UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[x]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 28, 201926, 2020
OR
[_]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 0-23985
nvda-20200426_g1.jpg

NVIDIA CORPORATION
(Exact name of registrant as specified in its charter)
Delaware94-3177549
(State or Other Jurisdiction of(I.R.S. Employer
Incorporation or Organization)Identification No.)
2788 San Tomas Expressway
Santa Clara, California 95051
(408) 486-2000
(Address, including zip code, and telephone number,
including area code, of principal executive offices)
N/A
(Former name, former address and former fiscal year if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par value per shareNVDAThe Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerx
Accelerated filero
Non-accelerated filero
Smaller reporting companyo
Emerging growth companyo
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
The number of shares of common stock, $0.001 par value, outstanding as of May 10, 2019,15, 2020, was 609615 million.





NVIDIA CORPORATION
FORM 10-Q
FOR THE QUARTER ENDED April 28, 201926, 2020
TABLE OF CONTENTS
Page
Page
Financial Statements (Unaudited)
a) Condensed Consolidated Statements of Income for the three months ended April 28, 201926, 2020 and April 29, 201828, 2019
b) Condensed Consolidated Statements of Comprehensive Income for the three months ended April 28, 201926, 2020 and April 29, 201828, 2019
c) Condensed Consolidated Balance Sheets as of April 28, 201926, 2020 and January 27, 201926, 2020
d) Condensed Consolidated Statements of Shareholders' Equity for the three months ended April 28, 201926, 2020 and April 29, 201828, 2019
e) Condensed Consolidated Statements of Cash Flows for the three months ended April 28, 201926, 2020 and April 29, 201828, 2019
f) Notes to Condensed Consolidated Financial Statements
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Quantitative and Qualitative Disclosures About Market Risk
Controls and Procedures
Legal Proceedings
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Exhibits
WHERE YOU CAN FIND MORE INFORMATION
Investors and others should note that we announce material financial information to our investors using our investor relations website, press releases, SEC filings and public conference calls and webcasts. We also use the following social media channels as a means of disclosing information about the company, our products, our planned financial and other announcements and attendance at upcoming investor and industry conferences, and other matters and for complying with our disclosure obligations under Regulation FD: 
NVIDIA Twitter Account (https://twitter.com/nvidia)
NVIDIA Company Blog (http://blogs.nvidia.com)
NVIDIA Facebook Page (https://www.facebook.com/nvidia)
NVIDIA LinkedIn Page (http://www.linkedin.com/company/nvidia)
NVIDIA Instagram Page (https://www.instagram.com/nvidia)
In addition, investors and others can view NVIDIA videos on YouTube.
The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these accounts and the blog, in addition to following our press releases, SEC filings and public conference calls and webcasts. This list may be updated from time to time. The information we post through these channels is not a part of this quarterly report on Form 10-Q. These channels may be updated from time to time on NVIDIA's investor relations website.

2



PART I. FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS (UNAUDITED)
NVIDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
Three Months Ended Three Months Ended
April 28, April 29, April 26,April 28,
2019 201820202019
   
Revenue$2,220
 $3,207
Revenue$3,080  $2,220  
Cost of revenue924
 1,139
Cost of revenue1,076  924  
Gross profit1,296
 2,068
Gross profit2,004  1,296  
Operating expenses 
  Operating expenses      
Research and development674
 542
Research and development735  674  
Sales, general and administrative264
 231
Sales, general and administrative293  264  
Total operating expenses938
 773
Total operating expenses1,028  938  
Income from operations358
 1,295
Income from operations976  358  
Interest income44
 25
Interest income31  44  
Interest expense(13) (15)Interest expense(25) (13) 
Other, net
 6
Other, net(1) —  
Total other income (expense)31
 16
Other income, netOther income, net 31  
Income before income tax389
 1,311
Income before income tax  981  389  
Income tax expense (benefit)(5) 67
Income tax expense (benefit) 64  (5) 
Net income$394
 $1,244
Net income$917  $394  
   
Net income per share:   Net income per share:
Basic$0.65
 $2.05
Basic$1.49  $0.65  
Diluted$0.64
 $1.98
Diluted$1.47  $0.64  
   
Weighted average shares used in per share computation:   Weighted average shares used in per share computation:
Basic607
 606
Basic614  607  
Diluted616
 627
Diluted622  616  
See accompanying Notes to Condensed Consolidated Financial Statements.



3


NVIDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
(Unaudited)
Three Months Ended Three Months Ended
April 28, April 29, April 26,April 28,
2019 201820202019
 
Net income$394
 $1,244
Net income$917  $394  
Other comprehensive income (loss), net of tax   Other comprehensive income (loss), net of tax 
Available-for-sale securities:   Available-for-sale securities:
Net change in unrealized gain (loss)7
 (3)
Net change in unrealized gain Net change in unrealized gain  —   
Cash flow hedges:   Cash flow hedges:
Net unrealized gain (loss)4
 (3)Net unrealized gain (loss) (10)  
Reclassification adjustments for net realized gain (loss) included in net income(1) 1
Reclassification adjustments for net realized loss included in net income Reclassification adjustments for net realized loss included in net income  (1) (1) 
Net change in unrealized gain (loss)3
 (2)Net change in unrealized gain (loss) (11)  
Other comprehensive income (loss), net of tax10
 (5)Other comprehensive income (loss), net of tax (11) 10  
Total comprehensive income$404
 $1,239
Total comprehensive income$906  $404  
See accompanying Notes to Condensed Consolidated Financial Statements.




4


NVIDIA CORPORATION AND SUBSIDIARIES 
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
April 28, January 27,April 26,January 26,
2019 2019 20202020
ASSETS   ASSETS
Current assets:   Current assets:    
Cash and cash equivalents$2,772
 $782
Cash and cash equivalents$15,494  $10,896  
Marketable securities5,030
 6,640
Marketable securities860   
Accounts receivable, net1,242
 1,424
Accounts receivable, net1,907  1,657  
Inventories1,426
 1,575
Inventories1,128  979  
Prepaid expenses and other current assets159
 136
Prepaid expenses and other current assets195  157  
Total current assets10,629
 10,557
Total current assets19,584  13,690  
Property and equipment, net1,473
 1,404
Property and equipment, net1,715  1,674  
Operating lease assets536
 
Operating lease assets595  618  
Goodwill618
 618
Goodwill628  618  
Intangible assets, net54
 45
Intangible assets, net80  49  
Deferred income tax assets601
 560
Deferred income tax assets533  548  
Other assets110
 108
Other assets119  118  
Total assets$14,021
 $13,292
Total assets$23,254  $17,315  
   
LIABILITIES AND SHAREHOLDERS’ EQUITY   LIABILITIES AND SHAREHOLDERS’ EQUITY    
Current liabilities:   Current liabilities:    
Accounts payable$368
 $511
Accounts payable$761  $687  
Accrued and other current liabilities815
 818
Accrued and other current liabilities1,142  1,097  
Total current liabilities1,183
 1,329
Total current liabilities1,903  1,784  
Long-term debt1,988
 1,988
Long-term debt6,959  1,991  
Long-term operating lease liabilities486
 
Long-term operating lease liabilities519  561  
Other long-term liabilities660
 633
Other long-term liabilities774  775  
Total liabilities4,317
 3,950
Total liabilities10,155  5,111  
Commitments and contingencies - see Note 13

 

Commitments and contingencies - see Note 13
Shareholders’ equity:   Shareholders’ equity:    
Preferred stock
 
Preferred stock—  —  
Common stock1
 1
Common stock  
Additional paid-in capital6,317
 6,051
Additional paid-in capital7,354  7,045  
Treasury stock, at cost(9,474) (9,263)Treasury stock, at cost(10,036) (9,814) 
Accumulated other comprehensive loss(2) (12)
Accumulated other comprehensive income (loss)Accumulated other comprehensive income (loss)(10)  
Retained earnings12,862
 12,565
Retained earnings15,790  14,971  
Total shareholders' equity9,704
 9,342
Total shareholders' equity13,099  12,204  
Total liabilities and shareholders' equity$14,021
 $13,292
Total liabilities and shareholders' equity$23,254  $17,315  
See accompanying Notes to Condensed Consolidated Financial Statements.




5


NVIDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
FOR THE THREE MONTHS ENDED APRIL 26, 2020 AND APRIL 28, 2019
 
Common Stock
Outstanding
 Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Shareholders' Equity
(In millions, except per share data)Shares Amount     
Balances, January 27, 2019606
 $1
 $6,051
 $(9,263) $(12) $12,565
 $9,342
Other comprehensive income
 
 
 
 10
 
 10
Net income
 
 
 
 
 394
 394
Issuance of common stock from stock plans 4
 
 83
 
 
 
 83
Tax withholding related to vesting of restricted stock units(1) 
 
 (211) 
 
 (211)
Cash dividends declared and paid ($0.160 per common share)
 
 
 
 
 (97) (97)
Stock-based compensation
 
 183
 
 
 
 183
Balances, April 28, 2019609
 $1
 $6,317
 $(9,474) $(2) $12,862
 $9,704
(Unaudited)

Common Stock
Outstanding
 Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Shareholders' Equity
Common Stock
Outstanding
Additional Paid-in CapitalTreasury StockAccumulated Other Comprehensive LossRetained EarningsTotal Shareholders' Equity
(In millions, except per share data)Shares Amount (In millions, except per share data)SharesAmount
Balances, January 28, 2018606
 $1
 $5,351
 $(6,650) $(18) $8,787
 $7,471
Retained earnings adjustment due to adoption of new revenue accounting standard
 
 
 
 
 8
 8
Balances, January 26, 2020Balances, January 26, 2020612  $ $7,045  $(9,814) $ $14,971  $12,204  
Other comprehensive loss
 
 
 
 (5) 
 (5)Other comprehensive loss—  —  —  —  (11) —  (11) 
Net income
 
 
 
 
 1,244
 1,244
Net income—  —  —  —  —  917  917  
Issuance of common stock from stock plans 6
 
 66
 
 
 
 66
Issuance of common stock from stock plans  —  88  —  —  —  88  
Tax withholding related to vesting of restricted stock units(2) 
 
 (450) 
 
 (450)Tax withholding related to vesting of restricted stock units(1) —  —  (222) —  —  (222) 
Share repurchase(3) 
 
 (655) 
 
 (655)
Cash dividends declared and paid ($0.150 per common share)
 
 
 
 
 (91) (91)
Cash dividends declared and paid ($0.16 per common share)Cash dividends declared and paid ($0.16 per common share)—  —  —  —  —  (98) (98) 
Stock-based compensation
 
 129
 
 
 
 129
Stock-based compensation—  —  221  —  —  —  221  
Balances, April 29, 2018607
 $1
 $5,546
 $(7,755) $(23) $9,948
 $7,717
Balances, April 26, 2020Balances, April 26, 2020615  $ $7,354  $(10,036) $(10) $15,790  $13,099  
Balances, January 27, 2019Balances, January 27, 2019606  $ $6,051  $(9,263) $(12) $12,565  $9,342  
Other comprehensive incomeOther comprehensive income—  —  —  —  10  —  10  
Net incomeNet income—  —  —  —  —  394  394  
Issuance of common stock from stock plans Issuance of common stock from stock plans  —  83  —  —  —  83  
Tax withholding related to vesting of restricted stock unitsTax withholding related to vesting of restricted stock units(1) —  —  (211) —  —  (211) 
Cash dividends declared and paid ($0.16 per common share)Cash dividends declared and paid ($0.16 per common share)—  —  —  —  —  (97) (97) 
Stock-based compensationStock-based compensation—  —  183  —  —  —  183  
Balances, April 28, 2019Balances, April 28, 2019609  $ $6,317  $(9,474) $(2) $12,862  $9,704  
See accompanying Notes to Condensed Consolidated Financial Statements.

6



NVIDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended Three Months Ended
April 28, April 29,April 26,April 28,
2019 2018 20202019
Cash flows from operating activities:   Cash flows from operating activities:  
Net income$394
 $1,244
Net income$917  $394  
Adjustments to reconcile net income to net cash provided by operating activities:  
Adjustments to reconcile net income to net cash provided by operating activities:  
Stock-based compensation expense178
 129
Stock-based compensation expense224  178  
Depreciation and amortization91
 57
Depreciation and amortization107  91  
Deferred income taxes(42) 51
Deferred income taxes16  (42) 
Other(2) (8)Other (2) 
Changes in operating assets and liabilities:   Changes in operating assets and liabilities:
Accounts receivable182
 56
Accounts receivable(249) 182  
Inventories153
 (2)Inventories(151) 153  
Prepaid expenses and other assets5
 (38)Prepaid expenses and other assets(8)  
Accounts payable(123) 22
Accounts payable71  (123) 
Accrued and other current liabilities(129) (81)Accrued and other current liabilities(32) (129) 
Other long-term liabilities13
 15
Other long-term liabilities10  13  
Net cash provided by operating activities720
 1,445
Net cash provided by operating activities  909  720  
Cash flows from investing activities:   Cash flows from investing activities:  
Proceeds from sales of marketable securitiesProceeds from sales of marketable securities 26  
Proceeds from maturities of marketable securities2,219
 239
Proceeds from maturities of marketable securities—  2,219  
Proceeds from sales of marketable securities26
 33
Purchases of marketable securities(622) (3,705)Purchases of marketable securities(861) (622) 
Purchases of property and equipment and intangible assets(128) (118)Purchases of property and equipment and intangible assets(155) (128) 
Acquisition of business, net of cash acquiredAcquisition of business, net of cash acquired(34) —  
Investments and other, netInvestments and other, net(6) —  
Net cash provided by (used in) investing activities1,495
 (3,551)Net cash provided by (used in) investing activities (1,055) 1,495  
Cash flows from financing activities:   Cash flows from financing activities:  
Issuance of debt, net of issuance costsIssuance of debt, net of issuance costs4,979  —  
Proceeds related to employee stock plans83
 66
Proceeds related to employee stock plans88  83  
Payments related to tax on restricted stock units(211) (449)Payments related to tax on restricted stock units(222) (211) 
Dividends paid(97) (91)Dividends paid(98) (97) 
Payments related to repurchases of common stock
 (655)
Repayment of Convertible Notes
 (2)
Net cash used in financing activities(225) (1,131)
OtherOther(3) —  
Net cash provided by (used in) financing activitiesNet cash provided by (used in) financing activities 4,744  (225) 
Change in cash and cash equivalents1,990
 (3,237)Change in cash and cash equivalents4,598  1,990  
Cash and cash equivalents at beginning of period782
 4,002
Cash and cash equivalents at beginning of period10,896  782  
Cash and cash equivalents at end of period$2,772
 $765
Cash and cash equivalents at end of period$15,494  $2,772  
   
