Q Earnings Release and Conference Call Non-GAAP Reconciliations

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1 Non-GAAP Financial Measures The company provides the following non-gaap financial measures because St. Jude Medical management believes that in order to properly understand the company s short-term and long-term financial trends, investors may wish to consider the impact of certain adjustments discussed below. St. Jude Medical management uses these non-gaap financial measures to forecast and evaluate the operational performance of the company as well as to compare results of current periods to prior periods on a consolidated basis. Adjusted gross margin Adjusted selling, general & administrative expense as a percentage of net sales Adjusted earnings before and income taxes Adjusted income taxes and adjusted effective tax rate Adjusted net earnings before Adjusted net loss attributable Adjusted net earnings Adjusted diluted net earnings per and adjusted diluted EPS growth rate Adjusted constant currency diluted net earnings per and adjusted constant currency diluted EPS growth rate The adjustments made to GAAP financial measures result from facts and circumstances that vary in frequency and impact on the Company s results of operations. The following is an explanation of each of the adjustments that management excludes in calculating its non-gaap measures. These amounts represent severance and other termination benefits, inventory write-offs primarily associated with discontinued product lines, fixed asset write-offs related to assets no longer expected to be utilized and other restructuring. These amounts consist of contingent consideration fair value adjustments, acquired inventory step-up amortization, other transaction and integration. and litigation These amounts primarily relate to inventory write-off and disposal, additional warranty and patient monitoring, and estimated legal for outstanding legal matters associated with product field actions. Legal settlements These amounts consist of losses that are probable and reasonably estimable, gains related to favorable resolutions of litigation matters and probable insurance recoveries. Amortization of intangible assets These amounts represent the non-cash amortization expenses we recognized for definite-lived intangible assets. Discrete income tax items These amounts represent tax effects related to significant unusual or infrequent items not attributable to current-year ordinary income, such as settlement of tax positions and discrete tax adjustments to uncertain tax positions. R&D credit These amounts represent the impact of the federal research and development tax credit to present comparative periods assuming that the tax credit had been enacted in all periods presented. Foreign currency impact These amounts represent the impact to net sales and adjusted diluted net earnings per after translating net sales and the consolidated statement of earnings at comparable prior period foreign currency exchange rates. The company also provides constant currency sales growth and constant currency adjusted EPS growth because St. Jude Medical management believes that in order to properly understand the Company s short-term and long-term financial trends, investors may wish to consider the impact of foreign currency translation on net sales and adjusted EPS. St. Jude Medical management uses constant currency sales growth and constant currency adjusted EPS growth to forecast and evaluate the operational performance of the company as well as to compare sales and adjusted EPS of current periods to prior periods. Non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Investors should consider non-gaap measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with GAAP. St.

2 Non-GAAP Financial Measures Reconciliations (in millions, except per share amounts) Three Months Ended July 4, 2015 Diluted EPS growth rate As reported (GAAP) $ 294 $ % $ 282 $ (8) $ 290 $ % (10) 1 (11) 4 (15) (0.05) and litigation (1) - (1) - (1) 0.00 Amortization of intangible assets Discrete income tax benefits - 29 (29) - (29) (0.10) R&D credit - (6) As adjusted (Non-GAAP) $ 343 $ % $ 289 $ (4) $ 293 $ % Unfavorable foreign currency impact vs Constant currency as adjusted (non-gaap) $ % and litigation Total Special charges (cost of sales) $ 9 $ - $ (4) $ 5 Selling, general & administrative expense - (11) - (11) Research & development expense Special charges (operating expenses) $ 36 $ (10) $ (1) $ 25 (in millions, except per share amounts) Three Months Ended June 28, 2014 As reported (GAAP) $ 268 $ % $ 246 $ (24) $ 270 $ and litigation Legal settlements (27) (10) (17) - (17) (0.06) Amortization of intangible assets Discrete income tax benefits - 24 (24) - (24) (0.08) R&D credit - (4) As adjusted (Non-GAAP) $ 371 $ % $ 300 $ (8) $ 308 $ 1.07 Special charges (cost of sales) 26 and litigation Legal settlements Total $ $ - $ - $ - $ 26 Selling, general & administrative expense Special charges (operating expenses) (27) 25 $ 60 $ 31 $ 18 $ (27) $ 82 St.

