart wall during a catheter ablation procedure. The Endosense force-sensing technology is CE Mark approved for atrial fibrillation and supra ventricular tachycarida ablation. Under the terms of the agreement, the transaction also provides for an additional cash payment of up to 150 million Swiss Francs (approximately $165 million at September 28, 2013), contingent upon both the achievement and timing of U.S. Food and Drug Administration (FDA) approval.

Consistent with the provisions of Accounting Standards Codification (ASC) Topic 805, Business Combinations (ASC Topic 805), the Company accrued the contingent payment after determining its fair value of $132 million in arriving at $303 million of total consideration, net of cash acquired. The contingent consideration accrual will be remeasured to fair value at each reporting period with changes in fair value reflected in the statement of earnings.

The preliminary allocation of the Endosense purchase price to the estimated fair values of net assets acquired was as follows (in millions):

	August 19, 2013
Assets acquired:
Current assets	$	2
Goodwill	258
Acquired in-process research and development (IPR&D)	33
Other intangible assets	20
Other long-term assets	1
Total assets acquired	314
Liabilities assumed:
Current liabilities	11
Net assets acquired	303
Cash paid	180
Cash acquired	(9		)
Net cash consideration	171
Contingent consideration	132
Total purchase consideration	$	303

The goodwill recorded as a result of the Endosense acquisition is not deductible for income tax purposes and was entirely allocated to the CATD reportable segment. The goodwill represents the strategic benefits of growing the Company's atrial fibrillation product portfolio and the expected revenue growth from increased market penetration from future products and customers. The Company now has the potential to integrate the force-sensing technology to offer a MediGuide™-enabled force-sensing ablation catheter and incorporate force sensing data into its EnSite Velocity™ Mapping System. In connection with the acquisition of Endosense, the Company recognized $20 million of developed technology intangible assets that have an estimated useful life of 7 years and $33 million of acquired in-process research and development (IPR&D) that was capitalized as an indefinite-lived intangible asset. Upon completion of the related development projects (when U.S. regulatory approval to market the product is obtained), the IPR&D will be amortized over its estimated useful life.

The results of Endosense since the date of acquisition and pro forma disclosures of the consolidated results of the Company with the full year effects of Endosense have not been separately presented since the impact to the Company's results of operations was not material.

Spinal Modulation, Inc.: On June 7, 2013, the Company made an equity investment of $40 million in Spinal Modulation, a privately-held company that is focused on the development of an intraspinal neuromodulation therapy that delivers spinal cord stimulation targeting the dorsal root ganglion to manage chronic pain. The investment agreement resulted in a 19% voting equity interest and provided the Company with the exclusive right, but not the obligation, to acquire Spinal Modulation for payments of up to $300 million during the period that extends through the completion of certain regulatory milestones. If the Company acquires Spinal Modulation, the contingent acquisition agreement also provides for additional consideration payments contingent upon the achievement of certain revenue-based milestones. In the event the Company acquires the noncontrolling interest of Spinal Modulation, the contingent payments would be recognized at the then-current fair value as an equity transaction. Additionally, in connection with the investment and contingent acquisition agreement, the Company also entered into an exclusive international distribution agreement, and obtained significant decision-making rights over Spinal Modulation's operations and economic performance. The Company also committed to providing additional debt financing to Spinal Modulation up to $15 million. Accordingly, effective June 7, 2013, the Company determined that Spinal Modulation was a VIE for which St. Jude Medical is the primary beneficiary. Therefore, as of June 7, 2013, the financial condition and results of operations of Spinal Modulation were included in St. Jude Medical's consolidated financial statements. The Company has a 19% voting equity interest in Spinal Modulation and allocates the losses attributable to Spinal Modulation's noncontrolling shareholders to noncontrolling interest in St. Jude Medical's statements of earnings and consolidated balance sheets. The results of Spinal Modulation since the date of its initial consolidation and pro forma disclosures of the consolidated results of the Company with the full year effects of Spinal Modulation have not been separately presented since the impact to the Company's results of operations was not material.

The initial consolidation of a VIE that is determined to be a business is accounted for as a business combination. The following table summarizes the estimated fair values of Spinal Modulation’s assets and liabilities included in St. Jude Medical's consolidated balance sheets as of the June 7, 2013 consolidation date, and as of September 28, 2013 after elimination of all intercompany balances and transactions (in millions):

	June 7, 2013		September 28, 2013
Cash and cash equivalents	$	41	$	31
Other current assets	9		6
Goodwill	82		82
Acquired in-process research and development (IPR&D)	45		45
Other intangible assets	7		7
Other long-term assets	1		1
Total assets	185		172
Current liabilities	6		5
Deferred income taxes, net	19		19
Total liabilities	25		24
Non-controlling interest	$	120	$	111

The initial allocation of Spinal Modulation’s assets and liabilities included in the Company’s consolidated balance sheet was based upon preliminary valuations, and the estimated fair values of assets and liabilities were subject to change as the valuations were finalized within the initial measurement period. In the three-month period ended September 28, 2013, the Company finalized the valuations and allocation of the estimated fair values of Spinal Modulation’s assets and liabilities and recorded a $35 million decrease to goodwill, a $5 million decrease to acquired IPR&D, a $3 million decrease to purchased technology intangible assets, a $3 million decrease to liabilities and a $40 million reduction to noncontrolling interest. These changes have been reflected retrospectively in the June 7, 2013 balances presented in the previous table.

The cash and cash equivalents balance of Spinal Modulation at June 7, 2013 includes $40 million of the Company’s equity investment proceeds. Assets recorded as a result of consolidating Spinal Modulation into the Company's consolidated balance sheet do not represent additional assets that could be used to satisfy claims against the Company's general assets. The creditors of Spinal Modulation do not have any recourse to the general credit of St. Jude Medical.

The goodwill recognized in connection with the Spinal Modulation transaction was not deductible for income tax purposes and was allocated entirely to the Company's IESD segment. The goodwill represents the strategic benefits of growing the Company's neuromodulation chronic pain portfolio as well as the expected revenue growth from increased market penetration. The Company recognized $45 million of indefinite-lived IPR&D intangible assets. Upon completion of the related development project (generally when regulatory approval to market the product is obtained), the IPR&D will be amortized over its estimated useful life. The Company also recognized $7 million of purchased technology intangible assets with an estimated useful life of 12 years.

CardioMEMS, Inc.: During 2010, the Company made an equity investment of $60 million in CardioMEMS, a privately-held company that is focused on the development of a wireless monitoring technology that can be placed directly into the pulmonary artery to assess cardiac performance via measurement of pulmonary artery pressure. The investment agreement resulted in a 19% voting equity interest and provided the Company with the exclusive right, but not the obligation, to acquire CardioMEMS for an additional payment of $375 million less any net debt payable to St. Jude Medical, Inc. during the period that extends through the completion of certain regulatory milestones.

In the first quarter of 2013, the Company obtained significant decision-making rights over CardioMEMS' operations and provided debt financing of $28 million to CardioMEMS which was collateralized by substantially all the assets of CardioMEMS including its intellectual property. In July 2013, the Company provided $9 million of additional debt financing to CardioMEMS. In accordance with ASC Topic 810, Consolidations (ASC Topic 810), the Company reconsidered and determined that effective February 27, 2013 CardioMEMS was a VIE for which St. Jude Medical is the primary beneficiary. As a result, as of February 27, 2013, the financial condition and results of operations of CardioMEMS were included in St. Jude Medical's consolidated financial statements. The Company recognized a $29 million charge to other expense (see Note 10) to adjust the carrying value of the pre-existing equity investment and fixed price purchase option to fair value. The Company continues to hold a 19% voting equity interest in CardioMEMS and allocates the losses attributable to CardioMEMS' noncontrolling shareholders to noncontrolling interest in St. Jude Medical's consolidated statements of earnings and consolidated balance sheets. The results of CardioMEMS since the date of acquisition and pro forma disclosures of the consolidated results of the Company with the full year effects of CardioMEMS have not been separately presented since the impact to the Company's results of operations was not material.

The initial consolidation of a VIE that is determined to be a business is accounted for as a business combination. The following table summarizes the estimated fair values of CardioMEMS’ assets and liabilities included in St. Jude Medical's consolidated balance sheets as of the February 27, 2013 consolidation date, and as of September 28, 2013 after elimination of all intercompany balances and transactions (in millions):

	February 27, 2013		September 28, 2013
Cash and cash equivalents	$	33	$	21
Other current assets	2		4
Goodwill	83		83
Acquired in-process research and development (IPR&D)	63		63
Other long-term assets	2		2
Total assets	183		173
Current liabilities	13		6
Deferred income taxes, net	23		23
Other liabilities	5		4
Total liabilities	41		33
Non-controlling interest	$	84	$	74

The initial allocation of CardioMEMS’ assets and liabilities included in the Company’s consolidated balance sheet was based upon preliminary valuations, and the estimated fair values of assets and liabilities were subject to change as the valuations were finalized within the initial measurement period. In the three-month period ended September 28, 2013, the Company finalized the valuations and allocation of the estimated fair values of CardioMEMS’ assets and liabilities and recorded a $1 million decrease to goodwill, a $6 million decrease to acquired IPR&D, a $2 million decrease to liabilities and a $5 million reduction to noncontrolling interest. These changes have been reflected retrospectively in the February 27, 2013 balances presented in the previous table.

The cash and cash equivalents balance of CardioMEMS at February 27, 2013 includes $28 million of the Company’s debt financing proceeds. Assets recorded as a result of consolidating CardioMEMS into the Company's consolidated balance sheet do not represent additional assets that could be used to satisfy claims against the Company's general assets. The other creditors of CardioMEMS do not have any recourse to the general credit of St. Jude Medical.

The goodwill recognized in connection with the CardioMEMS transaction was not deductible for income tax purposes and was allocated entirely to the Company's IESD segment. The goodwill represents the strategic benefits of growing the Company's cardiac rhythm management and heart failure therapy product portfolio as well as the expected revenue growth from increased market penetration. The Company recognized $63 million of indefinite-lived IPR&D intangible assets. Upon completion of the related development projects (generally when regulatory approval to market the product is obtained), the IPR&D will be amortized over its estimated useful life.

Nanostim, Inc.: As of September 28, 2013, the Company held an investment in Nanostim, Inc. (Nanostim), which provided the Company with an 18% voting equity interest. Nanostim is a development stage company, based in Sunnyvale, California that has developed a miniaturized and the first leadless cardiac pacemaker system, which received CE mark approval in August 2013. The Nanostim™ leadless pacemaker also received FDA conditional approval for its Investigation Device Exemption application and pivotal clinical trial protocol to begin evaluating the technology in the U.S. The terms of the Company’s original investment agreement with Nanostim included an exclusive fixed price purchase option to acquire the remaining 82% interest in Nanostim. The Company previously concluded that Nanostim was a VIE, but that St. Jude Medical was not the primary beneficiary of Nanostim as it did not retain power to direct the activities of Nanostim that most significantly impacted its economic performance. The Company has reflected its investment in Nanostim as a cost method investment in other assets.

On October 11, 2013, the Company exercised it exclusive purchase option and acquired all the outstanding shares of Nanostim for $118 million in net cash consideration. The Company's 18% voting equity interest in Nanostim will be remeasured to fair value as part of the Company's acquisition accounting. Under the terms of the agreement, the transaction also provides for additional cash payments of up to $65 million, contingent upon the achievement and timing of certain revenue-based milestones. As of the date of these financial statements, the Company had not fully completed its valuation of the net assets acquired from Nanostim and is unable to reasonably disclose the effects this business combination will have on the Company’s consolidated balance sheet. A preliminary valuation of the Company’s pre-existing equity interest and an allocation of the total purchase consideration to the estimated fair values of net assets acquired is expected to be completed in the fourth quarter of 2013.

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Debt

9 Months Ended

Sep. 28, 2013

Debt Disclosure [Abstract]

Debt

DEBT

The Company’s debt consisted of the following (in millions):

	September 28, 2013		December 29, 2012
2.20% senior notes due 2013 (retired September 2013)	$	—	$	454
3.75% senior notes due 2014 (redeemed May 2013)	—		699
2.50% senior notes due 2016	513		518
4.875% senior notes due 2019 (redeemed May 2013)	—		496
3.25% senior notes due 2023	896		—
4.75% senior notes due 2043	696		—
Term loan due 2015	500		—
1.58% Yen-denominated senior notes due 2017	83		95
2.04% Yen-denominated senior notes due 2020	130		149
Yen-denominated credit facilities	66		76
Commercial paper borrowings	585		593
Total debt	3,469		3,080
Less: current debt obligations	66		530
Long-term debt	$	3,403	$	2,550

Expected future minimum principal payments under the Company’s debt obligations as of September 28, 2013 are as follows: $66 million in 2014; $500 million in 2015; $500 million in 2016; $83 million in 2017; and $2,315 million in years thereafter.

Senior Notes Due 2013: In March 2010, the Company issued $450 million principal amount of 3-year, 2.20% unsecured senior notes (2013 Senior Notes) that matured on September 15, 2013, which the Company paid in full utilizing commercial paper borrowings and cash generated from operations.

Senior Notes Due 2016: In December 2010, the Company issued $500 million principal amount of 5-year, 2.50% unsecured senior notes (2016 Senior Notes) that mature in January 2016. The majority of the net proceeds from the issuance of the 2016 Senior Notes was used for general corporate purposes including the repurchase of the Company’s common stock. Interest payments are required on a semi-annual basis. The 2016 Senior Notes were issued at a discount, yielding an effective interest rate of 2.54% at issuance. The debt discount is being amortized as interest expense through maturity. The Company may redeem the 2016 Senior Notes at any time at the applicable redemption price.

Concurrent with the issuance of the 2016 Senior Notes, the Company entered into a 5-year, $500 million notional amount interest rate swap designated as a fair value hedge of the changes in fair value of the Company’s fixed-rate 2016 Senior Notes. In June 2012, the Company terminated the interest rate swap and received a cash payment of $24 million. The gain from terminating the interest rate swap agreement has been reflected as an increase to the carrying value of the debt and is being amortized as a reduction of interest expense resulting in a net average interest rate of 1.3% that will be recognized over the remaining term of the 2016 Senior Notes.

Senior Notes Due 2023: In April 2013, the Company issued $900 million principal amount of 10-year, 3.25% unsecured senior notes (2023 Senior Notes) that mature in April 2023. Interest payments are required on a semi-annual basis. The 2023 Senior Notes were issued at a discount, yielding an effective interest rate of 3.31% at issuance. The debt discount is being amortized as interest expense through maturity. The Company may redeem the 2023 Senior Notes at any time at the applicable redemption price.

