Consolidated Statement of Earni
Consolidated Statement of Earnings (USD $) | |||
In Thousands, except Per Share data | 12 Months Ended
Jan. 02, 2010 | 12 Months Ended
Jan. 03, 2009 | 12 Months Ended
Dec. 29, 2007 |
Net sales | $4,681,273 | $4,363,251 | $3,779,277 |
Cost of sales: | |||
Cost of sales before special charges | 1,219,624 | 1,105,938 | 1,003,302 |
Special charges | 33,761 | 64,603 | 38,292 |
Total cost of sales | 1,253,385 | 1,170,541 | 1,041,594 |
Gross profit | 3,427,888 | 3,192,710 | 2,737,683 |
Selling, general and administrative expense | 1,675,251 | 1,636,526 | 1,382,466 |
Research and development expense | 559,766 | 531,799 | 476,332 |
Purchased in-process research and development charges | 5,842 | 319,354 | 0 |
Special charges | 73,983 | 49,984 | 85,382 |
Operating profit | 1,113,046 | 655,047 | 793,503 |
Other income (expense), net | (55,653) | (74,279) | (83,227) |
Earnings before income taxes | 1,057,393 | 580,768 | 710,276 |
Income tax expense | 280,167 | 227,750 | 172,520 |
Net earnings | $777,226 | $353,018 | $537,756 |
Net earnings per share: | |||
Basic | 2.28 | 1.03 | 1.57 |
Diluted | 2.26 | 1.01 | 1.53 |
Weighted average shares outstanding: | |||
Basic | 340,880 | 342,888 | 342,103 |
Diluted | 344,359 | 349,722 | 352,444 |
Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | ||
In Thousands | Jan. 02, 2010
| Jan. 03, 2009
|
Current Assets | ||
Cash and cash equivalents | $392,927 | $136,443 |
Accounts receivable, less allowances for doubtful accounts | 1,170,579 | 1,101,258 |
Inventories | 659,960 | 546,499 |
Deferred income taxes, net | 164,738 | 137,042 |
Other current assets | 172,002 | 158,821 |
Total current assets | 2,560,206 | 2,080,063 |
Property, Plant and Equipment | ||
Land, buildings and improvements | 424,310 | 386,519 |
Machinery and equipment | 1,188,614 | 918,254 |
Diagnostic equipment | 336,492 | 371,206 |
Property, plant and equipment at cost | 1,949,416 | 1,675,979 |
Less accumulated depreciation | (796,330) | (695,803) |
Net property, plant and equipment | 1,153,086 | 980,176 |
Goodwill | 2,005,851 | 1,984,566 |
Other intangible assets, net | 456,142 | 493,535 |
Other assets | 250,526 | 184,164 |
TOTAL ASSETS | 6,425,811 | 5,722,504 |
Current Liabilities | ||
Current debt obligations | 334,787 | 75,518 |
Accounts payable | 132,543 | 238,310 |
Income taxes payable | 13,498 | 17,608 |
Accrued expenses | ||
Employee compensation and related benefits | 269,293 | 297,287 |
Other | 317,192 | 399,801 |
Total current liabilities | 1,067,313 | 1,028,524 |
Long-term debt | 1,587,615 | 1,126,084 |
Deferred income taxes, net | 132,392 | 112,231 |
Other liabilities | 314,940 | 219,759 |
Total liabilities | 3,102,260 | 2,486,598 |
Shareholders' Equity | ||
Preferred stock | 0 | 0 |
Common stock (324,537,581 and 345,332,272 shares issued and outstanding at January 2, 2010 and January 3, 2009, respectively) | 32,454 | 34,533 |
Additional paid-in capital | 5,860 | 219,041 |
Retained earnings | 3,191,203 | 2,977,630 |
Accumulated other comprehensive income (loss): | ||
Cumulative translation adjustment | 82,033 | (1,023) |
Unrealized gain on available-for-sale securities | 12,001 | 6,136 |
Unrealized loss on derivative financial instruments | 0 | (411) |
Total shareholders' equity | 3,323,551 | 3,235,906 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $6,425,811 | $5,722,504 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | ||
Jan. 02, 2010
| Jan. 03, 2009
| |
Common Stock, Number of Shares, Par Value and Other Disclosures | ||
Common Stock, Shares Issued | 324,537,581 | 345,332,272 |
Common Stock, Shares Outstanding | 324,537,581 | 345,332,272 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (USD $) | |||||
In Thousands, except Share data | Additional Paid-in Capital
| Retained Earnings
| Accumulated Other Comprehensive Income (Loss)
| Common Stock
| Total
|
Balance, Value at Dec. 30, 2006 | $100,173 | $2,787,331 | $46,329 | $35,393 | $2,969,226 |
Balance, Shares at Dec. 30, 2006 | 353,932,000 | ||||
Comprehensive income: | |||||
Net earnings | 537,756 | 537,756 | |||
Other comprehensive income (loss): | |||||
Unrealized gain (loss) on available-for-sale securities, net of taxes | (5,766) | (5,766) | |||
Reclassification of realized gain on available-for-sale securities to net earnings, net of taxes of $3,013 | (4,916) | (4,916) | |||
Foreign currency translation adjustment, net of taxes | 63,511 | 63,511 | |||
Equity conversion option on convertible debentures, net of taxes of $31,411 | 52,352 | 52,352 | |||
Repurchases of common stock - Shares | (23,619,400) | ||||
Repurchases of common stock - Value | (296,091) | (701,415) | (2,361) | (999,867) | |
Stock-based compensation | 54,540 | 54,540 | |||
Common stock issued under stock plans and other, net - Shares | 12,534,363 | ||||
Common stock issued under stock plans and other, net - Value | 185,564 | 1,253 | 186,817 | ||
Tax benefit from stock plans | 125,234 | 125,234 | |||
Cumulative effect adjustment for adoption of FIN 48 | 8,542 | 8,542 | |||
Purchase of call options, net of taxes of $(37,890) | (63,150) | (63,150) | |||
Proceeds from the sale of warrants | 35,040 | 35,040 | |||
Balance, Shares at Dec. 29, 2007 | 342,846,963 | ||||
Balance, Value at Dec. 29, 2007 | 193,662 | 2,632,214 | 99,158 | 34,285 | 2,959,319 |
Comprehensive income: | |||||
Net earnings | 353,018 | 353,018 | |||
Other comprehensive income (loss): | |||||
Unrealized gain (loss) on available-for-sale securities, net of taxes | (6,268) | (6,268) | |||
Unrealized loss on derivative financial instruments, net of taxes of $(247) | (411) | (411) | |||
Foreign currency translation adjustment, net of taxes | (87,777) | (87,777) | |||
Repurchases of common stock - Shares | (6,736,888) | ||||
Repurchases of common stock - Value | (291,724) | (7,602) | (674) | (300,000) | |
Stock-based compensation | 52,935 | 52,935 | |||
Common stock issued under stock plans and other, net - Shares | 8,319,532 | ||||
Common stock issued under stock plans and other, net - Value | 165,182 | 832 | 166,014 | ||
Common stock issued in connection with acquisition - Shares | 902,665 | ||||
