Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 29, 2014 | 2-May-14 | |
Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 29-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Registrant Name | 'ST JUDE MEDICAL INC | ' |
Entity Central Index Key | '0000203077 | ' |
Current Fiscal Year End Date | '--01-03 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 284,225,072 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Earnings (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Net sales | $1,363 | $1,338 |
Cost of sales: | ' | ' |
Cost of sales before special charges | 382 | 359 |
Special charges | 1 | 18 |
Total cost of sales | 383 | 377 |
Gross profit | 980 | 961 |
Selling, general and administrative expense | 465 | 468 |
Research and development expense | 170 | 160 |
Special charges | 33 | 25 |
Operating profit | 312 | 308 |
Other expense, net | 20 | 48 |
Earnings before noncontrolling interest and income taxes | 292 | 260 |
Income tax expense | 53 | 38 |
Net earnings before noncontrolling interest | 239 | 222 |
Net loss attributable to noncontrolling interest | -10 | -1 |
Net earnings attributable to St. Jude Medical, Inc. | $249 | $223 |
Net earnings per share attributable to St. Jude Medical, Inc.: | ' | ' |
Basic | $0.88 | $0.78 |
Diluted | $0.86 | $0.78 |
Cash dividends declared per share: | $0.27 | $0.25 |
Weighted average shares outstanding: | ' | ' |
Basic | 284.4 | 285.3 |
Diluted | 289.3 | 287.4 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Net earnings before noncontrolling interest | $239 | $222 |
Other comprehensive income (loss), net of tax: | ' | ' |
Unrealized loss on available-for-sale securities | 0 | -1 |
Unrealized gain on derivative financial instruments | 0 | 3 |
Foreign currency translation adjustment | 10 | -27 |
Other comprehensive income (loss) | 10 | -25 |
Total comprehensive income before noncontrolling interest | 249 | 197 |
Total comprehensive loss attributable to noncontrolling interest | -10 | -1 |
Total comprehensive income attributable to St. Jude Medical, Inc. | $259 | $198 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $1,446 | $1,373 |
Accounts receivable, less allowance for doubtful accounts of $47 million and $45 million at March 29, 2014 and December 28, 2013, respectively | 1,359 | 1,422 |
Inventories | 781 | 708 |
Deferred income taxes, net | 232 | 229 |
Other current assets | 161 | 178 |
Total current assets | 3,979 | 3,910 |
Property, plant and equipment, at cost | 2,829 | 2,799 |
Less accumulated depreciation | -1,430 | -1,389 |
Net property, plant and equipment | 1,399 | 1,410 |
Goodwill | 3,534 | 3,524 |
Intangible assets, net | 890 | 911 |
Deferred income taxes, net | 102 | 116 |
Other assets | 387 | 377 |
TOTAL ASSETS | 10,291 | 10,248 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ' | ' |
Current debt obligations | 63 | 62 |
Accounts payable | 192 | 247 |
Dividends payable | 77 | 72 |
Income taxes payable | 43 | 32 |
Employee compensation and related benefits | 250 | 312 |
Other current liabilities | 632 | 655 |
Total current liabilities | 1,257 | 1,380 |
Long-term debt | 3,847 | 3,518 |
Deferred income taxes, net | 244 | 240 |
Other liabilities | 715 | 706 |
Total liabilities | 6,063 | 5,844 |
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; 284,075,614 and 289,117,352 shares issued and outstanding at March 29, 2014 and December 28, 2013, respectively) | 29 | 29 |
Additional paid-in capital | 58 | 220 |
Retained earnings | 3,922 | 3,936 |
Accumulated other comprehensive income | 56 | 46 |
Total shareholders' equity before noncontrolling interest | 4,065 | 4,231 |
Noncontrolling interest | 163 | 173 |
Total shareholders’ equity | 4,228 | 4,404 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $10,291 | $10,248 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Accounts receivable allowance for doubtful accounts | $47 | $45 |
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 | $0.10 | $0.10 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 284,075,614 | 289,117,352 |
Common stock, shares outstanding | 284,075,614 | 289,117,352 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
OPERATING ACTIVITIES | ' | ' |
Net earnings before noncontrolling interest | $239 | $222 |
Adjustments to reconcile net earnings to net cash from operating activities: | ' | ' |
Depreciation and amortization | 76 | 68 |
Amortization of debt premium, net | -1 | -3 |
Contingent consideration fair value adjustment, net | 1 | 0 |
Stock-based compensation | 17 | 16 |
Excess tax benefits from stock issued under employee stock plans | -9 | 0 |
Deferred income taxes, net | 16 | -3 |
Other, net | 1 | 34 |
Changes in operating assets and liabilities, net of business combinations: | ' | ' |
Accounts receivable | 67 | -5 |
Inventories | -65 | 7 |
Other current assets | 13 | -67 |
Accounts payable and accrued expenses | -103 | -96 |
Income taxes payable | 21 | 10 |
Net cash provided by operating activities | 273 | 183 |
INVESTING ACTIVITIES | ' | ' |
Purchases of property, plant and equipment | -46 | -65 |
Proceeds from sale of investments | 4 | 0 |
Other investing activities, net | 0 | -4 |
Net cash used in investing activities | -42 | -69 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from exercise of stock options and stock issued, net | 60 | 51 |
Excess tax benefits from stock issued under employee stock plans | 9 | 0 |
Common stock repurchased, including related costs | -476 | -609 |
Dividends paid | -72 | -68 |
Issuances (payments) of commercial paper borrowings, net | 326 | 307 |
Other financing activities, net | -6 | -14 |
Net cash used in financing activities | -159 | -333 |
Effect of currency exchange rate changes on cash and cash equivalents | 1 | -9 |
Net increase in cash and cash equivalents | 73 | -228 |
Cash and cash equivalents at beginning of period | 1,373 | 1,194 |
Cash and cash equivalents at end of period | 1,446 | 966 |
Noncash investing and financing activities: | ' | ' |
Additions in noncontrolling ownership interest | $0 | $84 |
Basis_Of_Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 29, 2014 | |
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 28, 2013 (2013 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 January 28, 2014, the Company announced organizational changes to combine its Implantable Electronic Systems Division (IESD) and Cardiovascular and Ablation Technologies Division (CATD) operating divisions, resulting in an integrated research and development organization and a consolidation of manufacturing and supply chain operations worldwide. The integration will be conducted in a phased approach throughout 2014. The Company's continuing global restructuring efforts are focused on streamlining its organization to improve productivity, reduce costs and leverage its scale to drive additional growth. The Company will continue to report under the existing reportable segment structure for internal management financial forecasting and reporting purposes into fiscal year 2014 until the organizational changes and the related financial reporting structure are finalized. The financial reporting structure has not changed as of and for the period ended March 29, 2014 and continues to be consistent with the 2013 comparable periods. See Note 14 for further information on the Company's segments. | |
New Accounting Pronouncements: In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-11 (ASU 2013-11), Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires an entity to present an unrecognized tax benefit, or portion of an unrecognized tax benefit, as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists with certain exceptions. The Company is required to prospectively adopt ASU 2013-11 in the first reporting period beginning after December 15, 2013. The Company's adoption of ASU 2013-11 during the first quarter of 2014 resulted in a $14 million reclassification from other liabilities to deferred income taxes, net (noncurrent assets) on its Condensed Consolidated Balance Sheets. |
Business_Combinations_Business
Business Combinations Business Combinations | 3 Months Ended | ||||||||||
Mar. 29, 2014 | |||||||||||
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 United States (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 tachycardia ablation. Under the terms of the acquisition agreement, the Company is obligated to make an additional cash payment of up to 150 million Swiss Francs (approximately $169 million at March 29, 2014), contingent upon both the achievement and timing of U.S. Food and Drug Administration (FDA) approval. | |||||||||||
Consistent with the provisions of the Accounting Standards Codification (ASC) Topic 805, Business Combinations (ASC Topic 805) the Company accrued the contingent payment on the date of acquisition after determining its fair value of $132 million in arriving at $303 million of total consideration, net of cash acquired. The contingent consideration liability (approximately $141 million at March 29, 2014) is reflected in other current liabilities as of March 29, 2014 and is remeasured to fair value at each reporting period with changes in fair value reflected in the Condensed Consolidated Statements of Earnings. The purchase price allocation is preliminary subject to finalization of the fair value valuation. | |||||||||||
Nanostim, Inc.: On October 11, 2013, the Company exercised its exclusive purchase option and acquired all the outstanding shares of Nanostim, Inc. (Nanostim) for $121 million in net cash consideration. The Company previously held an investment in Nanostim, which provided the Company with an 18% voting equity interest. Nanostim is based in Sunnyvale, California and has developed the first leadless, miniaturized cardiac pacemaker system, which received CE Mark approval in August 2013. The Nanostim™ leadless pacemaker also received FDA conditional approval in September 2013 for its Investigational 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% equity interest in Nanostim. In accordance with ASC Topic 810, Consolidations (ASC Topic 810), the Company previously concluded that Nanostim was a VIE, but that St. Jude Medical was not the primary beneficiary as it did not retain power to direct the activities of Nanostim that most significantly impacted its economic performance. The Company previously reflected its investment in Nanostim as a cost method investment in other assets. | |||||||||||
At the time of acquisition, the Company's 18% voting equity interest in Nanostim was remeasured to fair value of $33 million, which approximated its carrying value, and the related remeasurement gain was not material. Under the terms of the acquisition agreement, the Company is obligated to make additional cash payments of up to $65 million, contingent upon the achievement and timing of certain revenue-based milestones. Consistent with the provisions of ASC Topic 805, the Company accrued the contingent payment after determining its fair value of $56 million in arriving at $210 million of total consideration, net of cash acquired. The contingent consideration accrual (approximately $57 million at March 29, 2014) is reflected in other liabilities and is remeasured to fair value at each reporting period with changes in fair value reflected in the Condensed Consolidated Statements of Earnings. The purchase price allocation is preliminary subject to finalization of the fair value valuation. | |||||||||||
The following table summarizes the purchase price allocation of the estimated fair values of net assets acquired and liabilities assumed as a result of the Company's acquisitions of Endosense and Nanostim during fiscal year 2013 as follows (in millions): | |||||||||||
Endosense | Nanostim | Total | |||||||||
Assets acquired: | |||||||||||
Current assets | $ | 2 | $ | 1 | $ | 3 | |||||
Goodwill | 258 | 149 | 407 | ||||||||
In-process research and development (IPR&D) | 33 | 27 | 60 | ||||||||
Other intangible assets | 20 | 34 | 54 | ||||||||
Other long-term assets | 1 | 1 | 2 | ||||||||
Total assets acquired | 314 | 212 | 526 | ||||||||
Liabilities assumed: | |||||||||||
Current liabilities | 11 | 2 | 13 | ||||||||
Net assets acquired | 303 | 210 | 513 | ||||||||
