ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) AND SUPPLEMENTAL EQUITY INFORMATION

The tables below present the changes in each component of accumulated other comprehensive income, net of tax, including other comprehensive income and reclassifications out of accumulated other comprehensive income into net earnings for the three and six months ended July 4, 2015, respectively (in millions):



	Unrealized
	Gain (Loss) On			Unrealized			Foreign			Accumulated
	Available-for-			Gain (Loss) On			Currency			Other
For the three months ended July 4, 2015	sale Securities			Derivative Instruments			translation adjustment			Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) as of April 4, 2015	$	16		$	32		$	(318	)	$	(270	)
Other comprehensive income (loss) before reclassifications	(2		)	(13		)	30			15
Amounts reclassified to net earnings from accumulated other comprehensive income	(2		)	(4		)	—			(6		)
Other comprehensive income (loss)	(4		)	(17		)	30			9
Accumulated other comprehensive income (loss) as of July 4, 2015	$	12		$	15		$	(288	)	$	(261	)

	Unrealized
	Gain (Loss) On			Unrealized			Foreign			Accumulated
	Available-for-			Gain (Loss) On			Currency			Other
For the six months ended July 4, 2015	sale Securities			Derivative Instruments			translation adjustment			Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) as of January 3, 2015	$	15		$	3		$	(191	)	$	(173	)
Other comprehensive income (loss) before reclassifications	1			16			(97		)	(80		)
Amounts reclassified to net earnings from accumulated other comprehensive income	(4		)	(4		)	—			(8		)
Other comprehensive income (loss)	(3		)	12			(97		)	(88		)
Accumulated other comprehensive income (loss) as of July 4, 2015	$	12		$	15		$	(288	)	$	(261	)



	Unrealized
	Gain (Loss) On		Unrealized		Foreign			Accumulated
	Available-for-		Gain (Loss) On		Currency			Other
For the three months ended June 28, 2014	sale Securities		Derivative Instruments		translation adjustment			Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) as of March 29, 2014	$	17	$	3	$	36		$	56
Other comprehensive income (loss) before reclassifications	1		—		(20		)	(19		)
Amounts reclassified to net earnings from accumulated other comprehensive income	—		—		—			—
Other comprehensive income (loss)	1		—		(20		)	(19		)
Accumulated other comprehensive income (loss) as of June 28, 2014	$	18	$	3	$	16		$	37

	Unrealized
	Gain (Loss) On		Unrealized		Foreign			Accumulated
	Available-for-		Gain (Loss) On		Currency			Other
For the six months ended June 28, 2014	sale Securities		Derivative Instruments		translation adjustment			Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) as of December 28, 2013	$	17	$	3	$	26		$	46
Other comprehensive income (loss) before reclassifications	1		—		(10		)	(9		)
Amounts reclassified to net earnings from accumulated other comprehensive income	—		—		—			—
Other comprehensive income (loss)	1		—		(10		)	(9		)
Accumulated other comprehensive income (loss) as of June 28, 2014	$	18	$	3	$	16		$	37

Income taxes are not provided for foreign translation related to permanent investments in international subsidiaries. Reclassification adjustments are made to avoid double counting items in comprehensive income that are also recorded as part of net earnings.

The following table provides details about reclassifications out of accumulated other comprehensive income and the line items impacted in the Company's Condensed Consolidated Statements of Earnings during the three and six months ended July 4, 2015 and June 28, 2014, respectively (in millions):



Details about	Amount reclassified from accumulated other comprehensive income
accumulated other	Three Months Ended					Six Months Ended
comprehensive income components	July 4, 2015			June 28, 2014		July 4, 2015			June 28, 2014		Statements of Earnings Classification

Unrealized (gain) loss on available-for-sale securities:
(Gain) loss on sale of available-for-sale securities	$	(3	)	$	—	$	(7	)	$	—	Other (income) expense
Tax effect	1			—		3			—		Income tax expense
Net of tax	$	(2	)	$	—	$	(4	)	$	—

Unrealized (gain) loss on derivative financial instruments:
(Gain) loss recognized on derivative financial instruments	$	(4	)	$	—	$	(4	)	$	—	Cost of sales
Tax effect	—			—		—			—		Income tax expense
Net of tax	$	(4	)	$	—	$	(4	)	$	—

The Company's realized (gains) and losses on its available-for-sales securities and derivative financial instruments are computed using the specific identification method.

Supplemental Equity Information

On January 13, 2015, the Company authorized a share repurchase program of up to $500 million of its outstanding common stock. The Company began repurchasing shares on January 30, 2015. From January 30, 2015 through March 2, 2015, the Company repurchased approximately 7.5 million shares for $500 million at an average repurchase price of $66.96 per share.

In June 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. 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. Accordingly, effective June 7, 2013, the Company determined that Spinal Modulation was a variable interest entity for which St. Jude Medical was the primary beneficiary with the financial condition and results of operations of Spinal Modulation included in St. Jude Medical's Condensed Consolidated Financial Statements.

During the second quarter of 2015, the Company exercised its exclusive option and paid $173 million to Spinal Modulation’s shareholders to acquire the remaining 81% ownership interest in the company that it did not previously own and accrued $155 million of contingent consideration (see Note 8). The $173 million paid in the second quarter of 2015 was classified as a financing activity in the Condensed Consolidated Statement of Cash Flows. As the Company retained its controlling interest, the payment for the shares and the accrual for contingent consideration resulted in a decrease in shareholders' equity before noncontrolling interest of $297 million and a decrease in noncontrolling interest of $33 million in St. Jude Medical's Condensed Consolidated Balance Sheets. Spinal Modulation's results of operations continue to be included in the Company's Condensed Consolidated Financial Statements.

The supplemental equity schedules below present changes in the Company's noncontrolling interest and total shareholders' equity for the six months ended July 4, 2015 and June 28, 2014, respectively (in millions):



	Total
	Shareholders'
	Equity
	Before						Total
	Noncontrolling			Noncontrolling			Shareholders'
For the six months ended July 4, 2015	Interest			Interest			Equity
Balance at January 3, 2015	$	4,199		$	45		$	4,244
Net earnings	552			(14		)	538
Other comprehensive income (loss)	(88		)	—			(88		)
Cash dividends declared	(163		)	—			(163		)
Repurchases of common stock	(500		)	—			(500		)
Stock-based compensation	35			2			37
Common stock issued under employee stock plans and other, net	89			—			89
Tax benefit from stock plans	14			—			14
Additions (purchases) of noncontrolling ownership interests	(297		)	(33		)	(330		)
Balance at July 4, 2015	$	3,841		$	—		$	3,841



	Total
	Shareholders'
	Equity
	Before						Total
	Noncontrolling			Noncontrolling			Shareholders'
For the six months ended June 28, 2014	Interest			Interest			Equity
Balance at December 28, 2013	$	4,231		$	173		$	4,404
Net earnings	519			(34		)	485
Other comprehensive income (loss)	(9		)	—			(9		)
Cash dividends declared	(154		)	—			(154		)
Repurchases of common stock	(434		)	—			(434		)
Stock-based compensation	34			—			34
Common stock issued under employee stock plans and other, net	78			—			78
Tax benefit from stock plans	11			—			11
Measurement period fair value adjustment to noncontrolling interest	—			(36		)	(36		)
Additions (purchases) of noncontrolling ownership interests	(297		)	(47		)	(344		)
Balance at June 28, 2014	$	3,979		$	56		$	4,035