Common stock issued in connection with acquisition - Value | 36,621 | 90 | 36,711 | ||
Tax benefit from stock plans | 62,365 | 62,365 | |||
Balance, Shares at Jan. 03, 2009 | 345,332,272 | 345,332,272 | |||
Balance, Value at Jan. 03, 2009 | 219,041 | 2,977,630 | 4,702 | 34,533 | 3,235,906 |
Comprehensive income: | |||||
Net earnings | 777,226 | 777,226 | |||
Other comprehensive income (loss): | |||||
Unrealized gain (loss) on available-for-sale securities, net of taxes | 5,865 | 5,865 | |||
Reclassification of realized loss on derivative financial instruments to net earnings, net of taxes of $247 | 411 | 411 | |||
Foreign currency translation adjustment, net of taxes | 83,056 | 83,056 | |||
Repurchases of common stock - Shares | (27,154,078) | ||||
Repurchases of common stock - Value | (433,632) | (563,653) | (2,715) | (1,000,000) | |
Stock-based compensation | 59,795 | 59,795 | |||
Common stock issued under stock plans and other, net - Shares | 6,359,387 | ||||
Common stock issued under stock plans and other, net - Value | 125,620 | 636 | 126,256 | ||
Tax benefit from stock plans | 35,036 | 35,036 | |||
Balance, Shares at Jan. 02, 2010 | 324,537,581 | 324,537,581 | |||
Balance, Value at Jan. 02, 2010 | $5,860 | $3,191,203 | $94,034 | $32,454 | $3,323,551 |
1_Consolidated Statements of Sh
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | |||
In Thousands | 12 Months Ended
Jan. 02, 2010 | 12 Months Ended
Jan. 03, 2009 | 12 Months Ended
Dec. 29, 2007 |
Consolidated Statements of Shareholders' Equity (Parenthetical) | |||
Other Comprehensive Income, Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $3,369 | ($3,675) | ($3,343) |
Other Comprehensive Income, Foreign Currency Translation Gain (Loss) Arising During Period, Tax | (173) | (4,281) | (4,227) |
Other Comprehensive Income, Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | 0 | 0 | 3,013 |
Other Comprehensive Income, Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 0 | (247) | 0 |
Other Comprehensive Income, Reclassification Adjustment on Derivatives Included in Net Income, Tax | 247 | 0 | 0 |
Adjustments To Additional Paid In Capital Equity Component Of Convertible Debt Tax | 0 | 0 | 31,411 |
Purchase of Call Options Tax | $0 | $0 | ($37,890) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | |||
In Thousands | 12 Months Ended
Jan. 02, 2010 | 12 Months Ended
Jan. 03, 2009 | 12 Months Ended
Dec. 29, 2007 |
OPERATING ACTIVITIES | |||
Net earnings | $777,226 | $353,018 | $537,756 |
Adjustments to reconcile net earnings to net cash from operating activities: | |||
Depreciation and amortization | 213,465 | 202,428 | 197,665 |
Amortization of debt discount | 370 | 49,973 | 34,029 |
Stock-based compensation | 59,795 | 52,935 | 54,540 |
Excess tax benefits from stock-based compensation | (26,373) | (48,995) | (97,921) |
Investment impairment charges | 8,300 | 12,902 | 25,094 |
Gain on sale of investment | 0 | 0 | (7,929) |
Purchased in-process research and development charges | 5,842 | 319,354 | 0 |
Deferred income taxes | (14,058) | (50,362) | (18,976) |
Other, net | 11,982 | 87,833 | 41,500 |
Changes in operating assets and liabilities, net of business acquisitions: | |||
Accounts receivable | (39,090) | (92,301) | (91,491) |
Inventories | (104,463) | (73,763) | 4,380 |
Other current assets | 10,303 | (19,996) | (5,301) |
Accounts payable and accrued expenses | (65,100) | 68,366 | 49,476 |
Income taxes payable | 30,676 | 84,200 | 142,747 |
Net cash provided by operating activities | 868,875 | 945,592 | 865,569 |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | (326,408) | (343,912) | (287,157) |
Proceeds from sale of investments | 0 | 0 | 12,929 |
Business acquisition payments, net of cash acquired | (129,507) | (490,027) | (12,238) |
Other investing activities, net | (34,670) | (37,134) | (19,849) |
Net cash used in investing activities | (490,585) | (871,073) | (306,315) |
FINANCING ACTIVITIES | |||
Proceeds from exercise of stock options and stock issued | 126,256 | 166,014 | 186,817 |
Excess tax benefits from stock-based compensation | 26,373 | 48,995 | 97,921 |
Common stock repurchased, including related costs | (1,000,000) | (300,000) | (999,867) |
Borrowings under debt facilities | 11,151,754 | 967,622 | 8,045,869 |
Payments under debt facilities | (10,435,079) | 0 | (8,724,224) |
Issuance (repayment) of convertible debentures | 0 | (1,205,124) | 1,200,000 |
Purchase of call options | 0 | 0 | (101,040) |
Proceeds from sale of warrants | 0 | 0 | 35,040 |
Net cash used in financing activities | (130,696) | (322,493) | (259,484) |
Effect of currency exchange rate changes on cash and cash equivalents | 8,890 | (4,677) | 9,436 |
Net increase (decrease) in cash and cash equivalents | 256,484 | (252,651) | 309,206 |
Cash and cash equivalents at beginning of year | 136,443 | 389,094 | 79,888 |
Cash and cash equivalents at end of year | 392,927 | 136,443 | 389,094 |
Supplemental Cash Flow Information | |||
Income Taxes Paid | 225,062 | 211,860 | 100,599 |
Interest | 24,549 | 21,712 | 32,686 |
Noncash investing activities: | |||
Issuance of stock in connection with EP MedSystems, Inc. acquisition | $0 | $36,711 | $0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Company Overview: St. Jude Medical, Inc., together with its subsidiaries (St. Jude Medical or the Company) develops, manufactures and distributes cardiovascular medical devices for the global cardiac rhythm management, cardiology, cardiac surgery and atrial fibrillation therapy areas and implantable neurostimulation devices for the management of chronic pain. The Companys four operating segments are Cardiac Rhythm Management (CRM), Cardiovascular (CV), Atrial Fibrillation (AF) and Neuromodulation (NMD). The Companys principal products in each operating segment are as follows: CRM tachycardia implantable cardioverter defibrillator systems (ICDs) and bradycardia pacemaker systems (pacemakers); CV vascular closure devices, heart valve replacement and repair products and pressure measurement guidewires; AF electrophysiology (EP) introducers and catheters, advanced cardiac mapping, navigation and recording systems and ablation systems; and NMD neurostimulation devices. The Company markets and sells its products primarily through a direct sales force. The principal geographic markets for the Companys products are the United States, Europe, Japan and Asia Pacific. Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Fiscal Year: The Company utilizes a 52/53-week fiscal year ending on the Saturday nearest December 31st. Fiscal year 2009 and 2007 consisted of 52 weeks and ended on January 2, 2010 and December 29, 2007, respectively. Fiscal year 2008 consisted of 53 weeks and ended on January 3, 2009, with the additional week reflected in the Companys fourth quarter 2008 results. Reclassifications: Certain prior period amounts within the Statements of Cash Flows have been reclassified to conform to the current year presentation. Use of Estimates: Preparation of the Companys consolidated financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Cash Equivalents: The Company considers highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. The Companys cash equivalents include bank certificates of deposit, money market funds and instruments and commercial paper investments. The Company performs periodic evaluations of the relative credit standing of the financial institutions and issuers of its cash equivalents and limits the amount of credit exposure with any one issuer. Marketable Securities: Marketable securities consist of publicly-traded equity securities that are classified as available-for-sale securities and investments in mutual funds that are classified as trading securities. On the balance sheet, available-for-sale securities and trading securities ar |
Acquisitions
Acquisitions | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Acquisitions [Abstract] | |
Acquisitions | NOTE 2 ACQUISITIONS The Company made acquisitions during 2009, 2008 and 2007; the more significant acquisitions are described below. The results of operations of businesses acquired have been included in the Companys consolidated results of operations since the dates of acquisition. Pro forma results of operations have not been presented for these acquisitions since the effects of these business acquisitions were not material to the Company either individually or in aggregate. EP MedSystems, Inc.: On July 3, 2008, the Company completed the acquisition of EP MedSystems, Inc. (EP MedSystems) for $95.7 million (consisting of $59.0 million in net cash consideration and direct acquisition costs and 0.9 million shares of St. Jude Medical common stock). EP MedSystems had been publicly traded on the NASDAQ Capital Market under the ticker symbol EPMD. EP MedSystems is based in West Berlin, New Jersey and develops, manufactures and markets medical devices for the electrophysiology market which are used for visualization, diagnosis and treatment of heart rhythm disorders. The Company acquired EP MedSystems to strengthen its portfolio of products used to treat heart rhythm disorders. The goodwill recorded as a result of the EP MedSystems acquisition is not deductible for income tax purposes and was allocated entirely to the Companys Atrial Fibrillation operating segment. The goodwill represents the strategic benefits of growing our Atrial Fibrillation product portfolio and the expected revenue growth from increased market penetration from future product and customers. In connection with the acquisition of EP MedSystems, the Company recorded $17.0 million of developed and core technology intangible assets and $3.3 million of customer relationship intangible assets that both have estimated useful lives of 7 to 10 years. The aggregate EP MedSystems purchase price was allocated on a preliminary basis to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. During 2009, the Company finalized the EP MedSystems purchase price allocation and recorded a $3.3 million net decrease to goodwill. The impacts of finalizing the purchase price allocation were not material. Radi Medical Systems AB: On December 19, 2008, the Company completed the acquisition of Radi Medical Systems AB (Radi Medical Systems) for $248.9 million in net cash consideration, including direct acquisition costs. Radi Medical Systems is based in Uppsala, Sweden and develops, manufactures and markets products that provide precise measurements of intravascular pressure during a cardiovascular procedure and compression systems that arrest bleeding of the femoral and radial arteries following an intravascular medical device procedure. The Company acquired Radi Medical Systems to accelerate its cardiovascular growth platform in these two segments of the cardiovascular medical device market in which the Company previously had not participated. The goodwill recognized as a result of the Radi Medical Systems acquisition is not deductible for income tax purposes and was allocated entirely to the Companys Cardiovascular operating segment. Th |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 3 GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill for each of the Companys reportable segments for the fiscal years ended January 2, 2010 and January 3, 2009 were as follows (in thousands): CRM/NMD CV/AF Total Balance at December 29, 2007 $ 1,196,972 $ 460,341 $ 1,657,313 EP Medsystems 69,719 69,719 Radi Medical Systems 219,428 219,428 Foreign currency translation and other 14,566 23,540 38,106 Balance at January 3, 2009 $ 1,211,538 $ 773,028 $ 1,984,566 EP Medsystems (3,261 ) (3,261 ) Radi Medical Systems (3,265 ) (3,265 ) Foreign currency translation and other 27,478 333 27,811 Balance at January 2, 2010 $ 1,239,016 $ 766,835 $ 2,005,851 The following table provides the gross carrying amount of other intangible assets and related accumulated amortization (in thousands): January 2, 2010 January 3, 2009 Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Purchased technology and patents $ 506,893 $ 171,760 $ 494,796 $ 124,749 Customer lists and relationships 182,368 81,129 166,637 63,385 Trademarks and tradenames 24,286 6,336 22,651 4,789 Licenses, distribution agreements and other 5,693 3,873 5,529 3,155 $ 719,240 $ 263,098 $ 689,613 $ 196,078 Amortization expense of other intangible assets was $58.5 million, $53.4 million and $53.9 million for fiscal years 2009, 2008 and 2007, respectively. In 2008, the Company recorded a $37.0 million impairment charge to write down purchased technology intangible assets associated with its 2005 Velocimed acquisition and a $1.7 million impairment charge to write off its ANS tradename intangible assets (see Note 8). In 2007, the Company recorded impairment charges of $23.7 million related to acquired intangible assets associated with a terminated distribution agreement (see Note 8). The gross carrying values and related accumulated amortization amounts for these impairment charges were written off in the respective periods. 