Cash paid | 180 | 124 | 304 | ||||||||
Cash acquired | (9 | ) | (3 | ) | (12 | ) | |||||
Net cash consideration | 171 | 121 | 292 | ||||||||
Contingent consideration | 132 | 56 | 188 | ||||||||
Fair value of St. Jude Medical, Inc.'s previously held interest | — | 33 | 33 | ||||||||
Total purchase consideration | $ | 303 | $ | 210 | $ | 513 | |||||
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 the Company obtaining 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. 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 of 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 with the financial condition and results of operations of Spinal Modulation 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 Condensed Consolidated Statements of Earnings and Condensed Consolidated Balance Sheets. | |||||||||||
The initial consolidation of a VIE that is determined to be a business is accounted for as a business combination. The following table summarizes Spinal Modulation’s assets and liabilities included in St. Jude Medical's consolidated balance sheets as of March 29, 2014 after elimination of all intercompany balances and transactions (in millions): | |||||||||||
29-Mar-14 | |||||||||||
Cash and cash equivalents | $ | 15 | |||||||||
Other current assets | 5 | ||||||||||
Goodwill | 82 | ||||||||||
IPR&D | 45 | ||||||||||
Other intangible assets | 7 | ||||||||||
Other long-term assets | 1 | ||||||||||
Total assets | 155 | ||||||||||
Current liabilities | 6 | ||||||||||
Deferred income taxes, net | 19 | ||||||||||
Total liabilities | 25 | ||||||||||
Non-controlling interest | $ | 98 | |||||||||
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. | |||||||||||
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 the Company obtaining 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. under a separate loan agreement entered into between CardioMEMS and the Company. | |||||||||||
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, the Company reconsidered its arrangements with CardioMEMS and determined that effective February 27, 2013 CardioMEMS was a VIE for which St. Jude Medical is the primary beneficiary with the financial condition and results of operations of CardioMEMS included in St. Jude Medical's consolidated financial statements. The Company recognized a $29 million charge to other expense during the first quarter of 2013 (see Note 10) to adjust the carrying value of its 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 Condensed Consolidated Statements of Earnings and Condensed Consolidated Balance Sheets. | |||||||||||
The initial consolidation of a VIE that is determined to be a business is accounted for as a business combination. The following table summarizes CardioMEMS’ assets and liabilities included in St. Jude Medical's consolidated balance sheets as of March 29, 2014 after elimination of all intercompany balances and transactions (in millions): | |||||||||||
29-Mar-14 | |||||||||||
Cash and cash equivalents | $ | 7 | |||||||||
Other current assets | 7 | ||||||||||
Goodwill | 83 | ||||||||||
IPR&D | 63 | ||||||||||
Other long-term assets | 2 | ||||||||||
Total assets | 162 | ||||||||||
Current liabilities | 5 | ||||||||||
Deferred income taxes, net | 23 | ||||||||||
Other liabilities | 3 | ||||||||||
Total liabilities | 31 | ||||||||||
Non-controlling interest | $ | 64 | |||||||||
Goodwill_And_Other_Intangible_
Goodwill And Other Intangible Assets | 3 Months Ended | |||||||||||||||
Mar. 29, 2014 | ||||||||||||||||
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 three months ended March 29, 2014 were as follows (in millions): | ||||||||||||||||
IESD | CATD | Total | ||||||||||||||
Balance at December 28, 2013 | $ | 1,526 | $ | 1,998 | $ | 3,524 | ||||||||||
Foreign currency translation and other | 2 | 8 | 10 | |||||||||||||
Balance at March 29, 2014 | $ | 1,528 | $ | 2,006 | $ | 3,534 | ||||||||||
The following table provides the gross carrying amount of other intangible assets and related accumulated amortization (in millions): | ||||||||||||||||
March 29, 2014 | December 28, 2013 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||
Purchased technology and patents | $ | 986 | $ | 413 | $ | 986 | $ | 393 | ||||||||
Customer lists and relationships | 20 | 14 | 20 | 13 | ||||||||||||
Trademarks and tradenames | 22 | 11 | 22 | 11 | ||||||||||||
Licenses, distribution agreements and other | 4 | 1 | 4 | 1 | ||||||||||||
$ | 1,032 | $ | 439 | $ | 1,032 | $ | 418 | |||||||||
Indefinite-lived intangible assets: | ||||||||||||||||
Acquired IPR&D | $ | 262 | $ | 262 | ||||||||||||
Trademarks and tradenames | 35 | 35 | ||||||||||||||
$ | 297 | $ | 297 | |||||||||||||
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Inventory Disclosure | ' | |||||||
INVENTORIES | ||||||||
The Company’s inventories consisted of the following (in millions): | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Finished goods | $ | 541 | $ | 494 | ||||
Work in process | 79 | 52 | ||||||
Raw materials | 161 | 162 | ||||||
$ | 781 | $ | 708 | |||||
Debt
Debt | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
DEBT | ||||||||
The Company’s debt consisted of the following (in millions): | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Term loan due 2015 | $ | 500 | $ | 500 | ||||
2.50% senior notes due 2016 | 510 | 512 | ||||||
3.25% senior notes due 2023 | 896 | 896 | ||||||
4.75% senior notes due 2043 | 696 | 696 | ||||||
1.58% Yen-denominated senior notes due 2017 | 80 | 78 | ||||||
2.04% Yen-denominated senior notes due 2020 | 125 | 122 | ||||||
Yen-denominated credit facilities | 63 | 62 | ||||||
Commercial paper borrowings | 1,040 | 714 | ||||||
Total debt | 3,910 | 3,580 | ||||||
Less: current debt obligations | 63 | 62 | ||||||
Long-term debt | $ | 3,847 | $ | 3,518 | ||||
Expected future minimum principal payments under the Company’s debt obligations as of March 29, 2014 are as follows: $63 million in 2014; $500 million in 2015; $500 million in 2016; $80 million in 2017; 1,040 million in 2018 and $1,725 million in years thereafter. | ||||||||
Term Loan Due 2015: In June 2013, the Company entered into a 2-year, $500 million unsecured term loan that matures in June 2015, 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. | ||||||||
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. The majority of the net proceeds from the issuance of the 2023 Senior Notes was used for general corporate purposes including the repayment of outstanding borrowings. 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. The majority of the net proceeds from the issuance of the 2043 Senior Notes was used for general corporate purposes including the repayment of outstanding borrowings. 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. | ||||||||
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 $80 million at March 29, 2014 and $78 million at December 28, 2013). 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 $125 million at March 29, 2014 and $122 million at December 28, 2013). 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 $63 million at March 29, 2014 and $62 million at December 28, 2013) 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 2015 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. As of March 29, 2014 and December 28, 2013, the Company had no outstanding borrowings under the Credit Facility. | ||||||||
The Company’s commercial paper program provides for the issuance of unsecured commercial paper with maturities up to 270 days. As of March 29, 2014 and December 28, 2013, the Company's commercial paper borrowings were $1,040 million and $714 million, respectively. During the first three months of 2014, the Company’s weighted average effective interest rate on its commercial paper borrowings was approximately 0.23%. 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. |
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
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. This matter has been resolved and the case has been dismissed. | ||||||||
As of May 2, 2014, the Company is aware of 47 lawsuits from plaintiffs alleging injuries caused by, and asserting product liability claims concerning, Riata® and Riata® ST Silicone Defibrillation Leads. Of the 47 lawsuits, twenty cases are pending in federal courts, including three in the U.S. District Court for the District of Minnesota, eleven 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 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 Florida, one in the U.S. District Court for the Western District of Kentucky and one in the U.S. District Court for the Southern District of West Virginia. The remaining 27 lawsuits are pending in state courts across the country, including seven in Minnesota, seventeen in California, one in Indiana, one in Georgia and one in Kentucky. | ||||||||
Most of the lawsuits have been brought by single plaintiffs, but some of them name multiple individuals as plaintiffs. Six 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; 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; and a multi-plaintiff lawsuit joining 30 unrelated claimants was filed in the Superior Court of California for the city and county of Los Angeles on April 2, 2014. | ||||||||
In November 2013, an amended claim was filed in a Canadian proposed class proceeding alleging that Riata® leads were prone to insulation abrasion and breach, failure to warn and conspiracy. The plaintiffs took no action between their 2008 filing and the amended claim they filed in November 2013. The Company has filed its statement of intent to defend in response to the amended claims, and the plaintiffs have not taken any further action. | ||||||||
Although some of the claimants in the aforementioned suits allege no specific injuries, the majority of the claimants allege bodily injuries as a result of surgical revision or 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 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. The oral argument concerning the appeal was expected to be heard in November 2013, but that hearing date was 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 accepted the matter for its direct review. Oral argument occurred on December 2, 2013, and a decision is expected 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. On November 4, 2013 Volcano announced that it was discontinuing its OCT development program effective September 30, 2013. Accordingly, Volcano has filed a motion to dismiss without prejudice in the Delaware state court litigation. The Court has not ruled on Volcano’s motion. | ||||||||
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 filed a motion for judgment as a matter of law which the Court denied. The Company intends to appeal to the federal circuit 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 the Court 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 ILUMIENTM PCI Optimization System and QuantienTM Integrated FFR platforms. In its complaint, Volcano sought both injunctive relief and monetary damages. On January 29, 2014, the Court issued a claims construction ruling favorable to the Company. Based on that ruling, the parties filed a stipulation with the Court on February 14, 2014, agreeing that the Company's products do not infringe the two patents Volcano has asserted. Volcano has appealed the claims construction ruling. | ||||||||
The Company has not recorded an expense related to any potential damages in connection with these 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. | ||||||||
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. A hearing concerning that motion took place with the Court in 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 October 2014. The defendants intend to continue to vigorously defend against the claims asserted in this lawsuit. | ||||||||
