Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 9 Months Ended | ||
Oct. 27, 2013 | Nov. 15, 2013 | Jul. 29, 2012 | |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'NVIDIA CORP | ' | ' |
Entity Central Index Key | '0001045810 | ' | ' |
Current Fiscal Year End Date | '--01-26 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 27-Oct-13 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 568,535,613 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $7,980,000,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 27, 2013 | Oct. 28, 2012 | Oct. 27, 2013 | Oct. 28, 2012 |
Revenue | $1,053,967 | $1,204,110 | $2,985,944 | $3,173,257 |
Cost of revenue | 469,552 | 567,452 | 1,337,423 | 1,532,516 |
Gross profit | 584,415 | 636,658 | 1,648,521 | 1,640,741 |
Operating expenses | ' | ' | ' | ' |
Research and development | 340,294 | 284,180 | 999,193 | 849,275 |
Sales, general and administrative | 103,133 | 100,261 | 320,025 | 326,800 |
Total operating expenses | 443,427 | 384,441 | 1,319,218 | 1,176,075 |
Income from operations | 140,988 | 252,217 | 329,303 | 464,666 |
Interest income | 4,022 | 4,701 | 12,963 | 15,215 |
Other expense, net | -3,526 | -3,290 | -900 | -3,950 |
Income before income tax expense | 141,484 | 253,628 | 341,366 | 475,931 |
Income tax expense | 22,750 | 44,548 | 48,293 | 87,368 |
Net income | $118,734 | $209,080 | $293,073 | $388,563 |
Basic net income per share | $0.20 | $0.34 | $0.49 | $0.63 |
Shares used in basic per share computation | 580,870 | 622,352 | 594,363 | 619,043 |
Diluted net income per share | $0.20 | $0.33 | $0.49 | $0.62 |
Shares used in diluted per share computation | 588,752 | 628,845 | 600,108 | 625,973 |
Common Stock, Dividends, Per Share, Cash Paid | $0.08 | $0 | $0.23 | $0 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF COMPREHNSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 27, 2013 | Oct. 28, 2012 | Oct. 27, 2013 | Oct. 28, 2012 |
Net income | $118,734 | $209,080 | $293,073 | $388,563 |
Net change in unrealized gains (losses) on available-for-sale securities, net of tax | 8 | -269 | -2,978 | 497 |
Reclassification adjustments for net realized gains on available-for-sale securities included in net income, net of tax | -43 | -31 | -1,141 | -251 |
Other comprehensive income (loss), net of tax | -35 | -300 | -4,119 | 246 |
Total comprehensive income | $118,699 | $208,780 | $288,954 | $388,809 |
Recovered_Sheet1
Condensed Consolidated Statement of Comprehensive Income (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 27, 2013 | Oct. 28, 2012 | Oct. 27, 2013 | Oct. 28, 2012 |
Tax effect of Unrealized gain ( loss) | ($126) | $95 | ($47) | ($148) |
Tax effect of Reclassification Adjustment for Sale of Securities | $24 | $16 | $615 | $135 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Oct. 27, 2013 | Jan. 27, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $562,084 | $732,786 |
Marketable securities | 2,470,870 | 2,995,097 |
Accounts receivable, net | 447,631 | 454,252 |
Inventories | 380,319 | 412,467 |
Prepaid expenses and other | 81,701 | 76,920 |
Deferred income taxes | 107,236 | 103,736 |
Total current assets | 4,049,841 | 4,775,258 |
Property and equipment, net | 595,418 | 576,144 |
Goodwill | 643,179 | 641,030 |
Intangible assets, net | 320,589 | 312,332 |
Other assets | 102,346 | 107,481 |
Total assets | 5,711,373 | 6,412,245 |
Current liabilities: | ' | ' |
Accounts payable | 333,283 | 356,428 |
Accrued liabilities and other | 652,644 | 619,795 |
Total current liabilities | 985,927 | 976,223 |
Other long-term liabilities | 387,784 | 589,321 |
Capital lease obligations, long term | 17,015 | 18,998 |
Commitments and contingencies - see Note 11 | 0 | 0 |
Stockholders' equity | ' | ' |
Preferred stock | 0 | 0 |
Common stock | 732 | 720 |
Additional paid-in capital | 3,407,889 | 3,193,623 |
Treasury stock, at cost | -2,499,990 | -1,622,709 |
Accumulated other comprehensive income | 5,862 | 9,981 |
Retained earnings | 3,406,154 | 3,246,088 |
Total stockholders' equity | 4,320,647 | 4,827,703 |
Total liabilities and stockholders' equity | $5,711,373 | $6,412,245 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Oct. 27, 2013 | Oct. 28, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $293,073 | $388,563 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 184,310 | 167,834 |
Stock based compensation expense | 100,091 | 100,893 |
Deferred income taxes | 7,914 | 42,684 |
Excess Tax benefit from stock based compensation | -23,743 | -25,646 |
Other | 11,311 | 39,978 |
Changes in operating assets and liabilities, net of effect of acquisition: | ' | ' |
Accounts receivable | 7,806 | -109,008 |
Inventories | 32,178 | -88,378 |
Prepaid expenses and other current assets | -4,687 | -16,786 |
Other assets | 7,585 | 4,784 |
Accounts payable | -38,376 | 49,099 |
Accrued liabilities and other long-term liabilities | -143,028 | -180,854 |
Net cash provided by operating activities | 434,434 | 373,163 |
Cash flows from investing activities: | ' | ' |
Purchases of marketable securities | -1,420,471 | -1,729,307 |
Proceeds from sale of marketable securities | 1,475,403 | 635,733 |
Proceeds from maturities of marketable securities | 447,134 | 626,434 |
Purchases of property and equipment and intangible assets | -188,812 | -135,551 |
Acquisition of business | -17,145 | 0 |
Other | -2,450 | 135 |
Net cash provided by (used in) investing activities | 293,659 | -602,556 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock under employee stock plans | 64,749 | 62,781 |
Excess Tax benefit from Stock based compensation | 23,743 | 25,646 |
Payments for Repurchase of Common Stock | -850,000 | 0 |
Dividend paid | -133,007 | 0 |
Other Financing Activities | -4,280 | -1,522 |
Net cash provided by (used in) financing activities | -898,795 | 86,905 |
Change in cash and cash equivalents | -170,702 | -142,488 |
Cash and cash equivalents at beginning of period | 732,786 | 667,876 |
Cash and cash equivalents at end of period | 562,084 | 525,388 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid or (received) for income taxes, net | 8,454 | ' |
Proceeds from Income Tax Refunds | ' | -40,442 |
Cash paid for interest on capital lease obligations | 1,915 | 2,189 |
Other non-cash activities: | ' | ' |
Assets acquired by assuming related liabilities | 28,963 | 43,792 |
Change in unrealized gains (losses) from marketable securities | ($4,119) | $246 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 27, 2013 | |
Notes to financial statements [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
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. In the opinion of management, all adjustments, consisting only of normal recurring adjustments except as otherwise noted, 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 financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 27, 2013. | |
Fiscal Year | |
We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal year 2014 and fiscal year 2013 are both 52-week years. The third quarters of fiscal years 2014 and 2013 are both 13-week quarters. | |
Principles of Consolidation | |
Our condensed consolidated financial statements include the accounts of NVIDIA Corporation and its wholly-owned subsidiaries. All material inter-company balances and transactions have been eliminated in consolidation. | |
Reclassifications | |
Certain prior fiscal year balances have been reclassified to conform to the current fiscal year presentation. | |
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 from those 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, warranty liabilities, litigation, investigation and settlement costs and other contingencies. These estimates are based on historical facts and various other assumptions that we believe are reasonable. | |
Revenue Recognition | |
Product Revenue | |
We recognize revenue from product sales when persuasive evidence of an arrangement exists, the product has been delivered, the price is fixed or determinable and collection of the related receivable is reasonably assured. For most sales, we use a binding purchase order and in certain cases we use a contractual agreement as evidence of an arrangement. We consider delivery to occur upon shipment provided title and risk of loss have passed to the customer. At the point of sale, we assess whether the arrangement fee is fixed or determinable and whether collection is reasonably assured. If we determine that collection of a fee is not reasonably assured, we defer the fee and recognize revenue at the time collection becomes reasonably assured, which is generally upon receipt of payment. | |
Our policy on sales to certain distributors, with rights of return, is to defer recognition of revenue and related cost of revenue until the distributors resell the product, as the level of returns cannot be reasonably estimated. Our customer programs primarily involve rebates, which are designed to serve as sales incentives to resellers of our products in various target markets. We accrue for 100% of the potential rebates and do not apply a breakage factor. We recognize a liability for these rebates at the later of the date at which we record the related revenue or the date at which we offer the rebate. Rebates typically expire six months from the date of the original sale, unless we reasonably believe that the customer intends to claim the rebate. Unclaimed rebates are reversed to revenue. | |
Our customer programs also include marketing development funds, or MDFs. We account for MDFs as either a reduction of revenue or an operating expense, depending on the nature of the program. MDFs represent monies paid to retailers, system builders, original equipment manufacturers, distributors and add-in card partners that are earmarked for market segment development and expansion and typically are designed to support our partners’ activities while also promoting NVIDIA products. Depending on market conditions, we may take actions to increase amounts offered under customer programs, possibly resulting in an incremental reduction of revenue at the time such programs are offered. | |
We also record a reduction to revenue by establishing a sales return allowance for estimated product returns at the time revenue is recognized, based primarily on historical return rates. However, if product returns for a particular fiscal period exceed historical return rates we may determine that additional sales return allowances are required to properly reflect our estimated exposure for product returns. | |
License and Development Revenue | |
For license arrangements that require significant customization of our intellectual property components, we generally recognize the related revenue over the period that services are performed. For most license and service arrangements, we determine progress to completion based on actual direct labor hours incurred to date as a percentage of the estimated total direct labor hours required to complete the project. We periodically evaluate the actual status of each project to ensure that the estimates to complete each contract remain accurate. A provision for estimated losses on contracts is made in the period in which the loss becomes probable and can be reasonably estimated. Costs incurred in advance of revenue recognized are recorded as deferred costs on uncompleted contracts. If the amount billed exceeds the amount of revenue recognized, the excess amount is recorded as deferred revenue. Revenue recognized in any period is dependent on our progress toward completion of projects in progress. Significant management judgment and discretion are used to estimate total direct labor hours. Any changes in or deviations from these estimates could have a material effect on the amount of revenue we recognize in any period. | |
For license arrangements that do not require significant customization but where we are obligated to provide further deliverables over the term of the license agreement, we record revenue over the life of the license term, with consideration received in advance of the performance period classified as deferred revenue. | |
Royalty revenue is recognized related to the distribution or sale of products that use our technologies under license agreements with third parties. We recognize royalty revenue upon receipt of a confirmation of earned royalties and when collectability is reasonably assured from the applicable licensee. | |
Inventories | |
Inventory cost is computed on an adjusted standard basis, which approximates actual cost on an average or first-in, first-out basis. Inventory costs consist primarily of the cost of semiconductors purchased from subcontractors, including wafer fabrication, assembly, testing and packaging, manufacturing support costs, including labor and overhead associated with such purchases, final test yield fallout, inventory provisions and shipping costs. We write down our inventory to the lower of cost or estimated market value. Excess, obsolete or unmarketable inventory is completely written off based upon assumptions about future demand, future product purchase commitments, estimated manufacturing yield levels and market conditions. If actual market conditions are less favorable than those projected by management, or if our current inventory or future product purchase commitments to our suppliers exceed our forecasted future demand for such products, additional future inventory write-downs may be required that could adversely affect our operating results. Inventory reserves once established are not reversed until the related inventory has been sold or scrapped. If actual market conditions are more favorable than expected and we sell products that we have previously written down, our reported gross margin would be favorably impacted. | |