34 The following table presents expected future amortization expense for amortizable intangible assets. Actual amounts of amortization expense may differ due to additional intangible assets acquired and foreign currency translation impacts (in thousands): 2010 2011 2012 2013 2014 After 2014 Amortization expense $ 60,245 $ 59,576 $ 57,178 $ 55,366 $ 53,048 $ 170,729 |
Debt
Debt | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Debt [Abstract] | |
Debt | NOTE 4 DEBT The Companys debt consisted of the following (in thousands): January 2, 2010 January 3, 2009 Senior notes due 2014 $ 699,036 $ Senior notes due 2019 493,927 Term loan due 2011 432,000 360,000 1.02% Yen-denominated notes due 2010 226,787 230,088 Yen-denominated term loan due 2011 70,652 88,222 Credit facility borrowings 500,000 Commercial paper borrowings 19,400 Other 3,892 Total debt 1,922,402 1,201,602 Less: current debt obligations 334,787 75,518 Long-term debt $ 1,587,615 $ 1,126,084 Future minimum principal payments under the Companys total debt obligations are as follows: $334.8 million in 2010; $394.7 million in 2011; $700.0 million in 2014; and $500.0 million in years thereafter. Senior notes due 2014: On July 28, 2009, the Company issued $700.0 million principal amount, 5-year, 3.75% unsecured senior notes (2014 Senior Notes) that mature in July 2014. Interest payments are required on a semi-annual basis. The 2014 Senior Notes were issued at a discount, yielding an effective interest rate of 3.784% at issuance. The debt discount is being amortized as interest expense through maturity. The Company may redeem the 2014 Senior Notes at any time at the applicable redemption price. Senior notes due 2019: On July 28, 2009, the Company issued $500.0 million principal amount, 10-year, 4.875% unsecured senior notes (2019 Senior Notes) that mature in July 2019. Interest payments are required on a semi-annual basis. The 2019 Senior Notes were issued at a discount, yielding an effective interest rate of 5.039% at issuance. The debt discount is being amortized as interest expense through maturity. The Company may redeem the 2019 Senior Notes at any time at the applicable redemption price. Term loan due 2011: In December 2008, the Company entered into a 3-year, unsecured term loan (2011 Term Loan). The Company initially borrowed $360.0 million in December 2008 and borrowed an additional $180.0 million in January 2009, resulting in total original borrowings of $540.0 million under the 2011 Term Loan. The Company is required to make quarterly principal payments in the amount of 5% ($27.0 million) of the total original borrowings. These borrowings bear interest at United States Dollar London InterBank Offered Rate (LIBOR) plus 2.0%, although the Company may elect the United States Prime Rate (Prime Rate) plus 1.0%. The interest rates are subject to adjustment in the event of a change in the Companys credit ratings. Borrowings under the 2011 Term Loan incurred interest at a weighted average interest rate of 2.3% during 2009. 1.02% Yen-denominated notes due 2010: In May 2003, the Company issued 7-year, 1.02% unsecured notes in Japan (Yen Notes) totaling 20.9 billion Yen (the equivalent of $226.8 million at January 2, 2010 and $230.1 million at January 3, 2009). The principal amount of the 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 balanc |
Commitments and Contingencies
Commitments and Contingencies | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | NOTE 5 COMMITMENTS AND CONTINGENCIES Leases The Company leases various facilities and equipment under non-cancelable operating lease arrangements. Future minimum lease payments under these leases are as follows: $32.1 million in 2010; $20.3 million in 2011; $14.8 million in 2012; $11.4 million in 2013; $7.9 million in 2014; and $8.7 million in years thereafter. Rent expense under all operating leases was $33.5 million, $28.6 million, and $27.4 million in fiscal years 2009, 2008 and 2007, respectively. Litigation 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 we stopped selling in January 2000. Some of these claimants allege bodily injuries as a result of an explant or other complications, which they attribute to these products. Others, who have not had their Silzone-coated heart valve explanted, seek compensation for past and future costs of special monitoring they allege they need over and above the medical monitoring all other replacement heart valve patients receive. Some of the lawsuits seeking the cost of monitoring have been initiated by patients who are asymptomatic and who have no apparent clinical injury to date. The Company has vigorously defended against the claims that have been asserted and expects to continue to do so with respect to any remaining claims. In October 2001, various class-action complaints related to Silzone heart valves were consolidated into one class action case by the U.S. District Court in Minnesota (the District Court). The Company requested the Eighth Circuit Court of Appeals (the Eighth Circuit) to review the District Courts initial class certification orders and, in October 2005, the Eighth Circuit issued a decision reversing the District Courts class certification rulings and directed the District Court to undertake further proceedings. In October 2006, the District Court granted plaintiffs renewed motion to certify a nationwide consumer protection class under Minnesotas consumer protection statutes and Private Attorney General