December 2012 Securities Litigation: On December 7, 2012, a putative 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 sought 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 putative 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 alleged similar claims and sought similar relief. In March 2013, the Court consolidated the two cases and appointed a lead counsel and lead plaintiff. A consolidated amended complaint was served and filed in June 2013, alleging false or misleading representations made during the class period extending from February 5, 2010 through November 7, 2012. In September 2013, the defendants filed a motion to dismiss the consolidated amended complaint. On March 10, 2014, the Court ruled on the motion to dismiss, denying the motion in part and granting the motion in part. 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. The matter was transferred to a new judge effective July 31, 2013 and an oral hearing on the Company’s motion to dismiss is now scheduled for June 2014. | ||||||||
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. | ||||||||
In April 2014, the Company received a CID from the Civil Division of the DOJ stating that it was investigating the Company for potential False Claims Act violations relating to allegations that certain health care facilities and a physician group may have submitted false claims to federal health care programs as a result of alleged inducements paid by the Company to implant the Company’s cardiac devices. The Company is working with the DOJ in responding to the CID. | ||||||||
The Company is cooperating with the three 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. In January 2014, the Company provided the FDA the final closeout notification for all items contained in the Form 483 issued after the September 2012 inspection and subsequent warning letter. In April 2014, the FDA inspected the Company's Sylmar facility and issued one Form 483 observation, which was immediately resolved, verified and closed by the FDA during the April 2014 inspection. The Sylmar, California facility continues to manufacture cardiac rhythm management devices pending warning letter closure. | ||||||||
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. The Company has worked to address the observations and is waiting on a further inspection from the FDA. | ||||||||
With respect to both of these warning letters, the FDA notes that it will generally 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. However, in the case of both warning letters, the FDA has recently granted certain product approvals pending warning letter resolution. Customer orders have not been and are not expected to be impacted. | ||||||||
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 working to improve its internal compliance systems and procedures as part of its ongoing effort to seek compliance 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 relate to pacemaker and ICD systems. The Company estimates the costs it expects to incur under its warranties and records a liability for 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 regularly assesses the adequacy of its warranty liabilities and adjusts the amounts as necessary. | ||||||||
Changes in the Company’s product warranty liability during the three months ended March 29, 2014 and March 30, 2013 were as follows (in millions): | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Balance at beginning of period | $ | 37 | $ | 38 | ||||
Warranty expense recognized | 1 | 2 | ||||||
Warranty credits issued | (1 | ) | (3 | ) | ||||
Balance at end of period | $ | 37 | $ | 37 | ||||
Special_Charges
Special Charges | 3 Months Ended | |||||||||||||||||||
Mar. 29, 2014 | ||||||||||||||||||||
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. | ||||||||||||||||||||
During 2013, the Company incurred additional charges totaling $220 million related to the realignment plan initiated during 2012. The Company also recognized severance costs and other termination benefits of $75 million 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). Additionally, the Company recorded $30 million of inventory write-offs primarily associated with discontinued CATD product lines, $13 million of fixed asset write-offs primarily related to information technology assets no longer expected to be utilized and $102 million of other restructuring costs. Of the $102 million in other restructuring costs, $64 million was associated with distributor and other contract termination costs and office consolidation costs, including a $23 million charge related to the termination of a research agreement, and $38 million was associated with other costs, all as part of the Company's continued integration efforts. | ||||||||||||||||||||
During the first quarter of 2014, the Company announced additional organizational changes including the combination of its IESD and CATD operating divisions, resulting in an integrated research and development organization and a consolidation of manufacturing and supply chain operations worldwide. The integration will be conducted in a phased approach throughout 2014. In connection with these actions, the Company incurred $34 million of special charges associated with the 2012 business realignment plan. These charges included $12 million of severance and other termination benefits after management determined that such costs were probable and estimable and $20 million of other restructuring costs primarily associated with distributor and other contract termination costs as well as other international sales office consolidation costs. | ||||||||||||||||||||
A summary of the activity related to the 2012 business realignment plan accrual is as follows (in millions): | ||||||||||||||||||||
Employee | Inventory | Fixed | Other | Total | ||||||||||||||||
Termination | Charges | Asset | Restructuring | |||||||||||||||||
Costs | Charges | Costs | ||||||||||||||||||
Balance at December 29, 2012 | $ | 58 | $ | — | $ | — | $ | 8 | $ | 66 | ||||||||||
Cost of sales special charges | — | 30 | — | 5 | 35 | |||||||||||||||
Special charges | 75 | — | 13 | 97 | 185 | |||||||||||||||
Non-cash charges used | — | (30 | ) | (13 | ) | (4 | ) | (47 | ) | |||||||||||
Cash payments | (79 | ) | — | — | (73 | ) | (152 | ) | ||||||||||||
Foreign exchange rate impact | — | — | — | — | — | |||||||||||||||
Balance at December 28, 2013 | 54 | — | — | 33 | 87 | |||||||||||||||
Cost of sales special charges | — | 1 | — | — | 1 | |||||||||||||||
Special charges | 12 | — | 1 | 20 | 33 | |||||||||||||||
Non-cash charges used | — | (1 | ) | (1 | ) | — | (2 | ) | ||||||||||||
Cash payments | (22 | ) | — | — | (29 | ) | (51 | ) | ||||||||||||
Foreign exchange rate impact | — | — | — | — | — | |||||||||||||||
Balance at March 29, 2014 | $ | 44 | $ | — | $ | — | $ | 24 | $ | 68 | ||||||||||
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. As of December 28, 2013, the Company had a remaining accrual balance consisting of employee termination and other restructuring costs associated with its 2011 restructuring plan of $15 million. During the first quarter of 2014, $5 million was paid resulting in a remaining accrual balance of $10 million as of March 29, 2014 that is expected to be paid during 2014. Going forward, no additional charges are expected as the 2011 restructuring plan is now complete. |
Net_Earnings_Per_Share
Net Earnings Per Share | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
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 | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Numerator: | ||||||||
Net earnings attributable to St. Jude Medical, Inc. | $ | 249 | $ | 223 | ||||
Denominator: | ||||||||
Basic weighted average shares outstanding | 284.4 | 285.3 | ||||||
Effect of dilutive securities: | ||||||||
Employee stock options | 4.5 | 1.9 | ||||||
Restricted stock units | 0.4 | 0.2 | ||||||
Diluted weighted average shares outstanding | 289.3 | 287.4 | ||||||
Basic net earnings per share attributable to St. Jude Medical, Inc. | $ | 0.88 | $ | 0.78 | ||||
Diluted net earnings per share attributable to St. Jude Medical, Inc. | $ | 0.86 | $ | 0.78 | ||||
Approximately 2.7 million and 10.9 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 March 29, 2014 and March 30, 2013, respectively, because they were not dilutive. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
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 for the three months ended March 29, 2014 and March 30, 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 March 29, 2014 | securities | instruments | Adjustment | Income (Loss) | |||||||||
Accumulated other comprehensive income (loss), net of tax, at December 28, 2013 | $ | 17 | $ | 3 | $ | 26 | $ | 46 | |||||
Other comprehensive income (loss) before reclassifications | — | — | 10 | 10 | |||||||||
Amounts reclassified to net earnings from accumulated other comprehensive income | — | — | — | — | |||||||||
Other comprehensive income (loss) | — | — | 10 | 10 | |||||||||
Accumulated other comprehensive income (loss), net of tax, at March 29, 2014 | $ | 17 | $ | 3 | $ | 36 | $ | 56 | |||||
Unrealized | Unrealized | Foreign | Accumulated | ||||||||||
gain (loss) on | gain (loss) on | Currency | Other | ||||||||||
available-for-sale | derivative | Translation | Comprehensive | ||||||||||
For the three months ended March 30, 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 | (27 | ) | (25 | ) | ||||||
Amounts reclassified to net earnings from accumulated other comprehensive income | — | — | — | — | |||||||||
Other comprehensive income (loss) | (1 | ) | 3 | (27 | ) | (25 | ) | ||||||
Accumulated other comprehensive income (loss), net of tax, at March 30, 2013 | $ | 19 | $ | 3 | $ | (1 | ) | $ | 21 | ||||
The Company had no reclassifications out of accumulated other comprehensive income into the Condensed Consolidated Statements of Earnings during the three months ended March 29, 2014 or March 30, 2013. |
Other_Expense_Net
Other Expense, Net | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
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 | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Interest income | $ | (1 | ) | $ | (1 | ) | ||
Interest expense | 21 | 19 | ||||||
Other | — | 30 | ||||||
Other expense, net | $ | 20 | $ | 48 | ||||
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 starting in the first quarter of 2013. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 29, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
INCOME TAXES | |
As of March 29, 2014, the Company had $330 million accrued for unrecognized tax benefits, all of which would affect the Company’s effective tax rate if recognized. Additionally, the Company had $38 million accrued for interest and penalties as of March 29, 2014. At December 28, 2013, the liability for unrecognized tax benefits was $315 million and the accrual for interest and penalties was $37 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) completed an audit of the Company’s 2008 and 2009 tax returns, and proposed adjustments in its audit report, commonly referred to as a “30-day letter,” issued in February 2014. The Company intends to vigorously defend its positions and initiated defense of these adjustments at the IRS appellate level in April 2014. An unfavorable outcome could have a material negative impact on the Company's effective income tax rate in future periods. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. |
Fair_Value_Measurements_And_Fi
Fair Value Measurements And Financial Instruments | 3 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
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 March 29, 2014 and December 28, 2013 (in millions): | |||||||||||||||||
March 29, 2014 | December 28, 2013 | ||||||||||||||||
Adjusted cost | $ | 7 | $ | 7 | |||||||||||||
Gross unrealized gains | 27 | 28 | |||||||||||||||
Fair value | $ | 34 | $ | 35 | |||||||||||||
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 March 29, 2014 or December 28, 2013. | |||||||||||||||||