Net Income Per Share | |
Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common and potentially dilutive shares outstanding during the period, using the treasury stock method. Under the treasury stock method, the effect of equity awards outstanding is not included in the computation of diluted net income per share for periods when their effect is anti-dilutive. | |
Adoption of New and Recently Issued Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board, or FASB, issued guidance regarding the presentation of unrecognized tax benefits when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. The new guidance requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward when settlement in this manner is available under the tax law. This guidance is effective on a prospective basis for financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013. Retrospective and early adoption is permitted. We expect to adopt this guidance in our interim and annual periods beginning January 27, 2014. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. | |
In February 2013, the FASB issued updated guidance requiring entities to report the effect of significant reclassifications to accumulated other comprehensive income on the respective line items in net income. These reclassifications are reported, only if U.S. GAAP requires the entire amount to be reclassified to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety from accumulated other comprehensive income to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. We adopted this guidance in our interim period ended April 28, 2013. The adoption of this guidance did not impact our financial statements, as the guidance is related to disclosure only, and we have not had significant reclassifications out of accumulated other comprehensive income. |
Stock_Based_Compensation
Stock Based Compensation | 9 Months Ended | |||||||||||||||
Oct. 27, 2013 | ||||||||||||||||
Notes to financial statements [Abstract] | ' | |||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||
Stock-Based Compensation | ||||||||||||||||
We measure stock-based compensation expense based on the estimated fair value of equity awards at the grant date, and recognize the expense using a straight-line attribution method over the requisite employee service period. 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, minus a dividend yield discount, as the fair value of awards of restricted stock units, or RSUs. We estimate the fair value of shares to be issued under our employee stock purchase plan using the Black-Scholes model at the commencement of an offering period in March and September of each year. Stock-based compensation for our employee stock purchase plan is expensed using an accelerated amortization model. | ||||||||||||||||
Our condensed consolidated statements of income include stock-based compensation expense, net of amounts capitalized as inventory, as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 27, | October 28, | October 27, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Cost of revenue | $ | 3,090 | $ | 2,489 | $ | 7,911 | $ | 7,664 | ||||||||
Research and development | 20,902 | 20,056 | 61,392 | 60,148 | ||||||||||||
Sales, general and administrative | 10,307 | 10,524 | 30,788 | 33,081 | ||||||||||||
Total | $ | 34,299 | $ | 33,069 | $ | 100,091 | $ | 100,893 | ||||||||
During the three and nine months ended October 27, 2013, we granted approximately 2.8 million and 6.0 million stock options, with an estimated total grant-date fair value of $10.8 million and $20.9 million and a weighted average grant-date fair value of $3.90 and $3.46 per option, respectively. During the three and nine months ended October 27, 2013, we granted approximately 4.9 million and 10.4 million RSUs with an estimated total grant-date fair value of $73.8 million and $140.1 million and a weighted average grant-date fair value of $15.15 and $13.44 per RSU, respectively. | ||||||||||||||||
During the three and nine months ended October 28, 2012, we granted approximately 3.2 million and 6.8 million stock options, with an estimated total grant-date fair value of $17.9 million and $37.2 million and a weighted average grant-date fair value of $5.54 and $5.45 per option, respectively. During the three and nine months ended October 28, 2012, we granted approximately 3.5 million and 7.5 million RSUs, with an estimated total grant-date fair value of $48.2 million and $104.7 million and a weighted average grant-date fair value of $13.72 and $13.99 per RSU, respectively. | ||||||||||||||||
Of the estimated total grant-date fair value, we estimated that the stock-based compensation expense related to the equity awards that were not expected to vest was $15.1 million and $28.8 million for the three and nine months ended October 27, 2013, respectively, and $11.8 million and $25.4 million for the three and nine months ended October 28, 2012, respectively. As of October 27, 2013 and January 27, 2013, the aggregate amount of unearned stock-based compensation expense related to our equity awards was $265.3 million and $208.7 million, respectively, adjusted for estimated forfeitures. As of October 27, 2013 and January 27, 2013, we expected to recognize the unearned stock-based compensation expense related to stock options over an estimated weighted average amortization period of 2.7 years. As of October 27, 2013 and January 27, 2013, we expected to recognize the unearned stock-based compensation expense related to RSUs over an estimated weighted average amortization period of 3.0 years and 2.7 years, respectively. | ||||||||||||||||
Valuation Assumptions | ||||||||||||||||
We determine the fair value of stock option awards on the date of grant using an option-pricing model that is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, weighted average expected term, risk-free interest rate, expected stock price volatility, dividend yield, actual and projected employee stock option exercise behaviors, vesting schedules and death and disability probabilities. We segregate options into groups of employees with relatively homogeneous exercise behavior in order to calculate the best estimate of fair value using the binomial valuation model. The expected life of employee stock options is a derived output of our valuation model and is impacted by the underlying assumptions of our company. The risk-free interest rate assumption is based upon observed interest rates on Treasury bills appropriate for the term of our employee stock options. Our management has determined that the use of implied volatility is expected to be more reflective of market conditions and, therefore, can reasonably be expected to be a better indicator of our expected volatility than historical volatility. Dividend yield is based on history and expectation of dividend payouts. Our RSU awards are not eligible for cash dividends prior to vesting; therefore, the fair value of RSUs is discounted by the dividend yield. | ||||||||||||||||
Prior to the initial declaration of a quarterly cash dividend on November 8, 2012, the fair value of our equity awards was based on an expected dividend yield of 0% reflecting our prior history in which we had not paid and did not expect to pay cash dividends on our common stock. For awards granted on or subsequent to November 8, 2012, we use the dividend yield at grant date based on the per share dividends declared during the most recent quarter. | ||||||||||||||||
Additionally, for employee stock option and RSU awards, we estimate forfeitures annually and revise the estimates of forfeiture in subsequent periods if actual forfeitures differ from those estimates. Forfeitures are estimated based on historical experience. If factors change and we employ different assumptions in the application of accounting standards in future periods, the compensation expense that we record under these accounting standards may differ significantly from what we have recorded in the current period. | ||||||||||||||||
The fair value of stock options granted under our equity incentive plans and shares issued under our employee stock purchase plan have been estimated at the date of grant with the following assumptions: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 27, | October 28, | October 27, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock Options | (Using a binomial model) | |||||||||||||||
Expected life (in years) | 3.3-3.5 | 4.3-4.9 | 2.4-3.5 | 3.1-4.9 | ||||||||||||
Risk-free interest rate | 2.6%-3.0% | 1.7%-1.8% | 1.8%-3.0% | 1.5% - 2.3% | ||||||||||||
Volatility | 30%-32% | 45%-49% | 30%-37% | 43% - 49% | ||||||||||||
Dividend yield | 1.9%-2.0% | — | 1.9%-2.4% | — | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 27, | October 28, | October 27, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Employee Stock Purchase Plan | (Using a Black-Scholes model) | |||||||||||||||
Expected life (in years) | 0.5-2.0 | 0.5-2.0 | 0.5 - 2.0 | 0.5 - 2.0 | ||||||||||||
Risk-free interest rate | 0.1%-0.4% | 0.1%-0.2% | 0.1%-0.4% | 0.1% - 0.3% | ||||||||||||
Volatility | 32 | % | 47 | % | 32%-37% | 44%-47% | ||||||||||
Dividend yield | 2 | % | — | 2.0%-2.4% | — | |||||||||||
Equity Award Activity | ||||||||||||||||
The following summarizes the stock option and RSU activity under our equity incentive plans: | ||||||||||||||||
Options Outstanding | Weighted Average Exercise Price | |||||||||||||||
Stock Options | (In thousands) | (Per share) | ||||||||||||||
Balances, January 27, 2013 | 32,995 | $ | 14.66 | |||||||||||||
Granted | 6,049 | $ | 14.29 | |||||||||||||
Exercised | (2,557 | ) | $ | 10.15 | ||||||||||||
Cancelled | (3,358 | ) | $ | 22.14 | ||||||||||||
Balances, October 27, 2013 | 33,129 | $ | 14.18 | |||||||||||||
RSUs Outstanding | Weighted Average Grant-Date Fair Value | |||||||||||||||
Restricted Stock Units | (In thousands) | (Per share) | ||||||||||||||
Balances, January 27, 2013 | 15,159 | $ | 14.46 | |||||||||||||
Granted | 10,427 | $ | 13.44 | |||||||||||||
Vested | (5,891 | ) | $ | 14.8 | ||||||||||||
Cancelled | (921 | ) | $ | 13.87 | ||||||||||||
Balances, October 27, 2013 | 18,774 | $ | 13.82 | |||||||||||||
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||||||||||
Oct. 27, 2013 | ||||||||||||||||
Notes to financial statements [Abstract] | ' | |||||||||||||||
Net Income Per Share | ' | |||||||||||||||
Net Income Per Share | ||||||||||||||||
The following is a reconciliation of the numerator and denominator of the basic and diluted net income per share computations for the periods presented: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 27, | October 28, | October 27, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 118,734 | $ | 209,080 | $ | 293,073 | $ | 388,563 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic net income per share, weighted average shares | 580,870 | 622,352 | 594,363 | 619,043 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Equity awards outstanding | 7,882 | 6,493 | 5,745 | 6,930 | ||||||||||||
Denominator for diluted net income per share, weighted average shares | 588,752 | 628,845 | 600,108 | 625,973 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic net income per share | $ | 0.2 | $ | 0.34 | $ | 0.49 | $ | 0.63 | ||||||||
Diluted net income per share | $ | 0.2 | $ | 0.33 | $ | 0.49 | $ | 0.62 | ||||||||
Potentially dilutive securities excluded from income per diluted share because their effect would have been anti-dilutive | 21,870 | 27,555 | 27,351 | 31,697 | ||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Oct. 27, 2013 | |
Notes to financial statements [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
We recognized income tax expense of $22.8 million and $48.3 million for the three and nine months ended October 27, 2013, respectively, and $44.5 million and $87.4 million for the three and nine months ended October 28, 2012, respectively. Income tax expense as a percentage of income before taxes, or our effective tax rate, was 16.1% and 14.2% for the three and nine months ended October 27, 2013, respectively, and 17.6% and 18.4% for the three and nine months ended October 28, 2012, respectively. | |
The decrease in our effective tax rate compared to the prior year was primarily due to the benefit of the U.S. federal research tax credit which was re-enacted on January 2, 2013, or the fourth quarter of our fiscal year 2013, under the American Taxpayer Relief Act. The U.S. research tax credit was expired during the third quarter of fiscal year 2013. During the fourth quarter of fiscal year 2013, the credit was reenacted retroactively from December 31, 2011 through to December 31, 2013, with the entire benefit for all previous quarters required to be recognized in the fourth quarter. As a result, the third quarter of fiscal year 2013 reflects no tax benefit for the research tax credit and the third quarter of fiscal year 2014 includes the annualized benefit of a research tax credit (for the 11 months the law is in effect). | |
Our effective tax rate on income before tax for the first nine months of fiscal year 2014 of 14.2% and fiscal year 2013 of 18.4% were lower than the United States federal statutory rate of 35% due primarily to income earned in jurisdictions where the tax rate is lower than the United States federal statutory tax, and for fiscal year 2014 due to the benefit of the U.S. federal research tax credit. | |