Act. The Company again requested the Eighth Circuit to review the District Courts class certification orders and, in April 2008, the Eighth Circuit again issued a decision reversing the District Courts October 2006 class certification rulings. The order by the Eighth Circuit returned the case to the District Court for continued proceedings. The plaintiffs requested the District Court to certify a new class, but in June 2009, the District Court issued an order striking any remaining claims seeking class action status. As a result, the former class representative had only an individual claim which has now been resolved. In 2001, the U.S. Judicial Panel on Multi-District Litigation (MDL) ruled that certain lawsuits filed in U.S. federal district court involving products with Silzone coating should be part of MDL proceedings in the District Court. As a result, actions in federal court involving products with Silzone coating have been transferred to the District Court for coordinated or consolidated pretrial proceedings. |
Shareholders' Equity
Shareholders' Equity | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | NOTE 6 SHAREHOLDERS EQUITY Capital Stock: The Companys authorized capital consists of 25 million shares of $1.00 per share par value preferred stock and 500 million shares of $0.10 per share par value common stock. There were no shares of preferred stock issued or outstanding during 2009, 2008 or 2007. Share Repurchases: On October 22, 2009, the Companys Board of Directors authorized a share repurchase program of up to $500.0 million of the Companys outstanding common stock. The Company completed the repurchases under the program on December 11, 2009. In total, the Company repurchased 14.1 million shares for $500.0 million at an average repurchase price of $35.44 per share. On July 21, 2009, the Companys Board of Directors authorized a share repurchase program of up to $500.0 million of the Companys outstanding common stock. The Company completed the repurchases under the program on September 15, 2009. In total, the Company repurchased 13.0 million shares for $500.0 million at an average repurchase price of $38.32 per share. For fiscal year 2009, the Company repurchased a total of 27.1 million shares for $1.0 billion at an average repurchase price of $36.83 per share. In February 2008, the Companys Board of Directors authorized a share repurchase program of up to $250.0 million of the Companys outstanding common stock. In April 2008, the Companys Board of Directors authorized an additional $50.0 million of share repurchases as part of this share repurchase program. The Company completed the repurchases under the program on May 1, 2008. In total, the Company repurchased 6.7 million shares for $300.0 million at an average repurchase price of $44.51 per share. In January 2007, the Companys Board of Directors authorized a share repurchase program of up to $1.0 billion of the Companys outstanding common stock. The Company completed the repurchases under the program on May 8, 2007. In total, the Company repurchased 23.6 million shares for $1.0 billion at an average repurchase price of $42.34 per share. |
Stock-Based Compensation
Stock-Based Compensation | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 7 STOCK-BASED COMPENSATION Stock Compensation Plans The Companys stock compensation plans provide for the issuance of stock-based awards, such as stock options or restricted stock, to directors, officers, employees and consultants. Stock option awards under these plans have an exercise price equal to the fair market value on the date of grant, and generally, an eight-year contractual life and four-year vesting term. Since 2000, all stock option awards have been granted with an eight-year contractual term regardless of the maximum allowable under the plan. Restricted stock awards under these plans generally vest over a four-year period. During the vesting period, ownership of the shares cannot be transferred. Restricted stock is considered issued and outstanding at the grant date and has the same dividend and voting rights as other common stock. Directors can elect to receive half or their entire annual retainer in the form of a restricted stock grant with a six-month vesting term. At January 2, 2010, the Company had 11.8 million shares of common stock available for stock option grants under these plans. The Company has the ability to grant a portion of the remaining shares in the form of restricted stock. Specifically, in lieu of granting up to 10.7 million stock options under these plans, the Company may grant up to 4.8 million restricted stock awards (for certain grants of restricted stock awards, the number of shares available are reduced by 2.25 shares). Additionally, in lieu of granting up to 0.1 million stock options under these plans, the Company may grant up to 0.1 million restricted stock awards (for certain grants of restricted stock awards, the number of shares available are reduced by one share). The remaining 1.0 million shares of common stock are available for stock option grants. At January 2, 2010, there was $143.2 million of total unrecognized stock-based compensation expense, adjusted for estimated forfeitures, which is expected to be recognized over a weighted average period of 3.0 years and will be adjusted for any future changes in estimated forfeitures. The Company also has an Employee Stock Purchase Plan (ESPP) that allows participating employees to purchase newly issued shares of the Companys common stock at a discount through payroll deductions. The ESPP consists of a 12-month offering period whereby employees can purchase shares at 85% of the market value at either the beginning of the offering period or the end of the offering period, whichever price is lower. Employees purchased 0.8 million, 0.7 million and 0.7 million shares in 2009, 2008 and 2007, respectively. At January 2, 2010, 3.5 million shares of common stock were available for future purchases under the ESPP. Valuation Assumptions The Company uses the Black-Scholes standard option pricing model (Black-Scholes model) to determine the fair value of stock options and ESPP purchase rights. The determination of the fair value of the awards on the date of grant using the Black-Scholes model is affected by the Companys stock price as well as assumptions of other variables, including projected employee stock option exercise behaviors, risk-free |