Contingent Consideration Liabilities: In connection with certain business combinations the Company has agreed to provide future contingent consideration payments. Payment of the additional consideration is generally contingent on the acquired company reaching certain performance milestones, including attaining specified revenue levels, achieving product development targets or receiving regulatory approvals to market products. Contingent consideration is recognized on the acquisition date at the estimated fair value of the contingent milestone payment(s). The acquisition date fair value is measured based on the consideration expected to be transferred (probability-weighted), discounted back to present value. The discount rate used is determined at the time of measurement in accordance with accepted valuation methods. The fair value of the contingent consideration is remeasured to its estimated fair value at each reporting period with the change in fair value recognized in selling, general and administrative expense in the Company's Condensed Consolidated Statements of Earnings. The Company measures the liability on a recurring basis using Level 3 inputs including projected revenues or cash flows, growth rates, discount rates, probabilities of payment and projected payment dates. 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 March 29, 2014 and December 28, 2013 is as follows (in millions): | |||||||||||||||||
Balance Sheet | March 29, 2014 | Quoted Prices | Significant | Significant | |||||||||||||
Classification | In Active | Other | Unobservable | ||||||||||||||
Markets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Assets | |||||||||||||||||
Money-market securities | Cash and cash equivalents | $ | 999 | $ | 999 | $ | — | $ | — | ||||||||
Available-for-sale securities | Other current assets | 34 | 34 | — | — | ||||||||||||
Trading securities | Other assets | 289 | 289 | — | — | ||||||||||||
Total assets | 1,322 | 1,322 | — | — | |||||||||||||
Liabilities | |||||||||||||||||
Contingent consideration | Other current liabilities | 141 | — | — | 141 | ||||||||||||
Contingent consideration | Other liabilities | 57 | — | — | 57 | ||||||||||||
Total liabilities | $ | 198 | $ | — | $ | — | $ | 198 | |||||||||
Balance Sheet | December 28, 2013 | Quoted Prices | Significant | Significant | |||||||||||||
Classification | In Active | Other | Unobservable | ||||||||||||||
Markets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Assets | |||||||||||||||||
Money-market securities | Cash and cash equivalents | $ | 875 | $ | 875 | $ | — | $ | — | ||||||||
Available-for-sale securities | Other current assets | 35 | 35 | — | — | ||||||||||||
Trading securities | Other assets | 279 | 279 | — | — | ||||||||||||
Total assets | 1,189 | 1,189 | — | — | |||||||||||||
Liabilities | |||||||||||||||||
Contingent consideration | Other liabilities | 195 | — | — | 195 | ||||||||||||
Total liabilities | $ | 195 | $ | — | $ | — | $ | 195 | |||||||||
The recurring Level 3 fair value measurements of the Company's contingent consideration liability include the following significant unobservable inputs (in millions): | |||||||||||||||||
Contingent Consideration Liability | Fair Value as of March 29, 2014 | Valuation Technique | Unobservable Input | Range | |||||||||||||
Endosense regulatory-based milestone | $ | 141 | Probability Weighted Discounted Cash Flow | Discount Rate | 1.15% | - | 1.59% | ||||||||||
Probability of Payment | 90% | ||||||||||||||||
Projected Year of Payment | 2014 | ||||||||||||||||
Nanostim revenue-based milestone | 57 | Probability Weighted Discounted Cash Flow | Discount Rate | 5.00% | |||||||||||||
Probability of Payment | 100% | ||||||||||||||||
Projected Years of Three Annual Payments | 2016, 2017, 2018 | ||||||||||||||||
Total contingent consideration liability | $ | 198 | |||||||||||||||
The changes in the carrying amount of the Company's contingent consideration liabilities for the three months ended March 29, 2104 were as follows (in millions): | |||||||||||||||||
Endosense | Nanostim | Total | |||||||||||||||
Balance as of December 28, 2013 | $ | 139 | $ | 56 | $ | 195 | |||||||||||
Change in fair value of contingent consideration | — | 1 | 1 | ||||||||||||||
Foreign currency translation | 2 | — | 2 | ||||||||||||||
Balance as of March 29, 2014 | $ | 141 | $ | 57 | $ | 198 | |||||||||||
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 including a risk-adjusted discount rate, 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. | |||||||||||||||||
The Company also reviews the carrying value of its goodwill and indefinite-lived intangible assets at least annually to determine if any adverse conditions exist that would indicate a potential impairment by considering qualitative factors such as macroeconomic conditions, industry and market considerations, cost factors, financial performance, entity specific events, changes in net assets and project-based performance toward regulatory approvals. | |||||||||||||||||
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 carrying value of these investments approximated $69 million at both March 29, 2014 and December 28, 2013, respectively. 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. | |||||||||||||||||
Fair Value Measurements of Other Financial Instruments | |||||||||||||||||
The aggregate fair value of the Company’s fixed-rate senior notes at March 29, 2014 (measured using quoted prices in active markets) was $2,311 million compared to the aggregate carrying value of $2,307 million (inclusive of the terminated interest rate swaps). The fair value of the Company’s variable-rate debt obligations at March 29, 2014 approximated its aggregate $1,603 million carrying value due to the variable interest rate and short-term nature of these instruments. The Company also had $447 million and $498 million of cash equivalents invested in short-term deposits and interest and non-interest bearing bank accounts at March 29, 2014 and December 28, 2013, respectively. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended |
Mar. 29, 2014 | |
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 March 29, 2014 and December 28, 2013. During the first three months of 2013, the net gain the Company recorded to other expense, net for its forward currency exchange contracts not designated as hedging instruments under ASC Topic 815 was a net gain of $10 million. The net gain was almost entirely offset by a corresponding net loss 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. |
Segment_And_Geographic_Informa
Segment And Geographic Information | 3 Months Ended | |||||||||||||||
Mar. 29, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment And Geographic Information | ' | |||||||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | ||||||||||||||||
Segment Information | ||||||||||||||||
On January 28, 2014, the Company announced further organizational changes to combine its Implantable Electronic Systems Division (IESD) and Cardiovascular and Ablation Technologies Division (CATD) operating divisions, resulting in an integrated research and development organization and a consolidation of manufacturing and supply chain operations worldwide. The integration will be conducted in a phased approach throughout 2014. The Company's continuing global restructuring efforts are focused on streamlining its organization to improve productivity, reduce costs and leverage its scale to drive additional growth. The Company will continue to report under the existing reportable segment structure for internal management financial forecasting and reporting purposes into fiscal year 2014 until the organizational changes and the related financial reporting structure are finalized. The financial reporting structure has not changed as of and for the period ended March 29, 2014 and continues to be consistent with the 2013 comparable periods. As a result, IESD and CATD continue to be considered the Company's reportable segments as of March 29, 2014. | ||||||||||||||||
The Company's principal products 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 atrial fibrillation (AF) products (electrophysiology (EP) introducers and catheters, advanced cardiac mapping, navigation and recording systems and ablation systems). | ||||||||||||||||
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 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 March 29, 2014: | ||||||||||||||||
Net sales | $ | 786 | $ | 577 | $ | — | $ | 1,363 | ||||||||
Operating profit | 545 | 352 | (585 | ) | 312 | |||||||||||
Three Months ended March 30, 2013: | ||||||||||||||||
Net sales | $ | 777 | $ | 561 | $ | — | $ | 1,338 | ||||||||
Operating profit | 531 | 333 | (556 | ) | 308 | |||||||||||
The following table presents the Company’s total assets by reportable segment (in millions): | ||||||||||||||||
Total Assets | March 29, 2014 | December 28, 2013 | ||||||||||||||
IESD | $ | 2,844 | $ | 2,855 | ||||||||||||
CATD | 3,281 | 3,273 | ||||||||||||||
Other | 4,166 | 4,120 | ||||||||||||||
$ | 10,291 | $ | 10,248 | |||||||||||||
Geographic Information | ||||||||||||||||
The following table presents net sales by geographic location of the customer (in millions): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Net Sales | 29-Mar-14 | 30-Mar-13 | ||||||||||||||
United States | $ | 644 | $ | 640 | ||||||||||||
International | ||||||||||||||||
Europe | 387 | 357 | ||||||||||||||
Japan | 130 | 139 | ||||||||||||||
Asia Pacific | 115 | 112 | ||||||||||||||
Other | 87 | 90 | ||||||||||||||
719 | 698 | |||||||||||||||
$ | 1,363 | $ | 1,338 | |||||||||||||
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 | March 29, 2014 | December 28, 2013 | ||||||||||||||
United States | $ | 1,042 | $ | 1,045 | ||||||||||||
International | ||||||||||||||||
Europe | 76 | 73 | ||||||||||||||
Japan | 19 | 28 | ||||||||||||||
Asia Pacific | 73 | 75 | ||||||||||||||
Other | 189 | 189 | ||||||||||||||
357 | 365 | |||||||||||||||
$ | 1,399 | $ | 1,410 | |||||||||||||
Business_Combinations_Business1
Business Combinations Business Combinations (Tables) | 3 Months Ended | ||||||||||
Mar. 29, 2014 | |||||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ' | ||||||||||
The following table summarizes the purchase price allocation of the estimated fair values of net assets acquired and liabilities assumed as a result of the Company's acquisitions of Endosense and Nanostim during fiscal year 2013 as follows (in millions): | |||||||||||
Endosense | Nanostim | Total | |||||||||
Assets acquired: | |||||||||||
Current assets | $ | 2 | $ | 1 | $ | 3 | |||||
Goodwill | 258 | 149 | 407 | ||||||||
In-process research and development (IPR&D) | 33 | 27 | 60 | ||||||||
Other intangible assets | 20 | 34 | 54 | ||||||||
Other long-term assets | 1 | 1 | 2 | ||||||||
Total assets acquired | 314 | 212 | 526 | ||||||||
Liabilities assumed: | |||||||||||
Current liabilities | 11 | 2 | 13 | ||||||||
Net assets acquired | 303 | 210 | 513 | ||||||||
Cash paid | 180 | 124 | 304 | ||||||||
Cash acquired | (9 | ) | (3 | ) | (12 | ) | |||||
Net cash consideration | 171 | 121 | 292 | ||||||||
Contingent consideration | 132 | 56 | 188 | ||||||||
Fair value of St. Jude Medical, Inc.'s previously held interest | — | 33 | 33 | ||||||||
Total purchase consideration | $ | 303 | $ | 210 | $ | 513 | |||||
Spinal Modulation [Member] | ' | ||||||||||
Schedule of Variable Interest Entities [Table Text Block] | ' | ||||||||||
The following table summarizes Spinal Modulation’s assets and liabilities included in St. Jude Medical's consolidated balance sheets as of March 29, 2014 after elimination of all intercompany balances and transactions (in millions): | |||||||||||
29-Mar-14 | |||||||||||
Cash and cash equivalents | $ | 15 | |||||||||
Other current assets | 5 | ||||||||||
Goodwill | 82 | ||||||||||
IPR&D | 45 | ||||||||||
Other intangible assets | 7 | ||||||||||
Other long-term assets | 1 | ||||||||||
Total assets | 155 | ||||||||||
Current liabilities | 6 | ||||||||||
Deferred income taxes, net | 19 | ||||||||||
Total liabilities | 25 | ||||||||||
Non-controlling interest | $ | 98 | |||||||||
CardioMEMS, Inc. [Member] | ' | ||||||||||
Schedule of Variable Interest Entities [Table Text Block] | ' | ||||||||||
The following table summarizes CardioMEMS’ assets and liabilities included in St. Jude Medical's consolidated balance sheets as of March 29, 2014 after elimination of all intercompany balances and transactions (in millions): | |||||||||||
29-Mar-14 | |||||||||||
Cash and cash equivalents | $ | 7 | |||||||||
Other current assets | 7 | ||||||||||
Goodwill | 83 | ||||||||||
IPR&D | 63 | ||||||||||
Other long-term assets | 2 | ||||||||||