Other non-cash investing activity:   Other non-cash investing activity:  
Assets acquired by assuming related liabilities$114
 $43
Assets acquired by assuming related liabilities$230  $114  
See accompanying Notes to Condensed Consolidated Financial Statements.
7

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)





Note 1 - Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission, or SEC, Regulation S-X. The January 27, 201926, 2020 consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 27, 2019,26, 2020, as filed with the SEC, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of results of operations and financial position have been included. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 27, 2019.26, 2020.
Significant Accounting Policies
Except for the accounting policy for leases, which was updated as a result of adopting a new accounting standard related to leases, thereThere have been no material changes to our significant accounting policies in Note 1 - Organization and Summary of Significant Accounting Policies, of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 27, 2019.
Leases
We determine if an arrangement is or contains a lease at inception. Operating leases with lease terms of more than 12 months are included in operating lease assets, accrued and other current liabilities, and long-term operating lease liabilities on our consolidated balance sheet. Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments over the lease term.
Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using our incremental borrowing rate. Operating lease assets also include initial direct costs incurred and prepaid lease payments, minus any lease incentives. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term.
We combine the lease and non-lease components in determining the operating lease assets and liabilities.
Refer to Note 3 of these Notes to Condensed Consolidated Financial Statements for additional information.26, 2020.
Fiscal Year
We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal yearsyear 2021 is a 53-week year and fiscal year 2020 and 2019 are bothis a 52-week years.year. The first quarters of fiscal years 20202021 and 20192020 were both 13-week quarters.
Reclassifications
Certain prior fiscal year balances have been reclassified to conform to the current fiscal year presentation.
Principles of Consolidation
Our condensed consolidated financial statements include the accounts of NVIDIA Corporation and our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from our estimates. On an on-going basis, we evaluate our estimates, including those related to revenue recognition, cash equivalents and marketable securities, accounts receivable, inventories, income taxes, goodwill, stock-based compensation, litigation, investigation and settlement costs, restructuring and other charges, and
NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)



other contingencies. The inputs into our judgments and estimates consider the economic implications of COVID-19 on our critical and significant accounting estimates. These estimates are based on historical facts and various other assumptions that we believe are reasonable.
Adoption of New and Recently Issued Accounting Pronouncements
Recently Adopted Accounting Pronouncement
TheIn June 2016, the Financial Accounting Standards Board or FASB, issued an accounting standards update regarding the accounting for leases under which lease assets and liabilities are recognized on the balance sheet. We adopted this guidance on January 28, 2019 using the optional transition method by recognizing a cumulative-effect adjustment to the consolidated balance sheet. Refer to Note 3 of these Notes to Condensed Consolidated Financial Statements for additional information.
Recent Accounting Pronouncement Not Yet Adopted
In June 2016, the FASB issued a new accounting standard to replace the existing incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We will be required to use a forward-looking expected credit loss modelestimates for accounts receivable and other financial instruments, including available-for-sale debt securities. The Company adopted the standard will be effective for us beginning in the first quarter of fiscal year 2021 with early adoption permitted. We are currently evaluatingand the impact of this standard on our Consolidated Financial Statements.the adoption was not material to the Company's consolidated financial statements.

8

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)


Note 2 - Merger Agreement withAcquisition of Mellanox Technologies, Ltd.Ltd.
On March 10, 2019,Subsequent to the end of the first quarter of fiscal year 2021, we entered into an Agreement and Planclosed the acquisition of Merger, or the Merger Agreement, with Mellanox Technologies Ltd,Ltd., or Mellanox, pursuant to which we will acquire all of the issued and outstanding common shares of Mellanox for $125 per share in cash, representing a total enterprisetransaction value of approximately $6.9$7.0 billion as of the date of the Merger Agreement. The closing of the merger is subject to certain conditions, including the approval by Mellanox shareholders and various regulatory agencies. If the Merger Agreement is terminated under certain circumstances involving the failure to obtain required regulatory approvals, we could be obligated to pay Mellanox a termination fee of $350 million.in cash on April 27, 2020.
Note 3 - New Lease Accounting Standard
Method and Impact of Adoption
On January 28, 2019, we adopted the new lease accounting standard using the optional transition method by recognizing a cumulative-effect adjustment to the consolidated balance sheet and not adjusting comparative information for prior periods. In addition, we elected the package of practical expedients permitted under the transition guidance, which allowed us not to reassess (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases.
The cumulative-effect adjustment upon adoption of the new lease accounting standard resulted in the recognition of $470 million of operating lease assets and $500 million of operating lease liabilities on our Consolidated Balance Sheet. The difference of $30 million represents deferred rent for leases that existed as of the date of adoption, which was an offset to the opening balance of operating lease assets.
Lease ObligationsLeases
Our lease obligations consist of operating leases for our headquarters complex, domestic and international office facilities, and data center space, with lease periods expiring between 2019fiscal years 2021 and 2035.
Future minimum lease payments under our non-cancelable operating leases as of April 26, 2020, are as follows:   
Operating Lease Obligations
 (In millions)
Fiscal Year: 
2021 (excluding first quarter of fiscal year 2021)$90  
2022116  
2023102  
202478  
202561  
2026 and thereafter289  
Total736  
Less imputed interest117  
Present value of net future minimum lease payments619  
Less short-term operating lease liabilities100  
Long-term operating lease liabilities$519  
Operating lease expense for the first quarters of fiscal years 2021 and 2020 was $31 million and $27 million, respectively. Short-term and variable lease expenses for the first quarter of fiscal years 2021 and 2020 were not significant.
Other information related to leases was as follows:
Three Months Ended
April 26, 2020
(In millions)
Supplemental cash flows information
Operating cash flows used for operating leases$31 
Operating lease assets obtained in exchange for lease obligations$
As of April 26, 2020, our operating leases had a weighted average remaining lease term of 8.2 years and a weighted average discount rate of 3.45%.

9

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)





Future minimum lease payments under our non-cancelable operating leases as of April 28, 2019, are as follows:   
 Operating Lease Obligations
 (In millions)
Fiscal Year: 
2020 (excluding first quarter of fiscal year 2020)$77
2021100
202292
202379
202457
2025 and thereafter277
Total682
Less imputed interest116
Present value of net future minimum lease payments566
Less short-term operating lease liabilities80
Long-term operating lease liabilities$486

Future minimum lease payments under our non-cancelable operating leases as of January 27, 2019, based on the previous lease accounting standard, are as follows:
 Lease Obligations
 (In millions)
Fiscal Year: 
2020$100
202197
202290
202377
202454
2025 and thereafter265
Total$683

Operating lease expense for the first quarter of fiscal years 2020 and 2019 was $27 million and $16 million, respectively. Short-term and variable lease expenses for the first quarter of fiscal year 2020 were not significant.

Other information related to leases was as follows:
 Three Months Ended
 April 28, 2019
 (In millions)
Supplemental cash flows information 
Operating cash flows used for operating leases$24
Operating lease assets obtained in exchange for lease obligations$87
Weighted-average remaining lease term - operating leases8.9 years
Weighted-average remaining discount rate - operating leases3.73%
NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)



Note 4 - Stock-Based Compensation
Our stock-based compensation expense is associated with restricted stock units, or RSUs, performance stock units that are based on our corporate financial performance targets, or PSUs, performance stock units that are based on market conditions, or market-based PSUs, and our employee stock purchase plan, or ESPP.
Our Condensed Consolidated Statements of Income include stock-based compensation expense, net of amounts allocated to inventory, as follows:
Three Months Ended Three Months Ended
April 28,
2019
 April 29,
2018
April 26,
2020
April 28,
2019
(In millions)(In millions)
Cost of revenue$4
 $8
Cost of revenue$21  $ 
Research and development114
 74
Research and development134  114  
Sales, general and administrative60
 47
Sales, general and administrative69  60  
Total$178
 $129
Total$224  $178  
Equity Award Activity
The following is a summary of equity award transactions under our equity incentive plans:
RSUs, PSUs, and Market-based PSUs Outstanding
 Number of SharesWeighted Average Grant-Date Fair Value Per Share
(In millions, except per share data)
Balances, January 26, 202014  $176.72  
Granted $254.61  
Vested restricted stock(3) $144.27  
Canceled and forfeited(1) $161.66  
Balances, April 26, 202011  $191.23  
 RSUs, PSUs, and Market-based PSUs Outstanding
 Number of Shares Weighted Average Grant-Date Fair Value Per Share
 (In millions, except per share data)
Balances, January 27, 201916
 $129.92
Granted (1) (2)6
 $183.83
Vested restricted stock(3) $53.97
Canceled and forfeited(1) $191.92
Balances, April 28, 201918
 $159.28
(1)Includes the number of PSUs granted that will be issued and eligible to vest if the maximum corporate financial performance goal for fiscal year 2020 is achieved. Depending on the actual level of the corporate performance achievement at the end of fiscal year 2020, the PSUs issued could be up to 0.4 million shares.
(2)Includes the number of market-based PSUs granted that will be issued and eligible to vest if the maximum goal for total shareholder return, or TSR, over the 3-year measurement period is achieved. Depending on the ranking of our TSR compared to those of the companies comprising the Standard & Poor’s 500 Index during that period, the market-based PSUs issued could be up to 60 thousand shares.
Of the total fair value of equity awards granted during the first quarter of fiscal year 2020, we estimated that the stock-based compensation expense related to equity awards that are not expected to vest was $85 million. 
As of April 28, 2019,26, 2020, there was $2.27$1.81 billion of aggregate unearned stock-based compensation expense.expense, net of forfeitures. This amount is expected to be recognized over a weighted average period of 2.72.4 years for RSUs, PSUs, and market-based PSUs, and 1.30.8 years for ESPP.

10

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)





Note 5 – Net Income Per Share
The following is a reconciliation of the denominator of the basic and diluted net income per share computations for the periods presented:
 Three Months Ended
April 26,April 28,
20202019
 (In millions, except per share data)
Numerator:  
Net income$917  $394  
Denominator:
Basic weighted average shares614  607  
Dilutive impact of outstanding equity awards  
Diluted weighted average shares622  616  
Net income per share:
Basic (1)$1.49  $0.65  
Diluted (2)$1.47  $0.64  
Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive 11  
 Three Months Ended
 April 28, April 29,
 2019 2018
 (In millions, except per share data)
Numerator:   
Net income$394
 $1,244
Denominator:   
Basic weighted average shares607
 606
Dilutive impact of outstanding securities:   
Equity awards9
 20
1.00% Convertible Senior Notes
 1
Diluted weighted average shares616
 627
Net income per share:   
Basic (1)$0.65
 $2.05
Diluted (2)$0.64
 $1.98
Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive11
 1
(1) Calculated as net income divided by basic weighted average shares.
(1)Calculated as net income divided by basic weighted average shares.
(2)Calculated as net income divided by diluted weighted average shares.
(2) Calculated as net income divided by diluted weighted average shares.
Note 6 – Income Taxes
We recognized an income tax expense of $64 million for the first quarter of fiscal year 2021 and income tax benefit of $5 million for the first quarter of fiscal year 2020 and2020. The income tax expense as a percentage of $67 millionincome before income tax was 6.6% for the first quarter of fiscal year 2019. The2021 and income tax benefit as a percentage of income before income tax was 1.3% for the first quarter of fiscal year 2020 and income tax expense as a percentage of income before tax was 5.1% for the first quarter of fiscal year 2019.2020.
The decreaseincrease in our effective tax rate for the first quarter of fiscal year 20202021 as compared to the same period in the priorfirst quarter of fiscal year 2020 was primarily due to a decrease in the amount of earnings subject to United States tax, and an increase in the impact of tax benefits from stock-based compensation and the U.S. federal research tax credit.compensation.
Our effective tax rates for the first quarter of fiscal years 20202021 and 2019 were (1.3)% and 5.1%, respectively, and2020 were lower than the U.S. federal statutory rate of 21%, due to income earned in jurisdictions that are subject to taxes lower than the U.S. federal statutory tax rate, tax benefits related to stock-based compensation, and the benefit of the U.S. federal research tax credit.
For the first quarter of fiscal year 2020,2021, there have been no material changes to our tax years that remain subject to examination by major tax jurisdictions. Additionally, there have been no material changes to our unrecognized tax benefits and any related interest or penalties since the fiscal year ended January 27, 2019.26, 2020.
While we believe that we have adequately provided for all uncertain tax positions, or tax positions where we believe it is not more-likely-than-not that the position will be sustained upon review, amounts asserted by tax authorities could be greater or less than our accrued position. Accordingly, our provisions on federal, state and foreign tax related matters to be recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved with the respective tax authorities. As of April 28, 2019,26, 2020, we do not believe that our estimates, as otherwise provided for, on such tax positions will significantly increase or decrease within the next twelve months.
NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)



Note 7 - Cash Equivalents and Marketable Securities
Our cash equivalents and marketable securities are classified as “available-for-sale” debt securities.
The following is a summary of cash equivalents and marketable securities as of April 28, 201926, 2020 and January 27, 2019:26, 2020:
 April 26, 2020
Amortized
Cost
Unrealized
Gain
Unrealized
Loss
Estimated
Fair Value
Reported as
 Cash EquivalentsMarketable Securities
 (In millions)
Money market funds$11,128  $—  $—  $11,128  $11,128  $—  
Corporate debt securities3,238  —  —  3,238  2,951  287  
Foreign government bonds870  —  —  870  870  —  
Certificates of deposit582  —  —  582  222  360  
Debt securities issued by United States government agencies381  —  —  381  168  213  
Total$16,199  $—  $—  $16,199  $15,339  $860  
 April 28, 2019
 
