CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | |||
In Thousands, except Share data | 12 Months Ended
Jan. 31, 2010 | 12 Months Ended
Jan. 25, 2009 | 12 Months Ended
Jan. 27, 2008 |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Revenue | $3,326,445 | $3,424,859 | $4,097,860 |
Cost of revenue | 2,149,522 | 2,250,590 | 2,228,580 |
Gross profit | 1,176,923 | 1,174,269 | 1,869,280 |
Operating expenses: | |||
Research and development | 908,851 | 855,879 | 691,637 |
Sales, general and administrative | 367,017 | 362,222 | 341,297 |
Restructuring charges and other | 0 | 26,868 | 0 |
Total operating expenses | 1,275,868 | 1,244,969 | 1,032,934 |
Income (loss) from operations | (98,945) | (70,700) | 836,346 |
Interest income | 23,115 | 42,859 | 64,289 |
Interest expense | (3,320) | (406) | (54) |
Other income (expense), net | (3,144) | (14,707) | 760 |
Income (loss) before income tax | (82,294) | (42,954) | 901,341 |
Income tax expense (benefit) | (14,307) | (12,913) | 103,696 |
Net income (loss) | ($67,987) | ($30,041) | $797,645 |
Basic net income (loss) per share | -0.12 | -0.05 | 1.45 |
Weighted average shares used in basic per share computation | 549,574 | 548,126 | 550,108 |
Diluted net income (loss) per share | -0.12 | -0.05 | 1.31 |
Weighted average shares used in diluted per share computation | 549,574 | 548,126 | 606,732 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Thousands | Jan. 31, 2010
| Jan. 25, 2009
|
Current assets: | ||
Cash and cash equivalents | $447,221 | $417,688 |
Marketable securities | 1,281,006 | 837,702 |
Accounts receivable, less allowances of $16,330 and $18,399 in 2010 and 2009, respectively | 374,963 | 318,435 |
Inventories | 330,674 | 537,834 |
Prepaid expenses and other | 38,214 | 39,794 |
Deferred income taxes | 8,752 | 16,505 |
Total current assets | 2,480,830 | 2,167,958 |
Property and equipment, net | 571,858 | 625,798 |
Goodwill | 369,844 | 369,844 |
Intangible assets, net | 120,458 | 147,101 |
Deposits and other assets | 42,928 | 40,026 |
Total assets | 3,585,918 | 3,350,727 |
Current liabilities: | ||
Accounts payable | 344,527 | 218,864 |
Accrued liabilities and other | 439,851 | 559,727 |
Total current liabilities | 784,378 | 778,591 |
Other long-term liabilities | 111,950 | 151,850 |
Capital lease obligations, long term | 24,450 | 25,634 |
Stockholders' equity | ||
Preferred stock, $.001 par value; 2,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $.001 par value; 2,000,000,000 shares authorized; 652,391,708 shares issued and 561,465,851 outstanding in 2010; and 629,386,584 shares issued and538,460,766 outstanding in 2009 | 653 | 629 |
Additional paid-in capital | 2,219,401 | 1,889,257 |
Treasury stock, at cost (90,925,857 shares in 2010 and 90,925,818 shares in 2009) | (1,463,268) | (1,463,268) |
Accumulated other comprehensive income | 12,172 | 3,865 |
Retained earnings | 1,896,182 | 1,964,169 |
Total stockholders' equity | 2,665,140 | 2,394,652 |
Total liabilities and stockholders' equity | $3,585,918 | $3,350,727 |
PARENTHETICAL DATA TO THE CONSO
PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Thousands, except Share data | Jan. 31, 2010
| Jan. 25, 2009
|
Current assets: | ||
Accounts receivable, allowances | $16,330 | $18,399 |
Stockholders' equity | ||
Preferred stock, par value | 0.001 | 0.001 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | 0.001 | 0.001 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 652,391,708 | 629,386,584 |
Common stock, shares outstanding | 561,465,851 | 538,460,766 |
Treasury stock, shares | 90,925,857 | 90,925,818 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME (LOSS) (USD $) | ||||||
In Thousands, except Share data | Common Stock
| Additional Paid-in Capital
| Treasury Stock
| Accumulated Other Comprehensive Income (Loss)
| Retained Earnings
| Total
|
Balance at beginning of year (in shares) at Jan. 28, 2007 | 541,497,756 | |||||
Balances at beginning of year at Jan. 28, 2007 | $583 | $1,295,455 | ($487,120) | $1,436 | $1,196,565 | $2,006,919 |
Comprehensive Income (Loss): | ||||||
Unrealized gain/loss, net of tax effect | 6,703 | 6,703 | ||||
Reclassification adjustment for net realized gains included in net income, net of tax effect | (105) | (105) | ||||
Net Income (loss) | 797,645 | 797,645 | ||||
Issuance of common stock from stock plans | 36 | 225,933 | 225,969 | |||
Issuance of common stock from stock plans - shares | 36,238,014 | |||||
Stock repurchase | (552,512) | (552,512) | ||||
Stock repurchase - shares | (20,633,182) | |||||
Tax benefit/deficit from stock-based compensation | 220 | 220 | ||||
Stock-based compensation related to employees | 133,073 | 133,073 | ||||
Balance at end of year at Jan. 27, 2008 | 619 | 1,654,681 | (1,039,632) | 8,034 | 1,994,210 | 2,617,912 |
Balance at end of year (in shares) at Jan. 27, 2008 | 557,102,588 | |||||
Comprehensive Income (Loss): | ||||||
Unrealized gain/loss, net of tax effect | (3,920) | (3,920) | ||||
Reclassification adjustment for net realized gains included in net income, net of tax effect | (249) | (249) | ||||
Net Income (loss) | (30,041) | (30,041) | ||||
Issuance of common stock from stock plans | 10 | 73,537 | 73,547 | |||
Issuance of common stock from stock plans - shares | 10,685,101 | |||||
Stock repurchase | (423,636) | (423,636) | ||||
Stock repurchase - shares | (29,326,923) | |||||
Tax benefit/deficit from stock-based compensation | (2,946) | (2,946) | ||||
Stock-based compensation related to employees | 163,985 | 163,985 | ||||
Balance at end of year at Jan. 25, 2009 | 629 | 1,889,257 | (1,463,268) | 3,865 | 1,964,169 | 2,394,652 |
Balance at end of year (in shares) at Jan. 25, 2009 | 538,460,766 | |||||
Comprehensive Income (Loss): | ||||||
Unrealized gain/loss, net of tax effect | 9,417 | 9,417 | ||||
Reclassification adjustment for net realized gains included in net income, net of tax effect | (1,110) | (1,110) | ||||
Net Income (loss) | (67,987) | (67,987) | ||||
Issuance of common stock from stock plans | 24 | 138,005 | 138,029 | |||
Issuance of common stock from stock plans - shares | 23,005,124 | |||||
Stock repurchase | 0 | |||||
Stock repurchase - shares | (39) | |||||
Tax benefit/deficit from stock-based compensation | 29,891 | 29,891 | ||||
Stock-based compensation related to employees | 104,588 | 104,588 | ||||
Tender offer | (78,075) | (78,075) | ||||
Charges related to stock option purchase - tender offer | 135,735 | 135,735 | ||||
Balance at end of year at Jan. 31, 2010 | $653 | $2,219,401 | ($1,463,268) | $12,172 | $1,896,182 | $2,665,140 |
Balance at end of year (in shares) at Jan. 31, 2010 | 561,465,851 |
1_PARENTHETICAL DATA TO THE CON
PARENTHETICAL DATA TO THE CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | |||
In Thousands | 12 Months Ended
Jan. 31, 2010 | 12 Months Ended
Jan. 25, 2009 | 12 Months Ended
Jan. 27, 2008 |
Comprehensive Income (Loss): | |||
Unrealized gain/loss, tax effect | $484 | $2,054 | $2,860 |
Reclassification adjustment for net realized gains included in net income, tax effect | $598 | $135 | $4 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | |||