Purchased In-Process Research a
Purchased In-Process Research and Development (IPR&D) and Special Charges | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Purchased In-Process Research and Development (IPR&D) and Special Charges [Abstract] | |
Purchased In-Process Research and Development (IPR&D) and Special Charges | NOTE 8 PURCHASED IN-PROCESS RESEARCH AND DEVELOPMENT (IPRD) AND SPECIAL CHARGES IPRD Charges Fiscal Year 2009 During 2009, the Company recorded IPRD charges of $5.8 million in conjunction with the purchase of intellectual property in its CV and NMD segments since the related technological feasibility had not yet been reached and such technology had no future alternative use. Fiscal Year 2008 MediGuide, Inc.: In December 2008, the Company acquired privately-held MediGuide, a development-stage company that has been focused on developing its gMPSTM technology for localization and tracking capability for interventional medical devices. The acquisition provides the Company with exclusive rights to use and develop the gMPSTM technology. As MediGuide was a development-stage company, the excess of the purchase price over the fair value of the net assets acquired was allocated on a pro-rata basis to the net assets acquired. Accordingly, the excess purchase price was allocated to IPRD, the principal asset acquired. At the date of acquisition, $306.2 million of the purchase price was expensed as IPRD since technological feasibility of the underlying projects had not yet been reached and such technology had no future alternative use. Through January 2, 2010, the Company has incurred costs of approximately $10 million related to these projects. The Company expects to incur an additional $20 million to bring the technology to commercial viability on a worldwide basis within one to two years. Other: In December 2008, the Company also made an additional minority investment in a development-stage company and, in accordance with step-acquisition accounting treatment under the equity method of accounting, allocated the excess purchase price over the fair value of the investees net assets to IPRD, the principal asset acquired. At the December 2008 investment date, $11.6 million of IPRD was expensed since technological feasibility of the underlying projects had not yet been reached and such technology had no future alternative use. The Company also recognized $1.6 million of IPRD charges in 2008 related to the purchase of intellectual property in its CRM and CV segments since the related technological feasibility had not yet been reached and such technology had no future alternative use. Savacor, Inc.: In December 2005, the Company acquired privately-held Savacor, Inc. (Savacor) to complement the Companys development efforts in heart failure diagnostic and therapy guidance products. Through January 2, 2010, the Company has incurred costs of approximately $19 million from the related Savacor IPRD projects. The Company expects to incur an additional $32 million to bring the device to commercial viability on a worldwide basis within four years. Special Charges Fiscal Year 2009 Employee Termination Costs: The Company incurred charges totaling $107.7 million, of which $71.1 million related to severance and benefit costs for approximately 725 employees. These costs were recognized after management determined that such severance and benefits were probable and estimable, in accordance with ASC Topic 712, Nonretirement Postemployment Benefits. Th |
Other Income
Other Income (Expense), Net | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Other Income (Expense), Net [Abstract] | |
Other Income (Expense), Net | NOTE 9 OTHER INCOME (EXPENSE), NET The Companys other income (expense) consisted of the following (in thousands): (in thousands) 2009 2008 2007 Interest income $ 2,057 $ 16,315 $ 4,374 Interest expense (45,603 ) (72,554 ) (72,258 ) Other (12,107 ) (18,040 ) (15,343 ) Other income (expense), net $ (55,653 ) $ (74,279 ) $ (83,227 ) The Company classifies investment impairment charges and realized gains or losses from the sale of investments as other income (expense). The Company recognized impairment charges of $8.3 million, $12.9 million and $25.1 million in 2009, 2008 and 2007, respectively (see Note 12). In 2007, the Company also recognized a realized gain of $7.9 million related to the sale of the Companys Conor Medical, Inc. common stock investment. |
Income Taxes
Income Taxes | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 10 INCOME TAXES The Companys earnings before income taxes were generated from its U.S. and international operations as follows (in thousands): 2009 2008 2007 U.S. $ 559,868 $ 530,843 $ 516,493 International 497,525 49,925 193,783 Earnings before income taxes $ 1,057,393 $ 580,768 $ 710,276 Income tax expense consisted of the following (in thousands): 2009 2008 2007 Current: U.S. federal $ 212,721 $ 198,179 $ 141,997 U.S. state and other 23,292 26,863 12,421 International 58,212 53,070 37,078 Total current 294,225 278,112 191,496 Deferred (14,058 ) (50,362 ) (18,976 ) Income tax expense $ 280,167 $ 227,750 $ 172,520 45 The tax effects of the cumulative temporary differences between the tax bases of assets and liabilities and their respective carrying amounts for financial statement purposes were as follows (in thousands): 2009 2008 Deferred income tax assets: Net operating loss carryforwards $ 22,057 $ 26,411 Tax credit carryforwards 59,623 53,412 Inventories 115,247 106,055 Stock-based compensation 56,837 45,556 Accrued liabilities and other 148,607 119,052 Deferred income tax assets 402,371 350,486 Deferred income tax liabilities: Unrealized gain on available-for-sale securities (7,584 ) (2,792 ) Property, plant and equipment (168,173 ) (132,470 ) Intangible assets (194,268 ) (190,413 ) Deferred income tax liabilities (370,025 ) (325,675 ) Net