Amortized
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value
 Reported as
     Cash Equivalents Marketable Securities
 (In millions)
Corporate debt securities$2,899
 $2
 $(2) $2,899
 $1,048
 $1,851
Debt securities of United States government agencies1,882
 
 (1) 1,881
 
 1,881
Debt securities issued by the United States Treasury1,833
 
 
 1,833
 932
 901
Money market funds681
 
 
 681
 681
 
Foreign government bonds183
 
 
 183
 
 183
Asset-backed securities133
 
 (1) 132
 
 132
Mortgage-backed securities issued by United States government-sponsored enterprises81
 1
 
 82
 
 82
Total$7,692
 $3
 $(4) $7,691
 $2,661
 $5,030

 January 27, 2019
 Amortized
Cost
 Unrealized
Gain
 Unrealized
Loss
 Estimated
Fair Value
 Reported as
     Cash Equivalents Marketable Securities
 (In millions)
Corporate debt securities$2,626
 $
 $(6) $2,620
 $25
 $2,595
Debt securities of United States government agencies2,284
 
 (4) 2,280
 
 2,280
Debt securities issued by the United States Treasury1,493
 
 (1) 1,492
 176
 1,316
Money market funds483
 
 
 483
 483
 
Foreign government bonds209
 
 
 209
 
 209
Asset-backed securities152
 
 (1) 151
 
 151
Mortgage-backed securities issued by United States government-sponsored enterprises88
 1
 
 89
 
 89
Total$7,335
 $1
 $(12) $7,324
 $684
 $6,640
The following table provides the breakdown of unrealized losses as of April 28, 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position: 
 Less than 12 Months 12 Months or Greater Total
 Estimated Fair Value 
Gross
Unrealized
Losses
 Estimated Fair Value 
Gross
Unrealized
Losses
 Estimated Fair Value 
Gross
Unrealized
Losses
 (In millions)
Debt securities issued by United States government agencies$1,429
 $
 $306
 $(1) $1,735
 $(1)
Corporate debt securities330
 (1) 453
 (1) 783
 (2)
Asset-backed securities
 
 132
 (1) 132
 (1)
Total$1,759
 $(1) $891
 $(3) $2,650
 $(4)
The gross unrealized losses are related to fixed income securities, temporary in nature, and driven primarily by changes in interest rates. We have the intent and ability to hold our investments until maturity. For the first quarter of fiscal years 2020 and 2019, there were no other-than-temporary impairment losses and net realized gains were not significant.
 January 26, 2020
Amortized
Cost
Unrealized
Gain
Unrealized
Loss
Estimated
Fair Value
Reported as
 Cash EquivalentsMarketable Securities
 (In millions)
Money market funds$7,507  $—  $—  $7,507  $7,507  $—  
Debt securities issued by the United States Treasury1,358  —  —  1,358  1,358  —  
Debt securities issued by United States government agencies1,096  —  —  1,096  1,096  —  
Corporate debt securities592  —  —  592  592  —  
Foreign government bonds200  —  —  200  200  —  
Certificates of deposit27  —  —  27  27  
Asset-backed securities —  —   —   
Total$10,781  $—  $—  $10,781  $10,780  $ 
The amortized cost and estimated fair value of cash equivalents and marketable securities of $16.20 billion and $10.78 billion as of April 28, 201926, 2020 and January 27, 201926, 2020, respectively, are shown below by contractual maturity.  all related to contracts with maturities of less than one year. Unrealized gains and losses were not significant for all periods presented. For the first quarter of fiscal years 2021 and 2020, net realized gains were not significant.
 April 28, 2019 January 27, 2019
 
Amortized
Cost
 
Estimated
Fair Value
 
Amortized
Cost
 
Estimated
Fair Value
 (In millions)
Less than 1 year$5,773
 $5,770
 $5,042
 $5,034
Due in 1 - 5 years1,896
 1,898
 2,271
 2,268
Mortgage-backed securities issued by United States government-sponsored enterprises not due at a single maturity date23
 23
 22
 22
Total$7,692
 $7,691
 $7,335
 $7,324
Note 8 – Fair Value of Financial Assets and Liabilities
The fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assets from active markets. We review fair value hierarchy classification on a quarterly basis. There were no significant transfers between Levels 1 and 2 financial assets and liabilities for the first quarter of fiscal year 2020. Level 3 financial assets and liabilities are based on unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances.
12

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)





Fair Value at
Pricing CategoryApril 26, 2020January 26, 2020
(In millions)
Assets
Cash equivalents and marketable securities:
Money market fundsLevel 1$11,128  $7,507  
Corporate debt securitiesLevel 2$3,238  $592  
Foreign government bondsLevel 2$870  $200  
Certificates of depositLevel 2$582  $27  
Debt securities issued by United States government agenciesLevel 2$381  $1,096  
Debt securities issued by the United States TreasuryLevel 2$—  $1,358  
Asset-backed securitiesLevel 2$—  $ 
Liabilities
Other noncurrent liabilities:
2.20% Notes Due 2021 (1)Level 2$1,020  $1,065  
3.20% Notes Due 2026 (1)Level 2$1,104  $1,006  
2.85% Notes Due 2030 (1)Level 2$1,635  $—  
3.50% Notes Due 2040 (1)Level 2$1,134  $—  
3.50% Notes Due 2050 (1)Level 2$2,336  $—  
3.70% Notes Due 2060 (1)Level 2$594  $—  
(1) These liabilities are carried on our Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs, and are not marked to fair value each period. Refer to Note 12 of these Notes to Condensed Consolidated Financial Statements for additional information.
  Fair Value at
 Pricing Category April 28, 2019 January 27, 2019
   (In millions)
Assets     
Cash equivalents and marketable securities:   
Corporate debt securitiesLevel 2 $2,899
 $2,620
Debt securities of United States government agenciesLevel 2 $1,881
 $2,280
Debt securities issued by the United States TreasuryLevel 2 $1,833
 $1,492
Money market fundsLevel 1 $681
 $483
Foreign government bondsLevel 2 $183
 $209
Asset-backed securitiesLevel 2 $132
 $151
Mortgage-backed securities issued by United States government-sponsored enterprisesLevel 2 $82
 $89
      
Liabilities     
Other noncurrent liabilities:     
2.20% Notes Due 2021 (1)Level 2 $989
 $978
3.20% Notes Due 2026 (1)Level 2 $997
 $961
(1)These liabilities are carried on our Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs, and are not marked to fair value each period. Refer to Note 12 of these Notes to Condensed Consolidated Financial Statements for additional information.
Note 9 - Amortizable Intangible Assets
The components of our amortizable intangible assets are as follows:
 April 26, 2020January 26, 2020
 Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
 (In millions)(In millions)
Acquisition-related intangible assets$231  $(195) $36  $195  $(192) $ 
Patents and licensed technology522  (478) 44  520  (474) 46  
Total intangible assets$753  $(673) $80  $715  $(666) $49  
 April 28, 2019 January 27, 2019
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
 (In millions) (In millions)
Acquisition-related intangible assets$195
 $(188) $7
 $195
 $(188) $7
Patents and licensed technology507
 (460) 47
 491
 (453) 38
Total intangible assets$702
 $(648) $54
 $686
 $(641) $45
The increase in gross carrying amount of intangible assets is due to purchases of licensed technology during the first quarter of fiscal year 2020. Amortization expense associated with intangible assets was $7 million and $11 million for both the first quarterquarters of fiscal years 20202021 and 2019, respectively.2020. Future amortization expense related to the net carrying amount of intangible assets as of April 28, 201926, 2020 is estimated to be $18$20 million for the remainder of fiscal year 2020, $17 million in fiscal year 2021, $9$21 million in fiscal year 2022, $18 million in fiscal year 2023, $12 million in fiscal year 2024, $7 million in fiscal year 2023,2025, and $3$2 million in fiscal year 2024.2026 and thereafter.

13

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)





Note 10 - Balance Sheet Components 
Certain balance sheet components are as follows:
April 26,January 26,
 20202020
Inventories:(In millions)
Raw materials$341  $249  
Work in-process287  265  
Finished goods500  465  
Total inventories$1,128  $979  
 April 28, January 27,
 2019 2019
Inventories:(In millions)
Raw materials$484
 $613
Work in-process189
 238
Finished goods753
 724
Total inventories$1,426
 $1,575

April 26,January 26,
 20202020
Accrued and Other Current Liabilities:(In millions)
Customer program accruals$444  $462  
Deferred revenue (1)174  141  
Accrued payroll and related expenses164  185  
Operating lease liabilities100  91  
Licenses and royalties78  66  
Taxes payable74  61  
Product warranty and return provisions25  24  
Professional service fee20  18  
Other63  49  
Total accrued and other current liabilities$1,142  $1,097  
(1) Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements and post contract customer support, or PCS.
April 26,January 26,
 20202020
Other Long-Term Liabilities:(In millions)
Income tax payable (1)$535  $528  
Licenses payable84  110  
Deferred revenue (2)67  60  
Deferred income tax liability  32  29  
Employee benefits liability23  22  
Other33  26  
Total other long-term liabilities$774  $775  
(1) As of April 26, 2020, income tax payable represents the long-term portion of the one-time transition tax payable of $317 million, as well as unrecognized tax benefits of $185 million and related interest and penalties of $33 million.
(2) Deferred revenue primarily includes deferrals related to PCS.

14
 April 28, January 27,
 2019 2019
Accrued and Other Current Liabilities:(In millions)
Customer program accruals$263
 $302
Accrued payroll and related expenses136
 186
Taxes payable107
 91
Deferred revenue (1)85
 92
Operating lease liabilities80
 
Accrued legal settlement costs25
 24
Licenses payable23
 12
Warranty accrual (2)18
 18
Professional service fees10
 14
Coupon interest on debt obligations7
 20
Accrued royalties6
 10
Other55
 49
Total accrued and other current liabilities$815
 $818
(1)Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements and post contract customer support, or PCS.
(2)Refer to Note 13 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding warranties.
 April 28, January 27,
 2019 2019
Other Long-Term Liabilities:(In millions)
Income tax payable (1)$524
 $513
Deferred revenue (2)49
 46
Licenses payable34
 1
Employee benefits liability21
 20
Deferred income tax liability21
 19
Deferred rent
 21
Other11
 13
Total other long-term liabilities$660
 $633
(1)As of April 28, 2019, represents the long-term portion of the one-time transition tax payable of $351 million, as well as unrecognized tax benefits of $151 million and related interest and penalties of $22 million.
(2)Deferred revenue primarily includes deferrals related to PCS.

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)





Deferred Revenue
The following table shows the changes in deferred revenue during the first quarter of fiscal years 2021 and 2020:
April 26,April 28,
 20202019
(In millions)
Balance at beginning of period$201  $138  
Deferred revenue added during the period110  49  
Revenue recognized during the period(70) (53) 
Balance at end of period$241  $134  

Revenue related to remaining performance obligations represents the amount of contracted license and development arrangements and PCS that has not been recognized. This includes related deferred revenue currently recorded and amounts that will be invoiced in future periods. As of April 26, 2020, the amount of our remaining performance obligations that has not been recognized as revenue was $389 million, of which we expect to recognize approximately 47% as revenue over the next twelve months and 2019.the remainder thereafter. This amount excludes the value of remaining performance obligations for contracts with an original expected length of one year or less.
 April 28, April 29,
 2019 2018
 (In millions)
Balance at beginning of period$138
 $63
Deferred revenue added during the period49
 86
Revenue recognized during the period(53) (75)
Balance at end of period$134
 $74
Note 11 - Derivative Financial Instruments
We enter into foreign currency forward contracts to mitigate the impact of foreign currency exchange rate movements on our operating expenses. These contracts are designated as cash flow hedges for hedge accounting treatment. Gains or losses on the contracts are recorded in accumulated other comprehensive income or loss and reclassified to operating expense when the related operating expenses are recognized in earnings or ineffectiveness should occur. The fair value of the contracts was not significant as of April 28, 201926, 2020 and January 27, 2019.26, 2020.
We also enter into foreign currency forward contracts to mitigate the impact of foreign currency movements on monetary assets and liabilities that are denominated in currencies other than the U.S. dollar. These forward contracts were not designated for hedge accounting treatment. Therefore, the change in fair value of these contracts is recorded in other income or expense and offsets the change in fair value of the hedged foreign currency denominated monetary assets and liabilities, which is also recorded in other income or expense.
The table below presents the notional value of our foreign currency forward contracts outstanding as of April 28, 201926, 2020 and January 27, 2019:26, 2020:
April 28,
2019
 January 27,
2019
April 26,
2020
January 26,
2020
(In millions)(In millions)
Designated as cash flow hedges$411
 $408
Designated as cash flow hedges$432  $428  
Not designated for hedge accounting$253
 $241
Not designated for hedge accounting$244  $287  
As of April 28, 2019,26, 2020, all designated foreign currency forward contracts mature within eighteen months. The expected realized gains and losses deferred into accumulated other comprehensive income (loss)loss related to foreign currency forward contracts within the next twelve months was not significant.
During the first quarter of fiscal years 20202021 and 2019,2020, the impact of derivative financial instruments designated for hedge accounting treatment on other comprehensive income or loss was not significant and all such instruments were determined to be highly effective. Therefore, there were no gains or losses associated with ineffectiveness.