In Thousands | 12 Months Ended
Jan. 31, 2010 | 12 Months Ended
Jan. 25, 2009 | 12 Months Ended
Jan. 27, 2008 |
Cash flows from operating activities: | |||
Net income (loss) | ($67,987) | ($30,041) | $797,645 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Stock-based compensation expense related to stock option purchase | 135,735 | 0 | 0 |
Stock based compensation expense | 107,091 | 162,706 | 133,365 |
Depreciation and amortization | 196,664 | 185,023 | 133,192 |
Impairment charge on investments | 0 | 9,891 | 0 |
Deferred income taxes | (21,147) | (23,277) | 89,516 |
Payments under patent licensing arrangement | (857) | (21,797) | (57,255) |
In-process research and development expenses | 0 | 0 | 4,000 |
Other | 1,893 | 188 | (216) |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | (56,741) | 348,873 | (146,055) |
Inventories | 204,656 | (177,295) | (3,690) |
Prepaid expenses and other current assets | 1,580 | 21,528 | (6,293) |
Deposits and other assets | 3,857 | (2,108) | (13,914) |
Accounts payable | 119,366 | (283,207) | 216,875 |
Accrued liabilities and other long-term liabilities | (136,303) | 58,876 | 123,026 |
Net cash provided by operating activities | 487,807 | 249,360 | 1,270,196 |
Cash flows from investing activities: | |||
Purchases of marketable securities | (1,193,948) | (999,953) | (1,250,248) |
Proceeds from sales and maturities of marketable securities | 752,434 | 1,226,646 | 753,839 |
Purchases of property and equipment and intangible assets | (77,601) | (407,670) | (187,745) |
Acquisition of businesses, net of cash and cash equivalents | 0 | (27,948) | (75,542) |
Other | (218) | (442) | (1,622) |
Net cash used in investing activities | (519,333) | (209,367) | (761,318) |
Cash flows from financing activities: | |||
Payments related to stock option purchase | (78,075) | 0 | 0 |
Payments related to repurchases of common stock | 0 | (423,636) | (552,512) |
Proceeds from issuance of common stock under employee stock plans | 138,029 | 73,547 | 225,969 |
Other | 1,105 | 815 | 220 |
Net cash used in financing activities | 61,059 | (349,274) | (326,323) |
Change in cash and cash equivalents | 29,533 | (309,281) | 182,555 |
Cash and cash equivalents at beginning of period | 417,688 | 726,969 | 544,414 |
Cash and cash equivalents at end of period | 447,221 | 417,688 | 726,969 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes, net | 4,217 | 7,620 | 2,328 |
Cash paid for interest on capital lease obligations | 3,256 | 0 | 0 |
Other non-cash activities: | |||
Assets acquired by assuming related liabilities | 37,830 | 47,236 | 18,072 |
Change in unrealized gains (losses) from marketable securities | 8,305 | (6,360) | 9,462 |
Acquisition of business - goodwill adjustment | $0 | $3,411 | $2,633 |
Note 1 - Organization and Summa
Note 1 - Organization and Summary of Significant Accounting Policies | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Note 1 - Organization and Summary of Significant Accounting Policies Our Company NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphics processing unit, or the GPU.Our products are designed to generate realistic, interactive graphics on workstations, personal computers, game consoles and mobile devices.Expertise in programmable GPUs has led to breakthroughs in parallel processing which make supercomputing inexpensive and widely accessible.We serve the entertainment and consumer market with our GeForce graphics products, the professional design and visualization market with our Quadro graphics products, the high-performance computing market with our Tesla computing solutions products, and the mobile computing market with our Tegra system-on-a-chip products. During the last several fiscal years, we have operated and reported four major product-line operating segments: the GPU business, the professional solutions business, or PSB, the media and communications processor, or MCP, business, and the consumer products business, or CPB. However, effective with the first quarter of fiscal year 2011, we will no longer separate our MCP and GPU operating segments as such segmentation will no longer be reflective of the way we manage those businesses. Our GPU business is comprised primarily of our GeForce products that support desktop and notebook personal computers, or PCs, plus memory products. Our PSB is comprised of our NVIDIA Quadro professional workstation products and other professional graphics products, including our NVIDIA Tesla high-performance computing products. Our MCP business, as we have reported it through fiscal year 2010, has been comprised primarily of our ION NVIDIA motherboard GPU, or mGPU products. Our CPB is comprised of our Tegra mobile brand and products that support tablets and smartbooks, smartphones, personal media players, or PMPs, internet television, automotive navigation,and other similar devices. CPB also includes license, royalty, other revenue and associated costs related to video game consoles and other digital consumer electronics devices.Original equipment manufacturers, original design manufacturers, add-in-card manufacturers, system builders and consumer electronics companies worldwide utilize our processors as a core component of their entertainment, business and professional solutions. We were incorporated in California in April 1993 and reincorporated in Delaware in April 1998. Our headquarter facilities are in Santa Clara, California. Our Internet address is www.nvidia.com. The contents of our website are not a part of these Notes to the consolidated financial statements. All references to NVIDIA, we, us, our or the Company mean NVIDIA Corporation and its subsidiaries, except where it is made clear that the term means only the parent company. Fiscal Year We operate on a 52 or 53-week year, ending on the last Sunday in January. Fiscal year 2010 was a 53-week year while fiscal years 2009 and 2008 were 52-week years. Stock Splits In August 2007,our Board of Directors, or the Board, approved a three-for-two stock split of our out |
Note 2 - Stock Option Purchase
Note 2 - Stock Option Purchase | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Stock Option Purchase | Note 2 Stock Option Purchase In the first quarter of fiscal year 2010, we completed a cash tender offer for certain employee stock options. The tender offer applied to outstanding stock options held by employees with an exercise price equal to or greater than $17.50 per share. None of the non-employee members of our Board of Directors or our officers who file reports under Section16(a) of the Securities Exchange Act of 1934, as amended, were eligible to participate in the tender offer.All eligible options with exercise prices equal to or greater than $17.50 per share but less than $28.00 per share were eligible to receive a cash payment of $3.00 per option in exchange for the cancellation of the eligible option. All eligible options with exercise prices equal to or greater than $28.00 per share were eligible to receive a cash payment of $2.00 per option in exchange for the cancellation of the eligible option. Our consolidated statement of operations for fiscal year 2010 includes stock-based compensation charges related to the stock option purchase (in thousands): Cost of revenue $ 11,412 Research and development 90,456 Sales, general and administrative 38,373 Total $ 140,241 A total of 28.5 million options were tendered under the offer for an aggregate cash purchase price of $78.1 million, which was paid in exchange for the cancellation of the eligible options.As a result of the tender offer, we incurred a charge of $140.2 million consisting of $124.1 million related to the remaining unamortized stock based compensation expense associated with the unvested portion of the options tendered in the offer, $11.6 million related to stock-based compensation expense resulting from amounts paid in excess of the fair value of the underlying options, plus $4.5 million related to associated payroll taxes, professional fees and other costs. |
