Fourth Quarter and Full-Year Earnings Results

In the fourth quarter, the Company recognized after-tax special charges of $113 million, or $0.36 per share, primarily related to our previously announced restructuring activities. Also, during the fourth quarter, the Company recognized a $46 million income tax charge, or $0.15 per share, related to adjustments to uncertain tax positions associated with the effective settlement of domestic income tax audits.

Including these items, reported net earnings for the fourth quarter of 2012 were $0.39 per share. This compares to reported net earnings for the fourth quarter of 2011 of $0.39 per share. For the full-year 2012, reported net earnings were $752 million, or $2.39 per share.

In accordance with GAAP, reported net earnings for the fourth quarter 2012 do not include any benefit from the research and development tax credit, even though this tax credit was extended for 2012 and 2013 earlier this month retroactive to the beginning of 2012. Including the $0.02 per share benefit of this adjustment and excluding the fourth quarter charges, adjusted net earnings for the fourth quarter of 2012 were $285 million, or $0.92 per share. This compares to adjusted net earnings for the fourth quarter of 2011 of $0.86 per share. A reconciliation of the Company's non-GAAP adjusted net earnings per share to the Company's GAAP net earnings per share is provided in the schedule at the end of the press release.

First Quarter and Full-Year 2013 Sales and Earnings Guidance

During a conference call today, St. Jude Medical will provide its range for revenue expectations for the first quarter and full-year 2013 by product category.

The Company expects its consolidated net earnings for the first quarter of 2013 to be in the range of $0.91 to $0.93 per share and for full-year 2013 consolidated net earnings to be in the range of $3.68 to $3.73. A further reconciliation of the Company’s quarterly and annual guidance is provided in the schedule below.

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