15

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)





Note 12 - Debt
Long-Term Debt
2.20%In March 2020, we issued $1.50 billion of the 2.85% Notes Due 2021 and 3.20%2030, $1.00 billion of the 3.50% Notes Due 20262040, $2.00 billion of the 3.50% Notes Due 2050, and $500 million of the 3.70% Notes Due 2060, or collectively, the March 2020 Notes. Interest on the March 2020 Notes is payable on April 1 and October 1 of each year, beginning on October 1, 2020. Upon 30 days' notice to holders of the Notes, we may redeem the Notes for cash prior to maturity, at redemption prices that include accrued and unpaid interest, if any, and a make-whole premium. However, no make-whole premium will be paid for redemptions of the Notes Due 2030 on or after January 1, 2030, the Notes Due 2040 on or after October 1, 2039, the Notes Due 2050 on or after October 1, 2049, or the Notes Due 2060 on or after October 1, 2059. The net proceeds from the March 2020 Notes were $4.97 billion, after deducting debt discount and estimated issuance costs.
In fiscal year 2017,September 2016, we issued $1.00 billion of the 2.20% Notes Due 2021 and $1.00 billion of the 3.20% Notes Due 2026, or collectively, the September 2016 Notes. Interest on the September 2016 Notes is payable on March 16 and September 16 of each year, beginning on March 16, 2017.year. Upon 30 days' notice to holders of the Notes, we may redeem the Notes for cash prior to maturity, at redemption prices that include accrued and unpaid interest, if any, and a make-whole premium. However, no make-whole premium will be paid for redemptions of the Notes Due 2021 on or after August 16, 2021, or for redemptions of the Notes Due 2026 on or after June 16, 2026. The net proceeds from the September 2016 Notes were $1.98 billion, after deducting debt discount and issuance costs.
TheBoth the September 2016 Notes and the March 2020 Notes, or collectively, the Notes, are our unsecured senior obligations and rank equally in right of payment with all existing and future unsecured and unsubordinated indebtedness. The Notes are structurally subordinated to the liabilities of our subsidiaries and are effectively subordinated to any secured indebtedness to the extent of the value of the assets securing such indebtedness. All existing and future liabilities of our subsidiaries will be effectively senior to the Notes.
The carrying value of the Notes and the associated interest rates were as follows:
Expected
Remaining Term (years)
Effective
Interest Rate
April 26, 2020January 26, 2020
(In millions)
2.20% Notes Due 20211.42.38%$1,000  $1,000  
3.20% Notes Due 20266.43.31%1,000  1,000  
2.85% Notes Due 20309.92.93%1,500  —  
3.50% Notes Due 204019.93.54%1,000  —  
3.50% Notes Due 205030.03.54%2,000  —  
3.70% Notes Due 206040.03.73%500  —  
Unamortized debt discount and issuance costs(41) (9) 
Net carrying amount$6,959  $1,991  
  
Expected
Remaining Term (years)
 
Effective
Interest Rate
 April 28, 2019 January 27, 2019
      (In millions)
2.20% Notes Due 2021 2.4 2.38% $1,000
 $1,000
3.20% Notes Due 2026 7.4 3.31% 1,000
 1,000
Unamortized debt discount and issuance costs     (12) (12)
Net carrying amount     $1,988
 $1,988

The Notes require the Company to comply with certain covenants for which the Company was in compliance as of April 26, 2020.
Revolving Credit Facility
We have a Credit Agreement under which we may borrow up to $575 million for general corporate purposes and can obtain revolving loan commitments up to $425 million. As of April 28, 2019,26, 2020, we had not0t borrowed any amounts under this agreement.
The Credit Agreement governing the revolving credit facility requires the Company to comply with a leverage ratio covenant. As of April 26, 2020, the Company was in compliance with this financial covenant.

16

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)


Commercial Paper
We have a $575 million commercial paper program to support general corporate purposes. As of April 28, 2019,26, 2020, we had not0t issued any commercial paper.
NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)



Note 13 - Commitments and Contingencies
Inventory Purchase Obligations
As of April 28, 2019,26, 2020, we had outstanding inventory purchase obligations totaling $782 million.
Capital Purchase Obligations
As of April 28, 2019, we had outstanding capital$1.76 billion and other purchase obligations totaling $194$287 million.
Performance Obligations
Revenue related to remaining performance obligations represents the amount of contracted license and development arrangements and PCS that has not been recognized. As of April 28, 2019, the amount of our remaining performance obligations that has not been recognized as revenue was $294 million, of which we expect to recognize approximately 57% as revenue over the next twelve months and the remainder thereafter. This amount excludes the value of remaining performance obligations for contracts with an original expected length of one year or less.
Accrual for Product Warranty Liabilities
The estimated amount of product returns and warranty liabilities was $18$16 million and $15 million as of both April 28, 201926, 2020 and January 27, 2019.

26, 2020, respectively, and the activities related to the warranty liabilities were not significant.
In connection with certain agreements that we have entered in the past, we have provided indemnificationindemnities to cover the indemnified party for matters such as tax, product, and employee liabilities. We have included intellectual property indemnification provisions in our technology related agreements with third parties. Maximum potential future payments cannot be estimated because many of these agreements do not have a maximum stated liability. We have not recorded any liability in our Condensed Consolidated Financial Statements for such indemnifications.
Litigation
Polaris Innovations Limited
On May 16, 2016, Polaris Innovations Limited, or Polaris, a non-practicing entity and wholly-owned subsidiary of Quarterhill Inc. (formerly WiLAN Inc.), filed a complaint against NVIDIA for patent infringement in the United States and Germany.
NVIDIA and Polaris entered into an agreement effective April 3, 2019 that settled the litigation between the parties, which had an immaterial impact on our financial results. The agreement includes a license to NVIDIA for certain patents owned by Polaris, as well as options for NVIDIA to renew the license through the life of the patents.
ZiiLabs 1 Patents Lawsuit
On October 2, 2017, ZiiLabs Inc., Ltd., or ZiiLabs, a non-practicing entity, filed a complaint in the United States District Court for the District of Delaware alleging that NVIDIA had infringed and was continuing to infringe four U.S. patents relating to GPUs, or the ZiiLabs 1 Patents. ZiiLabs is a Bermuda corporation and a wholly-owned subsidiary of Creative Technology Asia Limited, a Hong Kong company which is itself is a wholly-owned subsidiary of Creative Technology Ltd., a publicly traded Singapore company. The complaint sought unspecified monetary damages, enhanced damages, interest, costs, and fees against NVIDIA and an injunction against further direct or indirect infringement of the ZiiLabs 1 Patents.

On February 22, 2018, the Delaware Court stayed the ZiiLabs 1 case pending the resolution of the U.S. International Trade Commission, or USITC, investigation over the ZiiLabs 2 patents.

On February 1, 2019, NVIDIA entered into an agreement in which it received a license to the ZiiLabs patents and a dismissal of the ZiiLabs 1 and 2 Patent Lawsuits, which had an immaterial impact on our financial results. The ZiiLabs 1 and 2 district court cases were dismissed pursuant to a stipulation of dismissal filed on February 8, 2019. The Administrative Law Judge issued an Initial Determination on February 12, 2019, granting the motion to terminate the USITC investigation addressing the ZiiLabs 2 patents.
NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)



ZiiLabs 2 Patents Lawsuits
On December 27, 2017, ZiiLabs filed a second complaint in the United States District Court for the District of Delaware alleging that NVIDIA has infringed four additional U.S. patents, or the ZiiLabs 2 Patents. The second complaint also sought unspecified monetary damages, enhanced damages, interest, costs, and fees against NVIDIA and an injunction against further direct or indirect infringement of the ZiiLabs 2 Patents.

On December 29, 2017, ZiiLabs filed a request with the USITC to commence an Investigation pursuant to Section 337 of the Tariff Act of 1930 relating to the unlawful importation of certain graphics processors and products containing the same. ZiiLabs alleged that the unlawful importation resulted from the infringement of the ZiiLabs 2 Patents by products from respondents NVIDIA, ASUSTeK Computer Inc., ASUS Computer International, EVGA Corporation, Gigabyte Technology Co., Ltd., G.B.T. Inc., Micro-Star International Co., Ltd., MSI Computer Corp., Nintendo Co., Ltd., Nintendo of America Inc., PNY Technologies Inc., Zotac International (MCO) Ltd., and Zotac USA Inc.

On February 1, 2019, NVIDIA entered into an agreement in which it received a license to the ZiiLabs patents and a dismissal of the ZiiLabs 1 and 2 Patent Lawsuits, which had an immaterial impact on our financial results. The ZiiLabs 1 and 2 district court cases were dismissed pursuant to a stipulation of dismissal filed on February 8, 2019. The Administrative Law Judge issued an Initial Determination on February 12, 2019, granting the motion to terminate the USITC investigation addressing the ZiiLabs 2 patents.
Securities Class Action and Derivative Lawsuits
On December 21, 2018, a purported securities class action lawsuit was filed in the United States District Court for the Northern District of California, captioned Iron Workers Joint Funds v. Nvidia Corporation, et al. (Case No. 18-cv-7669), naming as defendants NVIDIA and certain of NVIDIA’s officers. The complaint asserts that the defendants violated Section 10(b) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and SEC Rule 10b-5, by making materially false or misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand between August 10, 2017 and November 15, 2018. The plaintiff also alleges that the NVIDIA officers who they named as defendants violated Section 20(a) of the Exchange Act. The plaintiff seeks class certification, an award of unspecified compensatory damages, an award of equitable/injunctive or other further relief as the Court may deem just and proper. On December 28, 2018, a substantially similar purported securities class action was commenced in the Northern District of California, captioned Oto v. Nvidia Corporation, et al. (Case No. 18-cv-07783), naming the same defendants, and seeking substantially similar relief. On February 19, 2019, a number of shareholders filed motions to consolidate the two cases and to be appointed lead plaintiff and for their respective counsel to be appointed lead counsel. On March 12, 2019, the two cases were consolidated under case number 4:18-cv-07669-HSG and titled In Re NVIDIA Corporation Securities Litigation. On May 2, 2019, the Court appointed lead plaintiffplaintiffs and lead counsel. On June 21, 2019, the lead plaintiffs filed a consolidated class action complaint. The consolidated complaint asserts that the defendants violated Section 10(b) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and SEC Rule 10b-5, by making materially false or misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand between May 10, 2017 and November 14, 2018. The plaintiffs also allege that the NVIDIA executives who they named as defendants violated Section 20(a) of the Exchange Act. The plaintiffs seek class certification, an award of unspecified compensatory damages, an award of reasonable costs and expenses, including attorneys’ fees and expert fees, and further relief as the Court may deem just and proper. On August 2, 2019, NVIDIA moved to dismiss the consolidated class action complaint on the basis that plaintiffs failed to state any claims for violations of the securities laws by NVIDIA or the named defendants. On March 16, 2020, the Court issued an order dismissing the consolidated class action complaint with leave to amend. The plaintiffs filed an amended complaint on May 13, 2020.
On January 18, 2019, a shareholder, purporting to act on the behalf of NVIDIA, filed a derivative lawsuit in the Northern District of California, captioned Han v. Huang, et al. (Case No. 19-cv-00341), seeking to assert claims on behalf of NVIDIA against the members of NVIDIA’s board of directors and certain officers. The lawsuit asserts claims for breach of fiduciary duty, unjust enrichment, waste of corporate assets, and violations of Sections 14(a), 10(b), and 20(a) of the Exchange Act based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiff is seeking unspecified damages and other relief, including reforms and improvements to NVIDIA’s corporate governance and internal procedures. On February 12, 2019, a substantially similar derivative lawsuit was filed in the Northern District of California captioned Yang v. Huang, et. al. (Case No. 19-cv-00766), naming the same named defendants, and seeking the same relief. On February 19, 2019, a third substantially similar derivative lawsuit was filed in the Northern District of California captioned The Booth Family Trust v. Huang, et. al. (Case No. 3:19-cv-00876), naming the same named defendants, and seeking substantially the same relief. On March 12, 2019, the three derivative actions were consolidated under case number 4:19-cv-00341-HSG, and titled In re NVIDIA Corporation Consolidated Derivative Litigation. The parties stipulatedCourt approved the parties’ stipulation to stay the
17

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)


In reRe NVIDIA Corporation Consolidated Derivative Litigation pending resolution of any motion to dismiss that NVIDIA may file in the In Re NVIDIA Corporation Securities Litigation.
On September 24, 2019, two shareholders, purporting to act on behalf of NVIDIA, filed two identical lawsuits in the District of Delaware. One is captioned Lipchitz v. Huang, et al. (Case No. 1:19-cv-01795-UNA) and the other is captioned Nelson v. Huang, et. al. (Case No. 1:19-cv-01798- UNA). The lawsuits assert claims for breach of fiduciary duty, unjust enrichment, insider trading, misappropriation of information, corporate waste and violations of Sections 14(a), 10(b), and 20(a) of the Exchange Act based on the dissemination of allegedly false, and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs seek unspecified damages and other relief, including disgorgement of profits from the sale of NVIDIA stock and unspecified corporate governance measures. On December 11, 2019, the Court approved the parties’ stipulation to stay the Lipchitz and Huang actions pending resolution of the motion to dismiss filed by NVIDIA in the In Re NVIDIA Corporation Securities Litigation.
It is possible that additional suits will be filed, or allegations received from shareholders, with respect to these same or other matters, naming usNVIDIA and/or ourits officers and directors as defendants.
NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)