Total assets | 162 | ||||||||||
Current liabilities | 5 | ||||||||||
Deferred income taxes, net | 23 | ||||||||||
Other liabilities | 3 | ||||||||||
Total liabilities | 31 | ||||||||||
Non-controlling interest | $ | 64 | |||||||||
Goodwill_And_Other_Intangible_1
Goodwill And Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||
Mar. 29, 2014 | ||||||||||||||||
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 three months ended March 29, 2014 were as follows (in millions): | ||||||||||||||||
IESD | CATD | Total | ||||||||||||||
Balance at December 28, 2013 | $ | 1,526 | $ | 1,998 | $ | 3,524 | ||||||||||
Foreign currency translation and other | 2 | 8 | 10 | |||||||||||||
Balance at March 29, 2014 | $ | 1,528 | $ | 2,006 | $ | 3,534 | ||||||||||
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): | ||||||||||||||||
March 29, 2014 | December 28, 2013 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||
Purchased technology and patents | $ | 986 | $ | 413 | $ | 986 | $ | 393 | ||||||||
Customer lists and relationships | 20 | 14 | 20 | 13 | ||||||||||||
Trademarks and tradenames | 22 | 11 | 22 | 11 | ||||||||||||
Licenses, distribution agreements and other | 4 | 1 | 4 | 1 | ||||||||||||
$ | 1,032 | $ | 439 | $ | 1,032 | $ | 418 | |||||||||
Indefinite-lived intangible assets: | ||||||||||||||||
Acquired IPR&D | $ | 262 | $ | 262 | ||||||||||||
Trademarks and tradenames | 35 | 35 | ||||||||||||||
$ | 297 | $ | 297 | |||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Schedule Of Inventories | ' | |||||||
The Company’s inventories consisted of the following (in millions): | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Finished goods | $ | 541 | $ | 494 | ||||
Work in process | 79 | 52 | ||||||
Raw materials | 161 | 162 | ||||||
$ | 781 | $ | 708 | |||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule Of Long-Term Debt | ' | |||||||
The Company’s debt consisted of the following (in millions): | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Term loan due 2015 | $ | 500 | $ | 500 | ||||
2.50% senior notes due 2016 | 510 | 512 | ||||||
3.25% senior notes due 2023 | 896 | 896 | ||||||
4.75% senior notes due 2043 | 696 | 696 | ||||||
1.58% Yen-denominated senior notes due 2017 | 80 | 78 | ||||||
2.04% Yen-denominated senior notes due 2020 | 125 | 122 | ||||||
Yen-denominated credit facilities | 63 | 62 | ||||||
Commercial paper borrowings | 1,040 | 714 | ||||||
Total debt | 3,910 | 3,580 | ||||||
Less: current debt obligations | 63 | 62 | ||||||
Long-term debt | $ | 3,847 | $ | 3,518 | ||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Schedule Of Product Warranty Liability | ' | |||||||
Changes in the Company’s product warranty liability during the three months ended March 29, 2014 and March 30, 2013 were as follows (in millions): | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Balance at beginning of period | $ | 37 | $ | 38 | ||||
Warranty expense recognized | 1 | 2 | ||||||
Warranty credits issued | (1 | ) | (3 | ) | ||||
Balance at end of period | $ | 37 | $ | 37 | ||||
Special_Charges_Tables
Special Charges (Tables) (2012 Business Realignment Restructuring Plan [Member]) | 3 Months Ended | |||||||||||||||||||
Mar. 29, 2014 | ||||||||||||||||||||
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 | Inventory | Fixed | Other | Total | ||||||||||||||||
Termination | Charges | Asset | Restructuring | |||||||||||||||||
Costs | Charges | Costs | ||||||||||||||||||
Balance at December 29, 2012 | $ | 58 | $ | — | $ | — | $ | 8 | $ | 66 | ||||||||||
Cost of sales special charges | — | 30 | — | 5 | 35 | |||||||||||||||
Special charges | 75 | — | 13 | 97 | 185 | |||||||||||||||
Non-cash charges used | — | (30 | ) | (13 | ) | (4 | ) | (47 | ) | |||||||||||
Cash payments | (79 | ) | — | — | (73 | ) | (152 | ) | ||||||||||||
Foreign exchange rate impact | — | — | — | — | — | |||||||||||||||
Balance at December 28, 2013 | 54 | — | — | 33 | 87 | |||||||||||||||
Cost of sales special charges | — | 1 | — | — | 1 | |||||||||||||||
Special charges | 12 | — | 1 | 20 | 33 | |||||||||||||||
Non-cash charges used | — | (1 | ) | (1 | ) | — | (2 | ) | ||||||||||||
Cash payments | (22 | ) | — | — | (29 | ) | (51 | ) | ||||||||||||
Foreign exchange rate impact | — | — | — | — | — | |||||||||||||||
Balance at March 29, 2014 | $ | 44 | $ | — | $ | — | $ | 24 | $ | 68 | ||||||||||
Net_Earnings_Per_Share_Tables
Net Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
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 | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Numerator: | ||||||||
Net earnings attributable to St. Jude Medical, Inc. | $ | 249 | $ | 223 | ||||
Denominator: | ||||||||
Basic weighted average shares outstanding | 284.4 | 285.3 | ||||||
Effect of dilutive securities: | ||||||||
Employee stock options | 4.5 | 1.9 | ||||||
Restricted stock units | 0.4 | 0.2 | ||||||
Diluted weighted average shares outstanding | 289.3 | 287.4 | ||||||
Basic net earnings per share attributable to St. Jude Medical, Inc. | $ | 0.88 | $ | 0.78 | ||||
Diluted net earnings per share attributable to St. Jude Medical, Inc. | $ | 0.86 | $ | 0.78 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
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 for the three months ended March 29, 2014 and March 30, 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 March 29, 2014 | securities | instruments | Adjustment | Income (Loss) | |||||||||
Accumulated other comprehensive income (loss), net of tax, at December 28, 2013 | $ | 17 | $ | 3 | $ | 26 | $ | 46 | |||||
Other comprehensive income (loss) before reclassifications | — | — | 10 | 10 | |||||||||
Amounts reclassified to net earnings from accumulated other comprehensive income | — | — | — | — | |||||||||
Other comprehensive income (loss) | — | — | 10 | 10 | |||||||||
Accumulated other comprehensive income (loss), net of tax, at March 29, 2014 | $ | 17 | $ | 3 | $ | 36 | $ | 56 | |||||
Unrealized | Unrealized | Foreign | Accumulated | ||||||||||
gain (loss) on | gain (loss) on | Currency | Other | ||||||||||
available-for-sale | derivative | Translation | Comprehensive | ||||||||||
For the three months ended March 30, 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 | (27 | ) | (25 | ) | ||||||
Amounts reclassified to net earnings from accumulated other comprehensive income | — | — | — | — | |||||||||
Other comprehensive income (loss) | (1 | ) | 3 | (27 | ) | (25 | ) | ||||||
Accumulated other comprehensive income (loss), net of tax, at March 30, 2013 | $ | 19 | $ | 3 | $ | (1 | ) | $ | 21 | ||||
Other_Expense_Net_Tables
Other Expense, Net (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
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 | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Interest income | $ | (1 | ) | $ | (1 | ) | ||
Interest expense | 21 | 19 | ||||||
Other | — | 30 | ||||||
Other expense, net | $ | 20 | $ | 48 | ||||
Fair_Value_Measurements_And_Fi1
Fair Value Measurements And Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
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 March 29, 2014 and December 28, 2013 (in millions): | |||||||||||||||||
March 29, 2014 | December 28, 2013 | ||||||||||||||||
Adjusted cost | $ | 7 | $ | 7 | |||||||||||||
Gross unrealized gains | 27 | 28 | |||||||||||||||
Fair value | $ | 34 | $ | 35 | |||||||||||||
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 March 29, 2014 and December 28, 2013 is as follows (in millions): | |||||||||||||||||
Balance Sheet | March 29, 2014 | Quoted Prices | Significant | Significant | |||||||||||||
Classification | In Active | Other | Unobservable | ||||||||||||||
Markets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Assets | |||||||||||||||||
Money-market securities | Cash and cash equivalents | $ | 999 | $ | 999 | $ | — | $ | — | ||||||||
Available-for-sale securities | Other current assets | 34 | 34 | — | — | ||||||||||||
Trading securities | Other assets | 289 | 289 | — | — | ||||||||||||
Total assets | 1,322 | 1,322 | — | — | |||||||||||||
Liabilities | |||||||||||||||||
Contingent consideration | Other current liabilities | 141 | — | — | 141 | ||||||||||||
Contingent consideration | Other liabilities | 57 | — | — | 57 | ||||||||||||
Total liabilities | $ | 198 | $ | — | $ | — | $ | 198 | |||||||||
Balance Sheet | December 28, 2013 | Quoted Prices | Significant | Significant | |||||||||||||
Classification | In Active | Other | Unobservable | ||||||||||||||
Markets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Assets | |||||||||||||||||
Money-market securities | Cash and cash equivalents | $ | 875 | $ | 875 | $ | — | $ | — | ||||||||
Available-for-sale securities | Other current assets | 35 | 35 | — | — | ||||||||||||
Trading securities | Other assets | 279 | 279 | — | — | ||||||||||||
Total assets | 1,189 | 1,189 | — | — | |||||||||||||
Liabilities | |||||||||||||||||
Contingent consideration | Other liabilities | 195 | — | — | 195 | ||||||||||||
Total liabilities | $ | 195 | $ | — | $ | — | $ | 195 | |||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block] | ' | ||||||||||||||||
The recurring Level 3 fair value measurements of the Company's contingent consideration liability include the following significant unobservable inputs (in millions): | |||||||||||||||||
Contingent Consideration Liability | Fair Value as of March 29, 2014 | Valuation Technique | Unobservable Input | Range | |||||||||||||
Endosense regulatory-based milestone | $ | 141 | Probability Weighted Discounted Cash Flow | Discount Rate | 1.15% | - | 1.59% | ||||||||||
Probability of Payment | 90% | ||||||||||||||||
Projected Year of Payment | 2014 | ||||||||||||||||
Nanostim revenue-based milestone | 57 | Probability Weighted Discounted Cash Flow | Discount Rate | 5.00% | |||||||||||||
Probability of Payment | 100% | ||||||||||||||||
Projected Years of Three Annual Payments | 2016, 2017, 2018 | ||||||||||||||||
Total contingent consideration liability | $ | 198 | |||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||||||||||||||
The changes in the carrying amount of the Company's contingent consideration liabilities for the three months ended March 29, 2104 were as follows (in millions): | |||||||||||||||||
Endosense | Nanostim | Total | |||||||||||||||
Balance as of December 28, 2013 | $ | 139 | $ | 56 | $ | 195 | |||||||||||
Change in fair value of contingent consideration | — | 1 | 1 | ||||||||||||||
Foreign currency translation | 2 | — | 2 | ||||||||||||||
Balance as of March 29, 2014 | $ | 141 | $ | 57 | $ | 198 | |||||||||||
Segment_And_Geographic_Informa1
Segment And Geographic Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 29, 2014 | ||||||||||||||||
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 March 29, 2014: | ||||||||||||||||
Net sales | $ | 786 | $ | 577 | $ | — | $ | 1,363 | ||||||||
Operating profit | 545 | 352 | (585 | ) | 312 | |||||||||||
Three Months ended March 30, 2013: | ||||||||||||||||
Net sales | $ | 777 | $ | 561 | $ | — | $ | 1,338 | ||||||||
Operating profit | 531 | 333 | (556 | ) | 308 | |||||||||||
Schedule Of Total Assets By Reportable Segment | ' | |||||||||||||||
The following table presents the Company’s total assets by reportable segment (in millions): | ||||||||||||||||
Total Assets | March 29, 2014 | December 28, 2013 | ||||||||||||||
IESD | $ | 2,844 | $ | 2,855 | ||||||||||||
CATD | 3,281 | 3,273 | ||||||||||||||
Other | 4,166 | 4,120 | ||||||||||||||
$ | 10,291 | $ | 10,248 | |||||||||||||
Net Sales By Geographic Location | ' | |||||||||||||||
The following table presents net sales by geographic location of the customer (in millions): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Net Sales | 29-Mar-14 | 30-Mar-13 | ||||||||||||||
United States | $ | 644 | $ | 640 | ||||||||||||
International | ||||||||||||||||
Europe | 387 | 357 | ||||||||||||||
Japan | 130 | 139 | ||||||||||||||
Asia Pacific | 115 | 112 | ||||||||||||||
Other | 87 | 90 | ||||||||||||||
719 | 698 | |||||||||||||||
$ | 1,363 | $ | 1,338 | |||||||||||||
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 | March 29, 2014 | December 28, 2013 | ||||||||||||||
United States | $ | 1,042 | $ | 1,045 | ||||||||||||
International | ||||||||||||||||