For the nine months ended October 27, 2013, there have been no material changes to our tax years that remain subject to examination by major tax jurisdictions. Additionally, there have been no other material changes to our unrecognized tax benefits and any related interest or penalties from our fiscal year ended January 27, 2013, other than the recognition of tax benefits related to the expiration of statute of limitation in certain non-U.S. jurisdictions in the nine months ended October 27, 2013. | |
While we believe that we have adequately provided for all uncertain tax positions, or tax positions where it is believed not more-likely-than-not that the position will be sustained upon examination, 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 October 27, 2013, 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. |
Marketable_Securities
Marketable Securities | 9 Months Ended | |||||||||||||||||||||||
Oct. 27, 2013 | ||||||||||||||||||||||||
Notes to financial statements [Abstract] | ' | |||||||||||||||||||||||
Marketable Securities | ' | |||||||||||||||||||||||
Marketable Securities | ||||||||||||||||||||||||
All of our cash equivalents and marketable securities are classified as “available-for-sale” securities. 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, and net realized gains and losses recorded in other expense, net, on the Condensed Consolidated Statement of Income. | ||||||||||||||||||||||||
We performed an impairment review of our investment portfolio as of October 27, 2013. Based on our quarterly impairment review and having considered the guidance in the relevant accounting literature, we concluded that our investments were appropriately valued and that no other than temporary impairment charges were necessary on our portfolio as of October 27, 2013. | ||||||||||||||||||||||||
The following is a summary of cash equivalents and marketable securities at October 27, 2013 and January 27, 2013: | ||||||||||||||||||||||||
October 27, 2013 | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Corporate debt securities | $ | 1,099,456 | $ | 2,020 | $ | (545 | ) | $ | 1,100,931 | |||||||||||||||
Debt securities of United States government agencies | 726,382 | 798 | (184 | ) | 726,996 | |||||||||||||||||||
Debt securities issued by United States Treasury | 441,075 | 561 | (108 | ) | 441,528 | |||||||||||||||||||
Mortgage backed securities issued by United States government-sponsored enterprises | 190,993 | 4,129 | (522 | ) | 194,600 | |||||||||||||||||||
Asset-backed securities | 60,886 | 6 | (16 | ) | 60,876 | |||||||||||||||||||
Money market funds | 56,697 | — | — | 56,697 | ||||||||||||||||||||
Total | $ | 2,575,489 | $ | 7,514 | $ | (1,375 | ) | $ | 2,581,628 | |||||||||||||||
Classified as: | ||||||||||||||||||||||||
Cash equivalents | $ | 110,758 | ||||||||||||||||||||||
Marketable securities | 2,470,870 | |||||||||||||||||||||||
Total | $ | 2,581,628 | ||||||||||||||||||||||
January 27, 2013 | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Corporate debt securities | $ | 1,255,297 | $ | 3,175 | $ | (542 | ) | $ | 1,257,930 | |||||||||||||||
Debt securities of United States government agencies | 867,087 | 1,199 | (139 | ) | 868,147 | |||||||||||||||||||
Debt securities issued by United States Treasury | 785,228 | 1,102 | (105 | ) | 786,225 | |||||||||||||||||||
Mortgage backed securities issued by United States government-sponsored enterprises | 183,034 | 6,194 | (57 | ) | 189,171 | |||||||||||||||||||
Asset-backed securities | — | — | — | — | ||||||||||||||||||||
Money market funds | 195,790 | — | — | 195,790 | ||||||||||||||||||||
Total | $ | 3,286,436 | $ | 11,670 | $ | (843 | ) | $ | 3,297,263 | |||||||||||||||
Classified as: | ||||||||||||||||||||||||
Cash equivalents | $ | 302,166 | ||||||||||||||||||||||
Marketable securities | 2,995,097 | |||||||||||||||||||||||
Total | $ | 3,297,263 | ||||||||||||||||||||||
The estimated fair value of cash equivalents and marketable securities was $2.58 billion and $3.30 billion at October 27, 2013 and January 27, 2013, respectively, a decrease of $715.6 million. This decrease was primarily due to the liquidation of a portion of our investment portfolio to fund the accelerated share repurchase transaction of $750 million that we entered into on May 14, 2013. | ||||||||||||||||||||||||
The following table provides the breakdown of the investments with unrealized losses at October 27, 2013: | ||||||||||||||||||||||||
Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Corporate debt securities | $ | 403,313 | $ | (16 | ) | $ | 697,618 | $ | (529 | ) | $ | 1,100,931 | $ | (545 | ) | |||||||||
Debt securities of United States government agencies | 288,163 | (5 | ) | 438,833 | (179 | ) | 726,996 | (184 | ) | |||||||||||||||
Debt securities issued by United States Treasury | 87,221 | (42 | ) | 354,307 | (66 | ) | 441,528 | (108 | ) | |||||||||||||||
Mortgage backed securities issued by United States government-sponsored enterprises | 3,460 | — | 191,140 | (522 | ) | 194,600 | (522 | ) | ||||||||||||||||
Asset-backed securities | 10,709 | (16 | ) | 50,167 | — | 60,876 | (16 | ) | ||||||||||||||||
Total | $ | 792,866 | $ | (79 | ) | $ | 1,732,065 | $ | (1,296 | ) | $ | 2,524,931 | $ | (1,375 | ) | |||||||||
As of October 27, 2013, we had 7 investments that were in an unrealized loss position with a duration of less than one year and 9 investments that were in an unrealized loss position with a duration of greater than one year. The gross unrealized losses related to fixed income securities were due to changes in interest rates. We have determined that the gross unrealized losses on investment securities at October 27, 2013 are temporary in nature. Currently, we have the intent and ability to hold our investments with impairment indicators until maturity. | ||||||||||||||||||||||||
The amortized cost and estimated fair value of cash equivalents and marketable securities which are primarily debt instruments are classified as available-for-sale at October 27, 2013 and January 27, 2013 and are shown below by contractual maturity. | ||||||||||||||||||||||||
October 27, 2013 | January 27, 2013 | |||||||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Less than 1 year | $ | 848,672 | $ | 849,564 | $ | 1,397,350 | $ | 1,399,304 | ||||||||||||||||
Due in 1 - 5 years | 1,628,882 | 1,632,651 | 1,777,785 | 1,783,103 | ||||||||||||||||||||
Mortgage-backed securities issued by government-sponsored enterprises not due at a single maturity date | 97,935 | 99,413 | 111,301 | 114,856 | ||||||||||||||||||||
Total | $ | 2,575,489 | $ | 2,581,628 | $ | 3,286,436 | $ | 3,297,263 | ||||||||||||||||
Net realized gains for the three and nine months ended October 27, 2013 were $0.1 million and $1.8 million, respectively. Net realized gains for the three and nine months ended October 28, 2012 were $0.1 million and $0.4 million, respectively. |
Fair_Value_of_Cash_Equivalents
Fair Value of Cash Equivalents and Marketable Securities | 9 Months Ended | |||||||||||
Oct. 27, 2013 | ||||||||||||
Notes to financial statements [Abstract] | ' | |||||||||||
Fair Value of Cash Equivalents and Marketable Securities | ' | |||||||||||
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 assets from active markets. Our Level 1 assets consist of our money market fund deposits. We classify securities within Level 1 assets when the fair value is obtained from real time quotes for transactions in active exchange markets involving identical assets. Our available-for-sale securities are classified as having Level 2 inputs. Our Level 2 assets are valued utilizing a market approach where the market prices of similar assets are provided by a variety of independent industry standard data providers to our investment custodian. There were no significant transfers between Levels 1 and 2 assets for the three and nine months ended October 27, 2013. | ||||||||||||
Financial assets and liabilities measured at fair value are summarized below: | ||||||||||||
Fair Value Measurement as of October 27, 2013 Using | ||||||||||||
Quoted Prices | Significant Other Observable Inputs | |||||||||||
in Active Markets for Identical Assets | ||||||||||||
October 27, 2013 | (Level 1) | (Level 2) | ||||||||||
(In thousands) | ||||||||||||
Corporate debt securities (1) | $ | 1,100,931 | $ | — | $ | 1,100,931 | ||||||
Debt securities issued by United States government agencies (2) | 726,996 | — | 726,996 | |||||||||
Debt securities issued by United States Treasury (2) | 441,528 | — | 441,528 | |||||||||
Asset-backed securities (2) | 60,876 | — | 60,876 | |||||||||
Mortgage-backed securities issued by government-sponsored enterprises (2) | 194,600 | — | 194,600 | |||||||||
Money market funds (3) | 56,697 | 56,697 | — | |||||||||
Total cash equivalents and marketable securities | $ | 2,581,628 | $ | 56,697 | $ | 2,524,931 | ||||||
-1 | Includes $54.1 million in Cash Equivalents and $1.05 billion in Marketable Securities on the Condensed Consolidated Balance Sheet. | |||||||||||
(2) | Included in Marketable Securities on the Condensed Consolidated Balance Sheet. | |||||||||||
-3 | Included in Cash Equivalents on the Condensed Consolidated Balance Sheet. |
3dfx
3dfx | 9 Months Ended | ||||||
Oct. 27, 2013 | |||||||
Notes to financial statements [Abstract] | ' | ||||||
3dfx | ' | ||||||
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 3dfx’s bankruptcy estate served his complaint on NVIDIA. The Trustee’s 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 Trustee’s 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 Trustee’s 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 Trustee’s 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 11 of these Notes to the Condensed Consolidated Financial Statements for further information regarding this litigation. | |||||||
Fair Market Value | Straight-Line Amortization Period | ||||||
(In thousands) | (In years) | ||||||
Property and equipment | $ | 2,433 | 2-Jan | ||||
Trademarks | 11,310 | 5 | |||||
Goodwill | 85,418 | — | |||||
Total | $ | 99,161 | |||||
Intangible_Assets
Intangible Assets | 9 Months Ended | |||||||||||||||||||||||
Oct. 27, 2013 | ||||||||||||||||||||||||
Notes to financial statements [Abstract] | ' | |||||||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
The components of our amortizable intangible assets are as follows: | ||||||||||||||||||||||||
October 27, 2013 | January 27, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net Carrying | Gross | Accumulated Amortization | Net Carrying | |||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amount | ||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Acquisition-related intangible assets | $ | 189,239 | $ | (109,196 | ) | $ | 80,043 | $ | 172,039 | $ | (96,389 | ) | $ | 75,650 | ||||||||||
Patents and licensed technology | 453,654 | (213,108 | ) | 240,546 | 407,002 | (170,320 | ) | 236,682 | ||||||||||||||||
Total intangible assets | $ | 642,893 | $ | (322,304 | ) | $ | 320,589 | $ | 579,041 | $ | (266,709 | ) | $ | 312,332 | ||||||||||
The increase in gross carrying amount of intangible assets is primarily due to new purchases of licenses to technology and patents and an asset acquisition that closed during the nine months ended October 27, 2013. | ||||||||||||||||||||||||
Amortization expense associated with intangible assets for the three and nine months ended October 27, 2013 was $19.6 million and $55.6 million, respectively. Amortization expense associated with intangible assets for the three and nine months ended October 28, 2012 was $17.3 million and $51.1 million, respectively. Amortization expense increased compared to the prior year primarily due to the addition of licensed technology, a patent portfolio, and the purchase of certain assets of a business. Future amortization expense related to the net carrying amount of intangible assets at October 27, 2013 is estimated to be $26.0 million for the remainder of fiscal year 2014, $81.4 million in fiscal year 2015, $71.2 million in fiscal year 2016, $57.9 million in fiscal year 2017, $47.9 million in fiscal year 2018 and a total of $36.2 million in fiscal year 2019 and fiscal years subsequent to fiscal year 2019. |
Balance_Sheet_Components
Balance Sheet Components | 9 Months Ended | |||||||
Oct. 27, 2013 | ||||||||
Notes to financial statements [Abstract] | ' | |||||||
Balance Sheet Components | ' | |||||||
Balance Sheet Components | ||||||||
Certain balance sheet components are as follows: | ||||||||
October 27, | January 27, | |||||||
2013 | 2013 | |||||||
Inventories: | (In thousands) | |||||||
Raw materials | $ | 138,205 | $ | 157,990 | ||||
Work in-process | 77,834 | 67,352 | ||||||
Finished goods | 164,280 | 187,125 | ||||||
Total inventories | $ | 380,319 | $ | 412,467 | ||||
At October 27, 2013, we had outstanding inventory purchase obligations totaling approximately $383.7 million. | ||||||||
October 27, | January 27, | |||||||
2013 | 2013 | |||||||
Prepaid Expenses and Other: | (In thousands) | |||||||
Prepaid maintenance | $ | 17,705 | $ | 18,013 | ||||
Prepaid taxes | 15,626 | 9,785 | ||||||
Assets held for sale (1) | 7,547 | — | ||||||
Testing materials | 7,282 | 7,219 | ||||||
Other | 33,541 | 41,903 | ||||||
Total prepaid expenses and other | $ | 81,701 | $ | 76,920 | ||||
(1) As of October 27, 2013, $7.5 million of net properties, plant and equipment held for sale are recorded within “Prepaid Expenses and Other” on the Condensed Consolidated Balance Sheet. This asset is associated with an office building at an international location that is expected to be sold within the next twelve months. | ||||||||
October 27, | January 27, | |||||||
2013 | 2013 | |||||||