Senior Notes Due 2043: In April 2013, the Company issued $700 million principal amount of 30-year, 4.75% unsecured senior notes (2043 Senior Notes) that mature in April 2043. Interest payments are required on a semi-annual basis. The 2043 Senior Notes were issued at a discount, yielding an effective interest rate of 4.79% at issuance. The debt discount is being amortized as interest expense through maturity. The Company may redeem the 2043 Senior Notes at any time at the applicable redemption price.

In May 2013, the Company used the majority of the proceeds from the issuance of its 2023 Senior Notes and 2043 Senior Notes to redeem both $700 million principal amount of 5-year, 3.75% unsecured senior notes originally due in 2014 (2014 Senior Notes) and $500 million principal amount of 10-year, 4.875% unsecured senior notes originally due in 2019 (2019 Senior Notes). In connection with the redemption of these senior notes, the Company recognized an aggregate $161 million charge in the second quarter of 2013 primarily associated with required make-whole redemption payments to noteholders from the senior notes being retired prior to their scheduled maturity.

Term Loan Due 2015: In June 2013, the Company entered into a 2-year, $500 million unsecured term loan, the proceeds of which were used for general corporate purposes including the repayment of outstanding commercial paper borrowings of the Company. These borrowings bear interest at LIBOR plus 0.5%, subject to adjustment in the event of a change in the Company's credit ratings. The Company may make principal payments on the outstanding borrowings any time after June 26, 2014.

1.58% Yen-Denominated Senior Notes Due 2017: In April 2010, the Company issued 7-year, 1.58% unsecured senior notes in Japan (1.58% Yen Notes) totaling 8.1 billion Japanese Yen (the equivalent of $83 million at September 28, 2013 and $95 million at December 29, 2012). The principal amount of the 1.58% Yen Notes recorded on the balance sheet fluctuates based on the effects of foreign currency translation. Interest payments are required on a semi-annual basis and the entire principal balance is due on April 28, 2017.

2.04% Yen-Denominated Senior Notes Due 2020: In April 2010, the Company issued 10-year, 2.04% unsecured senior notes in Japan (2.04% Yen Notes) totaling 12.8 billion Japanese Yen (the equivalent of $130 million at September 28, 2013 and $149 million at December 29, 2012). The principal amount of the 2.04% Yen Notes recorded on the balance sheet fluctuates based on the effects of foreign currency translation. Interest payments are required on a semi-annual basis and the entire principal balance is due on April 28, 2020.

Yen–Denominated Credit Facilities: In March 2011, the Company borrowed 6.5 billion Japanese Yen (the equivalent of $66 million at September 28, 2013 and $76 million at December 29, 2012) under uncommitted credit facilities with two commercial Japanese banks that provide for borrowings up to a maximum of 11.25 billion Japanese Yen. The principal amount reflected on the balance sheet fluctuates based on the effects of foreign currency translation. Half of the borrowings bear interest at Yen LIBOR plus 0.25% and mature in March 2014 and the other half of the borrowings bear interest at Yen LIBOR plus 0.275% and mature in June 2014. The maturity dates of each credit facility automatically extend for a one-year period, unless the Company elects to terminate the credit facility.

Other Available Borrowings: In May 2013, the Company entered into a $1.5 billion unsecured committed credit facility (Credit Facility) that it may draw on for general corporate purposes and to support its commercial paper program. The Credit Facility expires in May 2018. Borrowings under the Credit Facility bear interest initially at LIBOR plus 0.8%, subject to adjustment in the event of a change in the Company’s credit ratings. The Credit Facility replaces the Company's previous $1.5 billion credit facility that was scheduled to expire in February 2015. As of September 28, 2013 and December 29, 2012, the Company had no outstanding borrowings under either credit facility.

The Company’s commercial paper program provides for the issuance of unsecured commercial paper with maturities up to 270 days. As of September 28, 2013 and December 29, 2012, the Company's commercial paper borrowings were $585 million and $593 million, respectively. During the first nine months of 2013, the Company’s weighted average effective interest rate on its commercial paper borrowings was approximately 0.24%. Any future commercial paper borrowings would bear interest at the applicable then-current market rates. The Company classifies all of its commercial paper borrowings as long-term debt, as the Company has the ability and intent to repay any short-term maturity with available cash from its existing long-term, committed Credit Facility.

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Goodwill And Other Intangible Assets

9 Months Ended

Sep. 28, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

The changes in the carrying amount of goodwill for each of the Company’s reportable segments (see Note 14) for the nine months ended September 28, 2013 were as follows (in millions):

	IESD			CATD		Total
Balance at December 29, 2012	$	1,229		$	1,732	$	2,961
Endosense S.A.	—			258		258
Spinal Modulation, Inc.	82			—		82
CardioMEMS, Inc.	83			—		83
Foreign currency translation and other	(12		)	11		(1		)
Balance at September 28, 2013	$	1,382		$	2,001	$	3,383

The following table provides the gross carrying amount of other intangible assets and related accumulated amortization (in millions):

	September 28, 2013				December 29, 2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Definite-lived intangible assets:
Purchased technology and patents	$	954	$	374	$	947	$	336
Customer lists and relationships	22		16		57		36
Trademarks and tradenames	22		11		22		10
Licenses, distribution agreements and other	4		2		6		4
	$	1,002	$	403	$	1,032	$	386
Indefinite-lived intangible assets:
Acquired IPR&D	$	250			$	109
Trademarks and tradenames	49				49
	$	299			$	158

During the second quarter of 2013, the Company recognized a $13 million impairment charge primarily associated with customer relationship intangible assets (see Note 7). The gross carrying amounts and related accumulated amortization amounts for these impairment charges were written off accordingly.

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Debt (Narrative) (Details)				3 Months Ended	9 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended			9 Months Ended			9 Months Ended			9 Months Ended			9 Months Ended			9 Months Ended		3 Months Ended			9 Months Ended			3 Months Ended		9 Months Ended						9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended		9 Months Ended		3 Months Ended
	Sep. 28, 2013 USD ($)	May 02, 2013 USD ($)	Dec. 29, 2012 USD ($)	Sep. 28, 2013 2.20% Senior Notes Due 2013 [Member] USD ($)	Sep. 28, 2013 2.20% Senior Notes Due 2013 [Member] USD ($)	Dec. 29, 2012 2.20% Senior Notes Due 2013 [Member] USD ($)	Sep. 28, 2013 Two point five percent Senior Notes Due Two Thousand Sixteen [Member] USD ($)	Sep. 28, 2013 Two point five percent Senior Notes Due Two Thousand Sixteen [Member] USD ($)	Jan. 01, 2011 Two point five percent Senior Notes Due Two Thousand Sixteen [Member]	Dec. 29, 2012 Two point five percent Senior Notes Due Two Thousand Sixteen [Member] USD ($)	Jun. 30, 2012 Two point five percent Senior Notes Due Two Thousand Sixteen [Member] USD ($)	Sep. 28, 2013 Three point twenty-five percent Senior Notes Due Two Thousand Twenty-three [Member] USD ($)	Apr. 02, 2013 Three point twenty-five percent Senior Notes Due Two Thousand Twenty-three [Member] USD ($)	Dec. 29, 2012 Three point twenty-five percent Senior Notes Due Two Thousand Twenty-three [Member] USD ($)	Sep. 28, 2013 Four point seventy-five percent Senior Notes Due Two Thousand Fourty-three [Member] [Member] USD ($)	Apr. 02, 2013 Four point seventy-five percent Senior Notes Due Two Thousand Fourty-three [Member] [Member] USD ($)	Dec. 29, 2012 Four point seventy-five percent Senior Notes Due Two Thousand Fourty-three [Member] [Member] USD ($)	Sep. 28, 2013 Three point seven five percent Senior Notes Due Two Thousand Fourteen [Member] USD ($)	Jun. 29, 2013 Three point seven five percent Senior Notes Due Two Thousand Fourteen [Member] USD ($)	Dec. 29, 2012 Three point seven five percent Senior Notes Due Two Thousand Fourteen [Member] USD ($)	Sep. 28, 2013 Four point eight seven five percent Senior Notes Due Two Thousand Nineteen [Member] USD ($)	Jun. 29, 2013 Four point eight seven five percent Senior Notes Due Two Thousand Nineteen [Member] USD ($)	Dec. 29, 2012 Four point eight seven five percent Senior Notes Due Two Thousand Nineteen [Member] USD ($)	Sep. 28, 2013 Term loan due 2015 [Member] USD ($)	Dec. 29, 2012 Term loan due 2015 [Member] USD ($)	Sep. 28, 2013 Term loan due 2015 [Member] United States Currency Rate	Sep. 28, 2013 1.58% Yen-Denominated Senior Notes Due 2017 [Member] USD ($)	Sep. 28, 2013 1.58% Yen-Denominated Senior Notes Due 2017 [Member] JPY (¥)	Sep. 28, 2013 1.58% Yen-Denominated Senior Notes Due 2017 [Member] USD ($)	Sep. 28, 2013 1.58% Yen-Denominated Senior Notes Due 2017 [Member] JPY (¥)	Dec. 29, 2012 1.58% Yen-Denominated Senior Notes Due 2017 [Member] USD ($)	Sep. 28, 2013 2.04% Yen-Denominated Senior Notes Due 2020 [Member] USD ($)	Sep. 28, 2013 2.04% Yen-Denominated Senior Notes Due 2020 [Member] JPY (¥)	Sep. 28, 2013 2.04% Yen-Denominated Senior Notes Due 2020 [Member] USD ($)	Sep. 28, 2013 2.04% Yen-Denominated Senior Notes Due 2020 [Member] JPY (¥)	Dec. 29, 2012 2.04% Yen-Denominated Senior Notes Due 2020 [Member] USD ($)	Sep. 28, 2013 Yen Denominated Credit Facilities [Member] USD ($)	Sep. 28, 2013 Yen Denominated Credit Facilities [Member] JPY (¥)	Dec. 29, 2012 Yen Denominated Credit Facilities [Member] USD ($)	Sep. 28, 2013 Yen Denominated Credit Facility One [Member]	Sep. 28, 2013 Yen Denominated Credit Facility One [Member] Japan, Yen	Sep. 28, 2013 Yen Denominated Credit Facility Two [Member]	Sep. 28, 2013 Yen Denominated Credit Facility Two [Member] Japan, Yen	Sep. 28, 2013 Credit Facility [Member] Scheduled Maturity of May 2018 [Member] USD ($)	Sep. 28, 2013 Credit Facility [Member] Scheduled Maturity of May 2018 [Member] USD ($)	Sep. 28, 2013 Credit Facility [Member] Scheduled Maturity of February 2015 [Member] USD ($)	Sep. 28, 2013 Credit Facility [Member] United States Currency Rate Scheduled Maturity of May 2018 [Member]	Sep. 28, 2013 Commercial paper borrowings [Member] USD ($) D	Dec. 29, 2012 Commercial paper borrowings [Member] USD ($)
Debt Instrument [Line Items]
Expected minimum principal payments in 2014	$ 66,000,000
Expected minimum principal payments in 2015	500,000,000
Expected minimum principal payments in 2016	500,000,000
Expected minimum principal payments in 2017	83,000,000
Expected minimum principal payments thereafter	2,315,000,000
Debt Instrument, Face Amount				450,000,000	450,000,000		500,000,000	500,000,000					900,000,000			700,000,000		700,000,000	700,000,000		500,000,000	500,000,000		500,000,000			83,000,000	8,100,000,000	83,000,000	8,100,000,000	95,000,000	130,000,000	12,800,000,000	130,000,000	12,800,000,000	149,000,000
Make-whole redemption charge		161,000,000
Debt instrument term, years					3 years			5 years				10 years			30 years			5 years			10 years			2 years					7 years	7 years				10 years	10 years
Debt instrument, stated percentage rate				2.20%	2.20%		2.50%	2.50%					3.25%			4.75%		3.75%			4.875%						1.58%	1.58%	1.58%	1.58%		2.04%	2.04%	2.04%	2.04%
Debt instrument, due date				Sep. 15, 2013			Jan. 15, 2016					Apr. 15, 2023			Apr. 15, 2043												Apr. 28, 2017	Apr. 28, 2017				Apr. 28, 2020	Apr. 28, 2020											May 31, 2018
Debt Instrument, Description of Variable Rate Basis																										LIBOR															Yen LIBOR		Yen LIBOR				LIBOR
Debt instrument, effective interest rate							2.54%	2.54%					3.31%			4.79%
Interest rate swap term, years									5 years
Derivative, Notional Amount							500,000,000	500,000,000
Proceeds from termination of interest rate swap											24,000,000
Net average interest rate								1.30%
Outstanding balance under yen denominated credit facilities																																					66,000,000	6,500,000,000	76,000,000
Number of commercial banks in Japan providing financing under uncommitted credit facilities	2
Maximum borrowing capacity																																						11,250,000,000
Debt instrument basis spread																								0.50%																0.275%		0.25%			0.80%
Unused borrowing capacity																																												1,500,000,000	1,500,000,000	1,500,000,000
Maximum days commercial paper program provides for the issuance of short-term, unsecured commercial paper																																																270
Long-term Debt	$ 3,469,000,000		$ 3,080,000,000	$ 0	$ 0	$ 454,000,000	$ 513,000,000	$ 513,000,000		$ 518,000,000		$ 896,000,000		$ 0	$ 696,000,000		$ 0	$ 0		$ 699,000,000	$ 0		$ 496,000,000	$ 500,000,000	$ 0		$ 83,000,000		$ 83,000,000		$ 95,000,000	$ 130,000,000		$ 130,000,000		$ 149,000,000	$ 66,000,000		$ 76,000,000									$ 585,000,000	$ 593,000,000
Weighted average effective interest rate																																																0.24%

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Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 28, 2013

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The tables below present the changes in each component of accumulated other comprehensive income, including other comprehensive income and reclassifications out of accumulated other comprehensive income in to net earnings for the three and nine months ended September 28, 2013 (in millions):

	Unrealized			Unrealized		Foreign			Accumulated
	gain (loss) on			gain (loss) on		Currency			Other
	available-for-sale			derivative		Translation			Comprehensive
For the three months ended September 28, 2013	securities			instruments		Adjustment			Income (Loss)
Accumulated other comprehensive income (loss), net of tax, at June 29, 2013	$	18		$	3	$	(15	)	$	6
Other comprehensive income (loss) before reclassifications	—			—		51			51
Amounts reclassified to net earnings from accumulated other comprehensive income	(2		)	—		—			(2		)
Other comprehensive income (loss)	(2		)	—		51			49
Accumulated other comprehensive income (loss), net of tax, at September 28, 2013	$	16		$	3	$	36		$	55
	Unrealized			Unrealized		Foreign			Accumulated
	gain (loss) on			gain (loss) on		Currency			Other
	available-for-sale			derivative		Translation			Comprehensive
For the nine months ended September 28, 2013	securities			instruments		Adjustment			Income (Loss)
Accumulated other comprehensive income (loss), net of tax, at December 29, 2012	$	20		$	—	$	26		$	46
Other comprehensive income (loss) before reclassifications	1			3		10			14
Amounts reclassified to net earnings from accumulated other comprehensive income	(5		)	—		—			(5		)
Other comprehensive income (loss)	(4		)	3		10			9
Accumulated other comprehensive income (loss), net of tax, at September 28, 2013	$	16		$	3	$	36		$	55