Europe | 76 | 73 | ||||||||||||||
Japan | 19 | 28 | ||||||||||||||
Asia Pacific | 73 | 75 | ||||||||||||||
Other | 189 | 189 | ||||||||||||||
357 | 365 | |||||||||||||||
$ | 1,399 | $ | 1,410 | |||||||||||||
Basis_Of_Presentation_Basis_of
Basis Of Presentation Basis of Presentation (Narrative) (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 | Jun. 07, 2013 |
In Millions, unless otherwise specified | Spinal Modulation [Member] | ||
Equity Security Ownership Interest And Allocated Value For Purchase Option | ' | $33 | $40 |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $14 | ' | ' |
Business_Combinations_Business2
Business Combinations Business Combinations (Schedule of Business Acquisitions, By Acquisition) (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Aug. 19, 2013 | Aug. 19, 2013 | Aug. 19, 2013 | Dec. 28, 2013 | Oct. 11, 2013 | Oct. 11, 2013 | Oct. 11, 2013 |
USD ($) | Patented Technology [Member] | In Process Research and Development [Member] | Endosense S.A. [Member] | Endosense S.A. [Member] | Endosense S.A. [Member] | Endosense S.A. [Member] | Endosense S.A. [Member] | Nanostim [Member] | Nanostim [Member] | Nanostim [Member] | Nanostim [Member] | |
USD ($) | USD ($) | USD ($) | CHF | USD ($) | Patented Technology [Member] | In Process Research and Development [Member] | USD ($) | USD ($) | Patented Technology [Member] | In Process Research and Development [Member] | ||
USD ($) | USD ($) | USD ($) | USD ($) | |||||||||
Business Combinations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | $3 | ' | ' | ' | ' | $2 | ' | ' | ' | $1 | ' | ' |
Goodwill, Acquired During Period | 407 | ' | ' | 258 | ' | ' | ' | ' | 149 | ' | ' | ' |
Business Combination, Indefinite-Lived Intangible Assets | ' | ' | 60 | ' | ' | ' | ' | 33 | ' | ' | ' | 27 |
Business Combination, Intangible Assets, Other than Goodwill | ' | 54 | ' | ' | ' | ' | 20 | ' | ' | ' | 34 | ' |
Other long-term assets | 2 | ' | ' | ' | ' | 1 | ' | ' | ' | 1 | ' | ' |
Total assets acquired | 526 | ' | ' | ' | ' | 314 | ' | ' | ' | 212 | ' | ' |
Current liabilities | 13 | ' | ' | ' | ' | 11 | ' | ' | ' | 2 | ' | ' |
Net assets acquired | 513 | ' | ' | ' | ' | 303 | ' | ' | ' | 210 | ' | ' |
Cash paid | 304 | ' | ' | 180 | ' | ' | ' | ' | 124 | ' | ' | ' |
Cash acquired | -12 | ' | ' | -9 | ' | ' | ' | ' | -3 | ' | ' | ' |
Net cash consideration | 292 | ' | ' | 171 | 160 | ' | ' | ' | 121 | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | 188 | ' | ' | ' | ' | 132 | ' | ' | ' | 56 | ' | ' |
Equity Security Ownership Interest And Allocated Value For Purchase Option | $33 | ' | ' | ' | ' | $0 | ' | ' | ' | $33 | ' | ' |
Business_Combinations_Business3
Business Combinations Business Combinations (Schedule of Variable Interest Entities) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Mar. 29, 2014 |
Variable Interest Entity [Line Items] | ' | ' |
Goodwill, Acquired During Period | $407 | ' |
Other long-term assets | 2 | ' |
Total assets acquired | 526 | ' |
Current liabilities | 13 | ' |
Patented Technology [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Business Combination, Intangible Assets, Other than Goodwill | 54 | ' |
In Process Research and Development [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Business Combination, Indefinite-Lived Intangible Assets | 60 | ' |
Spinal Modulation [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Cash and cash equivalents | ' | 15 |
Other current assets | ' | 5 |
Goodwill, Acquired During Period | 82 | ' |
Other long-term assets | ' | 1 |
Total assets acquired | ' | 155 |
Current liabilities | ' | 6 |
Deferred income taxes, net | ' | 19 |
Total liabilities | ' | 25 |
Non-controlling interest | ' | 98 |
Spinal Modulation [Member] | Patented Technology [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Business Combination, Intangible Assets, Other than Goodwill | ' | 7 |
Spinal Modulation [Member] | In Process Research and Development [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Business Combination, Indefinite-Lived Intangible Assets | ' | 45 |
CardioMEMS, Inc. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Cash and cash equivalents | ' | 7 |
Other current assets | ' | 7 |
Goodwill, Acquired During Period | 83 | ' |
Other long-term assets | ' | 2 |
Total assets acquired | ' | 162 |
Current liabilities | ' | 5 |
Deferred income taxes, net | ' | 23 |
Other liabilities | ' | 3 |
Total liabilities | ' | 31 |
Non-controlling interest | ' | 64 |
CardioMEMS, Inc. [Member] | In Process Research and Development [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Business Combination, Indefinite-Lived Intangible Assets | ' | $63 |
Business_Combinations_Business4
Business Combinations Business Combinations (Narrative) (Details) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | Dec. 28, 2013 | Jun. 07, 2013 | Sep. 28, 2013 | Mar. 30, 2013 | Feb. 27, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Mar. 29, 2014 | Aug. 19, 2013 | Aug. 19, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | Oct. 11, 2013 | Sep. 28, 2013 | Mar. 29, 2014 |
USD ($) | Contingent Consideration Liability [Member] | Contingent Consideration Liability [Member] | Spinal Modulation [Member] | Spinal Modulation [Member] | CardioMEMS, Inc. [Member] | CardioMEMS, Inc. [Member] | CardioMEMS, Inc. [Member] | Endosense S.A. [Member] | Endosense S.A. [Member] | Endosense S.A. [Member] | Endosense S.A. [Member] | Endosense S.A. [Member] | Endosense S.A. [Member] | Nanostim [Member] | Nanostim [Member] | Nanostim [Member] | Nanostim [Member] | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CHF | USD ($) | USD ($) | CHF | Contingent Consideration Liability [Member] | USD ($) | USD ($) | Contingent Consideration Liability [Member] | |||
USD ($) | USD ($) | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||||
USD ($) | USD ($) | |||||||||||||||||
Net cash consideration | $292 | ' | ' | ' | ' | ' | ' | ' | $171 | 160 | ' | ' | ' | ' | $121 | ' | ' | ' |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 169 | ' | 150 | ' | ' | 65 | ' | ' |
Business Combination, Contingent Consideration, Liability | 188 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 132 | ' | ' | ' | 56 | ' | ' |
Net assets acquired | 513 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 303 | ' | ' | ' | 210 | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | ' | 198 | 195 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 141 | ' | ' | ' | 57 |
Equity Security Ownership Interest And Allocated Value For Purchase Option | 33 | ' | ' | ' | 40 | ' | ' | 60 | ' | ' | ' | 0 | ' | ' | ' | 33 | ' | ' |
Equity Security Ownership Interest | ' | ' | ' | ' | 19.00% | ' | ' | 19.00% | ' | ' | ' | ' | ' | ' | ' | 18.00% | ' | ' |
Equity Interest, Total Ownership Percentage By All Other Investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82.00% | ' |
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_And_Other_Intangible_2
Goodwill And Other Intangible Assets (Schedule Of Changes In Carrying Amount Of Goodwill) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 29, 2014 |
Goodwill [Roll Forward] | ' |
Balance at December 28, 2013 | $3,524 |
Foreign currency translation and other | 10 |
Balance at March 29, 2014 | 3,534 |
IESD [Member] | ' |
Goodwill [Roll Forward] | ' |
Balance at December 28, 2013 | 1,526 |
Foreign currency translation and other | 2 |
Balance at March 29, 2014 | 1,528 |
CATD [Member] | ' |
Goodwill [Roll Forward] | ' |
Balance at December 28, 2013 | 1,998 |
Foreign currency translation and other | 8 |
Balance at March 29, 2014 | $2,006 |
Goodwill_And_Other_Intangible_3
Goodwill And Other Intangible Assets (Schedule Of Gross Carrying Amount Of Other Intangible Assets And Related Accumulated Amortization) (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Goodwill And Other Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $1,032 | $1,032 |
Accumulated Amortization | 439 | 418 |
Indefinite-lived intangible assets | 297 | 297 |
In Process Research and Development [Member] | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' |
Indefinite-lived intangible assets | 262 | 262 |
Trademarks and Trade Names [Member] | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' |
Indefinite-lived intangible assets | 35 | 35 |
Purchased Technology And Patents [Member] | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 986 | 986 |
Accumulated Amortization | 413 | 393 |
Customer Lists And Relationships [Member] | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 20 | 20 |
Accumulated Amortization | 14 | 13 |
Trademarks and Trade Names [Member] | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 22 | 22 |
Accumulated Amortization | 11 | 11 |
Licenses, Distribution Agreements And Other [Member] | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 4 | 4 |
Accumulated Amortization | $1 | $1 |
Inventories_Schedule_Of_Invent
Inventories (Schedule Of Inventories) (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Finished goods | $541 | $494 |
Work in process | 79 | 52 |
Raw materials | 161 | 162 |
Inventories, net | $781 | $708 |
Debt_Schedule_Of_LongTerm_Debt
Debt (Schedule Of Long-Term Debt) (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total debt | $3,910 | $3,580 |
Less: current debt obligations | 63 | 62 |
Long-term debt | 3,847 | 3,518 |
Term loan due 2015 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 500 | 500 |
2.50% senior notes due 2016 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 510 | 512 |
3.25% senior notes due 2023 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 896 | 896 |
4.75% senior notes due 2043 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 696 | 696 |
1.58% Yen-denominated senior notes due 2017 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 80 | 78 |
2.04% Yen-denominated senior notes due 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 125 | 122 |
Yen-denominated credit facilities | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 63 | 62 |
Commercial paper borrowings | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | $1,040 | $714 |
Debt_Narrative_Details
Debt (Narrative) (Details) | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Jun. 30, 2012 | Mar. 29, 2014 | Jun. 29, 2013 | Dec. 28, 2013 | Apr. 02, 2013 | Mar. 29, 2014 | Jun. 29, 2013 | Dec. 28, 2013 | Apr. 02, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Dec. 28, 2013 |
USD ($) | USD ($) | Term loan due 2015 [Member] | Term loan due 2015 [Member] | Term loan due 2015 [Member] | Two point five percent Senior Notes Due Two Thousand Sixteen [Member] | Two point five percent Senior Notes Due Two Thousand Sixteen [Member] | Two point five percent Senior Notes Due Two Thousand Sixteen [Member] | Three point twenty-five percent Senior Notes Due Two Thousand Twenty-three [Member] | Three point twenty-five percent Senior Notes Due Two Thousand Twenty-three [Member] | Three point twenty-five percent Senior Notes Due Two Thousand Twenty-three [Member] | Three point twenty-five percent Senior Notes Due Two Thousand Twenty-three [Member] | Four point seventy-five percent Senior Notes Due Two Thousand Fourty-three [Member] [Member] | Four point seventy-five percent Senior Notes Due Two Thousand Fourty-three [Member] [Member] | Four point seventy-five percent Senior Notes Due Two Thousand Fourty-three [Member] [Member] | Four point seventy-five percent Senior Notes Due Two Thousand Fourty-three [Member] [Member] | 1.58% Yen-Denominated Senior Notes Due 2017 [Member] | 1.58% Yen-Denominated Senior Notes Due 2017 [Member] | 1.58% Yen-Denominated Senior Notes Due 2017 [Member] | 2.04% Yen-Denominated Senior Notes Due 2020 [Member] | 2.04% Yen-Denominated Senior Notes Due 2020 [Member] | 2.04% Yen-Denominated Senior Notes Due 2020 [Member] | Yen Denominated Credit Facilities [Member] | Yen Denominated Credit Facilities [Member] | Yen Denominated Credit Facilities [Member] | Yen Denominated Credit Facility One [Member] | Yen Denominated Credit Facility One [Member] | Yen Denominated Credit Facility Two [Member] | Yen Denominated Credit Facility Two [Member] | Credit Facility [Member] | Credit Facility [Member] | Commercial paper borrowings [Member] | Commercial paper borrowings [Member] | |