Accrued Liabilities and Other: | (In thousands) | |||||||
Deferred revenue, short-term | $ | 282,658 | $ | 273,605 | ||||
Accrued customer programs (1) | 164,667 | 163,406 | ||||||
Warranty accrual (2) | 15,962 | 14,874 | ||||||
Accrued payroll and related expenses | 94,984 | 98,977 | ||||||
Accrued legal settlement (3) | 30,600 | 30,600 | ||||||
Taxes payable, short-term | 8,349 | 3,173 | ||||||
Other | 55,424 | 35,160 | ||||||
Total accrued liabilities and other | $ | 652,644 | $ | 619,795 | ||||
(1) Please refer to Note 1 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the nature of accrued customer programs and their accounting treatment related to our revenue recognition policies and estimates. | ||||||||
(2) Please refer to Note 10 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the warranty accrual. | ||||||||
(3) Please refer to Note 11 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the 3dfx litigation. | ||||||||
October 27, | January 27, | |||||||
2013 | 2013 | |||||||
Other Long-Term Liabilities: | (In thousands) | |||||||
Deferred income tax liability | $ | 204,364 | $ | 192,950 | ||||
Income taxes payable, long-term | 117,112 | 115,267 | ||||||
Asset retirement obligation | 10,959 | 10,165 | ||||||
Deferred revenue, long-term (1) | 38,255 | 236,152 | ||||||
Other long-term liabilities | 17,094 | 34,787 | ||||||
Total other long-term liabilities | $ | 387,784 | $ | 589,321 | ||||
(1) Represents annual consideration received in advance of our performance obligation under our patent cross licensing agreement with Intel entered into in January 2011. The decrease in deferred revenue, long-term, is a result of revenue recognized during the nine months ended October 27, 2013. |
Guarantees
Guarantees | 9 Months Ended | |||||||||||||||
Oct. 27, 2013 | ||||||||||||||||
Notes to financial statements [Abstract] | ' | |||||||||||||||
Guarantees | ' | |||||||||||||||
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 entity’s product warranty liabilities. | ||||||||||||||||
Accrual for Product Warranty Liabilities | ||||||||||||||||
We record a reduction to revenue for estimated product returns at the time revenue is recognized primarily based on historical return rates. Cost of revenue includes the estimated cost of product warranties. Under limited circumstances, we may offer an extended limited warranty to customers for certain products. Additionally, we accrue for known warranty and indemnification issues if a loss is probable and can be reasonably estimated. The estimated product warranty liabilities for the three and nine months ended October 27, 2013 and October 28, 2012 were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 27, | October 28, | October 27, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Balance at beginning of period (1) | $ | 17,474 | $ | 16,537 | $ | 14,874 | $ | 18,406 | ||||||||
Additions | 1,143 | 1,358 | 6,043 | 4,715 | ||||||||||||
Deductions (2) | (2,655 | ) | (2,848 | ) | (4,955 | ) | (8,074 | ) | ||||||||
Balance at end of period | $ | 15,962 | $ | 15,047 | $ | 15,962 | $ | 15,047 | ||||||||
(1) Includes $9.1 million and $9.6 million for the three and nine months ended October 27, 2013, respectively, and $10.9 million and $13.2 million for the three and nine months ended October 28, 2012, respectively, related to warranty accrual associated with incremental repair and replacement costs from a weak die/packaging material set. | ||||||||||||||||
(2) Payments related to the warranty accrual associated with incremental repair and replacement costs from a weak die/packaging material set were $1.3 million and $1.8 million for the three and nine months ended October 27, 2013 respectively, and $1.1 million and $3.0 million for the three and nine months ended October 28, 2012, respectively. | ||||||||||||||||
In connection with certain agreements that we have executed in the past, we have at times provided indemnities to cover the indemnified party for matters such as tax, product and employee liabilities. We have also on occasion 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. As such, we have not recorded any liability in our Condensed Consolidated Financial Statements for such indemnifications. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 27, 2013 | |
Notes to financial statements [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
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 3dfx's October 2002 bankruptcy filing, led to four lawsuits against NVIDIA: two brought by 3dfx's former landlords, one by 3dfx's bankruptcy trustee and the fourth by a committee of 3dfx's equity security holders in the bankruptcy estate. The two landlord cases have been settled with payments from the landlords to NVIDIA, and the equity security holders lawsuit was dismissed with prejudice and no appeal was filed. Accordingly, only the bankruptcy trustee suit remains outstanding as more fully explained below. | |
In March 2003, the Trustee appointed by the Bankruptcy Court to represent 3dfx's bankruptcy estate served a complaint on NVIDIA asserting claims for, among other things, successor liability and fraudulent transfer and seeking additional payments from us. The Trustee's fraudulent transfer theory alleged that NVIDIA had failed to pay reasonably equivalent value for 3dfx's assets, and sought recovery of the difference between the $70.0 million paid and the alleged fair value, which the Trustee estimated to exceed $50.0 million. The Trustee's successor liability theory alleged NVIDIA was effectively 3dfx's legal successor and therefore was responsible for all of 3dfx's unpaid liabilities. | |
On October 13, 2005, the Bankruptcy Court heard the Trustee's motion for summary adjudication, and on December 23, 2005, denied that motion in all material respects and held that NVIDIA may not dispute that the value of the 3dfx transaction was less than $108.0 million. The Bankruptcy Court denied the Trustee's request to find that the value of the 3dfx assets conveyed to NVIDIA was at least $108.0 million. | |
In early November 2005, after several months of mediation, 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 Trustee's 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 never progressed substantially through the confirmation process. | |
On December 21, 2006, the Bankruptcy Court scheduled a trial for one portion of the Trustee's case against NVIDIA. On January 2, 2007, NVIDIA terminated the settlement agreement on grounds that the Bankruptcy Court had failed to proceed toward confirmation of the Creditors' Committee's plan. A non-jury trial began on March 21, 2007 on valuation issues in the Trustee's constructive fraudulent transfer claims against NVIDIA. Specifically, the Bankruptcy Court tried four questions: (1) what did 3dfx transfer to NVIDIA in the APA; (2) of what was transferred, what qualifies as “property” subject to the Bankruptcy Court's avoidance powers under the Uniform Fraudulent Transfer Act and relevant bankruptcy code provisions; (3) what is the fair market value of the “property” identified in answer to question (2); and (4) was the $70.0 million that NVIDIA paid “reasonably equivalent” to the fair market value of that property. The parties completed post-trial briefing on May 25, 2007. | |
On April 30, 2008, the Bankruptcy Court issued its Memorandum Decision After Trial, in which it provided a detailed summary of the trial proceedings and the parties' contentions and evidence and concluded that “the creditors of 3dfx were not injured by the Transaction.” This decision did not entirely dispose of the Trustee's action, however, as the Trustee's claims for successor liability and intentional fraudulent conveyance were still pending. On June 19, 2008, NVIDIA filed a motion for summary judgment to convert the Memorandum Decision After Trial to a final judgment. That motion was granted in its entirety and judgment was entered in NVIDIA's favor on September 11, 2008. The Trustee filed a Notice of Appeal from that judgment on September 22, 2008, and on September 25, 2008, NVIDIA exercised its election to have the appeal heard by the United States District Court. | |
The District Court's hearing on the Trustee's appeal was held on June 10, 2009. On December 20, 2010, the District Court issued an Order affirming the Bankruptcy Court's entry of summary judgment in NVIDIA's favor. On January 19, 2011, the Trustee filed a Notice of Appeal to the United States Court of Appeals for the Ninth Circuit. The appeal remains pending. | |
While the conditional settlement reached in November 2005 never progressed through the confirmation process, the Trustee's case still remains pending on appeal. Accordingly, 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 Trustee's case. | |
Product Defect Litigation and Securities Cases | |
Product Defect Litigation | |
In September, October and November 2008, several putative consumer class action lawsuits were filed against us, asserting various claims arising from a weak die/packaging material set in certain versions of our previous generation products used in notebook configurations. On February 26, 2009, the various lawsuits were consolidated in the United States District Court for the Northern District of California, San Jose Division, under the caption “The NVIDIA GPU Litigation.” On March 2, 2009, several of the parties filed motions for appointment of lead counsel and briefs addressing certain related issues. On April 10, 2009, the District Court appointed Milberg LLP lead counsel. On May 6, 2009, the plaintiffs filed an Amended Consolidated Complaint, alleging claims for violations of California Business and Professions Code Section 17200, Breach of Implied Warranty under California Civil Code Section 1792, Breach of the Implied Warranty of Merchantability under the laws of 27 other states, Breach of Warranty under the Magnuson-Moss Warranty Act, Unjust Enrichment, violations of the New Jersey Consumer Fraud Act, Strict Liability and Negligence, and violation of California's Consumer Legal Remedies Act. | |
After extensive motion practice and litigation, plaintiffs on December 14, 2009 filed a Second Amended Consolidated Complaint seeking unspecified damages and asserting claims for violations of California Business and Professions Code Section 17200, Breach of Implied Warranty under California Civil Code Section 1792, Breach of Warranty under the Magnuson-Moss Warranty Act, violations of the New Jersey Consumer Fraud Act, Strict Liability and Negligence, and violation of California's Consumer Legal Remedies Act. | |
On July 16, 2010, the parties filed a stipulation with the District Court advising that, following mediation they had reached a settlement in principle in The NVIDIA GPU Litigation. The settlement in principle was subject to certain approvals, including final approval by the court. As a result of the settlement in principle, and the other estimated settlement, and offsetting insurance reimbursements, NVIDIA recorded a net charge of$12.7 million to sales, general and administrative expense during the second quarter of fiscal year 2011. In addition, a portion of the $181.2 million of additional charges we recorded against cost of revenue related to the weak die/packaging set during the second quarter of fiscal year 2011, relates to estimated additional repair and replacement costs related to the implementation of these settlements. On August 12, 2010, the parties executed a Stipulation and Agreement of Settlement and Release. On September 15, 2010, the Court issued an order granting preliminary approval of the settlement and providing for notice to the potential class members. The Final Approval Hearing was held on December 20, 2010, and on that same day the Court approved the settlement and entered Final Judgment over several objections. In January 2011, several objectors filed Notices of Appeal of the Final Judgment to the United States Court of Appeals for the Ninth Circuit. The Ninth Circuit heard oral argument on August 13, 2013, and affirmed the District Court’s decision to approve the settlement on August 22, 2013. This case is now over. | |
Securities Cases | |
In September 2008, three putative securities class actions, or the Actions, were filed in the United States District Court for the Northern District of California arising out of our announcements on July 2, 2008, that we would take a charge against cost of revenue to cover anticipated costs and expenses arising from a weak die/packaging material set in certain versions of our previous generation MCP and GPU products and that we were revising financial guidance for our second quarter of fiscal year 2009. The Actions purport to be brought on behalf of purchasers of NVIDIA stock and assert claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, or the Securities Exchange Act. On October 30, 2008, the Actions were consolidated under the caption In re NVIDIA Corporation Securities Litigation, Civil Action No. 08-CV-04260-JW (HRL). Lead Plaintiffs and Lead Plaintiffs' Counsel were appointed on December 23, 2008. On February 6, 2009, co-Lead Plaintiff filed a Writ of Mandamus with the Ninth Circuit Court of Appeals challenging the designation of co-Lead Plaintiffs' Counsel. On February 19, 2009, co-Lead Plaintiff filed with the District Court, a motion to stay the District Court proceedings pending resolution of the Writ of Mandamus by the Ninth Circuit. On February 24, 2009, Judge Ware granted the stay. On November 5, 2009, the Court of Appeals issued an opinion reversing the District Court's appointment of one of the lead plaintiffs' counsel, and remanding the matter for further proceedings. On December 8, 2009, the District Court appointed Milberg LLP and Kahn Swick & Foti, LLC as co-lead counsel. | |