deferred income tax assets $ 32,346 $ 24,811 The Company has not recorded any valuation allowance for its deferred tax assets as of January 2, 2010 or January 3, 2009 as the Company believes that its deferred tax assets, including the net operating and capital loss carryforwards, will be fully realized based upon its estimates of future taxable income. A reconciliation of the U.S. federal statutory income tax rate to the Companys effective income tax rate is as follows: 2009 2008 2007 U.S. federal statutory tax rate 35.0 % 35.0 % 35.0 % Increase (decrease) in tax rate resulting from: U.S. state income taxes, net of federal tax benefit 1.6 3.3 2.1 International taxes at lower rates (6.4 ) (9.9 ) (8.3 ) Tax benefits from domestic manufacturers deduction (0.9 ) (1.7 ) (0.8 ) Research and development credits (2.9 ) (6.0 ) (3.9 ) Non-deductible IPRD charges 19.2 Other 0.1 (0.7 ) 0.2 Effective income tax rate 26.5 % 39.2 % 24.3 % The Companys 2008 effective tax rate was unfavorably impacted by 19.2 percentage points relating to non-deductible IPRD charges. The Companys effective income tax rate is |
Retirement Plans
Retirement Plans | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Retirement Plans [Abstract] | |
Retirement Plans | NOTE 11 RETIREMENT PLANS Defined Contribution Plans: The Company has a 401(k) profit sharing plan that provides retirement benefits to substantially all full-time U.S. employees. Eligible employees may contribute a percentage of their annual compensation, subject to IRS limitations, with the Company matching a portion of the employees contributions. The Company also may contribute a portion of its earnings to the plan based upon Company performance. The Companys matching and profit sharing contributions are at the discretion of the Companys Board of Directors. In addition, the Company has defined contribution programs for employees in certain countries outside the United States. Company contributions under all defined contribution plans totaled $22.2 million, $63.2 million and $54.9 million in 2009, 2008 and 2007, respectively. The Company also has a non-qualified deferred compensation plan that provides certain officers and employees the ability to defer a portion of their compensation until a later date. The deferred amounts and earnings thereon are payable to participants, or designated beneficiaries, at specified future dates upon retirement, death or termination from the Company. The deferred compensation liability, which is classified as other liabilities, was approximately $160 million and $108 million at January 2, 2010 and January 3, 2009, respectively. Defined Benefit Plans: The Company has funded and unfunded defined benefit plans for employees in certain countries outside the United States. The Company had an accrued liability totaling $30.2 million and $25.5 million at January 2, 2010 and January 3, 2009, respectively, which approximated the actuarially calculated unfunded liability. The amount of funded plan assets and the amount of pension expense was not material. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Fair Value Measurements and Financial Instruments [Abstract] | |
Fair Value Measurements and Financial Instruments | NOTE 12 FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS The fair value measurement accounting standard, codified in 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 Companys 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 and derivative instruments. The Company had previously and will continue to record these items at fair value on a recurring basis; however, the fair value measurements are now applied using ASC Topic 820. The Company does not have any material nonfinancial assets and 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 is as follows: Money-market securities: The Companys 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 publically-traded mutual funds that are traded in active markets and are recorded at fair value based upon the net asset values of shares. The Company classifies these secur |
Derivative Financial Instrument
Derivative Financial Instruments | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | NOTE 13 DERIVATIVE FINANCIAL INSTRUMENTS The Company follows the provisions of 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 hedging transaction. Derivative assets and derivative liabilities are classified as other current assets and other current liabilities, respectively. 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 January 2, 2010. During fiscal years 2009 and 2008, the net amount of gains (losses) the Company recorded to other income (expense) for its forward currency exchange contracts not designated as hedging instruments under ASC Topic 815 was a net loss of $6.7 million and a net loss of $7.5 million, respectively. These net losses were almost entirely offset by corresponding net gains on the foreign currency exposures being managed. The Company does not enter into contracts for trading or speculative purposes. The Companys policy is to enter into hedging contracts with major financial institutions that have at least an A (or equivalent) credit rating. In November 2008, the Company entered into an interest rate swap contract to convert $400.0 million of variable-rate borrowings under the Credit Facility into fixed-rate borrowings (see Note 4). The Company designated this interest rate swap as a cash flow hedge under ASC Topic 815. This contract terminated in February 2009. The ineffective portion of the amount of gains (losses) recognized in net earnings was immaterial. The Company recorded the $0.4 million after-tax loss on the settlement of the interest rate swap contract to interest expense. |
Segment and Geographic Informat
Segment and Geographic Information | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Segment and Geographic Information [Abstract] | |