USD ($) | USD ($) | United States Currency Rate | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | USD ($) | JPY (¥) | USD ($) | USD ($) | JPY (¥) | USD ($) | Japan, Yen | Japan, Yen | Scheduled Maturity of May 2018 [Member] | United States Currency Rate | USD ($) | USD ($) | |||||||
USD ($) | Scheduled Maturity of May 2018 [Member] | D | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected minimum principal payments in 2014 | $63,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected minimum principal payments in 2015 | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected minimum principal payments in 2016 | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected minimum principal payments in 2017 | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected minimum principal payments in 2018 | 1,040,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected minimum principal payments thereafter | 1,725,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | 500,000,000 | ' | ' | 500,000,000 | ' | ' | 900,000,000 | ' | ' | 900,000,000 | 700,000,000 | ' | ' | 700,000,000 | 80,000,000 | 8,100,000,000 | 78,000,000 | 125,000,000 | 12,800,000,000 | 122,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument term, years | ' | ' | '2 years | ' | ' | '5 years | ' | ' | '10 years | '10 years | ' | ' | '30 years | '30 years | ' | ' | '7 years | '7 years | ' | '10 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, stated percentage rate | ' | ' | ' | ' | ' | 2.50% | ' | ' | 3.25% | ' | ' | ' | 4.75% | ' | ' | ' | 1.58% | 1.58% | ' | 2.04% | 2.04% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, due date | ' | ' | ' | ' | ' | 15-Jan-16 | ' | ' | 15-Apr-23 | ' | ' | ' | 15-Apr-43 | ' | ' | ' | 28-Apr-17 | 28-Apr-17 | ' | 28-Apr-20 | 28-Apr-20 | ' | ' | ' | ' | ' | ' | ' | ' | 31-May-18 | ' | ' | ' |
Debt Instrument, Description of Variable Rate Basis | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Yen LIBOR | ' | 'Yen LIBOR | ' | 'LIBOR | ' | ' |
Debt instrument, effective interest rate | ' | ' | ' | ' | ' | 2.54% | ' | ' | 3.31% | ' | ' | ' | 4.79% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate swap term, years | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | ' | ' | ' | ' | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63,000,000 | 6,500,000,000 | 62,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
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% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.28% | ' | 0.25% | ' | 0.80% | ' | ' | ' |
Unused borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000,000 | ' | ' | ' |
Maximum days commercial paper program provides for the issuance of short-term, unsecured commercial paper | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 270 | ' |
Long-term Debt | $3,910,000,000 | $3,580,000,000 | $500,000,000 | $500,000,000 | ' | $510,000,000 | $512,000,000 | ' | $896,000,000 | ' | $896,000,000 | ' | $696,000,000 | ' | $696,000,000 | ' | $80,000,000 | ' | $78,000,000 | $125,000,000 | ' | $122,000,000 | $63,000,000 | ' | $62,000,000 | ' | ' | ' | ' | ' | ' | $1,040,000,000 | $714,000,000 |
Weighted average effective interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.23% | ' |
Commitments_And_Contingencies_1
Commitments And Contingencies (Narrative) (Details) (USD $) | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Dec. 29, 2012 | Mar. 29, 2014 | Apr. 02, 2014 | Mar. 29, 2014 | Jul. 15, 2013 | Apr. 29, 2013 | Apr. 04, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 29, 2014 |
In Millions, unless otherwise specified | VolcanoCorpvs.Lightlab [Member] | Regulatory Matters Sylmar, CA [Member] | Regulatory Matters Sylmar, CA [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Riata Litigation [Member] | Silzone Litigation [Member] | Silzone Litigation [Member] | Silzone Litigation [Member] | Silzone Product Liability Insurance [Member] | |
D | Superior Court of California case for Los Angeles City and County [Member] | Superior Court of California case for Los Angeles City and County [Member] | Superior Court of California case for Los Angeles City and County [Member] | Superior Court of California case for Los Angeles City and County [Member] | Superior Court of California case for Los Angeles City and County [Member] | U.S. District Court for the Central District of California [Member] | Federal Court [Member] | Federal Court [Member] | Federal Court [Member] | Federal Court [Member] | Federal Court [Member] | Federal Court [Member] | Federal Court [Member] | Federal Court [Member] | Federal Court [Member] | State Court [Member] | State Court [Member] | State Court [Member] | State Court [Member] | State Court [Member] | State Court [Member] | Ontario Class Action Matters [Member] | Ontario Class Action Matters [Member] | Individual Ontario Case [Member] | ||||||
U.S. District Court for the Central District of California [Member] | U.S. District Court for the District of Minnesota [Member] | U.S. District Court for the District of South Carolina [Member] | U.S. District Court for the Northern District of New York [Member] | U.S. District Court for the Western District of New York [Member] | U.S. District Court for the Middle District of Florida [Member] | U.S. District Court for the Western District of Kentucky [Member] | U.S. District Court for the Southern District of West Virginia [Member] | Minnesota [Member] | California [Member] | Indiana [Member] | Georgia [Member] | Kentucky [Member] | ||||||||||||||||||
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of lawsuits outstanding | ' | ' | ' | ' | 47 | ' | ' | ' | ' | ' | ' | 20 | 11 | 3 | 1 | 1 | 1 | 1 | 1 | 1 | 27 | 7 | 17 | 1 | 1 | 1 | ' | ' | ' | ' |
Number of multi-plaintiff lawsuits outstanding, excluding class action lawsuits | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of plaintiffs to exceed in one lawsuit to result in a multi-plaintiff case | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of claimants in lawsuit | ' | ' | ' | ' | ' | 30 | 2 | 21 | 3 | 29 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | 1 | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_And_Contingencies_2
Commitments And Contingencies (Schedule Of Product Warranty Liability) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Balance at beginning of period | $37 | $38 |
Warranty expense recognized | 1 | 2 |
Warranty credits issued | -1 | -3 |
Balance at end of period | $37 | $37 |
Special_Charges_Summary_Of_Act
Special Charges (Summary Of Activity Related To Special Charge Restructuring Accrual) (Details) (2012 Business Realignment Restructuring Plan [Member], USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Balance at beginning | $87 | $66 | ' |
Special charges | 34 | 220 | 185 |
Non-cash charges used | -2 | -47 | ' |
Cash payments | -51 | -152 | ' |
Foreign exchange rate impact | 0 | 0 | ' |
Balance at ending | 68 | 87 | 66 |
Employee Termination Costs [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Balance at beginning | 54 | 58 | ' |
Special charges, severance and benefit costs | 12 | 75 | ' |
Non-cash charges used | 0 | 0 | ' |
Cash payments | -22 | -79 | ' |
Foreign exchange rate impact | 0 | 0 | ' |
Balance at ending | 44 | 54 | ' |
Inventory Charges [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Balance at beginning | 0 | 0 | ' |
Non-cash charges used | -1 | -30 | ' |
Cash payments | 0 | 0 | ' |
Foreign exchange rate impact | 0 | 0 | ' |
Balance at ending | 0 | 0 | ' |
Fixed Asset Charges [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Balance at beginning | 0 | 0 | ' |
Non-cash charges used | -1 | -13 | ' |
Cash payments | 0 | 0 | ' |
Foreign exchange rate impact | 0 | 0 | ' |
Balance at ending | 0 | 0 | ' |
Other Restructuring [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Balance at beginning | 33 | 8 | ' |
Restructuring reserve period expense | 20 | 102 | ' |
Non-cash charges used | 0 | -4 | ' |
Cash payments | -29 | -73 | ' |
Foreign exchange rate impact | 0 | 0 | ' |
Balance at ending | 24 | 33 | ' |
Cost of Sales [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Special charges | 1 | 35 | ' |
Cost of Sales [Member] | Employee Termination Costs [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Special charges, severance and benefit costs | 0 | 0 | ' |
Cost of Sales [Member] | Inventory Charges [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Special charges, inventory obsolescence charges | 1 | 30 | ' |
Cost of Sales [Member] | Fixed Asset Charges [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Special charges, fixed asset impairment charges | 0 | 0 | ' |
Cost of Sales [Member] | Other Restructuring [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring reserve period expense | 0 | 5 | ' |
Operating Expense [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Special charges | 33 | 185 | ' |
Operating Expense [Member] | Employee Termination Costs [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Special charges, severance and benefit costs | 12 | 75 | ' |
Operating Expense [Member] | Inventory Charges [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Special charges, inventory obsolescence charges | 0 | 0 | ' |
Operating Expense [Member] | Fixed Asset Charges [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Special charges, fixed asset impairment charges | 1 | 13 | ' |
Operating Expense [Member] | Other Restructuring [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring reserve period expense | $20 | $97 | ' |
Special_Charges_Narrative_Deta
Special Charges (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
2011 Restructuring Plan [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Restructuring Reserve | $10 | $15 | ' |
Cash payments | 5 | ' | ' |
2012 Business Realignment Restructuring Plan [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Special charges | 34 | 220 | 185 |
Restructuring Reserve | 68 | 87 | 66 |
Cash payments | -51 | -152 | ' |
2012 Business Realignment Restructuring Plan [Member] | Employee Termination Costs [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Severance and benefit costs | 12 | 75 | ' |
Restructuring Reserve | 44 | 54 | 58 |
Cash payments | -22 | -79 | ' |
2012 Business Realignment Restructuring Plan [Member] | Inventory Charges [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Restructuring Reserve | 0 | 0 | 0 |
Cash payments | 0 | 0 | ' |
2012 Business Realignment Restructuring Plan [Member] | Fixed Asset Charges [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Restructuring Reserve | 0 | 0 | 0 |
Cash payments | 0 | 0 | ' |
2012 Business Realignment Restructuring Plan [Member] | Other Restructuring [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Restructuring reserve period expense | 20 | 102 | ' |
Restructuring Reserve | 24 | 33 | 8 |
Cash payments | -29 | -73 | ' |
2012 Business Realignment Restructuring Plan [Member] | Contract Termination [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Restructuring reserve period expense | ' | 64 | ' |
2012 Business Realignment Restructuring Plan [Member] | Contract Termination [Member] | Research agreement termination cost [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Restructuring reserve period expense | ' | 23 | ' |
2012 Business Realignment Restructuring Plan [Member] | Other Costs [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Restructuring reserve period expense | ' | 38 | ' |
2012 Business Realignment Restructuring Plan [Member] | Cost of Sales [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Special charges | 1 | 35 | ' |
2012 Business Realignment Restructuring Plan [Member] | Cost of Sales [Member] | Employee Termination Costs [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Severance and benefit costs | 0 | 0 | ' |
2012 Business Realignment Restructuring Plan [Member] | Cost of Sales [Member] | Inventory Charges [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Special charges, inventory obsolescence charges | 1 | 30 | ' |
2012 Business Realignment Restructuring Plan [Member] | Cost of Sales [Member] | Fixed Asset Charges [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Special charges, fixed asset impairment charges | 0 | 0 | ' |