On January 22, 2010, Plaintiffs filed a Consolidated Amended Class Action Complaint for Violations of the Federal Securities Laws, asserting claims for violations of Section 10(b), Rule 10b-5, and Section 20(a) of the Securities Exchange Act. The consolidated complaint sought unspecified compensatory damages. We filed a motion to dismiss the consolidated complaint in March 2010 and a hearing was held on June 24, 2010 before Judge Seeborg. On October 19, 2010, Judge Seeborg granted our motion to dismiss with leave to amend. On December 2, 2010, co-Lead Plaintiffs filed a Second Consolidated Amended Complaint. We moved to dismiss the Second Consolidated Amended Complaint on February 14, 2011. Following oral argument, on October 12, 2011, Judge Seeborg granted our motion to dismiss without leave to amend, and on November 8, 2011, Plaintiffs filed a Notice of Appeal to the Ninth Circuit. The appeal has been fully briefed, and a hearing is currently scheduled for January 14, 2014. | |
Accounting for Loss Contingencies | |
While there can be no assurance of favorable outcomes, we believe the claims made by other parties in the above ongoing matters are without merit and we intend to vigorously defend the actions. With the exception of the 3dfx and product defect litigation cases, 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, any possible range of loss in these matters cannot be reasonably estimated at this time. We are engaged in other legal actions not described above arising in the ordinary course of its 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. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended |
Oct. 27, 2013 | |
Notes to financial statements [Abstract] | ' |
Stockholders' Equity | ' |
Stockholders’ Equity | |
Stock Repurchase Program | |
As of October 27, 2013, our Board of Directors' had authorized us, subject to certain specifications, to repurchase shares of our common stock up to an aggregate maximum amount of $2.7 billion through December 2014. On November 4, 2013, our Board extended the program through January 2016 and authorized an additional $1.0 billion under the repurchase program. Please refer to Note 14 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding this subsequent event. | |
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, 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. | |
As part of the repurchase program, on May 14, 2013, we executed a $750.0 million accelerated share repurchase, or ASR, agreement with Goldman, Sachs & Co.that was completed on October 22, 2013. Under the ASR, we repurchased 51.5 million shares in aggregate at an average price of $14.56 per share, of which 36.9 million shares were delivered in the second quarter of fiscal year 2014 and 14.6 million shares were delivered in the third quarter of fiscal year 2014. The shares delivered resulted in a reduction, on the delivery date, of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share. As of October 27, 2013, shares delivered from the ASR have been placed into treasury stock. | |
Through October 27, 2013, we have received an aggregate of 159.0 million shares under our stock repurchase program for a total cost of $2.41 billion. As of October 27, 2013, we were authorized, subject to certain specifications, to repurchase additional shares of our common stock up to $285.7 million which subsequently increased to $1.29 billion on November 4, 2013 as a result of our Board of Directors' authorization of an additional $1.0 billion under our repurchase program and an extension of the program through January 2016. Please refer to Note 14 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding this subsequent event. | |
Convertible Preferred Stock | |
There are no shares of preferred stock outstanding. | |
Common Stock | |
We are authorized to issue up to 2,000,000,000 shares of our common stock at $0.001 per share par value. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Oct. 27, 2013 | ||||||||||||||||
Notes to financial statements [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
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. Our operating segments are equivalent to our reportable segments. During the last several years, we have operated and reported three reporting segments to our CODM: the GPU business, the Professional Solutions business, and the Consumer Products business. However, during the fourth quarter of fiscal year 2013, we began reporting two segments to reflect the way we are now managing our businesses internally which is based on whether the underlying products leverage our GPU or our Tegra Processor technologies. Comparative periods presented reflect this change. | ||||||||||||||||
Our GPU business leverages our GPU technology across multiple end markets. It now consists of four primary product lines, including GeForce for desktop and notebook PCs and Macs; Quadro for professional workstations; Tesla for high-performance servers and workstations; and NVIDIA GRID for server graphics solutions. It also includes other related products, licenses and revenue supporting the GPU business, such as memory products. Our Tegra Processor business comprises product lines primarily based on our Tegra system-on-a-chip and modem processor technologies. This includes Tegra for smartphones and tablets for both Android and Windows RT-based devices; automotive computers, including infotainment and navigation systems; and gaming devices such as SHIELD. It also includes other related products, licenses, and revenue supporting the Tegra Processor business such as Icera baseband processors and RF transceivers, embedded products, and licenses and other revenue associated with game consoles. | ||||||||||||||||
In addition to the two reporting segments discussed above, the “All Other” category represents unallocated revenue and expenses, of which the revenue primarily relates to licensing revenue from our patent cross licensing agreement with Intel Corporation. Revenue related to this agreement is recognized ratably over the term of our agreement and is not actively managed. This category also includes corporate operating expenses that we do not allocate to our other reporting segments as such expenses are not directly related to the function or operations of our reporting segments. These expenses include certain corporate infrastructure and support costs that are deemed to be enterprise in nature. Additionally, we do not allocate stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs or credits and non-recurring expenses and benefits. The table below presents details of our reportable segments and the “All Other” category. | ||||||||||||||||
Our CODM does not review any information regarding total assets on a reporting segment basis. Reporting 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 | Tegra Processor | All Other | Consolidated | |||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended October 27, 2013 | ||||||||||||||||
Revenue | $ | 876,833 | $ | 111,134 | $ | 66,000 | $ | 1,053,967 | ||||||||
Depreciation and amortization expense | $ | 33,439 | $ | 17,714 | $ | 11,573 | $ | 62,726 | ||||||||
Operating income (loss) | $ | 286,905 | $ | (132,856 | ) | $ | (13,061 | ) | $ | 140,988 | ||||||
Three Months Ended October 28, 2012 | ||||||||||||||||
Revenue | $ | 894,209 | $ | 243,901 | $ | 66,000 | $ | 1,204,110 | ||||||||
Depreciation and amortization expense | $ | 32,375 | $ | 14,087 | $ | 10,686 | $ | 57,148 | ||||||||
Operating income (loss) | $ | 264,087 | $ | 1,276 | $ | (13,146 | ) | $ | 252,217 | |||||||
Nine Months Ended October 27, 2013 | ||||||||||||||||
Revenue | $ | 2,521,058 | $ | 266,886 | $ | 198,000 | $ | 2,985,944 | ||||||||
Depreciation and amortization expense | $ | 95,990 | $ | 56,067 | $ | 32,253 | $ | 184,310 | ||||||||
Operating income (loss) | $ | 781,778 | $ | (407,694 | ) | $ | (44,781 | ) | $ | 329,303 | ||||||
Nine Months Ended October 28, 2012 | ||||||||||||||||
Revenue | $ | 2,419,198 | $ | 556,059 | $ | 198,000 | $ | 3,173,257 | ||||||||
Depreciation and amortization expense | $ | 94,833 | $ | 41,204 | $ | 31,797 | $ | 167,834 | ||||||||
Operating income (loss) | $ | 633,594 | $ | (106,588 | ) | $ | (62,340 | ) | $ | 464,666 | ||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 27, | October 28, | October 27, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Reconciling items included in "All Other" category : | ||||||||||||||||
Revenue not allocated to reporting segments | $ | 66,000 | $ | 66,000 | $ | 198,000 | $ | 198,000 | ||||||||
Unallocated corporate operating expenses and other expenses | (37,950 | ) | (37,009 | ) | (115,763 | ) | (111,880 | ) | ||||||||
Stock-based compensation | (34,299 | ) | (33,069 | ) | (100,091 | ) | (100,893 | ) | ||||||||
Amortization of acquisition-related intangibles | (4,906 | ) | (4,402 | ) | (12,801 | ) | (12,809 | ) | ||||||||
Other acquisition-related (costs) credits | 329 | (4,666 | ) | (9,601 | ) | (14,631 | ) | |||||||||
Other non-recurring expenses (1) | (2,235 | ) | — | (4,525 | ) | (20,127 | ) | |||||||||
Total | $ | (13,061 | ) | $ | (13,146 | ) | $ | (44,781 | ) | $ | (62,340 | ) | ||||
(1) For the nine months ended October 28, 2012, we recorded a non-recurring charge of $20.1 million. This charge represents the net present value of a $25.0 million charitable contribution pledged to Stanford Hospital and Clinics on June 12, 2012 and is payable over a ten year period. | ||||||||||||||||
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 tables summarize information pertaining to our revenue from customers based on invoicing address in different geographic regions: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 27, | October 28, | October 27, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Revenue: | ||||||||||||||||
Taiwan | $ | 319,018 | $ | 403,769 | $ | 927,903 | $ | 1,020,232 | ||||||||
China | 206,374 | 205,636 | 565,504 | 580,934 | ||||||||||||
United States | 195,529 | 257,551 | 545,303 | 557,561 | ||||||||||||
Other Asia Pacific | 174,691 | 192,814 | 507,065 | 583,858 | ||||||||||||
Other Americas | 79,382 | 81,463 | 220,920 | 239,291 | ||||||||||||
Europe | 78,973 | 62,877 | 219,249 | 191,381 | ||||||||||||
Total revenue | $ | 1,053,967 | $ | 1,204,110 | $ | 2,985,944 | $ | 3,173,257 | ||||||||
Revenue from significant customers, those representing 10% or more of total revenue, was approximately 11% of our total revenue from one customer and approximately 21% of our total revenue from two customers for the three and nine months ended October 27, 2013, respectively. Revenue from significant customers, those representing 10% or more of total revenue, was approximately 14% and 12%, respectively, of our total revenue from one customer for the three and nine months ended October 28, 2012. | ||||||||||||||||
Accounts receivable from significant customers, those representing 10% or more of total accounts receivable, was approximately 36% of our accounts receivable balance from two customers at October 27, 2013 and approximately 40% of our accounts receivable balance from three customers at January 27, 2013. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Oct. 27, 2013 | |
Subsequent Event [Line Items] | ' |
Subsequent Event | ' |
Subsequent Event | |
On November 4, 2013, our Board of Directors' authorized an additional $1.0 billion under our share repurchase program and extended the program through January 2016. | |
On November 7, 2013, we announced a 13% increase in our quarterly cash dividend to $0.085 per share, or $0.34 per share on an annual basis from $0.075 per share, or $0.30 per share on an annual basis. We also declared to pay our next quarterly cash dividend on December 13, 2013, to all stockholders of record on November 21, 2013. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 27, 2013 | |
Notes to financial statements [Abstract] | ' |
Basis of Presentation | ' |
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. In the opinion of management, all adjustments, consisting only of normal recurring adjustments except as otherwise noted, 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 financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 27, 2013. | |
Revenue Recognition | ' |
Revenue Recognition | |
Product Revenue | |
We recognize revenue from product sales when persuasive evidence of an arrangement exists, the product has been delivered, the price is fixed or determinable and collection of the related receivable is reasonably assured. For most sales, we use a binding purchase order and in certain cases we use a contractual agreement as evidence of an arrangement. We consider delivery to occur upon shipment provided title and risk of loss have passed to the customer. At the point of sale, we assess whether the arrangement fee is fixed or determinable and whether collection is reasonably assured. If we determine that collection of a fee is not reasonably assured, we defer the fee and recognize revenue at the time collection becomes reasonably assured, which is generally upon receipt of payment. | |