The tables below present the changes in each component of accumulated other comprehensive income, including other comprehensive income and reclassifications out of accumulated other comprehensive income in to net earnings for the three and nine months ended September 29, 2012 (in millions):

	Unrealized			Foreign			Accumulated
	gain (loss) on			Currency			Other
	available-for-sale			Translation			Comprehensive
For the three months ended September 29, 2012	securities			Adjustment			Income (Loss)
Accumulated other comprehensive income (loss), net of tax, at June 30, 2012	$	19		$	(48	)	$	(29	)
Other comprehensive income (loss) before reclassifications	4			44			48
Amounts reclassified to net earnings from accumulated other comprehensive income	(3		)	—			(3		)
Other comprehensive income (loss)	1			44			45
Accumulated other comprehensive income (loss), net of tax, at September 29, 2012	$	20		$	(4	)	$	16
	Unrealized			Foreign			Accumulated
	gain (loss) on			Currency			Other
	available-for-sale			Translation			Comprehensive
For the nine months ended September 29, 2012	securities			Adjustment			Income (Loss)
Accumulated other comprehensive income (loss), net of tax, at December 31, 2011	$	18		$	(2	)	$	16
Other comprehensive income (loss) before reclassifications	10			(2		)	8
Amounts reclassified to net earnings from accumulated other comprehensive income	(8		)	—			(8		)
Other comprehensive income (loss)	2			(2		)	—
Accumulated other comprehensive income (loss), net of tax, at September 29, 2012	$	20		$	(4	)	$	16

Schedule of Reclassifcation of Accumulated Other Comprehensive Income to Net Earnings Statement [Table Text Block]

The table below provides details about reclassifications out of accumulated other comprehensive income and the line items impacted in the Company's Condensed Consolidated Statements of Earnings for the three and nine months ended September 28, 2013 and September 29, 2012 (in millions):

Details about accumulated	Amount reclassified from accumulated other comprehensive income
other comprehensive	Three Months Ended						Nine Months Ended
income components	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012			Statements of Earnings Classification
Unrealized gain (loss) on available-for-sale securities:
Gain on sale of available-for-sale securities	$	4		$	5		$	9		$	14		Other expense, net
	(2		)	(2		)	(4		)	(6		)	Income tax expense
	2			3			5			8			Net earnings before noncontrolling interest
	$	2		$	3		$	5		$	8		Net earnings attributable to St. Jude Medical, Inc.

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Basis Of Presentation Basis of Presentation (Narrative) (Details) (Spinal Modulation [Member], USD $) In Millions, unless otherwise specified	Jun. 07, 2013
Spinal Modulation [Member]
Equity Security Ownership Interest And Allocated Value For Purchase Option	$ 40

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Goodwill And Other Intangible Assets (Schedule Of Gross Carrying Amount Of Other Intangible Assets And Related Accumulated Amortization) (Details) (USD $) In Millions, unless otherwise specified	Sep. 28, 2013	Dec. 29, 2012
Goodwill And Other Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,002	$ 1,032
Accumulated Amortization	403	386
Indefinite-lived intangible assets	299	158
Purchased Technology And Patents [Member]
Goodwill And Other Intangible Assets [Line Items]
Gross Carrying Amount	954	947
Accumulated Amortization	374	336
Customer Lists And Relationships [Member]
Goodwill And Other Intangible Assets [Line Items]
Gross Carrying Amount	22	57
Accumulated Amortization	16	36
Trademarks and Trade Names [Member]
Goodwill And Other Intangible Assets [Line Items]
Gross Carrying Amount	22	22
Accumulated Amortization	11	10
Licenses, Distribution Agreements And Other [Member]
Goodwill And Other Intangible Assets [Line Items]
Gross Carrying Amount	4	6
Accumulated Amortization	2	4
In Process Research and Development [Member]
Goodwill And Other Intangible Assets [Line Items]
Indefinite-lived intangible assets	250	109
Trademarks and Trade Names [Member]
Goodwill And Other Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 49	$ 49

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Fair Value Measurements And Financial Instruments Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) (USD $)	9 Months Ended
	Sep. 28, 2013	Aug. 19, 2013
Fair Value Disclosures [Abstract]
Fair Value, Measurement with Unobservable Inputs, Recurring Basis, Liability Value Beginning Balance	$ 0
Business Combination, Contingent Consideration, Liability		132,000,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	1,000,000
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax	3,000,000
Fair Value, Measurement with Unobservable Inputs, Recurring Basis, Liability Value Ending Balance	$ 136,000,000

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Other Expense, Net Other Expense, Net (Narrative) (Details) (USD $) In Millions, unless otherwise specified		3 Months Ended
	May 02, 2013	Mar. 30, 2013 CardioMEMS, Inc. [Member]	Sep. 28, 2013 Three point seven five percent Senior Notes Due Two Thousand Fourteen [Member]	Jun. 29, 2013 Three point seven five percent Senior Notes Due Two Thousand Fourteen [Member]	Sep. 28, 2013 Four point eight seven five percent Senior Notes Due Two Thousand Nineteen [Member]	Jun. 29, 2013 Four point eight seven five percent Senior Notes Due Two Thousand Nineteen [Member]
Debt Instrument, Face Amount			$ 700	$ 700	$ 500	$ 500
Make-whole redemption charge	161
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Loss		$ 29

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Special Charges (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended									12 Months Ended		3 Months Ended		12 Months Ended		3 Months Ended			12 Months Ended									3 Months Ended			12 Months Ended	3 Months Ended			12 Months Ended	3 Months Ended			12 Months Ended	3 Months Ended			12 Months Ended	3 Months Ended			12 Months Ended	3 Months Ended			12 Months Ended	3 Months Ended			12 Months Ended	3 Months Ended			12 Months Ended			3 Months Ended			12 Months Ended	3 Months Ended			12 Months Ended	3 Months Ended			12 Months Ended	3 Months Ended		12 Months Ended	3 Months Ended				12 Months Ended	3 Months Ended			12 Months Ended	3 Months Ended			12 Months Ended	3 Months Ended			12 Months Ended	3 Months Ended			12 Months Ended	3 Months Ended			12 Months Ended	3 Months Ended			12 Months Ended
	Mar. 31, 2012	Jun. 29, 2013 Licensing Agreements [Member]	Mar. 31, 2012 Licensing Agreements [Member]	Jun. 30, 2012 Intangible Asset Charges [Member] CATD [Member]	Sep. 29, 2012 Intangible Asset Charges [Member] IESD [Member]	Jun. 29, 2013 Intangible Asset Charges [Member] Customer Relationships [Member]	Sep. 28, 2013 2011 Restructuring Plan [Member]	Jun. 29, 2013 2011 Restructuring Plan [Member]	Mar. 30, 2013 2011 Restructuring Plan [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member]	Dec. 31, 2011 2011 Restructuring Plan [Member]	Sep. 28, 2013 2011 Restructuring Plan [Member] Employee Termination Costs [Member]	Mar. 30, 2013 2011 Restructuring Plan [Member] Employee Termination Costs [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Employee Termination Costs [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Other Restructuring [Member]	Sep. 28, 2013 2011 Restructuring Plan [Member] Other Restructuring [Member] cardiac rhythm management business [Member]	Jun. 29, 2013 2011 Restructuring Plan [Member] Other Restructuring [Member] cardiac rhythm management business [Member]	Mar. 30, 2013 2011 Restructuring Plan [Member] Other Restructuring [Member] cardiac rhythm management business [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Other Restructuring [Member] cardiac rhythm management business [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Contract Termination [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Facility Closing [Member] cardiac rhythm management business [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Other Costs [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Cost of Sales [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Cost of Sales [Member] Employee Termination Costs [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Cost of Sales [Member] Inventory Charges [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Cost of Sales [Member] Fixed Asset Charges [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Cost of Sales [Member] Other Restructuring [Member]	Sep. 28, 2013 2011 Restructuring Plan [Member] Operating Expense [Member]	Jun. 29, 2013 2011 Restructuring Plan [Member] Operating Expense [Member]	Mar. 30, 2013 2011 Restructuring Plan [Member] Operating Expense [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Operating Expense [Member]	Sep. 28, 2013 2011 Restructuring Plan [Member] Operating Expense [Member] Employee Termination Costs [Member]	Jun. 29, 2013 2011 Restructuring Plan [Member] Operating Expense [Member] Employee Termination Costs [Member]	Mar. 30, 2013 2011 Restructuring Plan [Member] Operating Expense [Member] Employee Termination Costs [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Operating Expense [Member] Employee Termination Costs [Member]	Sep. 28, 2013 2011 Restructuring Plan [Member] Operating Expense [Member] Inventory Charges [Member]	Jun. 29, 2013 2011 Restructuring Plan [Member] Operating Expense [Member] Inventory Charges [Member]	Mar. 30, 2013 2011 Restructuring Plan [Member] Operating Expense [Member] Inventory Charges [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Operating Expense [Member] Inventory Charges [Member]	Sep. 28, 2013 2011 Restructuring Plan [Member] Operating Expense [Member] Fixed Asset Charges [Member]	Jun. 29, 2013 2011 Restructuring Plan [Member] Operating Expense [Member] Fixed Asset Charges [Member]	Mar. 30, 2013 2011 Restructuring Plan [Member] Operating Expense [Member] Fixed Asset Charges [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Operating Expense [Member] Fixed Asset Charges [Member]	Sep. 28, 2013 2011 Restructuring Plan [Member] Operating Expense [Member] Other Restructuring [Member]	Jun. 29, 2013 2011 Restructuring Plan [Member] Operating Expense [Member] Other Restructuring [Member]	Mar. 30, 2013 2011 Restructuring Plan [Member] Operating Expense [Member] Other Restructuring [Member]	Dec. 29, 2012 2011 Restructuring Plan [Member] Operating Expense [Member] Other Restructuring [Member]	Sep. 28, 2013 2012 Business Realignment Restructuring Plan [Member]	Jun. 29, 2013 2012 Business Realignment Restructuring Plan [Member]	Mar. 30, 2013 2012 Business Realignment Restructuring Plan [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member]	Sep. 28, 2013 2012 Business Realignment Restructuring Plan [Member] Employee Termination Costs [Member]	Jun. 29, 2013 2012 Business Realignment Restructuring Plan [Member] Employee Termination Costs [Member]	Mar. 30, 2013 2012 Business Realignment Restructuring Plan [Member] Employee Termination Costs [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Employee Termination Costs [Member]	Sep. 28, 2013 2012 Business Realignment Restructuring Plan [Member] Other Restructuring [Member]	Jun. 29, 2013 2012 Business Realignment Restructuring Plan [Member] Other Restructuring [Member]	Mar. 30, 2013 2012 Business Realignment Restructuring Plan [Member] Other Restructuring [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Other Restructuring [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Contract Termination [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Other Costs [Member]	Sep. 28, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member]	Jun. 29, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member]	Mar. 30, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member]	Sep. 28, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Employee Termination Costs [Member]	Jun. 29, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Employee Termination Costs [Member]	Mar. 30, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Employee Termination Costs [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Employee Termination Costs [Member]	Sep. 28, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Inventory Charges [Member]	Jun. 29, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Inventory Charges [Member]	Mar. 30, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Inventory Charges [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Inventory Charges [Member]	Sep. 28, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Inventory Charges [Member] CATD [Member]	Mar. 30, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Inventory Charges [Member] CATD [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Inventory Charges [Member] CATD [Member]	Jun. 29, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Inventory Charges [Member] IESD [Member]	Sep. 28, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Fixed Asset Charges [Member]	Jun. 29, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Fixed Asset Charges [Member]	Mar. 30, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Fixed Asset Charges [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Fixed Asset Charges [Member]	Sep. 28, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Other Restructuring [Member]	Jun. 29, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Other Restructuring [Member]	Mar. 30, 2013 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Other Restructuring [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Cost of Sales [Member] Other Restructuring [Member]	Sep. 28, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member]	Jun. 29, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member]	Mar. 30, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member]	Sep. 28, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Employee Termination Costs [Member]	Jun. 29, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Employee Termination Costs [Member]	Mar. 30, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Employee Termination Costs [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Employee Termination Costs [Member]	Sep. 28, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Inventory Charges [Member]	Jun. 29, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Inventory Charges [Member]	Mar. 30, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Inventory Charges [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Inventory Charges [Member]	Sep. 28, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Fixed Asset Charges [Member]	Jun. 29, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Fixed Asset Charges [Member]	Mar. 30, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Fixed Asset Charges [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Fixed Asset Charges [Member]	Sep. 28, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Other Restructuring [Member]	Jun. 29, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Other Restructuring [Member]	Mar. 30, 2013 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Other Restructuring [Member]	Dec. 29, 2012 2012 Business Realignment Restructuring Plan [Member] Operating Expense [Member] Other Restructuring [Member]
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items]
Special charges							$ 6	$ 4	$ 9	$ 102	$ 162												$ 44					$ 6	$ 4	$ 9	$ 58																	$ 13	$ 39	$ 34	$ 185											$ 2	$ 1	$ 18	$ 24																					$ 11	$ 38	$ 16	$ 161
Severance and benefit costs												2	2	38										11								2	0	2	27																	4	19	10	109											0	0	0	5																					4	19	10	104
Special charges, inventory obsolescence charges																									13											0	0	0	0																															2	1	18	17	2	18	17	1																	0	0	0	0
Special charges, fixed asset impairment charges																										0														0	1	0	0																																			0	0	0	0																	0	2	2	41
Restructuring reserve period expense															51	4	3	7	37	8		6					20																	4	3	7	31									7	17	4	18	7	11																					0	0	0	2																	7	17	4	16
Restructuring and Related Cost, Number of Positions Eliminated, Inception to Date Percent																																																			5.00%
Idle facility costs																					13
Legal settlement charge		22	28
Impairment of Intangible Assets, Finite-lived				5	23	13
Purchased technology and patents	$ 12

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Condensed Consolidated Statements Of Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012
Net earnings before noncontrolling interest	$ 252	$ 176	$ 581	$ 632
Other comprehensive income (loss), net of tax:
Unrealized gain on available-for-sale securities	0	4	1	10
Unrealized gain on derivative financial instruments	0	0	3	0
Reclassification of realized gain to net earnings on available-for-sale securities	(2)	(3)	(5)	(8)
Foreign currency translation adjustment	51	44	10	(2)
Other comprehensive income (loss)	49	45	9	0
Total comprehensive income before noncontrolling interest	301	221	590	632
Total comprehensive loss attributable to noncontrolling interest	(10)	0	(19)	0
Total comprehensive income attributable to St. Jude Medical, Inc.	$ 311	$ 221	$ 609	$ 632

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Net Earnings Per Share

9 Months Ended

Sep. 28, 2013

Earnings Per Share [Abstract]

Net Earnings Per Share

NET EARNINGS PER SHARE

The table below sets forth the computation of basic and diluted net earnings per share attributable to St. Jude Medical, Inc. (in millions, except per share amounts):

	Three Months Ended				Nine Months Ended
	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
Numerator:
Net earnings attributable to St. Jude Medical, Inc.	$	262	$	176	$	600	$	632
Denominator:
Basic weighted average shares outstanding	287.5		314.7		285.6		314.8
Effect of dilutive securities:
Employee stock options	4.0		1.3		2.8		1.4
Restricted stock units	0.5		0.3		0.3		0.2
Diluted weighted average shares outstanding	292.0		316.3		288.7		316.4
Basic net earnings per share attributable to St. Jude Medical, Inc.	$	0.91	$	0.56	$	2.10	$	2.01
Diluted net earnings per share attributable to St. Jude Medical, Inc.	$	0.90	$	0.56	$	2.08	$	2.00

Approximately 2.2 million and 16.1 million shares of common stock subject to stock options and restricted stock units were excluded from the diluted net earnings per share computation for the three months ended September 28, 2013 and September 29, 2012, respectively, because they were not dilutive. Additionally, approximately 5.4 million and 16.7 million shares of common stock subject to stock options and restricted stock units were excluded from the diluted net earnings per share computation for the nine months ended September 28, 2013 and September 29, 2012, respectively, because they were not dilutive.