Litigation Related to Mellanox Merger
On May 3, 2019, an alleged stockholder of Mellanox filed a putative class action lawsuit alleging that the proxy statement filed by Mellanox in connection with the stockholder vote on NVIDIA’s pending acquisition of Mellanox violates Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and asserting claims under those statutes against Mellanox and its board of directors as well as NVIDIA. The complaint, which is captioned Stein v. Mellanox Technologies, Ltd., et al., Case No. 19-2428 (United States District Court, Northern District of California), seeks declaratory and injunctive relief and unspecified damages. A number of other alleged Mellanox stockholders have filed substantially similar lawsuits against Mellanox and its directors in the United States District Court for the Northern District of California and in the United States District Court for the Southern District of New York, but to date, NVIDIA has not been named as a defendant in any of these other lawsuits.
Accounting for Loss Contingencies
We are engaged in legal actions not described above arising in the ordinary course of business and, while there can be no assurance of favorable outcomes, we believe that the ultimate outcome of these actions will not have a material adverse effect on our operating results, liquidity or financial position. As of April 28, 2019,26, 2020, we have not recorded any accrual for contingent liabilities associated with the legal proceedings described above based on our belief that liabilities, while possible, are not probable. Further, except as specifically described above, any possible loss or range of loss in these matters cannot be reasonably estimated at this time.
Note 14 - Shareholders’ Equity
Capital Return Program 
Beginning August 2004, our Board of Directors authorized us to repurchase our stock.
During the first quarter of fiscal year 2020, we paid $97 million in cash dividends to our shareholders.
Through April 28, 2019,26, 2020, we have repurchased an aggregate of 260 million shares under our share repurchase program for a total cost of $7.08 billion. All shares delivered from these repurchases have been placed into treasury stock. As of April 28, 2019,26, 2020, we were authorized, subject to certain specifications, to repurchase additional shares of our common stock up to $7.24 billion through December 2022.
Preferred StockDuring the first quarter of fiscal year 2021, we paid $98 million in cash dividends to our shareholders.
As of April 28, 2019 and January 27, 2019, there were no shares of preferred stock outstanding.
Common Stock
We are authorized to issue up to 2.00 billion shares of our common stock at $0.001 per share par value.
Note 15 - Segment Information
Our Chief Executive Officer, who is considered to be our chief operating decision maker, or CODM, reviews financial information presented on an operating segment basis for purposes of making operating decisions and assessing financial performance. Previously, we had reported two operating segments: GPU and Tegra Processor. During the first quarter of fiscal year 2021, we changed our operating segments to be consistent with the revised manner in which our CODM reviews our financial performance and allocates resources. The two new operating segments are "Graphics" and "Compute & Networking". Comparative periods presented reflect this change. Our operating segments are equivalent to our reportable segments.
We report our business in two primary reportable segments -Our Graphics segment includes GeForce GPUs for gaming and PCs, the GPU businessGeForce NOW game streaming service and the Tegra Processor business - based on a single underlying architecture.
related infrastructure, and solutions for gaming platforms; Quadro GPUs for enterprise design; GRID software for cloud-based visual and virtual computing; and automotive platforms for infotainment systems. Our GPU product brands are aimed at specialized markets including GeForce for gamers; Quadro for designers; TeslaCompute & Networking segment includes Data Center platforms and DGXsystems for artificial intelligence, data scientistsor AI, high performance computing, or HPC, and big data researchers; and GRID for cloud-based visual computing users. Our Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core CPUs to drive supercomputingaccelerated computing; DRIVE for autonomous robots, drones,vehicles; and cars, as well asJetson for game consolesrobotics and mobile gamingother embedded platforms.
Operating results by segment include costs or expenses that are directly attributable to each segment, and entertainment devices.costs or expenses that are leveraged across our unified architecture and therefore allocated between our two segments.
Under the single unifying architecture for our GPU and Tegra Processors, we leverage our visual computing expertise by charging the operating expenses of certain core engineering functions to the GPU business, while charging the Tegra Processor business for the incremental cost of the teams working directly for that business. In instances where the operating expenses of certain functions benefit both reportable segments, our CODM assigns 100% of those expenses to the reportable segment that benefits the most.
18

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)





The “All Other” category presented below representsincludes the revenue and expenses that our CODM does not assign to either the GPU businessGraphics or the Tegra Processor businessCompute & Networking for purposes of making operating decisions or assessing financial performance. The revenue includes primarily patent licensing revenue and the expenses include stock-based compensation expense, corporate infrastructure and support costs, acquisition-related costs, legal settlement costs, contributions, restructuring and other charges, product warranty charge, and other non-recurring charges and benefits that our CODM deems to be enterprise in nature.
Our CODM does not review any information regarding total assets on a reportable segment basis. Reportable segments doDepreciation and amortization expense directly attributable to each reportable segment is included in operating results for each segment. However, the CODM does not recordevaluate depreciation and amortization expense by operating segment and, therefore, it is not separately presented. There is no intersegment revenue, and, accordingly, there is none to be reported.revenue. The accounting policies for segment reporting are the same as for our consolidated financial statements. The table below presents details of our reportable segments and the “All Other” category.
 GraphicsCompute & NetworkingAll OtherConsolidated
 (In millions)
Three Months Ended April 26, 2020    
Revenue$1,906  $1,174  $—  $3,080  
Operating income (loss)$836  $451  $(311) $976  
Three Months Ended April 28, 2019            
Revenue$1,526  $694  $—  $2,220  
Operating income (loss)$532  $95  $(269) $358  
 GPU Tegra Processor All Other Consolidated
 (In millions)
Three Months Ended April 28, 2019       
Revenue$2,022
 $198
 $
 $2,220
Depreciation and amortization expense$76
 $12
 $3
 $91
Operating income (loss)$669
 $(44) $(267) $358
        
Three Months Ended April 29, 2018 
  
  
  
Revenue$2,765
 $442
 $
 $3,207
Depreciation and amortization expense$40
 $10
 $7
 $57
Operating income (loss)$1,394
 $97
 $(196) $1,295

Three Months Ended
April 26,
2020
April 28,
2019
(In millions)
Reconciling items included in "All Other" category:
Stock-based compensation expense$(224) $(178) 
Unallocated cost of revenue and operating expenses(82) (70) 
Acquisition-related and other costs(5) (10) 
Legal settlement costs—  (11) 
Total$(311) $(269) 

19
 Three Months Ended
 April 28,
2019
 April 29,
2018
 (In millions)
Reconciling items included in "All Other" category:   
Stock-based compensation expense$(178) $(129)
Unallocated cost of revenue and operating expenses(68) (63)
Legal settlement costs(11) (2)
Acquisition-related and other costs(10) (2)
Total$(267) $(196)

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)





Revenue by geographic region is allocated to individual countries based on the location to which the products are initially billed even if our customers’ revenue is attributable to end customers that are located in a different location. The following table summarizes information pertaining to our revenue from customers based on the invoicing address by geographic regions:
Three Months Ended Three Months Ended
April 28, April 29,April 26,April 28,
2019 2018 20202019
(In millions) (In millions)
Revenue:   Revenue:  
Taiwan$698
 $967
Taiwan$813  $698  
China (including Hong Kong)553
 754
China (including Hong Kong)758  553  
Other Asia Pacific422
 583
Other Asia Pacific607  422  
United StatesUnited States497  165  
Europe249
 235
Europe254  249  
United States165
 434
Other countries133
 234
Other countries151  133  
Total revenue$2,220
 $3,207
Total revenue$3,080  $2,220  
The following table summarizes information pertaining to our revenue by each of the specialized markets we serve:
 Three Months Ended
April 26,April 28,
 20202019
 (In millions)
Revenue:  
Gaming$1,339  $1,055  
Professional Visualization307  266  
Data Center1,141  634  
Automotive155  166  
OEM and Other138  99  
Total revenue$3,080  $2,220  
 Three Months Ended
 April 28, April 29,
 2019 2018
 (In millions)
Revenue:   
Gaming$1,055
 $1,723
Professional Visualization266
 251
Data Center634
 701
Automotive166
 145
OEM and Other99
 387
Total revenue$2,220
 $3,207
Revenue from significant customers, those representingNo customer represented 10% or more of total revenue was approximatelyfor the first quarter of fiscal year 2021. One customer represented 11% of our total revenue from one customer for the first quarter of fiscal year 2020, and aggregated approximately 20%was attributable primarily to the Graphics segment.
One customer represented 15% and 21% of our total revenue from two customers foraccounts receivable balance as of April 26, 2020 and January 26, 2020, respectively.
Note 16 - Goodwill
During the first quarter of fiscal year 2019,2021, we changed our operating segments to Graphics and was attributable primarilyCompute & Networking, as discussed in Note 15 of these Notes to Condensed Consolidated Financial Statements. As a result, our reporting units also changed, and we have reassigned the goodwill balance to the GPU business.
Accounts receivable from significant customers, those representing more than 10% of total accounts receivable, aggregated approximately 21% of our accounts receivable balance from one customer asnew reporting units based on their relative fair values. We determined there was 0 goodwill impairment immediately prior to the reorganization. As of April 28, 2019,26, 2020, the total carrying amount of goodwill was $628 million and approximately 19%the amount of goodwill allocated to our accounts receivable balance from one customer asGraphics and Compute & Networking reporting units were $347 million and $281 million, respectively. In the first quarter of January 27, 2019.

fiscal year 2021, goodwill increased by $10 million related to acquisition activity.

20


ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “goal,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “predict,” “potential” and similar expressions intended to identify forward-looking statements. Other statements in this Form 10-Q regarding the potential future impact of the COVID-19 pandemic on the Company’s business and results of operations are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or achievements expressed or implied by the forward-looking statements. We discuss many of these risks, uncertainties and other factors in this Quarterly Report on Form 10-Q in greater detail under the heading “Risk Factors.” Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements. Also, these forward-looking statements represent our estimates and assumptions only as of the date of this filing. You should read this Quarterly Report on Form 10-Q completely and with the understanding that our actual future results may be materially different from what we expect. We hereby qualify our forward-looking statements by these cautionary statements. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
All referencesreferences to “NVIDIA,” “we,” “us,” “our” or the “Company” mean NVIDIANVIDIA Corporation and its subsidiaries.
NVIDIA, the NVIDIA logo, CUDA, CUDA-X AI, GeForce, GeForce GTX,NOW, GeForce RTX SUPER, NVIDIA CUDA, NVIDIA DGX, NVIDIA DRIVE, NVIDIA DRIVE Constellation,EGX AI Edge, NVIDIA GRID, NVIDIA Omniverse,Jarvis, NVIDIA Jetson, NVIDIA Merlin, NVIDIA RTX, Mellanox, Quadro, Quadro RTX, Tegra and TeslaTegra are trademarks and/or registered trademarks of NVIDIA Corporation in the United States and/or other countries.countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability, and specifications are subject to change without notice.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with “Item 6. Selected Financial Data” of our Annual Report on Form 10-K for the fiscal year ended January 27, 201926, 2020 and “Item 1A. Risk Factors” of this Quarterly Report on Form 10-Q and our Condensed Consolidated Financial Statements and related Notes thereto, as well as other cautionary statements and risks described elsewhere in this Quarterly Report on Form 10-Q, before deciding to purchase or sell shares of our common stock.
Overview
Our Company and Our Businesses
NVIDIA pioneered accelerated computing to help solve the most challenging computational problems. Starting with a focus on PC graphics, NVIDIA invented the GPU to solve some of the most complex problems in computer science. We havewe extended our focus in recent years to the revolutionary field of AI. Fueled by the sustained demand for betterexceptional 3D graphics and the scale of the gaming market, NVIDIA has evolved theleveraged its GPU into a computer brain at the intersection ofarchitecture to create platforms for virtual reality, high performance computing, or HPC, and artificial intelligence, or AI.
Our twoThrough fiscal year 2020, our reportable segments -were GPU and Tegra Processor - are based on a single underlying architecture. FromProcessor. Starting with the first quarter of fiscal year 2021, our proprietary processors,reportable segments have changed to "Graphics" and "Compute & Networking".
Our Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro GPUs for enterprise design; GRID software for cloud-based visual and virtual computing; and automotive platforms for infotainment systems.
Our Compute & Networking segment includes Data Center platforms and systems for AI, HPC, and accelerated computing; DRIVE for autonomous vehicles; and Jetson for robotics and other embedded platforms. Starting with the second quarter of fiscal year 2021, we have createdwill include Mellanox revenue in this segment.
21


All prior period comparisons presented reflect our new reportable segments. Our market platforms that address four large markets where our expertise is critical: Gaming, Professional Visualization, Data Center, Automotive, OEM and Automotive.
Our GPU product brands are aimed at specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users. Our Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core CPUs to drive supercomputing for autonomous robots, drones, and cars, as well as for consoles and mobile gaming and entertainment devices.Other – remain unchanged. We will incorporate Mellanox in our Data Center market platform.
Headquartered in Santa Clara, California, NVIDIA was incorporated in California in April 1993 and reincorporated in Delaware in April 1998.

22



Recent Developments, Future Objectives and Challenges
COVID-19
The novel strain of the coronavirus identified in late calendar 2019 (COVID-19) has spread to a worldwide pandemic within the first quarter of fiscal year 2021. Government authorities around the world implemented measures to try to contain the disease, such as travel bans and restrictions, quarantines, shelter-in-place orders and shutdowns. Since March 2020, most of our employees have been working remotely and we temporarily prohibited business travel.
During the first quarter of fiscal year 2021, we experienced disruptions to our supply chain and logistical services provided by outsourcing partners and component supply, primarily based in Asia. These disruptions adversely impacted our linearity of supply and sales within the quarter.
The shelter-in-place or similar global orders have impacted demand for our gaming products in many jurisdictions that rely on purchases at physical retailers due to temporary store closures, and demand from iCafes located in China which have temporarily closed. In addition, the global demand for automobiles has decreased during this time which negatively impacts demand for our automotive products and solutions. In some regions, the shelter-in-place orders have driven a temporary increase in demand, that may not be sustainable, for gaming, OEM platforms and compute infrastructure as a result of work from home, learn at home, and gaming.
The full extent and duration of COVID-19 is uncertain. If the COVID-19 pandemic continues for an extended period, the timing and overall demand from customers and the availability of supply chain, logistical services and component supply could have a material net negative impact on our business and financial results. Refer to Part II, Item 1A of this Form 10-Q for additional information under the heading “Risk Factors”.
First Quarter of Fiscal Year 20202021 Summary
Three Months Ended    Three Months Ended
April 28, 2019 January 27, 2019 April 29, 2018 Quarter-over-Quarter Change Year-over-Year Change April 26, 2020January 26, 2020April 28, 2019Quarter-over-Quarter ChangeYear-over-Year Change
($ in millions, except per share data)    ($ in millions, except per share data)
Revenue$2,220
 $2,205
 $3,207
 1 % (31)%Revenue$3,080  $3,105  $2,220  (1)%39 %
Gross margin58.4% 54.7% 64.5% 370 bps
 (610) bps
Gross margin65.1 %64.9 %58.4 %20 bps670 bps
Operating expenses$938
 $913
 $773
 3 % 21 %Operating expenses$1,028  $1,025  $938  — %10 %
Income from operations$358
 $294
 $1,295
 22 % (72)%Income from operations$976  $990  $358  (1)%173 %
Net income$394
 $567
 $1,244
 (31)% (68)%Net income$917  $950  $394  (3)%133 %
Net income per diluted share$0.64
 $0.92
 $1.98
 (30)% (68)%Net income per diluted share$1.47  $1.53  $0.64  (4)%130 %
Revenue for the first quarter of fiscal year 2020 decreased 31% year over year and increased 1% sequentially.
GPU business revenue was $2.02$3.08 billion, down 27%up 39% from a year earlier and down 1% sequentially.
Graphics segment revenue for the first quarter was $1.91 billion, up 2% sequentially. The year-on-year decrease reflects declines in gaming and data center revenue, as well as the absence of $289 million of OEM revenue from cryptocurrency mining processors, or CMP.
Tegra Processor business revenue - which includes automotive, SOC modules for gaming platforms, and embedded edge AI platforms - was $198 million, down 55% from a year ago and down 12% sequentially. The year-on-year decrease primarily reflects a decline in shipments of SOC modules for gaming platforms.
Gaming revenue was $1.05 billion, down 39% from a year ago and up 11% sequentially. The year-on-year decrease primarily reflects a decline in shipments of gaming GPUs and SOC modules for gaming platforms. The sequential increase primarily reflects growth in gaming GPUs. We believe a shortage of Intel processors that is impacting the global PC market will affect our sales of gaming GPUs for laptops in the second quarter of fiscal year 2020.
Professional Visualization revenue was $266 million, up 6%25% from a year earlier and down 9% sequentially. The year-on-year increase reflects strength across both desktop
Compute & Networking segment revenue for the first quarter was $1.17 billion, up 69% from a year ago and mobile workstation products. The sequential decrease largely reflectsup 15% sequentially.
From a seasonal decline.
Data Centermarket-platform perspective, Gaming revenue for the first quarter was $634 million, down 10%$1.34 billion, up 27% from a year ago and down 7% sequentially, primarily reflecting a slowdown in purchases by certain hyperscale and enterprise customers,10% sequentially. The year-on-year increase reflects higher sales across our major gaming products. The sequential decrease reflects seasonally lower sales of GeForce desktop GPUs for gaming, partially offset by growth in inference sales. We believe this slowdown in purchases will likely persist intohigher sales of SoCs for gaming platforms and GeForce laptop GPUs.
Professional Visualization revenue for the secondfirst quarter of fiscal year 2020.
Automotive revenue of $166was $307 million, was up 14%15% from a year earlier and down 7% sequentially. The year-on-year growth reflects strength in laptop and desktop workstations. The sequential decrease was driven by lower sales of desktop workstations, partially offset by strength in laptop workstations.
Data Center revenue for the first quarter was $1.14 billion, up 2%80% from a year ago and up 18% sequentially, driven by higher vertical industries and hyperscale demand.
23