Our policy on sales to certain distributors, with rights of return, is to defer recognition of revenue and related cost of revenue until the distributors resell the product, as the level of returns cannot be reasonably estimated. Our customer programs primarily involve rebates, which are designed to serve as sales incentives to resellers of our products in various target markets. We accrue for 100% of the potential rebates and do not apply a breakage factor. We recognize a liability for these rebates at the later of the date at which we record the related revenue or the date at which we offer the rebate. Rebates typically expire six months from the date of the original sale, unless we reasonably believe that the customer intends to claim the rebate. Unclaimed rebates are reversed to revenue. | |
Our customer programs also include marketing development funds, or MDFs. We account for MDFs as either a reduction of revenue or an operating expense, depending on the nature of the program. MDFs represent monies paid to retailers, system builders, original equipment manufacturers, distributors and add-in card partners that are earmarked for market segment development and expansion and typically are designed to support our partners’ activities while also promoting NVIDIA products. Depending on market conditions, we may take actions to increase amounts offered under customer programs, possibly resulting in an incremental reduction of revenue at the time such programs are offered. | |
We also record a reduction to revenue by establishing a sales return allowance for estimated product returns at the time revenue is recognized, based primarily on historical return rates. However, if product returns for a particular fiscal period exceed historical return rates we may determine that additional sales return allowances are required to properly reflect our estimated exposure for product returns. | |
License and Development Revenue | |
For license arrangements that require significant customization of our intellectual property components, we generally recognize the related revenue over the period that services are performed. For most license and service arrangements, we determine progress to completion based on actual direct labor hours incurred to date as a percentage of the estimated total direct labor hours required to complete the project. We periodically evaluate the actual status of each project to ensure that the estimates to complete each contract remain accurate. A provision for estimated losses on contracts is made in the period in which the loss becomes probable and can be reasonably estimated. Costs incurred in advance of revenue recognized are recorded as deferred costs on uncompleted contracts. If the amount billed exceeds the amount of revenue recognized, the excess amount is recorded as deferred revenue. Revenue recognized in any period is dependent on our progress toward completion of projects in progress. Significant management judgment and discretion are used to estimate total direct labor hours. Any changes in or deviations from these estimates could have a material effect on the amount of revenue we recognize in any period. | |
For license arrangements that do not require significant customization but where we are obligated to provide further deliverables over the term of the license agreement, we record revenue over the life of the license term, with consideration received in advance of the performance period classified as deferred revenue. | |
Royalty revenue is recognized related to the distribution or sale of products that use our technologies under license agreements with third parties. We recognize royalty revenue upon receipt of a confirmation of earned royalties and when collectability is reasonably assured from the applicable licensee. | |
Inventories | ' |
Inventories | |
Inventory cost is computed on an adjusted standard basis, which approximates actual cost on an average or first-in, first-out basis. Inventory costs consist primarily of the cost of semiconductors purchased from subcontractors, including wafer fabrication, assembly, testing and packaging, manufacturing support costs, including labor and overhead associated with such purchases, final test yield fallout, inventory provisions and shipping costs. We write down our inventory to the lower of cost or estimated market value. Excess, obsolete or unmarketable inventory is completely written off based upon assumptions about future demand, future product purchase commitments, estimated manufacturing yield levels and market conditions. If actual market conditions are less favorable than those projected by management, or if our current inventory or future product purchase commitments to our suppliers exceed our forecasted future demand for such products, additional future inventory write-downs may be required that could adversely affect our operating results. Inventory reserves once established are not reversed until the related inventory has been sold or scrapped. If actual market conditions are more favorable than expected and we sell products that we have previously written down, our reported gross margin would be favorably impacted. | |
Earnings Per Share, Policy | ' |
Net Income Per Share | |
Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common and potentially dilutive shares outstanding during the period, using the treasury stock method. Under the treasury stock method, the effect of equity awards outstanding is not included in the computation of diluted net income per share for periods when their effect is anti-dilutive. | |
New Accounting Pronouncements | ' |
Adoption of New and Recently Issued Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board, or FASB, issued guidance regarding the presentation of unrecognized tax benefits when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. The new guidance requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward when settlement in this manner is available under the tax law. This guidance is effective on a prospective basis for financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013. Retrospective and early adoption is permitted. We expect to adopt this guidance in our interim and annual periods beginning January 27, 2014. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. | |
In February 2013, the FASB issued updated guidance requiring entities to report the effect of significant reclassifications to accumulated other comprehensive income on the respective line items in net income. These reclassifications are reported, only if U.S. GAAP requires the entire amount to be reclassified to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety from accumulated other comprehensive income to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. We adopted this guidance in our interim period ended April 28, 2013. The adoption of this guidance did not impact our financial statements, as the guidance is related to disclosure only, and we have not had significant reclassifications out of accumulated other comprehensive income. |
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Oct. 27, 2013 | ||||||||||||||||
Notes to financial statements [Abstract] | ' | |||||||||||||||
Stock-based compensation expense, net of amounts capitalized as inventory | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 27, | October 28, | October 27, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Cost of revenue | $ | 3,090 | $ | 2,489 | $ | 7,911 | $ | 7,664 | ||||||||
Research and development | 20,902 | 20,056 | 61,392 | 60,148 | ||||||||||||
Sales, general and administrative | 10,307 | 10,524 | 30,788 | 33,081 | ||||||||||||
Total | $ | 34,299 | $ | 33,069 | $ | 100,091 | $ | 100,893 | ||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 27, | October 28, | October 27, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock Options | (Using a binomial model) | |||||||||||||||
Expected life (in years) | 3.3-3.5 | 4.3-4.9 | 2.4-3.5 | 3.1-4.9 | ||||||||||||
Risk-free interest rate | 2.6%-3.0% | 1.7%-1.8% | 1.8%-3.0% | 1.5% - 2.3% | ||||||||||||
Volatility | 30%-32% | 45%-49% | 30%-37% | 43% - 49% | ||||||||||||
Dividend yield | 1.9%-2.0% | — | 1.9%-2.4% | — | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 27, | October 28, | October 27, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Employee Stock Purchase Plan | (Using a Black-Scholes model) | |||||||||||||||
Expected life (in years) | 0.5-2.0 | 0.5-2.0 | 0.5 - 2.0 | 0.5 - 2.0 | ||||||||||||
Risk-free interest rate | 0.1%-0.4% | 0.1%-0.2% | 0.1%-0.4% | 0.1% - 0.3% | ||||||||||||
Volatility | 32 | % | 47 | % | 32%-37% | 44%-47% | ||||||||||
Dividend yield | 2 | % | — | 2.0%-2.4% | — | |||||||||||
Equity Award Activity | ||||||||||||||||
The following summarizes the stock option and RSU activity under our equity incentive plans: | ||||||||||||||||
Options Outstanding | Weighted Average Exercise Price | |||||||||||||||
Stock Options | (In thousands) | (Per share) | ||||||||||||||
Balances, January 27, 2013 | 32,995 | $ | 14.66 | |||||||||||||
Granted | 6,049 | $ | 14.29 | |||||||||||||
Exercised | (2,557 | ) | $ | 10.15 | ||||||||||||
Cancelled | (3,358 | ) | $ | 22.14 | ||||||||||||
Balances, October 27, 2013 | 33,129 | $ | 14.18 | |||||||||||||
RSUs Outstanding | Weighted Average Grant-Date Fair Value | |||||||||||||||
Restricted Stock Units | (In thousands) | (Per share) | ||||||||||||||
Balances, January 27, 2013 | 15,159 | $ | 14.46 | |||||||||||||
Granted | 10,427 | $ | 13.44 | |||||||||||||
Vested | (5,891 | ) | $ | 14.8 | ||||||||||||
Cancelled | (921 | ) | $ | 13.87 | ||||||||||||
Balances, October 27, 2013 | 18,774 | $ | 13.82 | |||||||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||||||||||
Oct. 27, 2013 | ||||||||||||||||
Notes to financial statements [Abstract] | ' | |||||||||||||||
Reconciliation of numerators and denominators of basic and diluted net income (loss) per share computations | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 27, | October 28, | October 27, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 118,734 | $ | 209,080 | $ | 293,073 | $ | 388,563 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic net income per share, weighted average shares | 580,870 | 622,352 | 594,363 | 619,043 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Equity awards outstanding | 7,882 | 6,493 | 5,745 | 6,930 | ||||||||||||
Denominator for diluted net income per share, weighted average shares | 588,752 | 628,845 | 600,108 | 625,973 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic net income per share | $ | 0.2 | $ | 0.34 | $ | 0.49 | $ | 0.63 | ||||||||
Diluted net income per share | $ | 0.2 | $ | 0.33 | $ | 0.49 | $ | 0.62 | ||||||||
Potentially dilutive securities excluded from income per diluted share because their effect would have been anti-dilutive | 21,870 | 27,555 | 27,351 | 31,697 | ||||||||||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 9 Months Ended | |||||||||||||||||||||||
Oct. 27, 2013 | ||||||||||||||||||||||||
Notes to financial statements [Abstract] | ' | |||||||||||||||||||||||
Cash Equivalents and Marketable Securities | ' | |||||||||||||||||||||||
October 27, 2013 | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Corporate debt securities | $ | 1,099,456 | $ | 2,020 | $ | (545 | ) | $ | 1,100,931 | |||||||||||||||
Debt securities of United States government agencies | 726,382 | 798 | (184 | ) | 726,996 | |||||||||||||||||||
Debt securities issued by United States Treasury | 441,075 | 561 | (108 | ) | 441,528 | |||||||||||||||||||
Mortgage backed securities issued by United States government-sponsored enterprises | 190,993 | 4,129 | (522 | ) | 194,600 | |||||||||||||||||||
Asset-backed securities | 60,886 | 6 | (16 | ) | 60,876 | |||||||||||||||||||
Money market funds | 56,697 | — | — | 56,697 | ||||||||||||||||||||
Total | $ | 2,575,489 | $ | 7,514 | $ | (1,375 | ) | $ | 2,581,628 | |||||||||||||||
Classified as: | ||||||||||||||||||||||||
Cash equivalents | $ | 110,758 | ||||||||||||||||||||||
Marketable securities | 2,470,870 | |||||||||||||||||||||||
Total | $ | 2,581,628 | ||||||||||||||||||||||
January 27, 2013 | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||
Cost | Gain | Loss | Fair Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Corporate debt securities | $ | 1,255,297 | $ | 3,175 | $ | (542 | ) | $ | 1,257,930 | |||||||||||||||
Debt securities of United States government agencies | 867,087 | 1,199 | (139 | ) | 868,147 | |||||||||||||||||||
Debt securities issued by United States Treasury | 785,228 | 1,102 | (105 | ) | 786,225 | |||||||||||||||||||
Mortgage backed securities issued by United States government-sponsored enterprises | 183,034 | 6,194 | (57 | ) | 189,171 | |||||||||||||||||||
Asset-backed securities | — | — | — | — | ||||||||||||||||||||
Money market funds | 195,790 | — | — | 195,790 | ||||||||||||||||||||
Total | $ | 3,286,436 | $ | 11,670 | $ | (843 | ) | $ | 3,297,263 | |||||||||||||||
Classified as: | ||||||||||||||||||||||||
Cash equivalents | $ | 302,166 | ||||||||||||||||||||||
Marketable securities | 2,995,097 | |||||||||||||||||||||||
Total | $ | 3,297,263 | ||||||||||||||||||||||
Schedule of Unrealized Loss on Investments [Table Text Block] | ' | |||||||||||||||||||||||
Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Corporate debt securities | $ | 403,313 | $ | (16 | ) | $ | 697,618 | $ | (529 | ) | $ | 1,100,931 | $ | (545 | ) | |||||||||
Debt securities of United States government agencies | 288,163 | (5 | ) | 438,833 | (179 | ) | 726,996 | (184 | ) | |||||||||||||||
Debt securities issued by United States Treasury | 87,221 | (42 | ) | 354,307 | (66 | ) | 441,528 | (108 | ) | |||||||||||||||
Mortgage backed securities issued by United States government-sponsored enterprises | 3,460 | — | 191,140 | (522 | ) | 194,600 | (522 | ) | ||||||||||||||||
Asset-backed securities | 10,709 | (16 | ) | 50,167 | — | 60,876 | (16 | ) | ||||||||||||||||