3 (in millions, except per share amounts) Six Months Ended July 4, 2015 Diluted EPS growth rate As reported (GAAP) $ 602 $ % $ 538 $ (14) $ 552 $ % (32) 2 (34) 4 (38) (0.13) and litigation Legal settlements (10) (4) (6) - (6) (0.02) Amortization of intangible assets Discrete income tax benefits - 29 (29) - (29) (0.10) R&D credit - (11) As adjusted (Non-GAAP) $ 659 $ % $ 549 $ (10) $ 559 $ % Unfavorable foreign currency impact vs Constant currency as adjusted (non-gaap) $ % and litigation Legal settlements Total Special charges (cost of sales) $ 13 $ - $ (6) $ - $ 7 Selling, general & administrative expense - (33) - - (33) Research & development expense Special charges (operating expenses) 36-8 (10) 34 $ 49 $ (32) $ 2 $ (10) $ 9 (in millions, except per share amounts) Six Months Ended June 28, 2014 As reported (GAAP) $ 560 $ % $ 485 $ (34) $ 519 $ and litigation Legal settlements (27) (10) (17) - (17) (0.06) Amortization of intangible assets Discrete income tax benefits - 24 (24) - (24) (0.08) R&D credit - (8) As adjusted (Non-GAAP) $ 720 $ % $ 581 $ (18) $ 599 $ 2.07 Special charges (cost of sales) 27 and litigation Legal settlements Total $ $ - $ - $ - $ 27 Selling, general & administrative expense Special charges (operating expenses) (27) 58 $ 94 $ 33 $ 18 $ (27) $ 118 The sum of the components may not equal the total due to rounding and quantities of shares outstanding in different period Tax rates vary and are applied based on the item's nature and tax jurisdiction where it is incurred St.

4 2015 Earnings Guidance Reconciliation Third Quarter 2014 Third Quarter 2015 (est.) % Change (est.) As reported (GAAP) $0.82 $ $0.86 2% - 5% and litigation Intangible asset impairment charges Amortization of intangible assets Discrete income tax benefits (0.08) - R&D credit Adjusted EPS (non-gaap) $1.02 $ $0.98 (6%) - (4%) Unfavorable foreign currency impact vs Constant currency adjusted EPS (non-gaap) $ $ % - 14% Full Year 2014 Full Year 2015 (est.) % Change (est.) As reported (GAAP) $3.46 $ $3.74 7% - 8% (0.09) and litigation Legal settlements (0.03) (0.02) Intangible asset impairment charges Amortization of intangible assets Discrete income tax benefits (0.17) (0.10) R&D credit Adjusted EPS (non-gaap) $4.17 $ $4.00 (5%) - (4%) Unfavorable foreign currency impact vs Constant currency adjusted EPS (non-gaap) $ $4.63 9% - 11% The sum of the components may not equal the total due to rounding and quantities of shares outstanding in different periods. St.

5 Full Year 2015 Sales Guidance Reconciliation Cardiovascular Neuromodulation CRM Product Sales AF Product Sales Product Sales Product Sales Total Estimated 2015 % change vs (8%) - (6)% 5% - 7% (1)% - 1% 7% - 9% (3%) - (1%) Estimated unfavorable foreign currency impact 6 pts. 8 pts. 8 pts. 6 pts. 7 pts. Estimated 2015 constant currency % change vs (Non-GAAP) (2%) - 0% 13% - 15% 7% - 9% 13% - 15% 4% - 6% Estimated fiscal 2014 extra selling week impact 1 pt. Estimated 2015 constant currency % change (normalized) vs (Non-GAAP) 5% - 7% 2015 Sales Guidance Reconciliation (in millions) Third Quarter Full Year 2014 total sales $1,372 $5,622 Estimated 2015 sales $1,325 - $1,365 $5,435 - $5,575 Estimated 2015 % change vs 2014 (3%) - (1%) (3%) - (1%) Estimated unfavorable foreign currency impact vs 2014 $105 - $115 $385 - $410 Estimated constant currency 2015 total sales (Non-GAAP) $1,440 - $1,470 $5,845 - $5,960 Estimated 2015 constant currency % change vs 2014 (Non-GAAP) 5% - 7% 4% - 6% St.

6 Non-GAAP Financial Measures Second Quarter 2015 Full Year 2015 (est.) Gross margin As reported (GAAP) 69.9% 69.3% % Special Charges (cost of sales) 0.4 pt. 1.0 pt. As adjusted (Non-GAAP) 70.3% 70.3% % Second Quarter 2015 Full Year 2015 (est.) Selling, general & administrative expense as a % of net sales As reported (GAAP) 31.7% 31.6% % 0.8 pts. 0.4 pt. As adjusted (Non-GAAP) 32.5% 32.0%- 32.5% Second Quarter 2015 Full Year 2015 (est.) Income tax expense as % of earnings before and income taxes As reported (GAAP) 4.1% 13.0% R&D credit (1.7) pts. (1.7) pts. All other non-gaap adjustments 13.3 pts. 5.7 pts. As adjusted (Non-GAAP) 15.7% 17.0% St.