Note 3 - Stock-Based Compensati
Note 3 - Stock-Based Compensation | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Stock-Based Compensation | Note 3 - Stock-Based Compensation We measure stock-based compensation expense at the grant date of the related equity awards, based on the fair value of the awards, and recognize the expense using the straight-line attribution method over the requisite employee service period adjusted for estimated forfeitures. We estimate the fair value of employee stock options on the date of grant using a binomial model and we use the closing trading price of our common stock on the date of grant as the fair value of awards of restricted stock units, or RSUs. We calculate the fair value of our employee stock purchase plan using the Black-Scholes model. In addition to the stock-based compensation expense related to our cash tender offer to purchase certain employee stock options as described in Note 2 Stock Option Purchase, our consolidated statementsof operations include stock-based compensation expense,net of amounts capitalized as inventory, as follows: Year Ended January 31, January 25, January 27, 2010 2009 2008 (In thousands) Cost of revenue $ 12,050 $ 11,939 $ 10,886 Research and development 61,337 98,007 76,617 Sales, general and administrative 33,704 52,760 45,862 Total $ 107,091 $ 162,706 $ 133,365 As of January 31, 2010 and January 25, 2009, the aggregate amount of unearned stock-based compensation expense related to our equity awards was $125.3 million and $193.8 million, respectively, adjusted for estimated forfeitures.As of January 31, 2010 and January 25, 2009, we expect to recognize the unearned stock-based compensation expense related to equity awards over an estimated weighted average amortization period of 1.80 years and 1.82 years, respectively.As of January 31, 2010, we expect to recognize the unearned stock-based compensation expense related to RSUs over an estimated weighted average amortization period of 2.3 years.During fiscal year 2009, we did not grant any RSUs. Stock-based compensation capitalized in inventories resulted in a charge of $2.5 million and benefit of $2.0 million in cost of revenue during the fiscal years ended January 31, 2010 and January 25, 2009, respectively. During fiscal years 2010, 2009 and 2008, we granted approximately 7.7 million, 17.9 million and 17.2 million stock options, respectively, with estimated total grant-date fair values of $44.2 million, $143.6 million and $207.4 million, respectively, and weighted average grant-date fair values of $5.74, $8.03 and $11.98 per option, respectively.During fiscal year 2010 we granted approximately 7.7 million RSUs, with estimated total grant-date fair values of $94.1 million and weighted average grant-date fair value of $12.27.During the fiscal years 2009 and 2008, we did not grant any RSUs. Of the estimated total grant-date fair value, we estimated that the stock-based compensation expense related to the equity awards that are not expected to vest for fiscal years 2010, 2009 and 2008 was $25.7 million, $23.8 million and $40.0 m |
Note 4 - Restructuring Charges
Note 4 - Restructuring Charges and Other | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Restructuring Charges and Other | Note 4 Restructuring Charges and Other In September2008, we announced a workforce reduction to allow for continued investment in strategic growth areas, which was completed in the third quarter of fiscal year 2009. As a result, we eliminated approximately 360 positions worldwide, or about 6.5% of our global workforce.During fiscal year 2009, expenses associated with the workforce reduction, which were comprised primarily of severance and benefits payments to these employees, totaled $8.0 million.The remaining accrual of $0.2 million as of January 25, 2009 relates to severance and benefits payments, which was paid by the third quarter of fiscal year 2010. The following table provides a summary of the restructuring activities and related liabilities recorded in accrued liabilities in our Consolidated Balance Sheet as of January 31, 2010 (in thousands): Accrued Restructuring Charges : Balance at January 25, 2009 $ 186 Cash payments (186 ) Balance at January 31, 2010 $ - Restructuring and other expenses for fiscal year 2009 also included a non-recurring charge of $18.9 million associated with the termination of a development contract related to a new campus construction project that has been put on hold. |
Note 5 - Net Income
Note 5 - Net Income (Loss) Per Share | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Net Income (Loss) Per Share | Note 5 Net Income (Loss) Per Share The following is a reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share computations for the periods presented: Year Ended January31, 2010 January25, 2009 January27, 2008 (In thousands, except per share data) Numerator: Net income (loss) $ (67,987 ) $ (30,041 ) $ 797,645 Denominator: Denominator for basic net income (loss) per share, weighted average shares 549,574 548,126 550,108 Effect of dilutive securities: Stock options outstanding - - 56,624 Denominator for diluted net income (loss) per share, weighted average shares 549,574 548,126 606,732 Net income (loss) per share: Basic net income (loss) per share $ (0.12 ) $ (0.05 ) $ 1.45 Diluted net income (loss) per share $ (0.12 ) $ (0.05 ) $ 1.31 All of our outstanding stock options were anti-dilutive during fiscal years 2010 and 2009 and excluded from the computation of diluted earnings per share due to the net loss for fiscal years 2010 and 2009. Diluted net income (loss) per share does not include the effect of anti-dilutive common equivalent shares from stock options outstanding of11.9 million for fiscal year 2008. The weighted average exercise price of stock options excluded from the computation of diluted earnings per share was $32.05 for fiscal year 2008. |
Note 6 - 3dfx
Note 6 - 3dfx | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