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Sep. 28, 2013	Dec. 29, 2012
Statement of Financial Position [Abstract]
Accounts receivable allowance for doubtful accounts	$ 46	$ 47
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.1	$ 0.1
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	288,968,747	295,648,327
Common stock, shares outstanding	288,968,747	295,648,327

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Segment And Geographic Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012	Dec. 29, 2012
Segment Reporting Information [Line Items]
Net sales	$ 1,338	$ 1,326	$ 4,079	$ 4,131
Operating profit	313	235	903	875
Total Assets	9,965		9,965		9,271
International, Net Sales	692	686	2,124	2,162
Long-Lived Assets	1,427		1,427		1,425
International, Long-Lived Assets	381		381		389
IESD [Member]
Segment Reporting Information [Line Items]
Net sales	786	792	2,389	2,482
Operating profit	534	547	1,630	1,720
Total Assets	2,644		2,644		2,320
CATD [Member]
Segment Reporting Information [Line Items]
Net sales	552	534	1,690	1,649
Operating profit	321	319	995	980
Total Assets	3,301		3,301		2,967
Other [Member]
Segment Reporting Information [Line Items]
Net sales	0	0	0	0
Operating profit	(542)	(631)	(1,722)	(1,825)
Total Assets	4,020		4,020		3,984
United States [Member]
Segment Reporting Information [Line Items]
Net sales	646	640	1,955	1,969
Long-Lived Assets	1,046		1,046		1,036
Europe [Member]
Segment Reporting Information [Line Items]
Net sales	333	311	1,066	1,059
Long-Lived Assets	81		81		82
Japan [Member]
Segment Reporting Information [Line Items]
Net sales	142	172	418	500
Long-Lived Assets	34		34		32
Asia Pacific [Member]
Segment Reporting Information [Line Items]
Net sales	125	118	362	339
Long-Lived Assets	77		77		82
Other Countries [Member]
Segment Reporting Information [Line Items]
Net sales	92	85	278	264
Long-Lived Assets	$ 189		$ 189		$ 193

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Condensed Consolidated Statements Of Earnings (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012
Net sales	$ 1,338	$ 1,326	$ 4,079	$ 4,131
Cost of sales:
Cost of sales before special charges	383	348	1,123	1,073
Special charges	2	7	21	46
Total cost of sales	385	355	1,144	1,119
Gross Profit	953	971	2,935	3,012
Selling, general and administrative expense	452	456	1,409	1,440
Research and development expense	172	170	505	518
Special charges	16	110	118	179
Operating profit	313	235	903	875
Other expense, net	17	19	248	67
Earnings before noncontrolling interest and income taxes	296	216	655	808
Income tax expense (benefit)	44	40	74	176
Net earnings before noncontrolling interest	252	176	581	632
Net loss attributable to noncontrolling interest	(10)	0	(19)	0
Net earnings attributable to St. Jude Medical, Inc.	$ 262	$ 176	$ 600	$ 632
Net earnings per share attributable to St. Jude Medical, Inc.:
Basic	$ 0.91	$ 0.56	$ 2.10	$ 2.01
Diluted	$ 0.90	$ 0.56	$ 2.08	$ 2.00
Cash dividends declared per share:	$ 0.25	$ 0.23	$ 0.75	$ 0.69
Weighted average shares outstanding:
Basic	287.5	314.7	285.6	314.8
Diluted	292.0	316.3	288.7	316.4

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Income Taxes (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Sep. 28, 2013	Dec. 29, 2012
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 265	$ 314
Accrued interest and penalties	35	69
Tax Adjustments, Settlements, and Unusual Provisions	$ (15)	$ 46

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Other Expense, Net (Tables)

9 Months Ended

Sep. 28, 2013

Other Nonoperating Income (Expense) [Abstract]

Schedule Of Other Expense, Net

The Company’s other expense, net consisted of the following (in millions):

	Three Months Ended						Nine Months Ended
	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012
Interest income	$	(1	)	$	(1	)	$	(4	)	$	(3	)
Interest expense	21			18			60			55
Other	(3		)	2			192			15
Other expense, net	$	17		$	19		$	248		$	67

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Inventories (Tables)

9 Months Ended

Sep. 28, 2013

Inventory, Net [Abstract]

Schedule Of Inventories

The Company’s inventories consisted of the following (in millions):

	September 28, 2013		December 29, 2012
Finished goods	$	475	$	416
Work in process	59		50
Raw materials	153		144
	$	687	$	610

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Special Charges (Summary Of Activity Related To Special Charge Restructuring Accrual) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended			12 Months Ended
	Sep. 28, 2013	Jun. 29, 2013	Mar. 30, 2013	Dec. 29, 2012	Dec. 31, 2011	Sep. 29, 2012
2011 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Balance at beginning	$ 23	$ 32	$ 42	$ 72
Special charges	6	4	9	102	162
Non-cash charges used		(1)		(17)
Cash payments	(6)	(12)	(19)	(115)
Foreign exchange rate impact				0
Balance at ending	23	23	32	42	72
2011 Restructuring Plan [Member] | Employee Termination Costs [Member]
Restructuring Cost and Reserve [Line Items]
Balance at beginning	9	14	25	54
Special charges, severance and benefit costs	2		2	38
Non-cash charges used		0		0
Cash payments	(1)	(5)	(13)	(68)
Foreign exchange rate impact				1
Balance at ending	10	9	14	25
2011 Restructuring Plan [Member] | Inventory Charges [Member]
Restructuring Cost and Reserve [Line Items]
Balance at beginning	0	0	0	0
Non-cash charges used		0		(13)
Cash payments	0	0	0	0
Foreign exchange rate impact				0
Balance at ending	0	0	0	0
2011 Restructuring Plan [Member] | Fixed Asset Charges [Member]
Restructuring Cost and Reserve [Line Items]
Balance at beginning	0	0		0
Non-cash charges used		(1)		0
Cash payments	0	0		0
Foreign exchange rate impact				0
Balance at ending	0	0		0
2011 Restructuring Plan [Member] | Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Balance at beginning	14	18	17	18
Restructuring reserve period expense				51
Non-cash charges used		0		(4)
Cash payments	(5)	(7)	(6)	(47)
Foreign exchange rate impact				(1)
Balance at ending	13	14	18	17
2011 Restructuring Plan [Member] | Cost of Sales [Member]
Restructuring Cost and Reserve [Line Items]
Special charges				44
2011 Restructuring Plan [Member] | Cost of Sales [Member] | Employee Termination Costs [Member]
Restructuring Cost and Reserve [Line Items]
Special charges, severance and benefit costs				11
2011 Restructuring Plan [Member] | Cost of Sales [Member] | Inventory Charges [Member]
Restructuring Cost and Reserve [Line Items]
Special charges, inventory obsolescence charges				13
2011 Restructuring Plan [Member] | Cost of Sales [Member] | Fixed Asset Charges [Member]
Restructuring Cost and Reserve [Line Items]
Special charges, fixed asset impairment charges				0
2011 Restructuring Plan [Member] | Cost of Sales [Member] | Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve period expense				20
2011 Restructuring Plan [Member] | Operating Expense [Member]
Restructuring Cost and Reserve [Line Items]
Special charges	6	4	9	58
2011 Restructuring Plan [Member] | Operating Expense [Member] | Employee Termination Costs [Member]
Restructuring Cost and Reserve [Line Items]
Special charges, severance and benefit costs	2	0	2	27
2011 Restructuring Plan [Member] | Operating Expense [Member] | Inventory Charges [Member]
Restructuring Cost and Reserve [Line Items]
Special charges, inventory obsolescence charges	0	0	0	0
2011 Restructuring Plan [Member] | Operating Expense [Member] | Fixed Asset Charges [Member]
Restructuring Cost and Reserve [Line Items]
Special charges, fixed asset impairment charges	0	1	0	0
2011 Restructuring Plan [Member] | Operating Expense [Member] | Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve period expense	4	3	7	31
2012 Business Realignment Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Balance at beginning	51	44	66	0
Special charges	13	39	34	185
Non-cash charges used	(2)	(7)	(20)	(61)
Cash payments	(22)	(26)	(35)	(59)
Foreign exchange rate impact	0	1	(1)	1
Balance at ending	40	51	44	66
2012 Business Realignment Restructuring Plan [Member] | Employee Termination Costs [Member]
Restructuring Cost and Reserve [Line Items]
Balance at beginning	38	35	58	0
Special charges, severance and benefit costs	4	19	10	109
Non-cash charges used	0	0	0	0
Cash payments	(15)	(17)	(32)	(52)
Foreign exchange rate impact	0	1	(1)	1
Balance at ending	27	38	35	58
2012 Business Realignment Restructuring Plan [Member] | Inventory Charges [Member]
Restructuring Cost and Reserve [Line Items]
Balance at beginning	0	0	0	0
Non-cash charges used	(2)	(1)	(18)	(17)
Cash payments	0	0	0	0
Foreign exchange rate impact	0	0	0	0
Balance at ending	0	0	0	0
2012 Business Realignment Restructuring Plan [Member] | Fixed Asset Charges [Member]
Restructuring Cost and Reserve [Line Items]
Balance at beginning	0	0	0	0
Non-cash charges used	0	(2)	(2)	(41)
Cash payments	0	0	0	0
Foreign exchange rate impact	0	0	0	0
Balance at ending	0	0	0	0
2012 Business Realignment Restructuring Plan [Member] | Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Balance at beginning	13	9	8	0
Restructuring reserve period expense	7	17	4	18
Non-cash charges used	0	(4)	0	(3)
Cash payments	(7)	(9)	(3)	(7)
Foreign exchange rate impact	0	0	0	0
Balance at ending	13	13	9	8
2012 Business Realignment Restructuring Plan [Member] | Cost of Sales [Member]
Restructuring Cost and Reserve [Line Items]
Special charges	2	1	18	24
2012 Business Realignment Restructuring Plan [Member] | Cost of Sales [Member] | Employee Termination Costs [Member]
Restructuring Cost and Reserve [Line Items]
Special charges, severance and benefit costs	0	0	0	5
2012 Business Realignment Restructuring Plan [Member] | Cost of Sales [Member] | Inventory Charges [Member]
Restructuring Cost and Reserve [Line Items]
Special charges, inventory obsolescence charges	2	1	18	17
2012 Business Realignment Restructuring Plan [Member] | Cost of Sales [Member] | Fixed Asset Charges [Member]
Restructuring Cost and Reserve [Line Items]
Special charges, fixed asset impairment charges	0	0	0	0
2012 Business Realignment Restructuring Plan [Member] | Cost of Sales [Member] | Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve period expense	0	0	0	2
2012 Business Realignment Restructuring Plan [Member] | Operating Expense [Member]
Restructuring Cost and Reserve [Line Items]
Special charges	11	38	16	161
2012 Business Realignment Restructuring Plan [Member] | Operating Expense [Member] | Employee Termination Costs [Member]
Restructuring Cost and Reserve [Line Items]
Special charges, severance and benefit costs	4	19	10	104
2012 Business Realignment Restructuring Plan [Member] | Operating Expense [Member] | Inventory Charges [Member]
Restructuring Cost and Reserve [Line Items]
Special charges, inventory obsolescence charges	0	0	0	0
2012 Business Realignment Restructuring Plan [Member] | Operating Expense [Member] | Fixed Asset Charges [Member]
Restructuring Cost and Reserve [Line Items]
Special charges, fixed asset impairment charges	0	2	2	41
2012 Business Realignment Restructuring Plan [Member] | Operating Expense [Member] | Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve period expense	$ 7	$ 17	$ 4	$ 16

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Fair Value Measurements And Financial Instruments Fair Value Inputs, Liabilities, Quantitative Information (Details) (USD $)				3 Months Ended
	Sep. 28, 2013	Dec. 29, 2012	Sep. 28, 2013 Significant Unobservable Inputs (Level 3) [Member]	Sep. 28, 2013 Significant Unobservable Inputs (Level 3) [Member] Minimum [Member]	Sep. 28, 2013 Significant Unobservable Inputs (Level 3) [Member] Maximum [Member]	Sep. 28, 2013 Contingent Consideration Liability [Member]	Sep. 28, 2013 Contingent Consideration Liability [Member] Significant Unobservable Inputs (Level 3) [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs, Recurring Basis, Liability Value	$ 136,000,000	$ 0				$ 136,000,000	$ 136,000,000
Fair Value Inputs, Discount Rate				1.15%	1.71%
Probability of Payment			90.00%
Projected Year Of Payment			2014

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Inventories (Schedule Of Inventories) (Details) (USD $) In Millions, unless otherwise specified	Sep. 28, 2013	Dec. 29, 2012
Inventory, Net [Abstract]
Finished goods	$ 475	$ 416
Work in process	59	50
Raw materials	153	144
Inventories, net	$ 687	$ 610