Automotive revenue was $155 million, down 7% from a year earlier and down 5% sequentially, primarily reflecting growth in AI cockpit modules.lower legacy infotainment revenue.
OEM and Other revenue for the first quarter was $99$138 million, down 74%up 39% from a year ago and down 15%9% sequentially. The year-on-year decrease isincrease was primarily due to the absencehigher demand for entry level laptop GPUs from PC OEMs. The sequential decrease reflects seasonally lower sales of $289 million from CMP sales.entry-level GPUs for PC OEMs.
Gross margin for the first quarter of fiscal year 20202021 was 58.4%65.1%, down 610up 670 basis points from a year earlier and up 37020 basis points sequentially. The year-on-year decrease reflects lower gaming marginsincrease was primarily driven by GeForce GPU product mix and mix shifts across the portfolio.higher Data Center sales. The sequential increase reflects the absence of approximately $128 millionwas Data Center, partially offset by product mix in charges recorded in the fourth quarter of fiscal year 2019 for excess DRAM, boards, and other components.GeForce GPUs.
Operating expenses for the first quarter of fiscal year 20202021 were $938 million,$1.03 billion, up 21%10% from a year earlier and up 3% sequentially, reflectingflat sequentially. The year-on-year growth primarily reflects employee additions and increases in employee compensation and other related costs, including stock-based compensation and infrastructure costs.
Income from operations for the first quarter of fiscal year 20202021 was $358$976 million, down 72%up 173% from a year earlier and up 22%down 1% sequentially. Net income and netfor the first quarter of fiscal year 2021 was $917 million. Net income per diluted share for the first quarter of fiscal year 20202021 were $394 million and $0.64, respectively, both down 68%$1.47, up 130% from a year earlier. The year-on-year decrease reflects lower revenueearlier and gross margin, and higher operating expenses. The sequential decrease reflects U.S. tax reform benefits recognized in the fourth quarter of fiscal year 2019.down 4% sequentially.


As previously communicated, we intend to return $3.00 billion to shareholders by the end of fiscal year 2020, including $700 million in share repurchases made during the fourth quarter of fiscal year 2019. In the first quarter of fiscal year 2020,2021, we returned $97 million in quarterly cash dividends. We intendpaid dividends of $98 million. Due to return the remaining $2.20 billion bycurrent market uncertainties, we are evaluating the endtiming of fiscal year 2020, through a combination ofresuming share repurchases and cashwill remain nimble based on market conditions. We are currently authorized to repurchase up to $7.24 billion through December 2022. We remain committed to paying quarterly dividends.
Cash, cash equivalents and marketable securities at the end of the first quarter were $16.35 billion, up from $7.80 billion asa year earlier and $10.90 billion in the prior quarter, reflecting the issuance of April 28, 2019, compared with $7.42$5 billion as of January 27, 2019. The increase was primarily relatedMarch 2020 Notes and strong operating cash flow.
Subsequent to operating income and changes in working capital.
On March 10, 2019, we entered into an Agreement and Plan of Merger, or the Merger Agreement, with Mellanox Technologies Ltd, or Mellanox, pursuant to which we will acquire allend of the issued and outstanding common sharesfirst quarter of fiscal year 2021, we closed the acquisition of Mellanox for $125 per share in cash, representing a total enterprisetransaction value of approximately $6.9$7.0 billion as of the date of the Merger Agreement. The closing of the merger is subject to certain conditions, including the approval by Mellanox shareholders and various regulatory agencies. If the Merger Agreement is terminated under certain circumstances involving the failure to obtain required regulatory approvals, we could be obligated to pay Mellanox a termination fee of $350 million.in cash on April 27, 2020.
GPU BusinessMarket Platform Highlights
During the first quarter of fiscal year 2020,2021, in our Gaming platform, we introducedlaunched Minecraft with RTX as an open beta on Windows 10; announced the GeForce GTX 1660 Ti, GTX 1660 and GTX 1650 gaming GPUs with improved performance and efficiency for today’s most popular games; announced a numberrelease of gaming laptop models based on Turing GPUs from top makers;powered by NVIDIA GeForce GPUs; expanded the RTX Studio lineup powered by new GeForce RTX SUPER GPUs; released DLSS 2.0; and announced that real-time ray tracing is now integrated into Unreal Engine and Unity commercial game engines.expanded NVIDIA GeForce NOW.
ForIn our professional visualizationProfessional Visualization platform, we announced expanded adoption ofpowered Autodesk’s latest 3D visualization software with NVIDIA RTX ray-tracing technology by top 3D application providersQuadro RTX; accelerated Altair's engineering software with NVIDIA CUDA; and unveiled the NVIDIA Omniverse open-collaboration platformbrought Quadro professional graphics to simplify creative workflows for content creation.HP's mobile workstation lineup.
ForIn our data centerData Center platform, we introduced NVIDIA A100 data center GPU, the first based on the NVIDIA CUDA-X AI platform for accelerating data science; announced availability ofAmpere architecture; launched the NVIDIA T4 Tensor Core GPUs from leading OEMs and Amazon Web Services; partnered with global system builders to create powerful data-science workstations integrating NVIDIA Quadro RTX GPUs and NVIDIA CUDA-X AI; and launched beta access to NVIDIA Quadro Virtual Workstation software in the Alibaba Cloud Marketplace.
Tegra Processor Business
During the first quarter of fiscal year 2020,DGX A100; introduced two products for the automotive market, we announced that we are partneringEGX Edge AI platform; released NVIDIA Jarvis; collaborated with Toyota Research Institute-Advanced Developmentthe open-source community to develop, train and validate self-driving vehicles; unveiled the NVIDIA DRIVE AP2X automated driving solution, encompassing DRIVE AutoPilot software, DRIVE AGX and DRIVE validation tools; introduced NVIDIA DRIVE AV Safety Force Fieldbring end-to-end GPU acceleration to enable safe, comfortable driving experiences;Apache Spark 3.0; and announced availability of the NVIDIA DRIVE Constellation autonomous vehicle simulation platform.Merlin.
Financial Information by Business Segment and Geographic Data
Refer to Note 1515 of the Notes to Condensed Consolidated Financial Statements for disclosure regarding segment information.


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Results of Operations
The following table sets forth, for the periods indicated, certain items in our Condensed Consolidated Statements of Income expressed as a percentage of revenue.
Three Months Ended Three Months Ended
April 28,
2019
 April 29,
2018
April 26,
2020
April 28,
2019
Revenue100.0 % 100.0 %Revenue100.0 %100.0 %
Cost of revenue41.6
 35.5
Cost of revenue34.9  41.6  
Gross profit58.4
 64.5
Gross profit65.1  58.4  
Operating expenses 
  Operating expenses   
Research and development30.4
 16.9
Research and development23.9  30.4  
Sales, general and administrative11.9
 7.2
Sales, general and administrative9.5  11.9  
Total operating expenses42.3
 24.1
Total operating expenses33.4  42.3  
Income from operations16.1
 40.4
Income from operations31.7  16.1  
Interest income2.0
 0.8
Interest income1.0  2.0  
Interest expense(0.6) (0.5) Interest expense(0.8) (0.6) 
Other, net
 0.2
Total other income (expense)1.4
 0.5
Other income, netOther income, net0.2  1.4  
Income before income tax17.5
 40.9
Income before income tax31.9  17.5  
Income tax expense (benefit)(0.2) 2.1
Income tax expense (benefit)2.1  (0.2) 
Net income17.7 % 38.8 %Net income29.8 %17.7 %
Revenue
Revenue by Reportable Segments
Three Months Ended
 April 26,
2020
April 28,
2019
$
Change
%
Change
 ($ in millions)
Graphics$1,906  $1,526  $380  25 %
Compute & Networking1,174  694  480  69 %
Total$3,080  $2,220  $860  39 %
 Three Months Ended
 April 28,
2019
 April 29,
2018
 $
Change
 %
Change
 ($ in millions)
GPU$2,022
 $2,765
 $(743) (27)%
Tegra Processor198
 442
 (244) (55)%
Total$2,220
 $3,207
 $(987) (31)%
GPU Business. GPU businessGraphics - Graphics segment revenue decreased by 27%increased 25% in the first quarter of fiscal year 20202021 compared to the first quarter of fiscal year 2019,2020, which reflects declines in gaming GPU and data center revenue, as well as the absence of $289 million of revenue from cryptocurrency mining processors. GeForce GPU product sales for gaming decreased 28%. Data center revenue, including Tesla, GRID and DGX, decreased 10%, primarily reflecting a slowdown in certain hyperscale and enterprise customer purchases, partially offset by growth in inference sales.GeForce gaming and Quadro GPU revenue. Gaming increased 28%, reflecting revenue growth across all platforms. Revenue from Quadro GPUs for professional visualization increased 6% due primarily to higher sales acrossby 24%, reflecting strength in desktop and mobile workstation products. Our PC OEMlaptop workstations.
Compute & Networking - Compute & Networking segment revenue decreased by 78% primarily driven by the absence of cryptocurrency mining processor sales.
Tegra Processor Business. Tegra Processor business revenue decreased by 55%increased 69% for the first quarter of fiscal year 20202021 compared to the first quarter of fiscal year 2019. This was2020, driven by a decline in shipments of SOC modules for gaming platforms, which was only partially offset by an increase of 14% in automotive revenue, primarily from growth in AI cockpit modules.data center-related sales for vertical industries and hyperscales.
Concentration of Revenue 
Revenue from sales to customers outside of the United States accounted for 93%84% and 86%93% of total revenue for the first quarter of fiscal years 20202021 and 2019,2020, respectively. Revenue by geographic region is allocated to individual countries based on the location to which the products are initially billed even if the revenue is attributable to end customers in a different location.


Revenue from significant customers, those representingNo customer represented 10% or more of total revenue was approximatelyor the first quarter of fiscal year 2021. One customer represented 11% of our total revenue from one customer for the first quarter of fiscal year 2020 and aggregated approximately 20% of our total revenue from two customerswas attributable primarily to the Graphics segment.
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Gross Margin
Our overall gross margin increased to 65.1% for the first quarter of fiscal year 2019, and was attributable primarily to the GPU business.
Gross Margin
Our overall gross margin decreased to2021 from 58.4% for the first quarter of fiscal year 2020 from 64.5% for the first quarter of fiscal year 2019.2020. The decreaseincrease in fiscal year 20202021 is primarily due to lower gaming marginsdriven by GeForce GPU product mix and mix shifts across the portfolio.higher data center sales.
Inventory provisions totaled $43$36 million and $33$43 million for the first quarter of fiscal years 20202021 and 2019,2020, respectively. Sales of inventory that was previously written-off or written-down-down totaled $12$39 million and $4$12 million for the first quarter of fiscal years 20202021 and 2019,2020, respectively. As a result, the overall net effect on our gross margin was ana favorable impact of 0.1% and unfavorable impact of 1.4% and 0.9% for the first quarter of fiscal years 20202021 and 2019,2020, respectively.
A discussion of our gross margin results for each of our reportable segments is as follows:
GPU Business.Graphics - The gross margin of our GPU business decreasedGraphics segment increased during the first quarter of fiscal year 20202021 compared to the first quarter of fiscal year 2019,2020, primarily due to lower gamingdriven by GeForce GPU margins and mix shifts across the portfolio.product mix.
Tegra Processor Business.Compute & Networking - The gross margin of our Tegra Processor business decreasedCompute & Networking segment increased during the first quarter of fiscal year 20202021 compared to the first quarter of fiscal year 2019,2020, primarily due to mix shifts.driven by higher data center sales.
Operating Expenses 
Three Months Ended Three Months Ended
April 28,
2019
 April 29,
2018
 
$
Change
 
%
Change
April 26,
2020
April 28,
2019
$
Change
%
Change
($ in millions) ($ in millions)
Research and development expenses$674
 $542
 $132
 24%Research and development expenses$735  $674  $61  %
% of net revenue30% 17%    % of net revenue24 %30 %
Sales, general and administrative expenses264
 231
 33
 14%Sales, general and administrative expenses293  264  29  11 %
% of net revenue12% 7%    % of net revenue10 %12 %
Total operating expenses$938
 $773
 $165
 21%Total operating expenses$1,028  $938  $90  10 %
Research and Development
Research and development expenses increased by 24%9% during the first quarter of fiscal year 2020,2021, compared to the first quarter of fiscal year 2019,2020, driven primarily by employee additions, increases in employee compensation and other related costs, including infrastructure costs and stock-based compensation expense.
Sales, General and Administrative
Sales, general and administrative expenses increased by 14%11% during the first quarter of fiscal year 2020,2021, compared to the first quarter of fiscal year 2019,2020, driven primarily by costs related to our plans to acquire Mellanox and employee additions, increases in employee compensation and other related costs, including infrastructure costs and stock-based compensation expense and infrastructure costs.expense.
Total Other Income, (Expense)Net
Interest Income and Interest Expense
Interest income consists of interest earned on cash, cash equivalents and marketable securities. Interest income was $44$31 million and $25$44 million during the first quarter of fiscal years 20202021 and 2019,2020, respectively. The increasedecrease in interest income was primarily due to higher average invested balances and higher rates fromlower interest earned on our floating rate securities and the purchase of new securities.investments.
Interest expense is primarily comprised of coupon interest and debt discount amortization related to the 2.20%our September 2016 Notes Due 2021 and 3.20% Notes Due 2026 issued in September 2016.March 2020 Notes. Interest expense was $13$25 million and $15$13 million during the first quarters of fiscal years 20202021 and 2019,2020, respectively.