3dfx | Note 6 - 3dfx During fiscal year 2002, we completed the purchase of certain assets from 3dfx Interactive, Inc., or 3dfx, for an aggregate purchase price of approximately $74.2 million. On December 15, 2000, NVIDIA Corporation and one of our indirect subsidiaries entered into an Asset Purchase Agreement, or the APA, which closed on April 18, 2001, to purchase certain graphics chip assets from 3dfx. In October 2002, 3dfx filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Northern District of California. In March 2003, the Trustee appointed by the Bankruptcy Court to represent 3dfxs bankruptcy estate served his complaint on NVIDIA.The Trustees complaint asserted claims for, among other things, successor liability and fraudulent transfer and sought additional payments from us. In early November 2005, NVIDIA and the Official Committee of Unsecured Creditors, or the Creditors Committee, agreed to a Plan of Liquidation of 3dfx, which included a conditional settlement of the Trustees claims against us. This conditional settlement was subject to a confirmation process through a vote of creditors and the review and approval of the Bankruptcy Court. The conditional settlement called for a payment by NVIDIA of approximately $30.6 million to the 3dfx estate. Under the settlement, $5.6 million related to various administrative expenses and Trustee fees, and $25.0 million related to the satisfaction of debts and liabilities owed to the general unsecured creditors of 3dfx. Accordingly, during the three month period ended October 30, 2005, we recorded $5.6 million as a charge to settlement costs and $25.0 million as additional purchase price for 3dfx.The Trustee advised that he intended to object to the settlement. The conditional settlement reached in November 2005 never progressed through the confirmation process and the Trustees case still remains pending appeal.As such, we have not reversed the accrual of $30.6 million ($5.6 million as a charge to settlement costs and $25.0 million as additional purchase price for 3dfx) that we recorded during the three months ended October 30, 2005, pending resolution of the appeal of the Trustees case. The 3dfx asset purchase price of $95.0 million and $4.2 million of direct transaction costs were allocated based on fair values presented below. The final allocation of the purchase price of the 3dfx assets is contingent upon the outcome of all of the 3dfx litigation. Please refer to Note 13 of these Notes to the Consolidated Financial Statements for further information regarding this litigation. Fair Market Value Straight-Line Amortization Period (In thousands) (Years) Property and equipment $ 2,433 1-2 Trademarks 11,310 5 Goodwill 85,418 - Total $ 99,161 |
Note 7 - Business Combinations
Note 7 - Business Combinations | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Business Combinations | Note 7 Business Combinations On February 10, 2008, we acquired Ageia Technologies, Inc., or Ageia, an industry leader in gaming physics technology. The combination of the graphics processing unit, or GPU, and physics engine brands is expected to enhance the visual experience of the gaming world. The aggregate purchase price consisted of total consideration of approximately $29.7 million. We allocated the purchase price of this acquisition to tangible assets, liabilities and identifiable intangible assets acquired, based on their estimated fair values. The excess of purchase price over the aggregate fair values was recorded as goodwill. The fair value assigned to identifiable intangible assets acquired was based on estimates and assumptions made by management. Purchased intangibles are amortized on a straight-line basis over their respective useful lives. As of January 31, 2010, the estimated fair values of the purchase price allocated to assets we acquired and liabilities we assumed on the acquisition date were as follows: Ageia Fair Market Values (Inthousands) Cash and cash equivalents $ 1,744 Marketable securities 28 Accounts receivable 911 Prepaid and other current assets 1,149 Property and equipment 169 Goodwill 19,198 Intangible assets: Existing technology 13,450 Customer relationships 170 Trademark 900 Total assets acquired 37,719 Current liabilities (6,969 ) Acquisition related costs (1,030 ) Total liabilities assumed (7,999 ) Purchase price allocation $ 29,720 Ageia (Straight-line depreciation/amortization period) Property and equipment 1-2 years Intangible assets: Existing technology 4 years Customer relationships 5 years Trademark 5 years The pro forma results of operations for our acquisitions during fiscal years 2009 and 2008 have not been presented because the effects of the acquisitions, individually or in the aggregate, were not material to our results. |
Note 8 - Goodwill
Note 8 - Goodwill | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Goodwill | Note 8 - Goodwill The carrying amount of goodwill is as follows: January31, 2010 January25, 2009 (In thousands) PortalPlayer $ 104,896 $ 104,896 3dfx 75,326 75,326 Mental Images 59,252 59,252 MediaQ 35,167 35,167 ULi 31,115 31,115 Hybrid Graphics 27,906 27,906 Ageia 19,198 19,198 Other 16,984 16,984 Total goodwill $ 369,844 $ 369,844 Goodwill is subject to our annual impairment test during the fourth quarter of our fiscal year, or earlier if indicators of potential impairment exist, using a fair value-based approach.We completed our most recent annual impairment test during the fourth quarter of fiscal year 2010 and concluded that there was no impairment. In computing fair value of our reporting units, we use estimates of future revenues, costs and cash flows from such units. This assessment is based upon a discounted cash flow analysis and analysis of our market capitalization. The estimate of cash flow is based upon, among other things, certain assumptions about expected future operating performance such as revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, and determination of appropriate market comparables. The amount of goodwill allocated to our graphics processing unit, or GPU, business, the professional solutions business, or PSB, the media and communications processor, or MCP, business, and the consumer products business, or CPB segments as of January31, 2010 was $86.9 million, $95.1 million, $46.2 million and $141.6 million, respectively.Please refer to Note 17of these Notes to the Consolidated Financial Statements for further segment information. |
Note 9 - Amortizable Intangible
Note 9 - Amortizable Intangible Assets | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Amortizable Intangible Assets | Note 9 - Amortizable Intangible Assets The components of our amortizable intangible assets are as follows: January31,2010 January25,2009 Gross Carrying Amount Accumulated Amortization NetCarrying Amount Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization NetCarrying Amount Weighted Average Useful Life (In thousands) (In years) (In thousands) (In years) Technology licenses $ 135,112 $ (48,337 ) $ $86,775 6.3 $ 130,654 $ (34,610 ) $ 96,044 6.2 Acquired intellectual property 75,339 (49,838 ) 25,501 3.8 75,340 (35,200 ) 40,140 3.1 Patents 19,347 (11,165 ) 8,182 5.3 18,588 (7,671 ) 10,917 5.5 Total intangible assets $ 229,798 $ $(109,340 ) $ $120,458 $ 224,582 $ (77,481 ) $ 147,101 Amortization expense associated with intangible assets for fiscal years 2010, 2009 and 2008 was $31.9 million, $32.6 million and $24.5 million,respectively. Future amortization expense for the net carrying amount of intangible assets at January31, 2010 is estimated to be $27.9 million in fiscal year 2011, $25.6 million in fiscal year 2012, $19.0 million in fiscal year 2013, $14.6 million in fiscal year 2014 and $33.4 million in fiscal years subsequent to fiscal year 2014 until fully amortized. |