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Business Combinations Business Combinations (Narrative) (Details) In Millions, unless otherwise specified	9 Months Ended			3 Months Ended			3 Months Ended					3 Months Ended					3 Months Ended		9 Months Ended			9 Months Ended			3 Months Ended			3 Months Ended
	Sep. 28, 2013 USD ($)	Sep. 29, 2012 USD ($)	Aug. 19, 2013 USD ($)	Sep. 28, 2013 Spinal Modulation [Member] USD ($)	Jun. 29, 2013 Spinal Modulation [Member] USD ($)	Jun. 07, 2013 Spinal Modulation [Member] USD ($)	Jun. 29, 2013 Spinal Modulation [Member] Patented Technology [Member]	Sep. 28, 2013 Spinal Modulation [Member] Patented Technology [Member] USD ($)	Jun. 07, 2013 Spinal Modulation [Member] Patented Technology [Member] USD ($)	Sep. 28, 2013 Spinal Modulation [Member] In Process Research and Development [Member] USD ($)	Jun. 07, 2013 Spinal Modulation [Member] In Process Research and Development [Member] USD ($)	Sep. 28, 2013 CardioMEMS, Inc. [Member] USD ($)	Mar. 30, 2013 CardioMEMS, Inc. [Member] USD ($)	Feb. 27, 2013 CardioMEMS, Inc. [Member] USD ($)	Sep. 28, 2013 CardioMEMS, Inc. [Member] In Process Research and Development [Member] USD ($)	Feb. 27, 2013 CardioMEMS, Inc. [Member] In Process Research and Development [Member] USD ($)	Sep. 28, 2013 Endosense S.A. [Member] USD ($)	Sep. 28, 2013 Endosense S.A. [Member] CHF	Sep. 28, 2013 Endosense S.A. [Member] USD ($)	Aug. 19, 2013 Endosense S.A. [Member] USD ($)	Aug. 19, 2013 Endosense S.A. [Member] CHF	Sep. 28, 2013 Endosense S.A. [Member] Patented Technology [Member]	Aug. 19, 2013 Endosense S.A. [Member] Patented Technology [Member] USD ($)	Aug. 19, 2013 Endosense S.A. [Member] In Process Research and Development [Member] USD ($)	Dec. 28, 2013 Nanostim [Member] USD ($)	Oct. 11, 2013 Nanostim [Member] USD ($)	Sep. 28, 2013 Nanostim [Member]	Sep. 28, 2013 Noncontrolling Interest [Member] Spinal Modulation [Member] USD ($)	Sep. 28, 2013 Noncontrolling Interest [Member] CardioMEMS, Inc. [Member] USD ($)
Payments to Acquire Businesses, Net of Cash Acquired	$ 171	$ 0															$ 171	160	$ 171						$ 118
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High																	165		165		150					65
Business Combination, Contingent Consideration, Liability			132																	132
Business Combination, Net Assets Acquired																				303
Business Combination, Intangible Assets, Other than Goodwill								7	7														20
Business Combination, Indefinite-Lived Intangible Assets										45	45				63	63								33
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life							12 years															7 years
Equity Security Ownership Interest And Allocated Value For Purchase Option						40								60
Equity Security Ownership Interest						19.00%								19.00%												18.00%
Additional Payment For Acquisition At Company Option						300								375
Variable Interest Entity, Financial or Other Support, Amount					15							9	28
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Loss													29
Goodwill, Purchase Accounting Adjustments				35								1
Indefinite-lived Intangible Assets, Purchase Accounting Adjustments				5								6
Finite-Lived Intangible Assets, Purchase Accounting Adjustments				3
Total Liabilities, Purchase Accounting Adjustments				3								2
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Equity Interests																												$ 40	$ 5
Equity Interest, Total Ownership Percentage By All Other Investors																											82.00%

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Goodwill And Other Intangible Assets (Schedule Of Changes In Carrying Amount Of Goodwill) (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended			3 Months Ended	9 Months Ended			3 Months Ended	9 Months Ended
	Sep. 28, 2013	Sep. 28, 2013 IESD [Member]	Sep. 28, 2013 CATD [Member]	Jun. 29, 2013 Spinal Modulation [Member]	Sep. 28, 2013 Spinal Modulation [Member]	Sep. 28, 2013 Spinal Modulation [Member] IESD [Member]	Sep. 28, 2013 Spinal Modulation [Member] CATD [Member]	Mar. 30, 2013 CardioMEMS, Inc. [Member]	Sep. 28, 2013 CardioMEMS, Inc. [Member]	Sep. 28, 2013 CardioMEMS, Inc. [Member] IESD [Member]	Sep. 28, 2013 CardioMEMS, Inc. [Member] CATD [Member]	Sep. 28, 2013 Endosense [Member]	Sep. 28, 2013 Endosense [Member] IESD [Member]	Sep. 28, 2013 Endosense [Member] CATD [Member]
Goodwill [Line Items]
Goodwill, Acquired During Period				$ 82	$ 82	$ 82	$ 0	$ 83	$ 83	$ 83	$ 0	$ 258	$ 0	$ 258
Goodwill [Roll Forward]
Balance at December 29, 2012	2,961	1,229	1,732
Foreign currency translation and other	(1)	(12)	11
Balance at September 28, 2013	$ 3,383	$ 1,382	$ 2,001

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Special Charges

9 Months Ended

Sep. 28, 2013

Special Charges [Abstract]

Special Charges

SPECIAL CHARGES

The Company recognizes certain transactions and events as special charges in its consolidated financial statements. These charges (such as restructuring charges, impairment charges and certain settlement or litigation charges) result from facts and circumstances that vary in frequency and impact on the Company's results of operations. In order to enhance segment comparability and reflect management's focus on the ongoing operations of the Company, special charges are not reflected in the individual reportable segments operating results.

2012 Business Realignment Plan

During 2012, the Company incurred charges of $185 million resulting from the realignment of its product divisions into two new operating divisions: the Implantable Electronic Systems Division (combining its legacy Cardiac Rhythm Management and Neuromodulation product divisions) and the Cardiovascular and Ablation Technologies Division (combining its legacy Cardiovascular and Atrial Fibrillation product divisions). In addition, the Company centralized certain support functions, including information technology, human resources, legal, business development and certain marketing functions. The organizational changes are part of a comprehensive plan to accelerate the Company's growth, reduce costs, leverage economies of scale and increase investment in product development. In connection with the realignment, the Company recognized $109 million of severance costs and other termination benefits after management determined that such severance and benefit costs were probable and estimable, in accordance with ASC Topic 712, Nonretirement Postemployment Benefits (ASC Topic 712). The 2012 business realignment plan reduced the Company's workforce by approximately 5%. The Company also recognized $17 million of inventory write-offs associated with discontinued CATD product lines and $41 million of accelerated depreciation charges and fixed asset write-offs, primarily associated with information technology assets no longer expected to be utilized or with a limited remaining useful life. Additionally, the Company recognized $18 million of other restructuring costs, which included $7 million of contract termination costs and $11 million of other costs.

During the first quarter of 2013, the Company incurred $34 million of special charges associated with the 2012 business realignment plan including $10 million of severance and other termination benefits after management determined that such costs were probable and estimable. The Company also recognized $18 million of inventory write-offs associated with discontinued CATD product lines, $2 million of fixed asset write-offs and $4 million of other restructuring costs, all as part of the Company's continued integration efforts.

During the second quarter of 2013, the Company recognized $39 million of special charges associated with the 2012 business realignment plan including $19 million of severance and other termination benefits after management determined that such costs were probable and estimable in accordance with ASC Topic 712. The Company also recognized $1 million of inventory write-offs primarily associated with discontinued IESD product lines, $2 million of fixed asset write-offs related to information technology assets no longer expected to be utilized and $17 million of other restructuring costs primarily related to distributor terminations and office consolidations, all as part of the Company's continued integration efforts.

During the third quarter of 2013, the Company recognized $13 million of special charges related to the 2012 business realignment plan. Of the $13 million recognized, $7 million related to other restructuring costs primarily associated with distributor terminations and office consolidations, $4 million related to severance and other termination benefits after management determined that such costs were probable and estimable in accordance with ASC Topic 712 and $2 million related to inventory write-offs associated with discontinued CATD product lines.

A summary of the activity related to the 2012 business realignment plan accrual is as follows (in millions):

	Employee Termination Costs			Inventory Charges			Fixed Asset Charges			Other Restructuring Costs			Total
Balance at December 31, 2011	$	—		$	—		$	—		$	—		$	—
Cost of sales special charges	5			17			—			2			24
Special charges	104			—			41			16			161
Non-cash charges used	—			(17		)	(41		)	(3		)	(61		)
Cash payments	(52		)	—			—			(7		)	(59		)
Foreign exchange rate impact	1			—			—			—			1
Balance at December 29, 2012	58			—			—			8			66
Cost of sales special charges	—			18			—			—			18
Special charges	10			—			2			4			16
Non-cash charges used	—			(18		)	(2		)	—			(20		)
Cash payments	(32		)	—			—			(3		)	(35		)
Foreign exchange rate impact	(1		)	—			—			—			(1		)
Balance at March 30, 2013	35			—			—			9			44
Cost of sales special charges	—			1			—			—			1
Special charges	19			—			2			17			38
Non-cash charges used	—			(1		)	(2		)	(4		)	(7		)
Cash payments	(17		)	—			—			(9		)	(26		)
Foreign exchange rate impact	1			—			—			—			1
Balance at June 29, 2013	38			—			—			13			51
Cost of sales special charges	—			2			—			—			2
Special charges	4			—			—			7			11
Non-cash charges used	—			(2		)	—			—			(2		)
Cash payments	(15		)	—			—			(7		)	(22		)
Foreign exchange rate impact	—			—			—			—			—
Balance at September 28, 2013	$	27		$	—		$	—		$	13		$	40

2011 Restructuring Plan

During 2011, the Company announced a restructuring plan to streamline certain activities in the Company's legacy cardiac rhythm management business and sales and selling support organizations. Specifically, the restructuring actions included phasing out cardiac rhythm management manufacturing and research and development (R&D) operations in Sweden, reductions in the Company's workforce and rationalizing product lines. During 2011, the Company incurred charges totaling $162 million related to the 2011 restructuring plan. During 2012, the Company incurred additional charges totaling $102 million related to the 2011 restructuring plan consisting of severance costs and other termination benefits of $38 million, $13 million of inventory obsolescence charges and $51 million of other restructuring charges, which included $37 million of restructuring related charges associated with the Company's legacy cardiac rhythm management business and sales and selling support organizations (of which $13 million primarily related to idle facility costs in Sweden). The remaining charges included $8 million of contract termination costs and $6 million of other costs.

During the first quarter of 2013, the Company recognized $9 million of restructuring charges associated with the 2011 restructuring plan. Of the $9 million incurred, $2 million related to severance costs and other termination benefits and $7 million related to other restructuring costs, primarily associated with idle facility costs.

During the second quarter of 2013, the Company recognized $4 million of restructuring charges associated with the 2011 restructuring plan. Of the $4 million recognized, $1 million related to fixed asset write-offs as the Company finalizes the phase-out of operations in Sweden and $3 million related to other restructuring costs, primarily associated with idle facility costs.

During the third quarter of 2013, the Company recognized $6 million of restructuring charges associated with the 2011 restructuring plan. Of the $6 million recognized, $2 million related to severance costs and other termination benefits and $4 million related to other restructuring costs, primarily associated with idle facility costs.

A summary of the activity related to the 2011 restructuring plan accrual is as follows (in millions):

	Employee Termination Costs			Inventory Charges			Fixed Asset Charges			Other Restructuring Costs			Total
Balance at December 31, 2011	$	54		$	—		$	—		$	18		$	72
Cost of sales special charges	11			13			—			20			44
Special charges	27			—			—			31			58
Non-cash charges used	—			(13		)	—			(4		)	(17		)
Cash payments	(68		)	—			—			(47		)	(115		)
Foreign exchange rate impact	1			—			—			(1		)	—
Balance at December 29, 2012	25			—			—			17			42
Special charges	2			—			—			7			9
Cash payments	(13		)	—			—			(6		)	(19		)
Balance March 30, 2013	14			—			—			18			32
Special charges	—			—			1			3			4
Non-cash charges used	—			—			(1		)	—			(1		)
Cash payments	(5		)	—			—			(7		)	(12		)
Balance at June 29, 2013	9			—			—			14			23
Special charges	2			—			—			4			6
Cash payments	(1		)	—			—			(5		)	(6		)
Balance at September 28, 2013	$	10		$	—		$	—		$	13		$	23

Other Special Charges

During the second quarter of 2013, the Company agreed to settle a dispute on licensed technology associated with certain CATD product lines. In connection with the settlement, which resolved all disputed claims, the Company recognized a $22 million settlement expense. Also during the second quarter of 2013, the Company recognized $13 million of impairments associated with customer relationship intangible assets recognized in connection with legacy acquisitions involved in the distribution of the Company's products.

During the first nine months of 2012, the Company recognized a $23 million impairment charge for certain developed technology intangible assets in its neuromodulation business as the Company's updated expectations for the future undiscounted cash flows did not exceed the carrying value of the related assets. Additionally, the Company determined that certain CATD intangible assets were considered impaired as their future expected undiscounted cash flows did not exceed the carrying value of the related assets. As a result, the Company recognized a $5 million impairment charge to write-down the intangible assets to their fair value. The Company also agreed to settle a dispute on licensed technology for its Angio-Seal™ vascular closure devices. In connection with this settlement, which resolved all disputed claims and included a fully-paid perpetual license, the Company recognized a $28 million settlement expense which it classified as a special charge and also recognized a $12 million licensed technology intangible asset to be amortized over the technology's remaining patent life.