2012 Business Realignment Restructuring Plan [Member] | Cost of Sales [Member] | Other Restructuring [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Restructuring reserve period expense | 0 | 5 | ' |
2012 Business Realignment Restructuring Plan [Member] | Operating Expense [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Special charges | 33 | 185 | ' |
2012 Business Realignment Restructuring Plan [Member] | Operating Expense [Member] | Employee Termination Costs [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Severance and benefit costs | 12 | 75 | ' |
2012 Business Realignment Restructuring Plan [Member] | Operating Expense [Member] | Inventory Charges [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Special charges, inventory obsolescence charges | 0 | 0 | ' |
2012 Business Realignment Restructuring Plan [Member] | Operating Expense [Member] | Fixed Asset Charges [Member] | ' | ' | ' |
Purchased In-Process Research And Development (IPR&D) And Special Charges [Line Items] | ' | ' | ' |
Special charges, fixed asset impairment charges | 1 | 13 | ' |
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] | ' | ' | ' |
Restructuring reserve period expense | $20 | $97 | ' |
Net_Earnings_Per_Share_Details
Net Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Net Earnings Per Share [Line Items] | ' | ' |
Net earnings attributable to St. Jude Medical, Inc. | $249 | $223 |
Basic weighted average shares outstanding | 284.4 | 285.3 |
Diluted weighted average shares outstanding | 289.3 | 287.4 |
Basic net earnings per share attributable to St. Jude Medical, Inc. | $0.88 | $0.78 |
Diluted net earnings per share attributable to St. Jude Medical, Inc. | $0.86 | $0.78 |
Common stock subject to stock options and restricted stock units excluded from the diluted net earnings per share computation | 2.7 | 10.9 |
Employee Stock Options [Member] | ' | ' |
Net Earnings Per Share [Line Items] | ' | ' |
Effect of dilutive securities: | 4.5 | 1.9 |
Restricted Stock Units [Member] | ' | ' |
Net Earnings Per Share [Line Items] | ' | ' |
Effect of dilutive securities: | 0.4 | 0.2 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Accumulated other comprehensive income (loss), net of tax, Beginning Balance | $46 | $46 |
Other comprehensive income (loss) before reclassifications | 10 | -25 |
Amounts reclassified to net earnings from accumulated other comprehensive income | 0 | 0 |
Other comprehensive income (loss) | 10 | -25 |
Accumulated other comprehensive income (loss), net of tax, Ending Balance | 56 | 21 |
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 | 17 | 20 |
Other comprehensive income (loss) before reclassifications | 0 | -1 |
Amounts reclassified to net earnings from accumulated other comprehensive income | 0 | 0 |
Other comprehensive income (loss) | 0 | -1 |
Accumulated other comprehensive income (loss), net of tax, Ending Balance | 17 | 19 |
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 | 26 | 26 |
Other comprehensive income (loss) before reclassifications | 10 | -27 |
Amounts reclassified to net earnings from accumulated other comprehensive income | 0 | 0 |
Other comprehensive income (loss) | 10 | -27 |
Accumulated other comprehensive income (loss), net of tax, Ending Balance | $36 | ($1) |
Other_Expense_Net_Schedule_Of_
Other Expense, Net (Schedule Of Other Expense, Net) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Other Nonoperating Income (Expense) [Abstract] | ' | ' |
Interest income | ($1) | ($1) |
Interest expense | 21 | 19 |
Other | 0 | 30 |
Other expense, net | $20 | $48 |
Other_Expense_Net_Other_Expens
Other Expense, Net Other Expense, Net (Narrative) (Details) (CardioMEMS, Inc. [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 30, 2013 |
CardioMEMS, Inc. [Member] | ' |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Loss | $29 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Unrecognized tax benefits | $330 | $315 |
Accrued interest and penalties | $38 | $37 |
Fair_Value_Measurements_And_Fi2
Fair Value Measurements And Financial Instruments (Summary Of Components Of Available-For-Sale Securities) (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Adjusted cost | $7 | $7 |
Available for sale securities gross unrealized gain accumulated in AOCI | 27 | 28 |
Fair value | $34 | $35 |
Fair_Value_Measurements_And_Fi3
Fair Value Measurements And Financial Instruments (Summary of Financial Assets Measured at Fair Value, Recurring Basis) (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities | $34 | $35 |
Total assets | 1,322 | 1,189 |
Total liabilities | 198 | 195 |
Quoted Prices In Active Markets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 1,322 | 1,189 |
Total liabilities | 0 | 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 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 0 | 0 |
Total liabilities | 198 | 195 |
Contingent Consideration Liability [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | 198 | 195 |
Contingent Consideration Liability [Member] | Other Current Liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | 141 | ' |
Contingent Consideration Liability [Member] | Other Current Liabilities [Member] | Quoted Prices In Active Markets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | 0 | ' |
Contingent Consideration Liability [Member] | Other Current Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | 0 | ' |
Contingent Consideration Liability [Member] | Other Current Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | 141 | ' |
Contingent Consideration Liability [Member] | Other Liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | 57 | 195 |
Contingent Consideration Liability [Member] | Other Liabilities [Member] | Quoted Prices In Active Markets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | 0 | 0 |
Contingent Consideration Liability [Member] | Other Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | 0 | 0 |
Contingent Consideration Liability [Member] | Other Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | 57 | 195 |
Cash And Cash Equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Money-market securities | 999 | 875 |
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 | 999 | 875 |
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 | 34 | 35 |
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 | 34 | 35 |
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 | 289 | 279 |
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 | 289 | 279 |
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 |
Fair_Value_Measurements_And_Fi4
Fair Value Measurements And Financial Instruments Fair Value Inputs, Liabilities, Quantitative Information (Details) (Significant Unobservable Inputs (Level 3) [Member], USD $) | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 |
In Millions, unless otherwise specified | Contingent Consideration Liability [Member] | Contingent Consideration Liability [Member] | Endosense S.A. [Member] | Endosense S.A. [Member] | Nanostim [Member] | Nanostim [Member] | Endosense S.A. [Member] | Endosense S.A. [Member] | Endosense S.A. [Member] | Endosense S.A. [Member] | Nanostim [Member] | Nanostim [Member] | Payment Year 1 [Member] | Payment Year 2 [Member] | Payment Year 3 [Member] |
Contingent Consideration Liability [Member] | Contingent Consideration Liability [Member] | Contingent Consideration Liability [Member] | Contingent Consideration Liability [Member] | Minimum [Member] | Maximum [Member] | Contingent Consideration Liability [Member] | Contingent Consideration Liability [Member] | Nanostim [Member] | Nanostim [Member] | Nanostim [Member] | |||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration | $198 | $195 | $141 | $139 | $57 | $56 | ' | ' | ' | $141 | ' | $57 | ' | ' | ' |
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | ' | ' | ' | 1.15% | 1.59% | ' | 5.00% | ' | ' | ' | ' |
Probability of Payment | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' | 100.00% | ' | ' | ' | ' |
Projected Year Of Payment | ' | ' | ' | ' | ' | ' | '2014 | ' | ' | ' | ' | ' | '2016 | '2017 | '2018 |
Fair_Value_Measurements_And_Fi5
Fair Value Measurements And Financial Instruments Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Change in fair value of contingent consideration | ($1) | $0 |
Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Liability [Member] | ' | ' |
Balance as of December 28, 2013 | 195 | ' |
Change in fair value of contingent consideration | 1 | ' |
Foreign currency translation | 2 | ' |
Balance as of March 29, 2014 | 198 | ' |
Endosense S.A. [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Liability [Member] | ' | ' |
Balance as of December 28, 2013 | 139 | ' |
Change in fair value of contingent consideration | 0 | ' |
Foreign currency translation | 2 | ' |
Balance as of March 29, 2014 | 141 | ' |
Nanostim [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Liability [Member] | ' | ' |
Balance as of December 28, 2013 | 56 | ' |
Change in fair value of contingent consideration | 1 | ' |
Foreign currency translation | 0 | ' |
Balance as of March 29, 2014 | $57 | ' |
Fair_Value_Measurements_And_Fi6
Fair Value Measurements And Financial Instruments Fair Value Measurements And Financial Instruments (Narrative) (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Fair Value, Estimate Not Practicable, Cost Method Investments | $69 | $69 |
Fixed rate debt obligations fair value disclosure | 2,311 | ' |
Fixed rate debt obligations carrying value | 2,307 | ' |
Other debt carrying value | 1,603 | ' |
cash equivalents at carrying value excluding money market securities | $447 | $498 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 30, 2013 | Mar. 29, 2014 | Jun. 29, 2013 | Apr. 02, 2013 | Mar. 29, 2014 | Jun. 29, 2013 | Apr. 02, 2013 |
Three point twenty-five percent Senior Notes Due Two Thousand Twenty-three [Member] | Three point twenty-five percent Senior Notes Due Two Thousand Twenty-three [Member] | Three point twenty-five percent Senior Notes Due Two Thousand Twenty-three [Member] | Four point seventy-five percent Senior Notes Due Two Thousand Fourty-three [Member] [Member] | Four point seventy-five percent Senior Notes Due Two Thousand Fourty-three [Member] [Member] | Four point seventy-five percent Senior Notes Due Two Thousand Fourty-three [Member] [Member] | ||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' |
The net amount of gains/(loss) recorded to other expense, net | $10 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | 900 | ' | 900 | 700 | ' | 700 |
Debt instrument term, years | ' | '10 years | '10 years | ' | '30 years | '30 years | ' |
Proceeds from Hedge, Financing Activities | $3 | ' | ' | ' | ' | ' | ' |
Segment_And_Geographic_Informa2
Segment And Geographic Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Dec. 28, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | $1,363 | $1,338 | ' |
Operating profit | 312 | 308 | ' |
Total Assets | 10,291 | ' | 10,248 |
International, Net Sales | 719 | 698 | ' |
Long-Lived Assets | 1,399 | ' | 1,410 |
International, Long-Lived Assets | 357 | ' | 365 |
IESD [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 786 | 777 | ' |
Operating profit | 545 | 531 | ' |
Total Assets | 2,844 | ' | 2,855 |
CATD [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 577 | 561 | ' |
Operating profit | 352 | 333 | ' |
Total Assets | 3,281 | ' | 3,273 |
Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 0 | 0 | ' |
Operating profit | -585 | -556 | ' |
Total Assets | 4,166 | ' | 4,120 |
United States [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 644 | 640 | ' |
Long-Lived Assets | 1,042 | ' | 1,045 |
Europe [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 387 | 357 | ' |
Long-Lived Assets | 76 | ' | 73 |
Japan [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 130 | 139 | ' |
Long-Lived Assets | 19 | ' | 28 |
Asia Pacific [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 115 | 112 | ' |
Long-Lived Assets | 73 | ' | 75 |
Other Countries [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 87 | 90 | ' |
Long-Lived Assets | $189 | ' | $189 |