Note 10 - Marketable Securities
Note 10 - Marketable Securities | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Marketable Securities | Note 10 - Marketable Securities All of the cash equivalents and marketable securities are classified as available-for-sale securities. Investments in both fixed rate instruments and floating rate interest earning instruments carry a degree of interest rate risk. Fixed rate debt securities may have their market value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall. Due in part to these factors, our future investment income may fall short of expectations due to changes in interest rates or if the decline in fair value of our publicly traded debt or equity investments is judged to be other-than-temporary. We may suffer losses in principal if we are forced to sell securities that decline in market value due to changes in interest rates. However, because any debt securities we hold are classified as available-for-sale, no gains or losses are realized in our statement of operations due to changes in interest rates unless such securities are sold prior to maturity or unless declines in market values are determined to be other-than-temporary.These securities are reported at fair value with the related unrealized gains and losses included in accumulated other comprehensive income, a component of stockholders equity, net of tax. The following is a summary of cash equivalents and marketable securities at January31, 2010 and January25, 2009: January31, 2010 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (In thousands) Debt securities of United Statesgovernment agencies $ 492,628 $ 3,606 $ (29 ) $ 496,205 Corporate debt securities 514,200 4,064 (44 ) 518,220 Mortgage backed securities issued by United States government-sponsored enterprises 162,693 3,674 (13 ) 166,353 Money market funds 94,339 - - 94,340 Debt securities issued by United States Treasury 316,520 1,318 - 317,838 Asset-backed securities 17 - - 17 Total $ 1,580,397 $ 12,662 $ (86 ) $ 1,592,973 Classified as: Cash equivalents $ 311,967 Marketable securities 1,281,006 Total $ 1,592,973 January25, 2009 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (In thousands) Debt securities of United Statesgovernment agencies $ 313,319 $ 4,815 $ (13 ) $ 318,121 Corporate debt securities 252,265 680 (1,771 ) 251,174 Mortgage backed securities issued by United States government-sponsored |
Note 11 - Balance Sheet Compone
Note 11 - Balance Sheet Components | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Balance Sheet Components | Note 11 - Balance Sheet Components Certain balance sheet components are as follows: January31, 2010 January25, 2009 Inventories: (In thousands) Raw materials $ 76,935 $ 122,024 Work in-process 67,502 38,747 Finished goods 186,237 377,063 Total inventories $ 330,674 $ 537,834 January31, 2010 January25, 2009 Estimated UsefulLife (In thousands) (Years) Property and Equipment: Land $ 217,372 $ 217,866 (A) Building 29,223 29,216 3-25 Test equipment 261,172 234,368 3 Software and licenses 232,785 201,560 3-5 Leasehold improvements 143,649 136,008 (B) Computer equipment 139,482 125,533 3 Office furniture and equipment 34,091 32,224 5 Capital leases 26,618 26,618 (C) Construction in process 4,091 5,360 (D) 1,088,483 1,008,753 Accumulated depreciation and amortization (516,625 ) (382,955 ) Total property and equipment, net $ 571,858 $ 625,798 (A) Land is a non-depreciable asset. (B)Leasehold improvements are amortized based on the lesser of either the assets estimated useful life or the remaining lease term. (C)Capital leases are amortized based on the lesser of either the assets estimated useful life or the remaining lease term. (D)Construction in process represents assets that are not in service as of the balance sheet date. Depreciation expense for fiscal years 2010, 2009 and 2008 was $164.8 million, $152.4 million and $111.0 million, respectively. January31, 2010 January25, 2009 Prepaid Expenses and Other (In thousands) Prepaid maintenance $ 15,153 $ 11,268 Prepaid insurance 5,389 5,400 Prepaid taxes 3,574 3,571 Prepaid rent 3,352 3,254 Other 10,746 16,301 Total prepaid expenses and other $ 38,214 $ 39,794 January31, 2010 January25, 2009 Deposits and Other Assets (In thousands) Prepaid maintenance, long term $ 15,432 $ 20,005 Lease deposits 10,611 10,583 Investment in non-affiliates 6,630 6,412 Other 10,255 3,026 Total deposits and other assets $ 42,928 $ 40,026 January31, 2010 January25, 2009 Accrued Liabilities: (In thousands) Accrued customer programs (1) $ 212,107 $ 239,797 Warranty accrual (2) 92,655 150,631 Accrued payroll and related expenses 54,91 |
Note 12 - Guarantees
Note 12 - Guarantees | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Guarantees | Note 12 - Guarantees U.S. GAAP requires that upon issuance of a guarantee, the guarantor must recognize a liability for the fair value of the obligation it assumes under that guarantee. In addition, U.S. GAAP requires disclosures about the guarantees that an entity has issued, including a tabular reconciliation of the changes of the entitys product warranty liabilities. Product Defect Our products are complex and may contain defects or experience failures due to any number of issues in design, fabrication, packaging, materials and/or use within a system. If any of our products or technologies contains a defect, compatibility issue or other error, we may have to invest additional research and development efforts to find and correct the issue.Such efforts could divert our managements and engineers attention from the development of new products and technologies and could increase our operating costs and reduce our gross margin. In addition, an error or defect in new products or releases or related software drivers after commencement of commercial shipments could result in failure to achieve market acceptance or loss of design wins. Also, we may be required to reimburse customers, including for customers costs to repair or replace the products in the field, which could cause our revenue to decline. A product recall or a significant number of product returns could be expensive, damage our reputation and could result in the shifting of business to our competitors. Costs associated with correcting defects, errors, bugs or other issues could be significant and could materially harm our financial results. During fiscal year 2010, we recorded an additional net warranty charge of $95.8 million against cost of revenue to cover anticipated customer warranty, repair, return, replacement and other costs arising from a weak die/packaging material set in certain