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Fair Value Measurements And Financial Instruments (Tables)

9 Months Ended

Sep. 28, 2013

Fair Value Disclosures [Abstract]

Summary Of Components Of Available-For-Sale Securities

The following table summarizes the components of the balance of the Company’s available-for-sale securities at September 28, 2013 and December 29, 2012 (in millions):

	September 28, 2013		December 29, 2012
Adjusted cost	$	7	$	9
Gross unrealized gains	26		32
Fair value	$	33	$	41

Summary Of Financial Assets Measured At Fair Value On A Recurring Basis

A summary of financial assets measured at fair value on a recurring basis at September 28, 2013 and December 29, 2012 is as follows (in millions):

	Balance Sheet Classification	September 28, 2013		Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Money-market securities	Cash and cash equivalents	$	848	$	848	$	—	$	—
Available-for-sale securities	Other current assets	33		33		—		—
Trading securities	Other assets	254		254		—		—
Total assets		$	1,135	$	1,135	$	—	$	—
Liabilities
Contingent consideration	Other liabilities	$	136	$	—	$	—	$	136
Total liabilities		$	136	$	—	$	—	$	136

	Balance Sheet Classification	December 29, 2012		Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Money-market securities	Cash and cash equivalents	$	964	$	964	$	—	$	—
Available-for-sale securities	Other current assets	41		41		—		—
Trading securities	Other assets	231		231		—		—
Total assets		$	1,236	$	1,236	$	—	$	—

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]

The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs (in millions):

Contingent Consideration Liability	Fair Value as of September 28, 2013		Valuation Technique	Unobservable Input	Range
Endosense regulatory-based milestone	$	136	Probability Weighted Discounted Cash Flow	Discount Rate	1.15%	-	1.71%
				Probability of Payment			90%
				Projected Year of Payment			2014

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

Additionally, the following table provides a reconciliation of the beginning and ending balances of the Company's contingent consideration liability associated with its Endosense acquisition subsequent to August 19, 2013 as of September 28, 2013 (in millions):

	Fiscal Year 2013
Beginning balance	$	—
Purchase price contingent consideration	132
Change in fair value of contingent consideration	1
Foreign currency translation	3
Ending balance	$	136

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Commitments And Contingencies (Narrative) (Details) (USD $) In Millions, unless otherwise specified		3 Months Ended	12 Months Ended																								3 Months Ended
	Sep. 28, 2013	Sep. 28, 2013 VolcanoCorpvs.Lightlab [Member] D	Dec. 29, 2012 Regulatory Matters Sylmar, CA [Member]	Sep. 28, 2013 Riata Litigation [Member]	Sep. 28, 2013 Riata Litigation [Member] Superior Court of California case for Los Angeles City and County [Member]	Jul. 15, 2013 Riata Litigation [Member] Superior Court of California case for Los Angeles City and County [Member]	Apr. 29, 2013 Riata Litigation [Member] Superior Court of California case for Los Angeles City and County [Member]	Apr. 04, 2013 Riata Litigation [Member] Superior Court of California case for Los Angeles City and County [Member]	Sep. 28, 2013 Riata Litigation [Member] U.S. District Court for the Central District of California [Member]	Sep. 28, 2013 Riata Litigation [Member] Federal Court [Member]	Sep. 28, 2013 Riata Litigation [Member] Federal Court [Member] U.S. District Court for the District of Minnesota [Member]	Sep. 28, 2013 Riata Litigation [Member] Federal Court [Member] U.S. District Court for the Central District of California [Member]	Sep. 28, 2013 Riata Litigation [Member] Federal Court [Member] U.S. District Court for the District of South Carolina [Member]	Sep. 28, 2013 Riata Litigation [Member] Federal Court [Member] U.S. District Court for the Northern District of Georgia [Member]	Sep. 28, 2013 Riata Litigation [Member] Federal Court [Member] U.S. District Court for the Northern District of New York [Member]	Sep. 28, 2013 Riata Litigation [Member] Federal Court [Member] U.S. District Court for the Western District of New York [Member]	Sep. 28, 2013 Riata Litigation [Member] Federal Court [Member] U.S. District Court for the Middle District of Tennessee [Member]	Sep. 28, 2013 Riata Litigation [Member] Federal Court [Member] U.S. District Court for the Western District of Washington [Member]	Sep. 28, 2013 Riata Litigation [Member] State Court [Member]	Sep. 28, 2013 Riata Litigation [Member] State Court [Member] Minnesota [Member]	Sep. 28, 2013 Riata Litigation [Member] State Court [Member] California [Member]	Sep. 28, 2013 Riata Litigation [Member] State Court [Member] Indiana [Member]	Sep. 28, 2013 Riata Litigation [Member] State Court [Member] Kentucky [Member]	Sep. 28, 2013 Riata Litigation [Member] State Court [Member] Florida [Member]	Sep. 28, 2013 Silzone Litigation [Member] Ontario Class Action Matters [Member]	Sep. 29, 2012 Silzone Litigation [Member] Ontario Class Action Matters [Member]	Sep. 28, 2013 Silzone Litigation [Member] Individual Ontario Case [Member]	Sep. 28, 2013 Silzone Product Liability Insurance [Member]
Commitments And Contingencies [Line Items]
Number of lawsuits outstanding				35						14	3	5	1	1	1	1	1	1	21	7	10	1	2	1
Number of multi-plaintiff lawsuits outstanding, excluding class action lawsuits				5
Number of plaintiffs to exceed in one lawsuit to result in a multi-plaintiff case	1
Number of claimants in lawsuit					2	21	3	29	2
Number of claimants with filed lawsuits that are not seeking suit for alleged bodily injuries from surgical removal or replacment of product				1
Number of outstanding class actions																									1
Number of lawsuits outstanding, excluding class action lawsuits																											1
Number of common class issues in class action suit																										9
Minimum damage loss claimed																											$ 1
Remaining insurance coverage for Silzone claims																												$ 10
days of legal notice		45
Number of Form 483 Observations			11

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Other Expense, Net

9 Months Ended

Sep. 28, 2013

Other Nonoperating Income (Expense) [Abstract]

Other Expense, Net

OTHER EXPENSE, NET

The Company’s other expense, net consisted of the following (in millions):

	Three Months Ended						Nine Months Ended
	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012
Interest income	$	(1	)	$	(1	)	$	(4	)	$	(3	)
Interest expense	21			18			60			55
Other	(3		)	2			192			15
Other expense, net	$	17		$	19		$	248		$	67

During the second quarter of 2013, the Company redeemed the full $700 million principal amount of the 2014 Senior Notes and the full $500 million principal amount of the 2019 Senior Notes. In connection with the redemption of these notes, prior to their scheduled maturities, the Company recognized a $161 million charge to other expense associated with make-whole redemption payments and the write-off of unamortized debt issuance costs (see Note 5).

During the first quarter of 2013, the Company recorded a $29 million charge to other expense to adjust the carrying value of the pre-existing CardioMEMS equity investment and fixed price purchase option to fair value. See Note 2 for further detail on the accounting for CardioMEMS as a variable interest entity, which has been consolidated into the Company's results in the first quarter of 2013.

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Commitments And Contingencies

9 Months Ended

Sep. 28, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

COMMITMENTS AND CONTINGENCIES

Product Liability Litigation

Riata® Litigation: In April 2013, a lawsuit seeking a class action was filed against the Company in the U.S. District Court for the Western District of Washington by plaintiffs alleging they suffered injuries caused by Riata® and Riata® ST Silicone Defibrillation Leads. The potential class of plaintiffs in this lawsuit is limited to residents of the State of Washington. The complaint seeks compensatory damages in unspecified amounts, punitive damages and a declaratory judgment that the Company is liable to the proposed class members for any past, present and future evaluative monitoring, and corrective medical, surgical and incidental expenses and losses.

As of November 1, 2013, the Company is aware of 35 lawsuits from plaintiffs alleging injuries caused by, and asserting product liability claims concerning, Riata® and Riata® ST Silicone Defibrillation Leads. Most of the lawsuits have been brought by a single plaintiff, but some of them name multiple individuals as plaintiffs. The action in Washington is the only case that seeks a class action. Outside of this class action, five separate multi-plaintiff lawsuits have been initiated against the Company that involve more than one unrelated plaintiff: a multi-plaintiff lawsuit joining 29 unrelated claimants was filed in the Superior Court of California for the city and county of Los Angeles on April 4, 2013; a multi-plaintiff lawsuit joining two unrelated claimants was filed in the Superior Court of California for the city and county of Los Angeles on April 4, 2013; a multi-plaintiff lawsuit joining two claimants was filed in the United States District Court for the Central District of California on April 4, 2013; a multi-plaintiff lawsuit joining three unrelated claimants was filed in the Superior Court of California for the city and county of Los Angeles on April 29, 2013; and a multi-plaintiff lawsuit joining 21 unrelated claimants was filed in the Superior Court of California for the city and county of Los Angeles on July 15, 2013. Of the 35 lawsuits, fourteen cases are pending in federal courts, including three in the U.S. District Court for the District of Minnesota, five in the U.S. District Court for the Central District of California, one in the U.S. District Court for the District of South Carolina, one in the U.S. District Court for the Northern District of Georgia, one in the U.S. District Court for the Northern District of New York, one in the U.S. District Court for the Western District of New York, one in the U.S. District Court for the Middle District of Tennessee and one discussed above pending in the U.S. District Court for the Western District of Washington. The remaining 21 lawsuits are pending in state courts across the country, including seven in Minnesota, ten in California, one in Indiana, two in Kentucky and one in Florida.

All but one of the claimants in the aforementioned suits allege bodily injuries as a result of surgical removal and replacement of Riata® leads, or other complications, which they attribute to the leads. The majority of the claimants who seek recovery for implantation and/or surgical removal of Riata® leads are seeking compensatory damages in unspecified amounts, and declaratory judgments that the Company is liable to the claimants for any past, present and future evaluative monitoring, and corrective medical, surgical and incidental expenses and losses. Several claimants also seek punitive damages. The Company is responsible for legal costs incurred in defense of the Riata product liability claims including any potential settlements, judgments and other legal defense costs.

Silzone® Litigation and Insurance Receivables: The Company has been sued in various jurisdictions beginning in March 2000 by some patients who received a heart valve product with Silzone® coating, which the Company stopped selling in January 2000. The Company's outstanding Silzone cases consist of one class action in Ontario that has been appealed by the plaintiffs and one individual case in Ontario. In June 2012, the Ontario Court ruled in the Company's favor on all nine common class issues in a class action involving Silzone patients, and the case was dismissed. In September 2012, counsel for the class filed an appeal with the Court of Appeal for the Province of Ontario and filed their initial appellate brief in February 2013. The Company filed its responsive brief in August 2013. The oral argument concerning the appeal was expected to be heard in November 2013 but that hearing date has recently been adjourned and no new hearing date has been scheduled. The individual case in Ontario requests damages in excess of $1 million (claiming unspecified special damages, health care costs and interest). Based on the Company’s historical experience, the amount ultimately paid, if any, often does not bear any relationship to the amount claimed. To the extent that the Company’s future Silzone costs (inclusive of settlements, judgments, legal fees and other related defense costs) exceed its remaining historical insurance coverage of approximately $10 million, the Company would be responsible for such costs.

The Company intends to vigorously defend against the claims that have been asserted. The Company has not recorded an expense related to any potential damages in connection with these product liability litigation matters because any potential loss is not probable or reasonably estimable. Other than disclosed above, the Company cannot reasonably estimate a loss or range of loss, if any, that may result from these litigation matters.

Patent and Other Intellectual Property Litigation

Volcano Corporation & LightLab Imaging Litigation: The Company's subsidiary, LightLab Imaging, has pending litigation with Volcano Corporation (Volcano) and Axsun Technologies, Inc. (Axsun), a subsidiary of Volcano, in the Massachusetts state court and in state court in Delaware. LightLab Imaging makes and sells optical coherence tomography (OCT) imaging systems. Volcano is a LightLab Imaging competitor in medical imaging. Axsun makes and sells lasers and is a supplier of lasers to LightLab Imaging for use in OCT imaging systems. The lawsuits arise out of Volcano's acquisition of Axsun in December 2008. Before Volcano acquired Axsun, LightLab Imaging and Axsun had worked together to develop a tunable laser for use in OCT imaging systems. While the laser was in development, LightLab Imaging and Axsun entered into an agreement pursuant to which Axsun agreed to sell its tunable lasers exclusively to LightLab in the field of human coronary artery imaging for a certain period of time.

After Volcano acquired Axsun in December 2008, LightLab Imaging sued Axsun and Volcano in Massachusetts, asserting a number of claims arising out of Volcano's acquisition of Axsun. In January 2011, the Court ruled that Axsun's and Volcano's conduct constituted knowing and willful violations of a statute which prohibits unfair or deceptive acts or practices or acts of unfair competition, entitling LightLab Imaging to double damages, and furthermore, that LightLab Imaging was entitled to recover attorneys' fees. In February 2011, Volcano and Axsun were ordered to pay the Company for reimbursement of attorneys' fees and double damages, which Volcano paid to the Company in July 2011. The Court also issued certain injunctions and declaratory relief against Volcano. The Company has also appealed certain rulings relating to the trial court's exclusion of certain expert testimony and its refusal to enter permanent injunctions. In January 2013, the Supreme Judicial Court for Massachusetts granted the Company's request to bypass the intermediary appellate court and has accepted the matter for its direct review. Oral argument has been scheduled for December 2, 2013, and the appeal is expected to be finalized in 2014.

In May 2011, LightLab Imaging initiated a lawsuit against Volcano and Axsun in the Delaware state court. The suit seeks to enforce LightLab Imaging's exclusive contract with Axsun, and also alleges claims to prevent Volcano from interfering with that contract and to bar Axsun and Volcano from using LightLab Imaging confidential information and trade secrets, and to prevent Volcano and Axsun from violating a Massachusetts statute prohibiting unfair methods of competition and unfair or deceptive acts or practices relating to LightLab Imaging's tunable laser technology. In May 2012, the Court granted Volcano's motion to stay the proceedings until Volcano provides notice of its intent to begin clinical trials or engage in other public activities with an OCT imaging system that uses a type of light source that is in dispute in the lawsuit. Volcano is under an order to provide such a notice at least 45 days before beginning such trials or engaging in such activities. In April 2013, the Court denied a motion by the Company to lift the stay.

Volcano Corporation & St. Jude Medical Patent Litigation: In July 2010, the Company filed a lawsuit in federal district court in Delaware against Volcano for patent infringement. In the suit, the Company asserted certain patents against Volcano and seeks injunctive relief and monetary damages. The infringed patents are part of the St. Jude Medical PressureWire® technology platform, which was acquired as part of St. Jude Medical's purchase of Radi Medical Systems in December 2008. On October 19, 2012 a jury ruled in favor of Volcano finding that certain Volcano patents did not infringe the Company's patents and that certain St. Jude Medical patents were invalid. The Company has filed a motion for judgment as a matter of law and for a new trial. If necessary, the Company will appeal to the appellate court and raise challenges to various issues related to the trial that resulted in the October 19, 2012 jury decision. Volcano also filed counterclaims against the Company in this case, alleging certain St. Jude Medical patent claims are unenforceable and that certain St. Jude Medical products infringe certain Volcano patents. On October 25, 2012, a jury ruled that the Company did not infringe certain Volcano patents and entered judgment on both October jury verdicts in January 2013. The parties are moving forward with other post-trial proceedings.

On April 16, 2013, Volcano filed a lawsuit in federal district court in Delaware against the Company alleging that the Company is infringing two U.S. patents owned by Volcano which were issued that same day. The allegations relate to the Company's PressureWire® technology (Fractional Flow Reserve) FFR Platforms, including ILUMIEN^TM PCI Optimization System and Quantien^TM Integrated FFR platforms. In its complaint, Volcano seeks both injunctive relief and monetary damages. A hearing on claims construction has been scheduled for November 2013. The Company plans to vigorously defend against the claims asserted. The Company has not recorded an expense related to any potential damages in connection with this litigation matter because any potential loss is not probable or reasonably estimable. Other than disclosed above, the Company cannot reasonably estimate a loss or range of loss, if any, that may result from these litigation matters.