Total | $ | 792,866 | $ | (79 | ) | $ | 1,732,065 | $ | (1,296 | ) | $ | 2,524,931 | $ | (1,375 | ) | |||||||||
Schedule of Cash Equivalents and Marketable Securities Available for Sale | ' | |||||||||||||||||||||||
October 27, 2013 | January 27, 2013 | |||||||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Less than 1 year | $ | 848,672 | $ | 849,564 | $ | 1,397,350 | $ | 1,399,304 | ||||||||||||||||
Due in 1 - 5 years | 1,628,882 | 1,632,651 | 1,777,785 | 1,783,103 | ||||||||||||||||||||
Mortgage-backed securities issued by government-sponsored enterprises not due at a single maturity date | 97,935 | 99,413 | 111,301 | 114,856 | ||||||||||||||||||||
Total | $ | 2,575,489 | $ | 2,581,628 | $ | 3,286,436 | $ | 3,297,263 | ||||||||||||||||
Fair_Value_of_Cash_Equivalents1
Fair Value of Cash Equivalents and Marketable Securities (Tables) | 9 Months Ended | |||||||||||
Oct. 27, 2013 | ||||||||||||
Notes to financial statements [Abstract] | ' | |||||||||||
Financial assets measured at Fair Value | ' | |||||||||||
Fair Value Measurement as of October 27, 2013 Using | ||||||||||||
Quoted Prices | Significant Other Observable Inputs | |||||||||||
in Active Markets for Identical Assets | ||||||||||||
October 27, 2013 | (Level 1) | (Level 2) | ||||||||||
(In thousands) | ||||||||||||
Corporate debt securities (1) | $ | 1,100,931 | $ | — | $ | 1,100,931 | ||||||
Debt securities issued by United States government agencies (2) | 726,996 | — | 726,996 | |||||||||
Debt securities issued by United States Treasury (2) | 441,528 | — | 441,528 | |||||||||
Asset-backed securities (2) | 60,876 | — | 60,876 | |||||||||
Mortgage-backed securities issued by government-sponsored enterprises (2) | 194,600 | — | 194,600 | |||||||||
Money market funds (3) | 56,697 | 56,697 | — | |||||||||
Total cash equivalents and marketable securities | $ | 2,581,628 | $ | 56,697 | $ | 2,524,931 | ||||||
-1 | Includes $54.1 million in Cash Equivalents and $1.05 billion in Marketable Securities on the Condensed Consolidated Balance Sheet. | |||||||||||
(2) | Included in Marketable Securities on the Condensed Consolidated Balance Sheet. | |||||||||||
-3 | Included in Cash Equivalents on the Condensed Consolidated Balance Sheet. |
3dfx_Tables
3dfx (Tables) | 9 Months Ended | ||||||
Oct. 27, 2013 | |||||||
Notes to financial statements [Abstract] | ' | ||||||
Purchase Price Allocation of Assets Acquired from 3dfx | ' | ||||||
Fair Market Value | Straight-Line Amortization Period | ||||||
(In thousands) | (In years) | ||||||
Property and equipment | $ | 2,433 | 2-Jan | ||||
Trademarks | 11,310 | 5 | |||||
Goodwill | 85,418 | — | |||||
Total | $ | 99,161 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||
Oct. 27, 2013 | ||||||||||||||||||||||||
Notes to financial statements [Abstract] | ' | |||||||||||||||||||||||
Amortizable Intangible Assets Components | ' | |||||||||||||||||||||||
October 27, 2013 | January 27, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net Carrying | Gross | Accumulated Amortization | Net Carrying | |||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amount | ||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Acquisition-related intangible assets | $ | 189,239 | $ | (109,196 | ) | $ | 80,043 | $ | 172,039 | $ | (96,389 | ) | $ | 75,650 | ||||||||||
Patents and licensed technology | 453,654 | (213,108 | ) | 240,546 | 407,002 | (170,320 | ) | 236,682 | ||||||||||||||||
Total intangible assets | $ | 642,893 | $ | (322,304 | ) | $ | 320,589 | $ | 579,041 | $ | (266,709 | ) | $ | 312,332 | ||||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 9 Months Ended | |||||||
Oct. 27, 2013 | ||||||||
Notes to financial statements [Abstract] | ' | |||||||
Inventories | ' | |||||||
October 27, | January 27, | |||||||
2013 | 2013 | |||||||
Inventories: | (In thousands) | |||||||
Raw materials | $ | 138,205 | $ | 157,990 | ||||
Work in-process | 77,834 | 67,352 | ||||||
Finished goods | 164,280 | 187,125 | ||||||
Total inventories | $ | 380,319 | $ | 412,467 | ||||
Prepaid Expenses and Other Current Assets | ' | |||||||
October 27, | January 27, | |||||||
2013 | 2013 | |||||||
Prepaid Expenses and Other: | (In thousands) | |||||||
Prepaid maintenance | $ | 17,705 | $ | 18,013 | ||||
Prepaid taxes | 15,626 | 9,785 | ||||||
Assets held for sale (1) | 7,547 | — | ||||||
Testing materials | 7,282 | 7,219 | ||||||
Other | 33,541 | 41,903 | ||||||
Total prepaid expenses and other | $ | 81,701 | $ | 76,920 | ||||
(1) As of October 27, 2013, $7.5 million of net properties, plant and equipment held for sale are recorded within “Prepaid Expenses and Other” on the Condensed Consolidated Balance Sheet. This asset is associated with an office building at an international location that is expected to be sold within the next twelve months. | ||||||||
Accrued Liabilities | ' | |||||||
October 27, | January 27, | |||||||
2013 | 2013 | |||||||
Accrued Liabilities and Other: | (In thousands) | |||||||
Deferred revenue, short-term | $ | 282,658 | $ | 273,605 | ||||
Accrued customer programs (1) | 164,667 | 163,406 | ||||||
Warranty accrual (2) | 15,962 | 14,874 | ||||||
Accrued payroll and related expenses | 94,984 | 98,977 | ||||||
Accrued legal settlement (3) | 30,600 | 30,600 | ||||||
Taxes payable, short-term | 8,349 | 3,173 | ||||||
Other | 55,424 | 35,160 | ||||||
Total accrued liabilities and other | $ | 652,644 | $ | 619,795 | ||||
(1) Please refer to Note 1 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the nature of accrued customer programs and their accounting treatment related to our revenue recognition policies and estimates. | ||||||||
(2) Please refer to Note 10 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the warranty accrual. | ||||||||
(3) Please refer to Note 11 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the 3dfx litigation. | ||||||||
Other Long-term Liabilities | ' | |||||||
October 27, | January 27, | |||||||
2013 | 2013 | |||||||
Other Long-Term Liabilities: | (In thousands) | |||||||
Deferred income tax liability | $ | 204,364 | $ | 192,950 | ||||
Income taxes payable, long-term | 117,112 | 115,267 | ||||||
Asset retirement obligation | 10,959 | 10,165 | ||||||
Deferred revenue, long-term (1) | 38,255 | 236,152 | ||||||
Other long-term liabilities | 17,094 | 34,787 | ||||||
Total other long-term liabilities | $ | 387,784 | $ | 589,321 | ||||
(1) Represents annual consideration received in advance of our performance obligation under our patent cross licensing agreement with Intel entered into in January 2011. The decrease in deferred revenue, long-term, is a result of revenue recognized during the nine months ended October 27, 2013. |
Guarantees_Tables
Guarantees (Tables) | 9 Months Ended | |||||||||||||||
Oct. 27, 2013 | ||||||||||||||||
Notes to financial statements [Abstract] | ' | |||||||||||||||
Guarantees | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 27, | October 28, | October 27, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Balance at beginning of period (1) | $ | 17,474 | $ | 16,537 | $ | 14,874 | $ | 18,406 | ||||||||
Additions | 1,143 | 1,358 | 6,043 | 4,715 | ||||||||||||
Deductions (2) | (2,655 | ) | (2,848 | ) | (4,955 | ) | (8,074 | ) | ||||||||
Balance at end of period | $ | 15,962 | $ | 15,047 | $ | 15,962 | $ | 15,047 | ||||||||
(1) Includes $9.1 million and $9.6 million for the three and nine months ended October 27, 2013, respectively, and $10.9 million and $13.2 million for the three and nine months ended October 28, 2012, respectively, related to warranty accrual associated with incremental repair and replacement costs from a weak die/packaging material set. | ||||||||||||||||
(2) Payments related to the warranty accrual associated with incremental repair and replacement costs from a weak die/packaging material set were $1.3 million and $1.8 million for the three and nine months ended October 27, 2013 respectively, and $1.1 million and $3.0 million for the three and nine months ended October 28, 2012, respectively. |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Oct. 27, 2013 | ||||||||||||||||
Notes to financial statements [Abstract] | ' | |||||||||||||||
Financial Information by Operating Segment | ' | |||||||||||||||
GPU | Tegra Processor | All Other | Consolidated | |||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended October 27, 2013 | ||||||||||||||||
Revenue | $ | 876,833 | $ | 111,134 | $ | 66,000 | $ | 1,053,967 | ||||||||
Depreciation and amortization expense | $ | 33,439 | $ | 17,714 | $ | 11,573 | $ | 62,726 | ||||||||
Operating income (loss) | $ | 286,905 | $ | (132,856 | ) | $ | (13,061 | ) | $ | 140,988 | ||||||
Three Months Ended October 28, 2012 | ||||||||||||||||
Revenue | $ | 894,209 | $ | 243,901 | $ | 66,000 | $ | 1,204,110 | ||||||||
Depreciation and amortization expense | $ | 32,375 | $ | 14,087 | $ | 10,686 | $ | 57,148 | ||||||||
Operating income (loss) | $ | 264,087 | $ | 1,276 | $ | (13,146 | ) | $ | 252,217 | |||||||
Nine Months Ended October 27, 2013 | ||||||||||||||||
Revenue | $ | 2,521,058 | $ | 266,886 | $ | 198,000 | $ | 2,985,944 | ||||||||
Depreciation and amortization expense | $ | 95,990 | $ | 56,067 | $ | 32,253 | $ | 184,310 | ||||||||
Operating income (loss) | $ | 781,778 | $ | (407,694 | ) | $ | (44,781 | ) | $ | 329,303 | ||||||
Nine Months Ended October 28, 2012 | ||||||||||||||||
Revenue | $ | 2,419,198 | $ | 556,059 | $ | 198,000 | $ | 3,173,257 | ||||||||
Depreciation and amortization expense | $ | 94,833 | $ | 41,204 | $ | 31,797 | $ | 167,834 | ||||||||
Operating income (loss) | $ | 633,594 | $ | (106,588 | ) | $ | (62,340 | ) | $ | 464,666 | ||||||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 27, | October 28, | October 27, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Reconciling items included in "All Other" category : | ||||||||||||||||
Revenue not allocated to reporting segments | $ | 66,000 | $ | 66,000 | $ | 198,000 | $ | 198,000 | ||||||||
Unallocated corporate operating expenses and other expenses | (37,950 | ) | (37,009 | ) | (115,763 | ) | (111,880 | ) | ||||||||
Stock-based compensation | (34,299 | ) | (33,069 | ) | (100,091 | ) | (100,893 | ) | ||||||||
Amortization of acquisition-related intangibles | (4,906 | ) | (4,402 | ) | (12,801 | ) | (12,809 | ) | ||||||||
Other acquisition-related (costs) credits | 329 | (4,666 | ) | (9,601 | ) | (14,631 | ) | |||||||||
Other non-recurring expenses (1) | (2,235 | ) | — | (4,525 | ) | (20,127 | ) | |||||||||
Total | $ | (13,061 | ) | $ | (13,146 | ) | $ | (44,781 | ) | $ | (62,340 | ) | ||||
(1) For the nine months ended October 28, 2012, we recorded a non-recurring charge of $20.1 million. This charge represents the net present value of a $25.0 million charitable contribution pledged to Stanford Hospital and Clinics on June 12, 2012 and is payable over a ten year period. | ||||||||||||||||
Revenue from customers based in different geographic regions | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 27, | October 28, | October 27, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Revenue: | ||||||||||||||||
Taiwan | $ | 319,018 | $ | 403,769 | $ | 927,903 | $ | 1,020,232 | ||||||||
China | 206,374 | 205,636 | 565,504 | 580,934 | ||||||||||||
United States | 195,529 | 257,551 | 545,303 | 557,561 | ||||||||||||
Other Asia Pacific | 174,691 | 192,814 | 507,065 | 583,858 | ||||||||||||
Other Americas | 79,382 | 81,463 | 220,920 | 239,291 | ||||||||||||
Europe | 78,973 | 62,877 | 219,249 | 191,381 | ||||||||||||
Total revenue | $ | 1,053,967 | $ | 1,204,110 | $ | 2,985,944 | $ | 3,173,257 | ||||||||
Stock_Based_Compensation_Detai
Stock Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Oct. 27, 2013 | Oct. 28, 2012 | Oct. 27, 2013 | Oct. 28, 2012 | Jan. 27, 2013 |
Share-based Compensation | ' | ' | ' | ' | ' |
Cost of revenue | $3,090,000 | $2,489,000 | $7,911,000 | $7,664,000 | ' |
Research and development | 20,902,000 | 20,056,000 | 61,392,000 | 60,148,000 | ' |
Sales, general and administrative | 10,307,000 | 10,524,000 | 30,788,000 | 33,081,000 | ' |
Stock based compensation expense | 34,299,000 | 33,069,000 | 100,091,000 | 100,893,000 | ' |
Stock Options granted (in shares) | 2,800 | 3,200 | 6,049 | 6,800 | ' |
Weighted average grant-date fair value per option | $3.90 | $5.54 | $3.46 | $5.45 | ' |
Restricted stock units granted (in shares) | 4,900 | 3,500 | 10,427 | 7,500 | ' |
Weighted average grant-date fair value of RSU's | $15.15 | $13.72 | $13.44 | $13.99 | ' |
Stock-based compensation expense related to equity awards not expected to vest | 15,100,000 | 11,800,000 | 28,800,000 | 25,400,000 | ' |
Aggregate amount of unearned stock-based compensation expense related to equity awards, adjusted for estimated forfeitures | 265,300,000 | ' | 265,300,000 | ' | 208,700,000 |
Unearned stock-based compensation expense related to stock options weighted average amortization period (in years) | ' | ' | '2 years 8 months 12 days | ' | '2 years 8 months 12 days |
Unearned stock-based compensation expense related to RSUs weighted average amortization period (in years) | ' | ' | '3 years 0 months 0 days | ' | '2 years 8 months 12 days |
Stock Options | ' | ' | ' | ' | ' |
Stock options beginning balance (in shares) | ' | ' | 32,995 | ' | ' |
Stock Options granted (in shares) | 2,800 | 3,200 | 6,049 | 6,800 | ' |
Stock options exercised (in shares) | ' | ' | -2,557 | ' | ' |
Stock options cancelled (in shares) | ' | ' | -3,358 | ' | ' |
Stock options ending balance (in shares) | 33,129 | ' | 33,129 | ' | 32,995 |
Weighted average exercise price of stock options at beginning of period | ' | ' | $14.66 | ' | ' |
Weighted average exercise price of stock options granted | ' | ' | $14.29 | ' | ' |