versions of our previous generation products used in notebook systems. This charge included an additional accrual of $164.4 million for related estimated costs, offset by reimbursements from insurance carriers of $68.6 million that we recorded against cost of revenue during fiscal year 2010.During fiscal year 2009, we recorded a net warranty charge of $189.3 million charge against cost of revenue for the purpose of supporting the product repair costs of our affected customers around the world.This charge included an accrual of $196.0 million for related estimated costs, offset by reimbursements from insurance carriers of $6.7 million that we recorded against cost of revenue during fiscal year 2009.Although the number of units that we estimate will be impacted by this issue remains consistent with our initial estimates in July 2008, the overall cost of remediation and repair of impacted systems has been higher than originally anticipated.The weak die/packaging material combination is not used in any of our products that are currently in production. The previous generation MCP and GPU products that are impacted were included in a number of notebook products that were shipped and sold in significant quantities. Certain notebook configurations of these products are failing in the field |
Note 13 - Financial Arrangement
Note 13 - Financial Arrangements, Commitments and Contingencies | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Financial Arrangements, Commitments and Contingencies | Note 13 - Financial Arrangements, Commitments and Contingencies Inventory Purchase Obligations At January31, 2010 and January25, 2009, we had outstanding inventory purchase obligations totaling $ 462.0 million and $290.7 million, respectively. Capital Purchase Obligations At January31, 2010 and January25, 2009, we had outstanding capital purchase obligations totaling $25.2 million and $20.3 million, respectively. Lease Obligations Our headquarters complex is located in Santa Clara, California and includes eight buildings that are leased properties. The lease agreements for five of the eight leased properties expire in fiscal year 2013 and include two seven-year renewals at our option; one leased property expires in fiscal year 2012 with an option to extend for one year; one leased properties expire in fiscal year 2011 with an option to extend for three years; and the remaining leased building expires in fiscal year 2015 with an option to extend for seven years.Future minimum lease payments related to headquarter operating leases total $64.1 million over the remaining terms of the leases, including predetermined rent escalations, and are included in the future minimum lease payment schedule below. In addition to the commitment of our headquarters, we have other domestic and international office facilities under operating leases expiring through fiscal year 2018. Future minimum lease payments under our non-cancelable operating leases as of January31, 2010, are as follows: Future Minimum Lease Obligations (Inthousands) Year ending January: 2011 $ 46,905 2012 47,944 2013 15,930 2014 9,628 2015 6,158 2016 and thereafter 18,395 Total $ 144,960 Rent expense for the years ended January 31, 2010, January 25, 2009 and January 27, 2008 was $46.2 million, $43.0 million and $38.2 million, respectively. In addition to these operating leases, we have a capital lease for a data center in Santa Clara, California. Future minimum lease payments under this capital lease total $43.8 million over the remaining lease term, including predetermined rent escalations, and are included in the future minimum lease payment schedule below: Future Capital Lease Obligations (Inthousands) Year ending January: 2011 $ 4,311 2012 4,440 2013 4,573 2014 4,710 2015 4,852 2016 and thereafter 20,905 Total $ 43,791 Present Value of minimum lease payments $ 25,634 Current portion $ 1,184 Long term portion $ 24,450 Litigation 3dfx On December 15, 2000, NVIDIA and one of our indirect subsidiaries entered into an Asset Purchase Agreement, or APA, to purchase certain graphics chip assets from 3dfx.The transaction closed on April 18, 2001.That acquisition, and 3dfxs October 2002 bankruptcy filing, led to four lawsuits against NVIDIA: two brought by 3dfxs former landlords, one by 3dfxs bankruptcy trustee a |
Note 14 - Income Taxes
Note 14 - Income Taxes | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Income Taxes | Note 14 - Income Taxes The income tax expense (benefit) applicable to income before income taxes consists of the following: YearEnded January31, 2010 January25, 2009 January27, 2008 (In thousands) Current income taxes: Federal $ 177 $ (31 ) $ (988 ) State 438 133 516 Foreign 6,966 8,923 14,665 Total current 7,581 9,025 14,193 Deferred taxes: Federal (22,013 ) (21,348 ) 90,178 State Foreign 866 (1,929 ) (1,014 ) Total deferred (21,147 ) (23,277 ) 89,164 Charge in lieu of taxes attributable to employer stock option plans (741) 1,339 339 Income tax expense (benefit) $ (14,307 ) $ (12,913 ) $ 103,696 Income (loss) before income taxes consists of the following: YearEnded January31, 2010 January25, 2009 January27, 2008 (In thousands) Domestic $ (245,137 ) $ (174,412 ) $ 6,416 Foreign 162,843 131,458 894,925 $ (82,294 ) $ (42,954 ) $ 901,341 The income tax expense (benefit) differs from the amount computed by applying the federal statutory income tax rate of 35% to income (loss) before income taxes as follows: YearEnded January31, 2010 January25, 2009 January27, 2008 (In thousands) Tax expense computed at federal statutory rate $ (28,803 ) $ (15,034 ) $ 315,470 State income taxes, net of federal tax effect (196) 957 555 Foreign tax rate differential 26,902 18,875 (178,358 ) Research tax credit (22,270 ) (22,766 ) (38,857 ) Stock-based compensation 10,114 5,342 4,828 Other (54 ) (287 ) 58 Income tax expense (benefit) $ (14,307 ) $ (12,913 ) $ 103,696 The tax effect of temporary differences that gives rise to significant portions of the deferred tax assets and liabilities are presented below: January31, 2010 January25, 2009 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 33,955 $ 27,593 Accruals and reserves, not currently deductible for tax purposes 14,027 26,015 Property, equipment and intangible assets 35,282 23,935 Research and other tax credit carryforwards 193,528 123,620 |
Note 15 - Stockholders' Equity