Securities and Other Shareholder Litigation

March 2010 Securities Class Action Litigation: In March 2010, a securities lawsuit seeking class action status was filed in federal district court in Minnesota against the Company and certain officers (collectively, the defendants) on behalf of purchasers of St. Jude Medical common stock between April 22, 2009 and October 6, 2009. The lawsuit relates to the Company's earnings announcements for the first, second and third quarters of 2009, as well as a preliminary earnings release dated October 6, 2009. The complaint, which seeks unspecified damages and other relief as well as attorneys' fees, alleges that the defendants failed to disclose that it was experiencing a slowdown in demand for its products and was not receiving anticipated orders for cardiac rhythm management devices. Class members allege that the defendant's failure to disclose the above information resulted in the class purchasing St. Jude Medical stock at an artificially inflated price. In December 2011, the Court issued a decision denying a motion to dismiss filed by the defendants in October 2010. In October 2012, the Court granted plaintiffs' motion to certify the case as a class action and the discovery phase of the case closed in September 2013. On October 15, 2013, the defendants filed a motion for summary judgment and a hearing is scheduled for January 2014 and a ruling is expected later in 2014. Subject to the outcome of this hearing, the trial of this class action matter is presently scheduled for July 2014. The defendants intend to continue to vigorously defend against the claims asserted in this lawsuit.

December 2012 Securities Class Action Litigation: On December 7, 2012, a securities class action lawsuit was filed

in federal district court in Minnesota against the Company and an officer (collectively, the defendants) for alleged violations of the federal securities laws, on behalf of all purchasers of the publicly traded securities of the defendants between October 17, 2012 and November 20, 2012. The complaint, which seeks unspecified damages and other relief as well as attorneys' fees, challenges the Company’s disclosures concerning its high voltage cardiac rhythm lead products during the purported class period. On December 10, 2012, a second securities class action lawsuit was filed in federal district court in Minnesota against the Company and certain officers for alleged violations of the federal securities laws, on behalf of all purchasers of the publicly traded securities of the Company between October 19, 2011 and November 20, 2012. The second complaint pursues similar claims and seeks unspecified damages and other relief as well as attorneys’ fees. In March 2013, the Court consolidated the two cases and appointed a lead counsel and lead plaintiff. In September 2013, the defendants filed a motion to dismiss the consolidated and amended complaint. Oral argument concerning this motion to dismiss is scheduled for early January 2014, and a ruling is expected later in 2014. The Company intends to vigorously defend against the claims asserted in this matter.

December 2012 Derivative Litigation: In December 2012, a shareholder derivative action was initiated in Minnesota state court in Ramsey County, on behalf of the Company, against members of St. Jude Medical’s Board of Directors as well as certain officers of the Company (collectively, the defendants). The plaintiffs in this action allege breach of fiduciary duty, waste of corporate assets and unjust enrichment. The claims center around and involve the Company’s high voltage cardiac rhythm lead products and related activities and events. No damages are sought against the Company. The defendants intend to vigorously defend against the claims asserted in this matter. In March 2013, the defendants filed a motion to dismiss the plaintiffs' complaint. No hearing on the motion has yet been scheduled.

The Company has not recorded an expense related to any potential damages in connection with these securities and other shareholder litigation matters because any potential loss is not probable or reasonably estimable. The Company cannot reasonably estimate a loss or range of loss, if any, that may result from these matters.

Governmental Investigations

In March 2010, the Company received a Civil Investigative Demand (CID) from the Civil Division of the Department of Justice (DOJ). The CID requests documents and sets forth interrogatories related to communications by and within the Company on various indications for tachycardia implantable cardioverter defibrillator systems (ICDs) and a National Coverage Decision issued by Centers for Medicare and Medicaid Services. Similar requests were made of the Company's major competitors. The Company provided its response to the DOJ in June 2010.

On September 20, 2012, the Office of Inspector General for the Department of Health and Human Services (OIG) issued a subpoena requiring the Company to produce certain documents related to payments made by the Company to healthcare professionals practicing in California, Florida, and Arizona, as well as policies and procedures related to payments made by the Company to non-employee healthcare professionals. The Company has provided its response to the OIG.

The Company is cooperating with the two open investigations and is responding to these requests. However, the Company cannot predict when these investigations will be resolved, the outcome of these investigations or their impact on the Company. The Company has not recorded an expense related to any potential damages in connection with these governmental matters because any potential loss is not probable or reasonably estimable. The Company cannot reasonably estimate a loss or range of loss, if any, that may result from these matters.

Regulatory Matters

In late September 2012, the FDA commenced an inspection of the Company's Sylmar, California facility, and, following such inspection, issued eleven observations on a Form 483, which the Company disclosed on a Form 8-K filed on October 24, 2012 along with an exhibit containing a redacted version of the Form 483. The FDA subsequently released its own redacted version of the 483 Letter on November 20, 2012. The redacted version of the Form 483 that was released by the FDA on November 20, 2012 and included in its website at that time is attached as Exhibit 99.1 to the Company's Quarterly Report on Form 10-Q for the period ended June 29, 2013. In early November 2012, the Company provided written responses to the FDA on the Form 483 detailing proposed corrective actions and immediately initiated efforts to address the FDA's inspectional observations. The Company subsequently received a warning letter dated January 10, 2013 from the FDA relating to these inspectional observations with respect to its Sylmar, California facility. The warning letter does not identify any specific concerns regarding the performance of, or indicate the need for any field or other action regarding, any particular St. Jude Medical product. In July 2013, the FDA inspected the Company's Sylmar, California facility for progress made remediating the warning letter and Form 483 observations. No additional observations on Form 483 were issued following the July inspection. The Sylmar, California facility will continue to manufacture cardiac rhythm management devices while the Company works with the FDA to address its concerns.

The FDA inspected the Company's Plano, Texas manufacturing facility at various times between March 5 and April 6, 2009. On April 6, 2009, the FDA issued a Form 483 identifying certain inspectional observations with current Good Manufacturing Practice (cGMP). Following the receipt of the Form 483, the Company provided written responses to the FDA detailing proposed corrective actions and immediately initiated efforts to address the FDA's inspectional observations. The Company subsequently received a warning letter dated June 26, 2009 from the FDA relating to these inspectional observations with respect to its legacy Neuromodulation division's Plano, Texas and Hackettstown, New Jersey facilities.

With respect to both of these warning letters, the FDA notes that it will not grant requests for exportation certificates to foreign governments or approve pre-market approval applications for Class III devices to which the quality system regulation deviations are reasonably related until the violations have been corrected. The Company is working cooperatively with the FDA to resolve all of its concerns.

Customer orders have not been and are not expected to be impacted while the Company works to resolve the FDA's concerns. The Company is working diligently to respond timely and fully to the FDA's observations and requests. While the Company believes the issues raised by the FDA can be resolved without a material impact on the Company's financial results, the FDA has recently been increasing its scrutiny of the medical device industry and raising the threshold for compliance. The government is expected to continue to scrutinize the industry closely with inspections, and possibly enforcement actions, by the FDA or other agencies. The Company is regularly monitoring, assessing and improving its internal compliance systems and procedures to ensure that its activities are consistent with applicable laws, regulations and requirements, including those of the FDA.

Product Warranties

The Company offers a warranty on various products, the most significant of which relates to its ICDs and pacemakers systems. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary.

Changes in the Company’s product warranty liability during the three and nine months ended September 28, 2013 and September 29, 2012 were as follows (in millions):

	Three Months Ended						Nine Months Ended
	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012
Balance at beginning of period	$	37		$	38		$	38		$	36
Warranty expense recognized	(2		)	2			1			5
Warranty credits issued	—			(1		)	(4		)	(2		)
Balance at end of period	$	35		$	39		$	35		$	39

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Basis Of Presentation

9 Months Ended

Sep. 28, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis Of Presentation

BASIS OF PRESENTATION

Principles of Consolidation: The accompanying unaudited condensed consolidated financial statements of St. Jude Medical, Inc. (St. Jude Medical or the Company) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (U.S. generally accepted accounting principles) for complete financial statements. In the opinion of management, these statements include all adjustments (consisting of normal recurring adjustments) considered necessary to present a fair statement of the Company’s consolidated results of operations, financial position and cash flows. Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. Preparation of the Company’s financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the financial statements and footnotes. Actual results could differ from those estimates. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 29, 2012 (2012 Annual Report on Form 10-K).

The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and entities for which St. Jude Medical has a controlling financial interest. Intercompany transactions and balances have been eliminated in consolidation. For variable interest entities (VIEs), the Company assesses the terms of its interest in the entity to determine if St. Jude Medical is the primary beneficiary. Variable interests are ownership, contractual or other interests in an entity that change with increases or decreases in the fair value of the VIE's net assets exclusive of variable interests. The entity that consolidates the VIE is considered the primary beneficiary, and is defined as the party with (1) the power to direct activities of the VIE that most significantly affect the VIE's economic performance and (2) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. In the first quarter of 2013, the Company determined that CardioMEMS, Inc. (CardioMEMS) was a VIE for which the Company is the primary beneficiary and began consolidating their results effective February 27, 2013. Additionally, during the second quarter of 2013, the Company entered into a $40 million equity investment, contingent acquisition agreement and exclusive distribution agreement with Spinal Modulation, Inc. (Spinal Modulation) and determined it also was a VIE for which the Company is the primary beneficiary. The Company began consolidating Spinal Modulation's results effective June 7, 2013 (see Note 2).

On August 30, 2012, the Company announced the realignment of its product divisions into two new business units (or divisions): the Implantable Electronic Systems Division (IESD) (combining its legacy Cardiac Rhythm Management and Neuromodulation product divisions) and the Cardiovascular and Ablation Technologies Division (CATD) (combining its legacy Cardiovascular and Atrial Fibrillation product divisions). In addition, the Company centralized certain support functions, including information technology, human resources, legal, business development and certain marketing functions. The organizational changes were part of a comprehensive plan to accelerate the Company's growth, reduce costs, leverage economies of scale and increase its investment in product development. The Company began reporting under the new organizational structure as of the beginning of fiscal year 2013. As a result, certain prior period amounts have been recast to conform to the Company's new organizational structure in this Quarterly Report on Form 10-Q. See Note 14 for further information on the Company's segments.

New Accounting Pronouncements: In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-02: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02), an update to Comprehensive Income (Topic 220). ASU 2013-02 requires an entity to present either on the face of the statement where net income is presented or in the notes to the financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items in the statement presenting net income. Additionally, disclosures about the changes in each component of accumulated other comprehensive income are also required. ASU 2013-02 requires prospective application and is effective for all fiscal years and interim periods beginning after December 15, 2012. The Company adopted ASU 2013-02 in the first quarter of 2013 and there was no impact to the Company's financial statements. Refer to Note 9 for the Company's disclosures required by ASU 2013-02.

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Fair Value Measurements And Financial Instruments (Summary Of Components Of Available-For-Sale Securities) (Details) (USD $) In Millions, unless otherwise specified	Sep. 28, 2013	Dec. 29, 2012
Fair Value Disclosures [Abstract]
Adjusted cost	$ 7	$ 9
Available for sale securities gross unrealized gain accumulated in AOCI	26	32
Fair value	$ 33	$ 41

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Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), net of tax, Beginning Balance	$ 6	$ (29)	$ 46	$ 16
Other comprehensive income (loss) before reclassifications	51	48	14	8
Amounts reclassified to net earnings from accumulated other comprehensive income	(2)	(3)	(5)	(8)
Other comprehensive income (loss)	49	45	9	0
Accumulated other comprehensive income (loss), net of tax, Ending Balance	55	16	55	16
Unrealized gain (loss) on available-for-sale securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), net of tax, Beginning Balance	18	19	20	18
Other comprehensive income (loss) before reclassifications	0	4	1	10
Amounts reclassified to net earnings from accumulated other comprehensive income	(2)	(3)	(5)	(8)
Other comprehensive income (loss)	(2)	1	(4)	2
Accumulated other comprehensive income (loss), net of tax, Ending Balance	16	20	16	20
Unrealized gain (loss) on derivative instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), net of tax, Beginning Balance	3		0
Other comprehensive income (loss) before reclassifications	0		3
Amounts reclassified to net earnings from accumulated other comprehensive income	0		0
Other comprehensive income (loss)	0		3
Accumulated other comprehensive income (loss), net of tax, Ending Balance	3		3
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), net of tax, Beginning Balance	(15)	(48)	26	(2)
Other comprehensive income (loss) before reclassifications	51	44	10	(2)
Amounts reclassified to net earnings from accumulated other comprehensive income	0	0	0	0
Other comprehensive income (loss)	51	44	10	(2)
Accumulated other comprehensive income (loss), net of tax, Ending Balance	$ 36	$ (4)	$ 36	$ (4)

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Business Combinations Business Combinations (Schedule of Business Acquisitions, By Acquisition) (Details) In Millions, unless otherwise specified	9 Months Ended			3 Months Ended		9 Months Ended
	Sep. 28, 2013 USD ($)	Sep. 29, 2012 USD ($)	Aug. 19, 2013 USD ($)	Sep. 28, 2013 Endosense S.A. [Member] USD ($)	Sep. 28, 2013 Endosense S.A. [Member] CHF	Sep. 28, 2013 Endosense S.A. [Member] USD ($)	Aug. 19, 2013 Endosense S.A. [Member] USD ($)	Aug. 19, 2013 Endosense S.A. [Member] In Process Research and Development [Member] USD ($)	Aug. 19, 2013 Patented Technology [Member] Endosense S.A. [Member] USD ($)
Business Acquisition [Line Items]
Business Combination, Current Assets							$ 2
Goodwill, Acquired During Period						258
Business Combination, Indefinite-Lived Intangible Assets								33
Business Combination, Intangible Assets, Other than Goodwill									20
Business Combination, Other Noncurrent Assets							1
Business Combination, Total Assets							314
Business Combination, Current Liabilities							11
Business Combination, Net Assets Acquired							303
Payments to Acquire Businesses, Gross						180
Cash Acquired from Acquisition						(9)
Payments to Acquire Businesses, Net of Cash Acquired	171	0		171	160	171
Business Combination, Contingent Consideration, Liability			$ 132				$ 132

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Derivative Financial Instruments

9 Months Ended

Sep. 28, 2013

General Discussion of Derivative Instruments and Hedging Activities [Abstract]

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

The Company follows the provisions of ASC Topic 815, Derivatives and Hedging (ASC Topic 815) in accounting for and disclosing derivative instruments and hedging activities. All derivative financial instruments are recognized on the balance sheet at fair value. Changes in the fair value of derivatives are recognized in net earnings or other comprehensive income depending on whether the derivative is designated as part of a qualifying hedge transaction. Derivative assets and derivative liabilities are classified as other current assets, other assets, other current liabilities or other liabilities, as appropriate.