Segment and Geographic Information | NOTE 14 SEGMENT AND GEOGRAPHIC INFORMATION Segment Information: The Companys four operating segments are Cardiac Rhythm Management (CRM), Cardiovascular (CV), Atrial Fibrillation (AF), and Neuromodulation (NMD). The primary products produced by each operating segment are: CRM ICDs and pacemakers; CV vascular closure devices, heart valve replacement and repair products and pressure measurement guidewires; AF EP introducers and catheters, advanced cardiac mapping, navigation and recording systems and ablation systems; and NMD neurostimulation devices. The Company has aggregated the four operating segments into two reportable segments based upon their similar operational and economic characteristics: CRM/NMD and CV/AF. Net sales of the Companys 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 operating expenses managed by the Companys selling and corporate functions, including all stock-based compensation expense, impairment charges, IPRD charges and special charges have not been recorded in the individual 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 Companys selling and corporate functions, principally including trade receivables, inventory, corporate cash and cash equivalents 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 certain financial information by reportable segment (in thousands): CRM/NMD CV/AF Other Total Fiscal Year 2009 Net sales $ 3,099,800 $ 1,581,473 $ $ 4,681,273 Operating profit 1,931,929 829,966 (1,648,849 ) 1,113,046 Depreciation and amortization expense 83,506 45,765 84,194 213,465 Total assets 2,124,534 1,294,009 3,007,268 6,425,811 Fiscal Year 2008 Net sales $ 2,955,603 $ 1,407,648 $ $ 4,363,251 Operating profit 1,824,023 736,979 (1,905,955 ) 655,047 Depreciation and amortization expense 93,397 38,743 70,288 202,428 Total assets 2,018,478 1,267,290 2,436,736 5,722,504 Fiscal Year 2007 Net sales $ 2,577,975 $ 1,201,302 $ $ 3,779,277 Operating profit 1,576,439 579,325 (1,362,261 ) 793,503 Depreciation and amortization expense 96,764 35,731 65,170 197,665 Total assets 1,977,174 769,194 2,583,036 5,329,404 Net sales by class of similar products for the respective fiscal years were as follows (in thousands): Net Sales 2009 2008 |
Quarterly Financial Data
Quarterly Financial Data (Unaudited) | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | NOTE 15 QUARTERLY FINANCIAL DATA (UNAUDITED) (in thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year 2009: Net sales $ 1,133,793 $ 1,184,412 $ 1,159,606 $ 1,203,462 Gross profit 839,298 878,868 853,875 (a) 855,847 (c) Net earnings 201,271 219,370 166,935 (b) 189,650 (d) Basic net earnings per share $ 0.58 $ 0.63 $ 0.49 $ 0.57 Diluted net earnings per share $ 0.58 $ 0.63 $ 0.48 $ 0.57 Fiscal Year 2008: Net sales $ 1,010,738 $ 1,135,760 $ 1,084,136 $ 1,132,617 Gross profit 750,251 848,069 810,210 784,180 (e) Net earnings 176,569 192,912 184,696 (201,159 )(f) Basic net earnings per share $ 0.51 $ 0.57 $ 0.54 $ (0.58 ) Diluted net earnings per share $ 0.50 $ 0.55 $ 0.53 $ (0.58 ) (a) Includes pre-tax special charges of $6.1 million related to initiatives to streamline the Companys production activities. (b) Includes after-tax special charges of $29.4 million related to initiatives to enhance the efficiency and effectiveness of the sales, marketing and customer service operations and to streamline the Companys production activities; and $2.5 million associated with other unrelated costs. The Company also recorded an after-tax impairment charge of $5.2 million related to a cost method investment deemed to be other-than-temporarily impaired. (c) Includes pre-tax special charges of $0.5 million related to initiatives to streamline the Companys production activities; $17.7 million of inventory obsolescence charges for discontinued products; and $9.4 million of accelerated depreciation charges and write-offs for assets that will no longer be utilized. (d) Includes after-tax special charges of $44.5 million, which consist of the following: $22.3 million related to initiatives to enhance the efficiency and effectiveness of the sales, marketing and customer service operations and to streamline the Companys production activities; $11.3 million of inventory obsolescence charges for discontinued products; $8.7 million of accelerated depreciation charges and write-offs for assets that will no longer be utilized; and $2.2 million associated with contract terminations and other unrelated costs. The Company also recorded after-tax IPRD charges of $3.7 million related to the Companys purchase of certain pre-development technology assets. (e) Includes pre-tax special charges of $43.5 million associated with the impairment of a license agreement relating to technology no longer fully utilized in the Companys products; $13.7 million of inventory charges related to the termination of a supply agreement and inventory obsolescence charges associated with a terminated distribution agreement; and $7.4 million related to the Company providing its remote patient monitoring system wit |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts Disclosure | |
12 Months Ended
Jan. 02, 2010 USD / shares | |
Schedule of Valuation and Qualifying Accounts Disclosure [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (In thousands) Balance at Beginning of Year Additions Deductions Description Charged to Expense Other (2) Write-offs (1) Other (2) Balance at End of Year Allowance for doubtful accounts: Fiscal year ended January 2, 2010 $ 28,971 $ 10,867 $ 640 $ (5,531 ) $ $ 34,947 January 3, 2009 $ 26,652 $ 9,569 $ $ (6,275 ) $ (975 ) $ 28,971 December 29, 2007 $ 24,928 $ 6,939 $ $ (4,648 ) $ (567 ) $ 26,652 (1) Uncollectible accounts written off, net of recoveries. (2) In 2009, 2008 and 2007 the $640, $(975) and $(567), respectively, of other represent the effects of changes in foreign currency translation. |
Document and Entity Information
Document and Entity Information (USD $) | |||
In Billions, except Share data | 12 Months Ended
Jan. 02, 2010 | Feb. 19, 2010
| Jul. 02, 2009
|
Document Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | 2010-01-02 | ||
Entity Information | |||
Entity Registrant Name | ST JUDE MEDICAL INC | ||
Entity Central Index Key | 0000203077 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --01-02 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 325,431,377 | ||
Entity Public Float | 13.7 |