Note 15 - Stockholders' Equity | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Stockholders' Equity | Note 15 - Stockholders Equity Stock Repurchase Program Our Board of Directors has authorized us, subject to certain specifications, to repurchase shares of our common stock up to an aggregate maximum amount of $2.7 billion through May 2010.The repurchases will be made from time to time in the open market, in privately negotiated transactions, or in structured stock repurchase programs, and may be made in one or more larger repurchases, in compliance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended, subject to market conditions, applicable legal requirements, and other factors. 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 part of our share repurchase program, we have entered into, and we may continue to enter into, structured share repurchase transactions with financial institutions. These agreements generally require that we make an up-front payment in exchange for the right to receive a fixed number of shares of our common stock upon execution of the agreement, and a potential incremental number of shares of our common stock, within a pre-determined range, at the end of the term of the agreement. We did not enter into any structured share repurchase transactions or otherwise purchase any shares of our common stock during fiscal year 2010.Through January 31, 2010, we have repurchased an aggregate of 90.9 million shares under our stock repurchase program for a total cost of $1.46billion.As of January 31, 2010, we are authorized, subject to certain specifications, to repurchase shares of our common stock up to an additional amount of $1.24 billion through May 2010. Please refer to Notes 2 and 3 of these Notes to the Consolidated Financial Statements for further information regarding stock-based compensation related to our March 2009 stock option purchase and related to equity awards granted under our equity incentive programs. Convertible Preferred Stock As of January31, 2010 and January25, 2009, there were no shares of preferred stock outstanding. Common Stock At the Annual Meeting of Stockholders held on June 19, 2008, our stockholders approved an increase in our authorized number of shares of common stock to 2,000,000,000. The par value of our common stock remained unchanged at $0.001 per share. Please refer to Note 2 of these Notes to the Consolidated Financial Statements for further discussion regarding the cash tender offer for certain employee stock options completed in March 2009. |
Note 16 - Employee Retirement P
Note 16 - Employee Retirement Plans | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Employee Retirement Plans | Note 16 - Employee Retirement Plans We have a 401(k) Retirement Plan, or the 401(k) Plan, covering substantially all of our United States employees. Under the Plan, participating employees may defer up to 100% of their pre-tax earnings, subject to the Internal Revenue Service annual contribution limits.Some of our non-US subsidiaries have defined benefit and defined contributions plans as required by local statutory requirements.Our costs under these plans have not been material. |
Note 17 - Segment Information
Note 17 - Segment Information | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Segment Information | Note 17 - 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. During the last several fiscal years, we have operated and reported four major product-line operating segments to our CODM: the GPU business, the PSB, the MCP, business, and the CPB. However, effective with the first quarter of fiscal year 2011, we will no longer separate our MCP and GPU operating segments as such segmentation will no longer be reflective of the way we manage those businesses. Our GPU business is comprised primarily of our GeForce products that support desktop and notebook personal computers, or PCs, plus memory products. Our PSB is comprised of our Quadro professional workstation products and other professional graphics products, including our NVIDIA Tesla high-performance computing products. Our MCP business, as we have reported it through fiscal year 2010, has been comprised of our ION motherboard GPUs, or mGPU products. Our CPB is comprised of our Tegra mobile brand and products that support tablets and smartbooks, smartphones, personal media players, or PMPs, internet television, automotive navigation, and other such devices. CPB also includes license, royalty, other revenue and associated costs related to video game consoles and other digital consumer electronics devices. In addition to these operating segments, we have the All Other category that includes human resources, legal, finance, general administration, corporate marketing expenses, charges related to the stock option purchase, restructuring charges and certain vendor price credits not allocated to specific operating segments all of which total $386.1 million, $346.1 million and $266.2 million for fiscal years 2010, 2009 and 2008, respectively, that we do not allocate to our other operating segments as these expenses are not included in the segment operating performance measures evaluated by our CODM. All Other also includes the results of operations of other miscellaneous reporting segments that are neither individually reportable, nor aggregated with another operating segment.Revenue in the All Other category is primarily derived from sales of components. Certain prior period amounts have been revised to conform to the presentation of our current fiscal year. Our CODM does not review any information regarding total assets on an operating segment basis. Operating segments do not record intersegment revenue, and, accordingly, there is none to be reported.The accounting policies for segment reporting are the same as for NVIDIA as a whole. GPU PSB MCP CPB All Other Consolidated (In thousands) Year Ended January31, 2010: Revenue $ 1,764,684 $ 510,223 $ 871,606 $ 163,878 $ 16,054 $ 3,326,445 Depreciation and amortization expense $ 60,102 $ 20,279 |
Note 18 - Fair Value of Cash Eq
Note 18 - Fair Value of Cash Equivalents and Marketable Securities | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Fair Value of Cash Equivalents and Marketable Securities | Note 18 Fair Value of Cash Equivalents and Marketable Securities We measure our cash equivalents and marketable securities at fair value. The fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assetsfrom active markets. Level1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level2 valuations are obtained from quoted market prices in active markets involving similar assets. Level 3 valuations 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. Financial assets and liabilities measured at fair value are summarized below: Fair value measurement at reporting date using QuotedPricesin Active Markets for Identical Assets Significant Other Observable Inputs High Level of Judgment January 31, 2010 (Level 1) (Level 2) (Level 3) (In thousands) Other debt securities issued by U.S. Government agencies (1) $ 496,205 $ - $ 496,205 $ - Corporate debt securities (2) 518,220 - 518,220 - Mortgage-backed securities issued by Government-sponsored entities (3) 166,353 - 166,353 - Money market funds (4) 94,339 81,380 12,959 - - Debt securities issued by United States Treasury (5) 317,839 - 317,839 - Asset-backed securities (3) 17 - 17 - Total assets $ 1,592,973 $ 81,380 $ 1,498,634 $ 12,959 (1)Includes $92.7.million in Cash Equivalents and $403.5million in Marketable Securities on the Consolidated Balance Sheet. (2)Includes $72.4 million in Cash Equivalents and $445.8 million in Marketable Securities on the Consolidated Balance Sheet. (3)Included in Marketable Securities on the Consolidated Balance Sheet. (4)Includes $81.3 million in Cash Equivalents and $13.0 million in Marketable Securities on the Consolidated Balance Sheet. (5)Includes $65.5 million in Cash Equivalents and $252.3 million in Marketable Securities on the Consolidated Balance Sheet. For our money market funds that were held by the International Reserve Fund at January 31, 2010, we assessed the fair value of the money market funds by considering the underlying securities held by the International Reserve Fund. As the International Reserve Fund has halted redemption requests and is currently believed to be holding all of their securities until maturity, we valued the underlying securities held by the International Reserve Fund at their maturity value using an income approach. Certain of the debt securities held by the International Reserve Fund were issued by companies t |