Foreign Currency Forward Contracts

The Company hedges a portion of its foreign currency exchange rate risk through the use of forward exchange contracts. The Company uses forward exchange contracts to manage foreign currency exposures related to intercompany receivables and payables arising from intercompany purchases of manufactured products. These forward contracts are not designated as qualifying hedging relationships under ASC Topic 815. The Company measures its foreign currency exchange contracts at fair value on a recurring basis. The fair value of outstanding contracts was immaterial as of September 28, 2013 and December 29, 2012. During the third quarter of 2013 the amount of net losses the Company recorded to other expense for its forward currency exchange contracts not designated as hedging instruments under ASC Topic 815 was insignificant. During the third quarter of 2012 the amount of net losses the Company recorded to other expense for its forward currency exchange contracts not designated as hedging instruments under ASC Topic 815 was a net loss of $4 million. During the first nine months of 2013 and 2012, the net amount of gains the Company recorded to other expense for its forward currency exchange contracts not designated as hedging instruments under ASC Topic 815 were net gains of $13 million and $1 million, respectively. These net gains/losses were almost entirely offset by corresponding net losses/gains on the foreign currency exposures being managed. The Company does not enter into contracts for trading or speculative purposes. The Company’s policy is to enter into hedging contracts with major financial institutions that have at least an “A” (or equivalent) credit rating.

Interest Rate Contracts

During the first quarter of 2013, the Company entered into and settled treasury rate lock agreements in anticipation of issuing $900 million principal amount of 10-year senior notes and $700 million principal amount of 30-year senior notes. Prior to the issuance of the senior notes, the Company was subject to changes in treasury benchmark interest rates, and therefore locked into fixed-rate coupons to hedge against the interest rate fluctuations. The Company designated the treasury rate lock agreements as cash flow hedges under ASC Topic 815. Upon settlement, the $3 million gain was recognized as a component of other comprehensive income, and will be recognized as a reduction to interest expense over the life of the senior notes. The amount of hedge ineffectiveness was immaterial.

In prior periods, the Company has chosen to hedge the fair value of certain debt obligations through the use of interest rate swap contracts. For interest rate swap contracts that are designated and qualify as fair value hedges, changes in the value of the fair value hedge are recognized as an asset or liability, as applicable, offsetting the changes in the fair value of the hedged debt instrument. When outstanding, the Company’s swap contracts are recorded on the consolidated balance sheet as a component of other current assets, other assets, other accrued expenses or other liabilities based on the gain or loss position of the contract and the contract maturity date. Additionally, any payments made or received under the swap contracts are accrued and recognized as interest expense. In June 2012, the Company terminated the interest rate swap it had entered into concurrent with the March 2010 issuance of the 2016 Senior Notes and received a cash payment of $24 million. The gain from terminating the interest rate swap agreement has been reflected as an increase to the carrying value of the debt and is being amortized as a reduction of interest expense resulting in a net average interest rate of 1.3% that will be recognized over the remaining term of the 2016 Senior Notes.

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Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income

9 Months Ended

Sep. 28, 2013

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Comprehensive Income (Loss) Note [Text Block]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The tables below present the changes in each component of accumulated other comprehensive income, including other comprehensive income and reclassifications out of accumulated other comprehensive income in to net earnings for the three and nine months ended September 28, 2013 (in millions):

	Unrealized			Unrealized		Foreign			Accumulated
	gain (loss) on			gain (loss) on		Currency			Other
	available-for-sale			derivative		Translation			Comprehensive
For the three months ended September 28, 2013	securities			instruments		Adjustment			Income (Loss)
Accumulated other comprehensive income (loss), net of tax, at June 29, 2013	$	18		$	3	$	(15	)	$	6
Other comprehensive income (loss) before reclassifications	—			—		51			51
Amounts reclassified to net earnings from accumulated other comprehensive income	(2		)	—		—			(2		)
Other comprehensive income (loss)	(2		)	—		51			49
Accumulated other comprehensive income (loss), net of tax, at September 28, 2013	$	16		$	3	$	36		$	55
	Unrealized			Unrealized		Foreign			Accumulated
	gain (loss) on			gain (loss) on		Currency			Other
	available-for-sale			derivative		Translation			Comprehensive
For the nine months ended September 28, 2013	securities			instruments		Adjustment			Income (Loss)
Accumulated other comprehensive income (loss), net of tax, at December 29, 2012	$	20		$	—	$	26		$	46
Other comprehensive income (loss) before reclassifications	1			3		10			14
Amounts reclassified to net earnings from accumulated other comprehensive income	(5		)	—		—			(5		)
Other comprehensive income (loss)	(4		)	3		10			9
Accumulated other comprehensive income (loss), net of tax, at September 28, 2013	$	16		$	3	$	36		$	55

The tables below present the changes in each component of accumulated other comprehensive income, including other comprehensive income and reclassifications out of accumulated other comprehensive income in to net earnings for the three and nine months ended September 29, 2012 (in millions):

	Unrealized			Foreign			Accumulated
	gain (loss) on			Currency			Other
	available-for-sale			Translation			Comprehensive
For the three months ended September 29, 2012	securities			Adjustment			Income (Loss)
Accumulated other comprehensive income (loss), net of tax, at June 30, 2012	$	19		$	(48	)	$	(29	)
Other comprehensive income (loss) before reclassifications	4			44			48
Amounts reclassified to net earnings from accumulated other comprehensive income	(3		)	—			(3		)
Other comprehensive income (loss)	1			44			45
Accumulated other comprehensive income (loss), net of tax, at September 29, 2012	$	20		$	(4	)	$	16
	Unrealized			Foreign			Accumulated
	gain (loss) on			Currency			Other
	available-for-sale			Translation			Comprehensive
For the nine months ended September 29, 2012	securities			Adjustment			Income (Loss)
Accumulated other comprehensive income (loss), net of tax, at December 31, 2011	$	18		$	(2	)	$	16
Other comprehensive income (loss) before reclassifications	10			(2		)	8
Amounts reclassified to net earnings from accumulated other comprehensive income	(8		)	—			(8		)
Other comprehensive income (loss)	2			(2		)	—
Accumulated other comprehensive income (loss), net of tax, at September 29, 2012	$	20		$	(4	)	$	16

The table below provides details about reclassifications out of accumulated other comprehensive income and the line items impacted in the Company's Condensed Consolidated Statements of Earnings for the three and nine months ended September 28, 2013 and September 29, 2012 (in millions):

Details about accumulated	Amount reclassified from accumulated other comprehensive income
other comprehensive	Three Months Ended						Nine Months Ended
income components	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012			Statements of Earnings Classification
Unrealized gain (loss) on available-for-sale securities:
Gain on sale of available-for-sale securities	$	4		$	5		$	9		$	14		Other expense, net
	(2		)	(2		)	(4		)	(6		)	Income tax expense
	2			3			5			8			Net earnings before noncontrolling interest
	$	2		$	3		$	5		$	8		Net earnings attributable to St. Jude Medical, Inc.

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Goodwill And Other Intangible Assets (Tables)

9 Months Ended

Sep. 28, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule Of Changes In Carrying Amount Of Goodwill

The changes in the carrying amount of goodwill for each of the Company’s reportable segments (see Note 14) for the nine months ended September 28, 2013 were as follows (in millions):

	IESD			CATD		Total
Balance at December 29, 2012	$	1,229		$	1,732	$	2,961
Endosense S.A.	—			258		258
Spinal Modulation, Inc.	82			—		82
CardioMEMS, Inc.	83			—		83
Foreign currency translation and other	(12		)	11		(1		)
Balance at September 28, 2013	$	1,382		$	2,001	$	3,383

Schedule Of Gross Carrying Amount Of Other Intangible Assets And Related Accumulated Amortization

The following table provides the gross carrying amount of other intangible assets and related accumulated amortization (in millions):

	September 28, 2013				December 29, 2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Definite-lived intangible assets:
Purchased technology and patents	$	954	$	374	$	947	$	336
Customer lists and relationships	22		16		57		36
Trademarks and tradenames	22		11		22		10
Licenses, distribution agreements and other	4		2		6		4
	$	1,002	$	403	$	1,032	$	386
Indefinite-lived intangible assets:
Acquired IPR&D	$	250			$	109
Trademarks and tradenames	49				49
	$	299			$	158

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Segment And Geographic Information

9 Months Ended

Sep. 28, 2013

Segment Reporting [Abstract]

Segment And Geographic Information

SEGMENT AND GEOGRAPHIC INFORMATION

Segment Information

On August 30, 2012, the Company announced the realignment of its product divisions into two new business units (or divisions): the Implantable Electronic Systems Division (combining its legacy Cardiac Rhythm Management and Neuromodulation product divisions) and the Cardiovascular and Ablation Technologies Division (combining its legacy Cardiovascular and Atrial Fibrillation product divisions). In addition, the Company centralized certain support functions, including information technology, human resources, legal, business development and certain marketing functions. The organizational changes were part of a comprehensive plan to accelerate our growth, reduce costs, leverage economies of scale and increase investment in product development. The Company began reporting under the new organizational structure as of the beginning of fiscal year 2013. Prior period amounts in the tables below have been recast to conform to the Company's new reportable segment structure.

The Company's principal products in each business unit are as follows: Implantable Electronic Systems Division (IESD) – tachycardia implantable cardioverter defibrillator systems (ICDs), bradycardia pacemaker systems (pacemakers) and neurostimulation products (spinal cord and deep brain stimulation devices); and Cardiovascular and Ablation Technologies Division (CATD) – vascular products (vascular closure products, pressure measurement guidewires, optical coherence tomography (OCT) imaging products, vascular plugs and other vascular accessories), structural heart products (heart valve replacement and repair products and structural heart defect devices) and atrial fibrillation (AF) products (electrophysiology (EP) introducers and catheters, advanced cardiac mapping, navigation and recording systems and ablation systems).

IESD and CATD are considered the Company's reportable segments. Net sales of the Company’s reportable segments include end-customer revenues from the sale of products they each develop and manufacture or distribute. The costs included in each of the reportable segments’ operating results include the direct costs of the products sold to customers and operating expenses managed by each of the reportable segments. Certain expenses managed by the Company’s selling and corporate functions, including all stock-based compensation expense, impairment charges, certain acquisition-related charges, IPR&D charges, excise tax expense, special charges and centralized support groups' operating expenses are not recorded in the IESD and CATD reportable segments. As a result, reportable segment operating profit is not representative of the operating profit of the products in these reportable segments. Additionally, certain assets are managed by the Company’s selling and corporate functions, principally including trade receivables, inventory, cash and cash equivalents, certain marketable securities and certain deferred income taxes. For management reporting purposes, the Company does not compile capital expenditures by reportable segment; therefore, this information has not been presented, as it is impracticable to do so.

The following table presents net sales and operating profit by reportable segment (in millions):

	IESD		CATD		Other			Total
Three Months ended September 28, 2013:
Net sales	$	786	$	552	$	—		$	1,338
Operating profit	534		321		(542		)	313
Three Months ended September 29, 2012:
Net sales	$	792	$	534	$	—		$	1,326
Operating profit	547		319		(631		)	235
Nine Months ended September 28, 2013:
Net sales	$	2,389	$	1,690	$	—		$	4,079
Operating profit	1,630		995		(1,722		)	903
Nine Months ended September 29, 2012:
Net sales	$	2,482	$	1,649	$	—		$	4,131
Operating profit	1,720		980		(1,825		)	875

The following table presents the Company’s total assets by reportable segment (in millions):

Total Assets	September 28, 2013		December 29, 2012
IESD	$	2,644	$	2,320
CATD	3,301		2,967
Other	4,020		3,984
	$	9,965	$	9,271

Geographic Information

The following table presents net sales by geographic location of the customer (in millions):

	Three Months Ended				Nine Months Ended
Net Sales	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
United States	$	646	$	640	$	1,955	$	1,969
International
Europe	333		311		1,066		1,059
Japan	142		172		418		500
Asia Pacific	125		118		362		339
Other	92		85		278		264
	692		686		2,124		2,162
	$	1,338	$	1,326	$	4,079	$	4,131

The amounts for long-lived assets by significant geographic market include net property, plant and equipment by physical location of the asset as follows (in millions):

Long-Lived Assets	September 28, 2013		December 29, 2012
United States	$	1,046	$	1,036
International
Europe	81		82
Japan	34		32
Asia Pacific	77		82
Other	189		193
	381		389
	$	1,427	$	1,425

XML

Document And Entity Information	3 Months Ended
	Sep. 28, 2013	Nov. 01, 2013
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 28, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Entity Registrant Name	ST JUDE MEDICAL INC
Entity Central Index Key	0000203077
Current Fiscal Year End Date	--12-28
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		291,813,213

XML

Business Combinations Business Combinations (Tables)

9 Months Ended

Sep. 28, 2013

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The preliminary allocation of the Endosense purchase price to the estimated fair values of net assets acquired was as follows (in millions):

	August 19, 2013
Assets acquired:
Current assets	$	2
Goodwill	258
Acquired in-process research and development (IPR&D)	33
Other intangible assets	20
Other long-term assets	1
Total assets acquired	314
Liabilities assumed:
Current liabilities	11
Net assets acquired	303
Cash paid	180
Cash acquired	(9		)
Net cash consideration	171
Contingent consideration	132
Total purchase consideration	$	303

Spinal Modulation [Member]

Schedule of Variable Interest Entities [Table Text Block]

The initial consolidation of a VIE that is determined to be a business is accounted for as a business combination. The following table summarizes the estimated fair values of Spinal Modulation’s assets and liabilities included in St. Jude Medical's consolidated balance sheets as of the June 7, 2013 consolidation date, and as of September 28, 2013 after elimination of all intercompany balances and transactions (in millions):

	June 7, 2013		September 28, 2013
Cash and cash equivalents	$	41	$	31
Other current assets	9		6
Goodwill	82		82
Acquired in-process research and development (IPR&D)	45		45
Other intangible assets	7		7
Other long-term assets	1		1
Total assets	185		172
Current liabilities	6		5
Deferred income taxes, net	19		19
Total liabilities	25		24
Non-controlling interest	$	120	$	111

CardioMEMS, Inc. [Member]

Schedule of Variable Interest Entities [Table Text Block]

	February 27, 2013		September 28, 2013
Cash and cash equivalents	$	33	$	21
Other current assets	2		4
Goodwill	83		83
Acquired in-process research and development (IPR&D)	63		63
Other long-term assets	2		2
Total assets	183		173
Current liabilities	13		6
Deferred income taxes, net	23		23
Other liabilities	5		4
Total liabilities	41		33
Non-controlling interest	$	84	$	74