Income Taxes

Other, Net
Other, net, consists primarilyWe recognized an income tax expense of realized or unrealized gains and losses from non-affiliated investments, and the impact of changes in foreign currency rates. Other, net, was not significant during$64 million for the first quarter of fiscal years 2020year 2021 and 2019.
Income Taxes
We recognizedan income tax benefit of $5 million for the first quarter of fiscal year 2020, and2020. The income tax expense as a percentage of $67 millionincome before income tax
26


was 6.6% for the first quarter of fiscal year 2019. Income2021 and income tax benefit as a percentage of income before income tax was 1.3% for the first quarter of fiscal year 2020, and income tax expense as a percentage of income before tax was 5.1% for the first quarter of fiscal year 2019.2020.
The decreaseincrease in our effective tax rate for the first quarter of fiscal year 20202021 as compared to the same period in the priorfirst quarter of fiscal year 2020 was primarily due to a decrease in the amount of earnings subject to United States tax, and an increase in the impact of tax benefits from stock-based compensation and the U.S. federal research tax credit.compensation.
Refer to Note 6 of the Notes to Condensed Consolidated Financial Statements for further information.
Liquidity and Capital Resources 
 April 26, 2020January 26, 2020
 (In millions)
Cash and cash equivalents$15,494  $10,896  
Marketable securities860   
Cash, cash equivalents and marketable securities$16,354  $10,897  
 April 28, 2019 January 27, 2019
 (In millions)
Cash and cash equivalents$2,772
 $782
Marketable securities5,030
 6,640
Cash, cash equivalents and marketable securities$7,802
 $7,422

Three Months Ended Three Months Ended
April 28, 2019 April 29, 2018April 26, 2020April 28, 2019
(In millions) (In millions)
Net cash provided by operating activities$720
 $1,445
Net cash provided by operating activities$909  $720  
Net cash provided by (used in) investing activities$1,495
 $(3,551)Net cash provided by (used in) investing activities$(1,055) $1,495  
Net cash used in financing activities$(225) $(1,131)
Net cash provided by (used in) financing activitiesNet cash provided by (used in) financing activities$4,744  $(225) 
As of April 28, 2019,26, 2020, we had $7.80$16.35 billion in cash, cash equivalents and marketable securities, an increase of $380 million$5.46 billion from the end of fiscal year 2019.2020. Our investment policy requires the purchase of highly rated fixed income securities, the diversification of investment types and credit exposures, and certain limits on our portfolio duration.
Cash provided by operating activities decreasedincreased in the first quarter of fiscal year 20202021 compared to the first quarter of fiscal year 2019,2020, due to lowerhigher net income partially offset by changes in working capital. Change in working capital was driven by an increase in accounts receivable, an increase in inventory, and changes in operating liabilities.
Cash provided byused in investing activities increased in the first quarter of fiscal year 20202021 compared to the first quarter of fiscal year 2019, due to lower purchases of marketable securities and higher maturities of marketable securities.
Cash used in financing activities decreasedcash provided in the first quarter of fiscal year 2020, compareddue to absence of maturities of marketable securities.
Cash provided by financing activities increased in the first quarter of fiscal year 2019,2021 compared to cash used in the first quarter of fiscal year 2020, due to lower share repurchases and lower tax payments related to employee stock plans.the debt issued in the first quarter of fiscal year 2021.
Liquidity
Our primary sources of liquidity are our cash and cash equivalents, our marketable securities, and the cash generated by our operations. As of April 26, 2020, we had $16.35 billion in cash, cash equivalents and marketable securities. Our marketable securities consist of debt securities issued by the U.S. government and its agencies, highly rated corporations and financial institutions, asset-backed issuers, mortgage-backed securities by government-sponsored enterprises, and foreign government entities.certificates of deposits. These marketable securities are denominated in United States dollars. Refer to Note 7 of the Notes to Condensed Consolidated Financial Statements for additional information. We believe that we have sufficient liquidity to meet our operating requirements and capital expenditures for at least the next twelve months. Subsequent to the first quarter of fiscal year 2021, we used approximately $7.0 billion to close the Mellanox acquisition.
As a result of the Tax Cuts and Jobs Act, substantially all of our cash, cash equivalents and marketable securities held outside of the United States as of April 28, 201926, 2020 are available for use in the United States without incurring additional U.S. federal income taxes.


Capital Return to Shareholders
As previously communicated, we intend to return $3.00 billion to shareholders by the end of fiscal year 2020, including $700 million in share repurchases made during the fourth quarter of fiscal year 2019. In the first quarter of fiscal year 2020,2021, we returned $97$98 million in quarterly cash dividends. We intend to return the remaining $2.20 billion by the end of fiscal year 2020, through a combination of share repurchases and cash dividends. As of April 28, 2019,26, 2020, we were authorized, subject to certain specifications, to repurchase additional shares of our common stock up to $7.24 billion through December 2022. We did not repurchase any shares during the first quarter of fiscal year 2021. Due to the
27


current market uncertainties, we are evaluating the timing of resuming share repurchases and will remain nimble based on market conditions. We remain committed to paying quarterly dividends.
Our cash dividend program and the payment of future cash dividends under that program are subject to our Board's continuing determination that the dividend program and the declaration of dividends thereunder are in the best interests of our shareholders. Refer to Note 14
Outstanding Indebtedness and Credit Facilities
In March 2020, we issued $1.50 billion of the Notes to Condensed Consolidated Financial Statements for additional information.
2.85% Notes Due 2021 and2030, $1.00 billion of the 3.50% Notes Due 20262040, $2.00 billion of the 3.50% Notes Due 2050, and $500 million of the 3.70% Notes Due 2060, or collectively, the March 2020 Notes. The net proceeds from the March 2020 Notes were $4.97 billion, after deducting debt discounts and estimated issuance costs.
In fiscal year 2017,September 2016, we issued $1.00 billion of the 2.20% Notes Due 2021 and $1.00 billion of the 3.20% Notes Due 2026, or collectively, the September 2016 Notes. The net proceeds from the September 2016 Notes were $1.98 billion, after deducting debt discounts and issuance costs.
Revolving Credit Facility
We have a Credit Agreement under which we may borrow up to $575 million for general corporate purposes and can obtain revolving loan commitments up to $425 million. As of April 28, 2019,26, 2020, we had not borrowed any amounts under this agreement.
Commercial Paper
We have a $575 million commercial paper program to support general corporate purposes. As of April 28, 2019,26, 2020, we had not issued any commercial paper.
Operating Capital and Capital Expenditure Requirements
In fiscal year 2019, we began construction on a 750 thousand square foot building on our Santa Clara campus, which is currently targeted for completion in fiscal year 2022. We believe that our existing cash and cash equivalents, marketable securities, anticipated cash flows from operations, and our available revolving credit facility or commercial paper program mentioned above will be sufficient to meet our operating requirements for at least the next twelve months.
Off-Balance Sheet Arrangements
As of April 28, 2019,26, 2020, we had no material off-balance sheet arrangements as defined by applicable SEC regulations.
Contractual Obligations
There were no material changes in our contractual obligations from those disclosed in our Annual Report on Form 10-K for the fiscal year ended January 27, 2019 other than our proposed acquisition of Mellanox as described in Note 2 of the Notes to Condensed Consolidated Financial Statements.

26, 2020.
Refer to Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources” in our Annual Report on Form 10-K for the fiscal year ended January 27, 201926, 2020 for a description of our contractual obligations.
Adoption of New and Recently Issued Accounting Pronouncements
Refer to Note 1 of the Notes to Condensed Consolidated Financial Statements for a discussion of adoption of new and recently issued accounting pronouncements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Investment and Interest Rate Risk
Financial market risks related to investment and interest rate risk are described in our Annual Report on Form 10-K for the fiscal year ended January 27, 2019.26, 2020. As of April 28, 2019,26, 2020, there have been no material changes as a result of the COVID-19 pandemic to the financial market risks described as of January 27, 2019.


26, 2020.
Foreign Exchange Rate Risk
The impact of foreign currency transactions related to foreign exchange rate risk is described in our Annual Report on Form 10-K for the fiscal year ended January 27, 2019.26, 2020. As of April 28, 2019,26, 2020, there have been no material changes as a result of the COVID-19 pandemic to the foreign exchange rate risks described as of January 27, 2019.26, 2020.
Refer to Note 11 of the Notes to Condensed Consolidated Financial Statements for additional information.

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ITEM 4. CONTROLS AND PROCEDURES
Controls and Procedures
Disclosure Controls and Procedures
Based on their evaluation as of April 28, 2019,26, 2020, our management, including our Chief Executive Officer and Chief Financial Officer, has concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act)amended) were effective to provide reasonable assurance.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting during the first quarter of fiscal year 20202021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.reporting despite the fact that virtually all of our employees are working remotely due to the COVID-19 pandemic. We are continually monitoring and assessing the COVID-19 situation on our internal controls to minimize the impact on their operating effectiveness.
Inherent Limitations on Effectiveness of Controls
Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls, will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within NVIDIA have been detected.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Refer to Part I, Item 1, Note 13 of the Notes to Condensed Consolidated Financial Statements for a discussion of significant developments in our legal proceedings since January 27, 2019.26, 2020. Also refer to Item 3, “Legal Proceedings” in our Annual Report on Form 10-K for the fiscal year ended January 27, 201926, 2020 for a prior discussion of our legal proceedings.
ITEM 1A. RISK FACTORS
Refer to the description of the risk factors associated with our business previously disclosed in Item 1A of our Annual Report on Form 10-K for the fiscal year ended January 27, 2019.26, 2020. Other than the risk factorfactors listed below, there have been no material changes from the risk factors previously described under Item 1A of our Annual Report on Form 10-K for the fiscal year ended January 27, 2019.26, 2020.
Before you buy our common stock, you should know that making such an investment involves some risks including, but not limited to, the risks described in Item 1A of our Annual Report on Form 10-K for the fiscal year ended January 27, 2019.26, 2020. Additionally, any one of those risks could harm our business, financial condition and results of operations, which could cause our stock price to decline. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations.

The recent novel coronavirus (COVID-19) pandemic could materially adversely affect our financial condition and results of operations.

The novel strain of the coronavirus identified in late calendar 2019 (COVID-19) has spread worldwide, resulting in shutdowns of manufacturing and commerce in the months that followed. Since then, COVID-19 has resulted in government authorities implementing numerous measures to try to contain the disease, such as travel bans and restrictions, quarantines, shelter-in-place orders and shutdowns. Our corporate headquarters, and a portion of our research and development activities and data center capacity, are located in California, and other critical business operations, including most of our finished goods inventory, and many of our key suppliers, are located in the Asia Pacific Region. We have development, operations and employees in China, Hong Kong, India and Taiwan, and the Asia Pacific region represents an important end market for our products. Our customers and suppliers within the Asia Pacific region are also affected by COVID-19 related restrictions and closures. These measures have impacted, and may further
29


impact, our workforce and operations, the operations of our customers and our partners, and those of our respective vendors and suppliers (including our subcontractors and third-party contract manufacturers). For example, during the first quarter of fiscal year 2021, we experienced disruptions to our supply chain and logistical services provided by outsourcing partners and component supply, primarily based in Asia. The shelter-in-place or similar global orders have impacted demand for our gaming products in many jurisdictions that rely on purchases at physical retailers due to temporary store closures, and demand from iCafes located in China which have temporarily closed. In addition, the global demand for automobiles has decreased during this time which negatively impacts demand for our automotive products and solutions. In some regions, the shelter-in-place orders have driven a temporary increase in demand, that may not be sustainable, for gaming, OEM platforms and compute infrastructure as a result of work from home, learn at home, and gaming.
The manufacture of product components, the final assembly of our products and other critical operations are concentrated in certain geographic locations, including Taiwan, China, Hong Kong and Korea. Additionally, a significant portion of our finished goods product distribution occurs through Hong Kong. Each of these countries has been affected by the pandemic and has taken measures to try to contain it. There is considerable uncertainty regarding the impact of such measures and potential future measures, including restrictions on manufacturing facilities, on our support operations or workforce, or on our customers, partners, vendors and suppliers. Such measures, as well as restrictions or disruptions of transportation, such as reduced availability or increased cost of air transport, port closures and increased border controls or closures, could limit our capacity to meet customer demand and have a material adverse effect on our financial condition and results of operations.