Note 19 - Subsequent Events
Note 19 - Subsequent Events | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Subsequent Events | Note 19 Subsequent Event Our Board of Directors has authorized us, subject to certain specifications, to repurchase shares of our common stock up to an aggregate maximum amount of $2.7 billion through May 2010. Through January 31, 2010, we have repurchased an aggregate of 90.9 million shares under our stock repurchase program for a total cost of $1.46billion.As of January 31, 2010, we are authorized, subject to certain specifications, to repurchase shares of our common stock up to an additional amount of $1.24 billion through May 2010. On March 16, 2010, our Board of Directors further authorized an extension of the stock repurchase program from May 2010 to May 2013. The repurchases will be made from time to time in the open market, in privately negotiated transactions, or in structured stock repurchase programs, and may be made in one or more larger repurchases, in compliance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended, subject to market conditions, applicable legal requirements, and other factors. 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 part of our share repurchase program, we have entered into, and we may continue to enter into, structured share repurchase transactions with financial institutions. These agreements generally require that we make an up-front payment in exchange for the right to receive a fixed number of shares of our common stock upon execution of the agreement, and a potential incremental number of shares of our common stock, within a pre-determined range, at the end of the term of the agreement. |
Note 20 - Quarterly Summary
Note 20 - Quarterly Summary (Unaudited) | |
12 Months Ended
Jan. 31, 2010 | |
Notes to Financial Statements [Abstract] | |
Quarterly Summary (Unaudited) | Note 20 - Quarterly Summary (Unaudited) The following table sets forth our unaudited consolidated financial results, for the last eight fiscal quarters ended January31, 2010. Fiscal Year 2010 Quarters Ended January 31, 2010 October 25, 2009 (A) July 26, 2009 (B, C) April 26, 2009 (D) (In thousands, except per share data) Statement of Operations Data: Revenue $ 982,488 $ 903,206 $ 776,520 $ 664,231 Cost of revenue $ 543,767 $ 511,423 $ 619,797 $ 474,535 Gross profit $ 438,721 $ 391,783 $ 156,723 $ 189,696 Net income (loss) $ 131,076 $ 107,577 $ (105,302 ) $ (201,338) Basic net income (loss) per share $ 0.24 $ 0.20 $ (0.19 ) $ (0.37) Diluted net income (loss) per share $ 0.23 $ 0.19 $ (0.19 ) $ (0.37) Fiscal Year 2009 Quarters Ended January 25, 2009 (E, F) October 26, 2008 (G, H) July 27, 2008 (I) April 27, 2008 (In thousands, except per share data) Statement of Operations Data: Revenue $ 481,140 $ 897,655 $ 892,676 $ 1,153,388 Cost of revenue $ 339,474 $ 529,812 $ 742,759 $ 638,545 Gross profit $ 141,666 $ 367,843 $ 149,917 $ 514,843 Net income (loss) $ (147,665 ) $ 61,748 $ (120,929 ) $ 176,805 Basic net income (loss) per share $ (0.27 ) $ 0.11 $ (0.22 ) $ 0.32 Diluted net income (loss) per share $ (0.27 ) $ 0.11 $ (0.22 ) $ 0.30 (A) Included $25.1 million benefit from an insurance provider as reimbursement for some claims against us towards the cost arising from a weak die/packaging material set. Portions of the reimbursement are allocated to cost of revenue ($24.1 million) and legal expense ($1.0 million). (B) Included $164.4 million warranty charge against cost of revenue arising from a weak die/packaging material set. (C) Included $45.4 million benefit from an insurance provider as reimbursement for some claims against us towards the cost arising from a weak die/packaging material set.Portions of the reimbursement are allocated to cost of revenue ($44.5 million) and legal expense ($0.9 million). (D) Included non-recurring charges of $140.2 million for the stock option purchase completed in March 2009 related to personnel associated with cost of revenue, research and development and sales, general and administrative of $11.4 millio |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |
12 Months Ended
Jan. 31, 2010 | |
Schedule to Financial Statements [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | NVIDIA CORPORATION AND SUBSIDIARIES SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Description Balanceat Beginning of Period Additions Deductions Balance at End of Period (In thousands) Year ended January31, 2010 Allowance for doubtful accounts $ 1,062 $ 550 (1) $ (651 ) (2) $ 961 Sales return allowance $ 17,336 $ 24,790 (3) $ (26,757 )(4) $ 15,369 Deferred tax valuation allowance $ 92,541 $ 20,901 (5) $ - $ 113,442 Year ended January25, 2009 Allowance for doubtful accounts $ 968 $ 608 (1) $ (514 )(2) $ 1,062 Sales return allowance $ 18,724 $ 27,859 (3) $ (29,247 )(4) $ 17,336 Deferred tax valuation allowance $ 82,522 $ 10,019 (5) $ - $ 92,541 Year ended January27, 2008 Allowance for doubtful accounts $ 1,271 $ 505 (1) $ (808) (2) $ 968 Sales return allowance $ 14,478 $ 25,536 (3) $ (21,290 ) (4) $ 18,724 Deferred tax valuation allowance $ 68,563 $ 13,959 (5) $ - $ 82,522 (1)Allowances for doubtful accounts are charged to expenses. (2)Represents uncollectible accounts written off against the allowance for doubtful accounts. (3) Represents allowance for sales returns estimated at the time revenue is recognized primarily based on historical return rates and is charged as a reduction to revenue. (4) Represents allowance for sales returns written off. (5)Represents change in valuation allowance primarily related to state deferred tax assets that management has determined not likely to be realized due, in part, to projections of future state taxable income. |
Document Information
Document Information | |
12 Months Ended
Jan. 31, 2010 | |
Document Information [Text Block] | |
Document Type | 10-K |
Document Period End Date | 2010-01-31 |
Amendment Flag | false |
Entity Information
Entity Information (USD $) | |||
12 Months Ended
Jan. 31, 2010 | Mar. 10, 2010
| Jul. 26, 2009
| |
Entity [Text Block] | |||
Entity Registrant Name | NVIDIA CORP | ||
Entity Central Index Key | 0001045810 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $6,700,000,000 | ||
Entity Common Stock, Shares Outstanding | 566,500,000 | ||
Document Fiscal Year Focus | 2,010 | ||
Document Fiscal Period Focus | FY |