The spread of COVID-19 has caused us to modify our business practices (including employee travel, mandatory work-from-home policies and cancellation of physical participation in meetings, events and conferences), and we may take further actions as required by government authorities or that we determine are in the best interests of our employees, customers, partners and suppliers. There is no certainty that such measures will be sufficient to mitigate the risks posed by the disease, and our ability to perform critical functions could be harmed.
In addition, while the extent and duration of the COVID-19 pandemic on the global economy and our business in particular is difficult to assess or predict, the pandemic has resulted in, and may continue to result in, significant disruption of global financial markets, which may reduce our ability to access capital or our customers’ ability to pay us for past or future purchases, which could negatively affect our liquidity. The COVID-19 pandemic could also reduce the demand for our products. In addition, a recession or financial market correction resulting from the spread of COVID-19 could decrease overall technology spending, adversely affecting demand for our products, our business and the value of our common stock.
The global pandemic of COVID-19 continues to rapidly evolve, and we will continue to monitor the COVID-19 situation closely. The ultimate impact of the COVID-19 pandemic or a similar health epidemic is highly uncertain and subject to change. The extent of the impact of the COVID-19 pandemic on our operational and financial performance, including our ability to execute our business strategies and initiatives in the expected time frame, will depend on future developments, including, but not limited to, the duration and spread of the pandemic, its severity, the actions to contain the disease or treat its impact, related restrictions on travel, and the duration, timing and severity of the impact on customer spending, including any recession resulting from the pandemic, all of which are uncertain and cannot be predicted. An extended period of global supply chain and economic disruption as a result of the COVID-19 pandemic could have a material negative impact on our business, results of operations, access to sources of liquidity and financial condition, though the full extent and duration is uncertain.
Business disruptions could harm our business, lead to a decline in revenue and increase our costs.
Our worldwide operations could be disrupted by earthquakes, telecommunications failures, power or water shortages, outages at cloud service providers, tsunamis, floods, hurricanes, typhoons, fires, extreme weather conditions, cyber-attacks, terrorist attacks, medical epidemics or pandemics (including, but not limited to, COVID-19) and other natural or man-made disasters, catastrophic events or climate change. The occurrence of any of these disruptions could harm our business and result in significant losses, a decline in revenue and an increase in our costs and expenses. Any of these business disruptions could require substantial expenditures and recovery time in order to fully resume operations. Such risks are discussed further in the risk factor “The recent novel coronavirus (COVID-19) pandemic could materially adversely affect our financial condition and results of operations.” Our corporate headquarters, and a portion of our research and development activities, are located in California, and other critical business operations, finished goods inventory, and some of our suppliers are located in Asia, near major earthquake faults known for seismic activity. In addition, a large portion of our current data center capacity is located in California, making our operations vulnerable to natural disasters or other business disruptions occurring in these geographical areas. The manufacture of product
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components, the final assembly of our products and other critical operations are concentrated in certain geographic locations, including Taiwan, China, Hong Kong, and Korea. Additionally, a significant portion of our finished goods product distribution occurs through Hong Kong. Geopolitical change or changes in government regulations and policies in the United States or abroad may result in changing regulatory requirements, trade policies, import duties and economic disruptions that could impact our operating strategies, product demand, access to global markets, hiring, and profitability. In particular, revisions to laws or regulations or their interpretation and enforcement could result in increased taxation, trade sanctions, the imposition of import duties or tariffs, restrictions and controls on imports or exports, or other retaliatory actions, which could have an adverse effect on our business plans. For example, regulations to implement the Export Control Reform Act of 2018 could have an adverse effect on our business plans. Catastrophic events can also have an impact on third-party vendors who provide us critical infrastructure services for IT and research and development systems and personnel. Our operations could be harmed if manufacturing, logistics or other operations in these locations are disrupted for any reason, including natural disasters, high heat events or water shortages, information technology system failures, military actions or economic, business, labor, environmental, public health, regulatory or political issues. The ultimate impact on us, our third-party foundries and other suppliers and our general infrastructure of being located near major earthquake faults and being consolidated in certain geographical areas is unknown. In the event a major earthquake or other disaster or catastrophic event affects us or the third-party systems on which we rely, our business could be harmed as a result of declines in revenue, increases in expenses, substantial expenditures and time spent to fully resume operations.
We are subject to risks and uncertainties associated with international operations, which may harm our business.
We conduct our business worldwide and we have offices in various countries outside of the United States. Our semiconductor wafers are manufactured, assembled, tested and packaged by third parties located outside of the United States. We also generate a significant portion of our revenue from sales outside the United States. We allocate revenue to individual countries based on the location to which the products are initially billed even if our customers’ revenue is attributable to end customers that are located in a different location. Revenue from sales outside of the United States accounted for 84% and 93% of total revenue for the first quarter of fiscal years 2021 and 2020, respectively Revenue from billings to China, including Hong Kong, was 25% of our revenue for the first quarter of fiscal year 2021, even if our customers' revenue is attributable to end customers that are located in a different location. Additionally, as of April 26, 2020, approximately 46% of our employees were located outside of the United States. The global nature of our business subjects us to a number of risks and uncertainties, which could have a material adverse effect on our business, financial condition and results of operations, including:
international economic and political conditions, including as a result of the United Kingdom's vote to withdraw from the European Union, and other political tensions between countries in which we do business;
unexpected changes in, or impositions of, legislative or regulatory requirements, including changes in tax laws;
differing legal standards with respect to protection of intellectual property and employment practices;
local business and cultural factors that differ from our normal standards and practices, including business practices that we are prohibited from engaging in by the Foreign Corrupt Practices Act and other anticorruption laws and regulations;
exporting or importing issues related to export or import restrictions, including deemed export restrictions, tariffs, quotas and other trade barriers and restrictions;
disruptions of capital and trading markets and currency fluctuations;
increased costs due to imposition of climate change regulations, such as carbon taxes, fuel or energy taxes, and pollution limits; and
natural disasters, public health issues (including the COVID-19 pandemic discussed further in the risk factor “The recent novel coronavirus (COVID-19) pandemic could materially adversely affect our financial condition and results of operations,” above), and other catastrophic events.
If our sales outside of the United States are delayed or cancelled because of any of the above factors, our revenue may be negatively impacted.
Adverse changes in global or regional economic conditions, including recession or slowing growth, changes or uncertainty in fiscal, monetary, or trade policy, higher interest rates, tighter credit, inflation, lower capital expenditures
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by businesses including on IT infrastructure, increases in unemployment, and lower consumer confidence and spending, periodically occur. The COVID-19 pandemic has significantly increased economic and demand uncertainty. It is likely that the continued spread of COVID-19 will cause an economic slowdown, and it is possible that it could cause a global recession. Adverse changes in economic conditions, including as a result of the pandemic, can significantly harm demand for our products and make it more challenging to forecast our operating results and make business decisions, including regarding prioritization of investments in our business. An economic downturn or increased uncertainty may also lead to increased credit and collectability risks, higher borrowing costs or reduced availability of capital markets, reduced liquidity, adverse impacts on our suppliers, failures of counterparties including financial institutions and insurers, asset impairments, and declines in the value of our financial instruments.
We may not be able to realize the potential financial or strategic benefits of business acquisitions or strategic investments, including the Mellanox acquisition, and we may not be able to successfully integrate acquisition targets, which could hurt our ability to grow our business, develop new products or sell our products.
We have in the past acquired and invested in, and may continue to acquire and invest in, other businesses that offer products, services and technologies that we believe will help expand or enhance our existing products, strategic objectives and business. In March 2019, we announcedWe completed our agreement to acquireacquisition of Mellanox for approximately $6.9 billion.$7.0 billion on April 27, 2020. The Mellanox acquisition and other past or future acquisitions or investments involve significant challenges and risks, and could impair our ability to grow our business, develop new products or sell our products, and ultimately could have a negative impact on our growth or our financial results. Given that our resources are limited, our decision to pursue a transaction has opportunity costs; accordingly, if we pursue a particular transaction, we may need to forgo the prospect of entering into other transactions that could help us achieve our strategic objectives. Additional risks related to the Mellanox acquisition, and other acquisitions or strategic investments include, but are not limited to:
difficulty in combining the technology, products, operations or workforce of the acquired business with our business;
diversion of capital and other resources, including management’s attention;
assumption of liabilities and incurring amortization expenses, impairment charges to goodwill or write-downs of acquired assets;
integrating financial forecasting and controls, procedures and reporting cycles;
coordinating and integrating operations in countries in which we have not previously operated;
difficulty in realizing a satisfactory return, if at all;
difficulty in obtaining regulatory, other approvals or financing;
failure and costs associated with the failure to consummate a proposed acquisition or other strategic investment;
legal proceedings initiated as a result of an acquisition or investment;
uncertainties and time needed to realize the benefits of an acquisition or strategic investment, if at all;
negative changes in general economic conditions in the regions or the industries in which we or our target operate;
the need to later divest acquired assets if an acquisition does not meet our expectations;
potential failure of our due diligence processes to identify significant issues with the acquired assets or company; and
impairment of relationships with, or loss of our or our target’s, employees, vendors and customers, as a result of our acquisition or investment.
Our indebtedness could adversely affect our financial position and prevent us from implementing our strategy or fulfilling our contractual obligations.
In September 2016, we issued $2.00 billion of the September 2016 Notes. In March 2020, we issued $5.00 billion of the March 2020 Notes.
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Our indebtedness may limit our ability to use our cash flow or borrow additional funds for working capital, capital expenditures, acquisitions and general corporate and other purposes. Additionally, our obligation to make payments related to the Notes could impact our cash balance and limit our ability to use our cash for our capital return program and our other liquidity needs, including working capital, capital expenditures, acquisitions, investments and other general corporate purposes.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Issuer Purchases of Equity Securities
Beginning August 2004, our Board of Directors authorized us to repurchase our stock.
Since the inception of our share repurchase program, we have repurchased an aggregate of 260 million shares under our share repurchase program for a total cost of $7.08 billion through April 28, 2019.26, 2020. All shares delivered from these repurchases have been placed into treasury stock.
As of April 28, 2019, we were authorized to repurchase additional shares of our common stock up to $7.24 billion through December 2022.
The repurchases can be made in the open market, in privately negotiated transactions, or in structured share repurchase programs, and can be made in one or more larger repurchases. The program does not obligate NVIDIA to acquire any particular amount of common stock and the program may be suspended at any time at our discretion.
As previously communicated, we intend to return $3.00 billion to shareholders by the end of fiscal year 2020, including $700 million in share repurchases made during the fourth quarter of fiscal year 2019. In the first quarter of fiscal year


2020, 2021, we returned $97$98 million in quarterly cash dividends. As of April 26, 2020, we were authorized, subject to certain specifications, to repurchase additional shares of our common stock up to $7.24 billion through December 2022. We intend to return the remaining $2.20 billion by the end of fiscal year 2020, through a combination of share repurchases and cash dividends. We had no sharedid not repurchase transactionsany shares during the first quarter of fiscal year 2020.2021. Due to the current market uncertainties, we are evaluating the timing of resuming share repurchases and will remain nimble based on market conditions. We remain committed to paying quarterly dividends.
Restricted Stock Unit Share Withholding
We also withhold common stock shares associated with net share settlements to cover tax withholding obligations upon the vesting of restricted stock unit awards under our employee equity incentive program. During the first quarter of fiscal year 2020,2021, we withheld approximately 1 million shares at a total cost of $211$222 million through net share settlements. Refer to Note 4 of the Notes to Condensed Consolidated Financial Statements for further discussion regarding our equity incentive plans.


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ITEM 6. EXHIBITS
Exhibit No. Exhibit DescriptionSchedule
/Form
File NumberExhibitFiling Date
2.1^8-K000-239852.13/11/2019
4.1


8-K000-239854.1 (filed as Exhibit 4.1 to NVIDIA Corporation’s Current Report on Form 8-K filed on September 16, 2016 (File No. 000-23985))3/31/2020
4.28-K000-239854.23/31/2020
4.38-K000-239854.3 (included in Exhibit 4.2)3/31/2020
4.48-K000-239854.4 (included in Exhibit 4.2)3/31/2020
4.58-K000-239854.5 (included in Exhibit 4.2)3/31/2020
4.68-K000-239854.6 (included in Exhibit 4.2)3/31/2020
10.1+8-K000-2398510.13/10/2020
10.2*+
31.1*
31.2*
32.1#*
32.2#*
101.INS*Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*Inline XBRL Taxonomy Extension Schema Document
101.CAL*Inline XBRL Taxonomy Extension Calculation Linkbase Document
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Exhibit No.  Exhibit Description 
Schedule
/Form
 File Number Exhibit Filing Date
10.1  8-K 000-23985 2.1 3/11/2019
10.2  8-K 000-23985 10.1 3/11/2019
10.3+  10-K 000-23985 10.19 2/21/2019
10.4+  8-K 000-23985 10.1 3/11/2019
10.5+  8-K 000-23985 10.2 3/11/2019
31.1*         
31.2*         
32.1#*         
32.2#*         
101.INS* XBRL Instance Document        
101.SCH* XBRL Taxonomy Extension Schema Document        
101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document        
101.LAB* XBRL Taxonomy Extension Labels Linkbase Document        
101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document        
101.DEF*Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE*Inline XBRL Taxonomy Extension Presentation Linkbase Document
104Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
* Filed herewith
^ Certain exhibits and schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K, and the Company agrees to furnish supplementally to the Securities and Exchange Commission a copy of any omitted exhibits or schedules upon request; provided that the Company may request confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934.
+ Management contract or compensatory plan or arrangement
# In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release Nos. 33-8238 and 34-47986, Final Rule: Management's Reports on Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports, the certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed “filed” for purpose of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.
Copies of above exhibits not contained herein are available to any shareholder upon written request to:
Investor Relations: NVIDIA Corporation, 2788 San Tomas Expressway, Santa Clara, CA 95051.

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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: May 16, 2019
21, 2020
NVIDIA Corporation 
By:   /s/ Colette M. Kress
Colette M. Kress
Executive Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer)


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