Weighted average exercise price of stock options exercised | ' | ' | $10.15 | ' | ' |
Weighted average exercise price of stock options cancelled | ' | ' | $22.14 | ' | ' |
Weighted average exercise price of stock options at end of period | $14.18 | ' | $14.18 | ' | $14.66 |
Restricted Stock Units | ' | ' | ' | ' | ' |
Restricted stock units beginning balance (in shares) | ' | ' | 15,159 | ' | ' |
Restricted stock units granted (in shares) | 4,900 | 3,500 | 10,427 | 7,500 | ' |
Restricted stock units vested (in shares) | ' | ' | -5,891 | ' | ' |
Restricted stock units cancelled (in shares) | ' | ' | -921 | ' | ' |
Restricted stock units ending balance (in shares) | 18,774 | ' | 18,774 | ' | 15,159 |
Weighted average grant date fair value of restricted stock units at beginning of period | ' | ' | $14.46 | ' | ' |
Weighted average grant-date fair value of RSU's | $15.15 | $13.72 | $13.44 | $13.99 | ' |
Weighted average exercise price of stock options exercised | ' | ' | $14.80 | ' | ' |
Weighted average grant date fair value of restricted stock units cancelled | ' | ' | $13.87 | ' | ' |
Weighted average grant date fair value of restricted stock units at end of period | $13.82 | ' | $13.82 | ' | $14.46 |
Minimum | ' | ' | ' | ' | ' |
Share-based Compensation | ' | ' | ' | ' | ' |
Weighted average expected life (in years) | '3 years 3 months 17 days | '4 years 3 months 17 days | '2 years 4 months 24 days | '3 years 1 month 6 days | ' |
Maximum | ' | ' | ' | ' | ' |
Share-based Compensation | ' | ' | ' | ' | ' |
Weighted average expected life (in years) | '3 years 6 months 0 days | '4 years 10 months 24 days | '3 years 6 months 0 days | '4 years 10 months 24 days | ' |
Stock Options | ' | ' | ' | ' | ' |
Share-based Compensation | ' | ' | ' | ' | ' |
Estimated grant-date fair value | 10,800,000 | 17,900,000 | 20,900,000 | 37,200,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used | '(Using a binomial model) | '(Using a binomial model) | '(Using a binomial model) | '(Using a binomial model) | ' |
Risk free interest rate, minimum (in hundredths) | 2.60% | 1.70% | 1.80% | 1.50% | ' |
Risk free interest rate, maximum (in hundredths) | 3.00% | 1.80% | 3.00% | 2.30% | ' |
Volatility rate, minimum (in hundredths) | 30.00% | 45.00% | 30.00% | 43.00% | ' |
Volatility rate, maximum (in hundredths) | 32.00% | 49.00% | 37.00% | 49.00% | ' |
Dividend yield minimum | 1.90% | 0.00% | 1.90% | 0.00% | ' |
Dividend yield maximum | 2.00% | 0.00% | 2.40% | 0.00% | ' |
Restricted Stock Units (RSUs) | ' | ' | ' | ' | ' |
Share-based Compensation | ' | ' | ' | ' | ' |
Estimated grant-date fair value | $73,800,000 | $48,200,000 | $140,100,000 | $104,700,000 | ' |
Employee Stock Purchase Plan | ' | ' | ' | ' | ' |
Share-based Compensation | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used | '(Using a Black-Scholes model) | '(Using a Black-Scholes model) | '(Using a Black-Scholes model) | '(Using a Black-Scholes model) | ' |
Risk free interest rate, minimum (in hundredths) | 0.10% | 0.10% | 0.10% | 0.10% | ' |
Risk free interest rate, maximum (in hundredths) | 0.40% | 0.20% | 0.40% | 0.30% | ' |
Volatility rate, minimum (in hundredths) | 32.00% | 47.00% | 32.00% | 44.00% | ' |
Volatility rate, maximum (in hundredths) | 32.00% | 47.00% | 37.00% | 47.00% | ' |
Dividend yield minimum | 2.00% | 0.00% | 2.00% | 0.00% | ' |
Dividend yield maximum | 2.00% | 0.00% | 2.40% | 0.00% | ' |
Employee Stock Purchase Plan | Minimum | ' | ' | ' | ' | ' |
Share-based Compensation | ' | ' | ' | ' | ' |
Weighted average expected life (in years) | '0 years 6 months 0 days | '0 years 6 months 0 days | '0 years 6 months 0 days | '0 years 6 months 0 days | ' |
Employee Stock Purchase Plan | Maximum | ' | ' | ' | ' | ' |
Share-based Compensation | ' | ' | ' | ' | ' |
Weighted average expected life (in years) | '2 years 0 months 0 days | '2 years 0 months 0 days | '2 years 0 months 0 days | '2 years 0 months 0 days | ' |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 27, 2013 | Oct. 28, 2012 | Oct. 27, 2013 | Oct. 28, 2012 |
Numerator: | ' | ' | ' | ' |
Net income | $118,734 | $209,080 | $293,073 | $388,563 |
Denominator: | ' | ' | ' | ' |
Denominator for basic net income per share, weighted average shares | 580,870 | 622,352 | 594,363 | 619,043 |
Effect of dilutive securities: | ' | ' | ' | ' |
Equity awards outstanding | 7,882 | 6,493 | 5,745 | 6,930 |
Denominator for diluted net income per share, weighted average shares | 588,752 | 628,845 | 600,108 | 625,973 |
Net income per share: | ' | ' | ' | ' |
Basic net income per share | $0.20 | $0.34 | $0.49 | $0.63 |
Diluted net income per share | $0.20 | $0.33 | $0.49 | $0.62 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 21,870 | 27,555 | 27,351 | 31,697 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 27, 2013 | Oct. 28, 2012 | Oct. 27, 2013 | Oct. 28, 2012 |
Income Taxes | ' | ' | ' | ' |
Income tax expense | $22,750 | $44,548 | $48,293 | $87,368 |
Effective Income Tax Rate, Continuing Operations | 16.10% | 17.60% | 14.20% | 18.40% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | ' | ' | 35.00% | ' |
Marketable_Securities_Details
Marketable Securities (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Oct. 27, 2013 | Oct. 28, 2012 | Oct. 27, 2013 | Oct. 28, 2012 | Jan. 27, 2013 | |
Summary of cash equivalents and marketable securities: | ' | ' | ' | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | $2,575,489,000 | ' | $2,575,489,000 | ' | $3,286,436,000 |
Unrealized Gain | 7,514,000 | ' | 7,514,000 | ' | 11,670,000 |
Unrealized Loss | -1,375,000 | ' | -1,375,000 | ' | -843,000 |
Estimated Fair Value | 2,581,628,000 | ' | 2,581,628,000 | ' | 3,297,263,000 |
Accelerated Share Repurchases, Settlement (Payment) or Receipt | 750,000,000 | ' | 750,000,000 | ' | ' |
Change in marketable securities | 715,600,000 | ' | 715,600,000 | ' | ' |
Classified as: | ' | ' | ' | ' | ' |
Cash equivalents | 110,758,000 | ' | 110,758,000 | ' | 302,166,000 |
Marketable securities | 2,470,870,000 | ' | 2,470,870,000 | ' | 2,995,097,000 |
Total cash equivalents and marketable securities | 2,581,628,000 | ' | 2,581,628,000 | ' | 3,297,263,000 |
Amortized Cost | ' | ' | ' | ' | ' |
Less than one year | 848,672,000 | ' | 848,672,000 | ' | 1,397,350,000 |
Due in 1-5 years | 1,628,882,000 | ' | 1,628,882,000 | ' | 1,777,785,000 |
Mortgage-backed securities issued by government-sponsored enterprises not due to a single maturity date | 97,935,000 | ' | 97,935,000 | ' | 111,301,000 |
Total | 2,575,489,000 | ' | 2,575,489,000 | ' | 3,286,436,000 |
Estimated Fair Value | ' | ' | ' | ' | ' |
Less than one year | 849,564,000 | ' | 849,564,000 | ' | 1,399,304,000 |
Due in 1-5 years | 1,632,651,000 | ' | 1,632,651,000 | ' | 1,783,103,000 |
Mortgage-backed securities issued by government-sponsored enterprises not due to a single maturity date | 99,413,000 | ' | 99,413,000 | ' | 114,856,000 |
Total | 2,581,628,000 | ' | 2,581,628,000 | ' | 3,297,263,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ' | ' | ' | ' | ' |
Number of investments in an unrealized loss position with a duration less than one year | 7 | ' | 7 | ' | ' |
Number of invetstments unrealized loss position with a duration more than one year | 9 | ' | 9 | ' | ' |
Unrealized Loss Position, Fair Value | ' | ' | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 792,866,000 | ' | 792,866,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,732,065,000 | ' | 1,732,065,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,524,931,000 | ' | 2,524,931,000 | ' | ' |
Unrealized Loss Position, Aggregate Losses | ' | ' | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | -79,000 | ' | -79,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | -1,296,000 | ' | -1,296,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | -1,375,000 | ' | -1,375,000 | ' | ' |
Net realized gain | ' | ' | ' | ' | ' |
Marketable Securities, Realized Gain (Loss), Excluding Other than Temporary Impairments | 100,000 | 100,000 | 1,800,000 | 400,000 | ' |
Debt securities of United States government agencies | ' | ' | ' | ' | ' |
Summary of cash equivalents and marketable securities: | ' | ' | ' | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 726,382,000 | ' | 726,382,000 | ' | 867,087,000 |
Unrealized Gain | 798,000 | ' | 798,000 | ' | 1,199,000 |
Unrealized Loss | -184,000 | ' | -184,000 | ' | -139,000 |
Estimated Fair Value | 726,996,000 | ' | 726,996,000 | ' | 868,147,000 |
Classified as: | ' | ' | ' | ' | ' |
Total cash equivalents and marketable securities | 726,996,000 | ' | 726,996,000 | ' | 868,147,000 |
Unrealized Loss Position, Fair Value | ' | ' | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 288,163,000 | ' | 288,163,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 438,833,000 | ' | 438,833,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 726,996,000 | ' | 726,996,000 | ' | ' |
Unrealized Loss Position, Aggregate Losses | ' | ' | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | -5,000 | ' | -5,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | -179,000 | ' | -179,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | -184,000 | ' | -184,000 | ' | ' |
Corporate debt securities | ' | ' | ' | ' | ' |
Summary of cash equivalents and marketable securities: | ' | ' | ' | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 1,099,456,000 | ' | 1,099,456,000 | ' | 1,255,297,000 |
Unrealized Gain | 2,020,000 | ' | 2,020,000 | ' | 3,175,000 |
Unrealized Loss | -545,000 | ' | -545,000 | ' | -542,000 |
Estimated Fair Value | 1,100,931,000 | ' | 1,100,931,000 | ' | 1,257,930,000 |
Classified as: | ' | ' | ' | ' | ' |
Total cash equivalents and marketable securities | 1,100,931,000 | ' | 1,100,931,000 | ' | 1,257,930,000 |
Unrealized Loss Position, Fair Value | ' | ' | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 403,313,000 | ' | 403,313,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 697,618,000 | ' | 697,618,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,100,931,000 | ' | 1,100,931,000 | ' | ' |
Unrealized Loss Position, Aggregate Losses | ' | ' | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | -16,000 | ' | -16,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | -529,000 | ' | -529,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | -545,000 | ' | -545,000 | ' | ' |
Mortgage backed securities issued by United Sates government-sponsored enterprises | ' | ' | ' | ' | ' |
Summary of cash equivalents and marketable securities: | ' | ' | ' | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 190,993,000 | ' | 190,993,000 | ' | 183,034,000 |
Unrealized Gain | 4,129,000 | ' | 4,129,000 | ' | 6,194,000 |
Unrealized Loss | -522,000 | ' | -522,000 | ' | -57,000 |
Estimated Fair Value | 194,600,000 | ' | 194,600,000 | ' | 189,171,000 |
Classified as: | ' | ' | ' | ' | ' |
Total cash equivalents and marketable securities | 194,600,000 | ' | 194,600,000 | ' | 189,171,000 |
Unrealized Loss Position, Fair Value | ' | ' | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,460,000 | ' | 3,460,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 191,140,000 | ' | 191,140,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 194,600,000 | ' | 194,600,000 | ' | ' |
Unrealized Loss Position, Aggregate Losses | ' | ' | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0 | ' | 0 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | -522,000 | ' | -522,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | -522,000 | ' | -522,000 | ' | ' |
Asset-backed Securities [Member] | ' | ' | ' | ' | ' |
Summary of cash equivalents and marketable securities: | ' | ' | ' | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 60,886,000 | ' | 60,886,000 | ' | 0 |
Unrealized Gain | 6,000 | ' | 6,000 | ' | 0 |
Unrealized Loss | -16,000 | ' | -16,000 | ' | 0 |
Estimated Fair Value | 60,876,000 | ' | 60,876,000 | ' | 0 |
Classified as: | ' | ' | ' | ' | ' |
Total cash equivalents and marketable securities | 60,876,000 | ' | 60,876,000 | ' | 0 |
Unrealized Loss Position, Fair Value | ' | ' | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 10,709,000 | ' | 10,709,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 50,167,000 | ' | 50,167,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 60,876,000 | ' | 60,876,000 | ' | ' |
Unrealized Loss Position, Aggregate Losses | ' | ' | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | -16,000 | ' | -16,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0 | ' | 0 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | -16,000 | ' | -16,000 | ' | ' |
Money market funds | ' | ' | ' | ' | ' |
Summary of cash equivalents and marketable securities: | ' | ' | ' | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 56,697,000 | ' | 56,697,000 | ' | 195,790,000 |
Unrealized Gain | 0 | ' | 0 | ' | 0 |
Unrealized Loss | 0 | ' | 0 | ' | 0 |
Estimated Fair Value | 56,697,000 | ' | 56,697,000 | ' | 195,790,000 |
Classified as: | ' | ' | ' | ' | ' |
Total cash equivalents and marketable securities | 56,697,000 | ' | 56,697,000 | ' | 195,790,000 |
Debt securities issued by United States Treasury | ' | ' | ' | ' | ' |
Summary of cash equivalents and marketable securities: | ' | ' | ' | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 441,075,000 | ' | 441,075,000 | ' | 785,228,000 |
Unrealized Gain | 561,000 | ' | 561,000 | ' | 1,102,000 |
Unrealized Loss | -108,000 | ' | -108,000 | ' | -105,000 |
Estimated Fair Value | 441,528,000 | ' | 441,528,000 | ' | 786,225,000 |
Classified as: | ' | ' | ' | ' | ' |
Total cash equivalents and marketable securities | 441,528,000 | ' | 441,528,000 | ' | 786,225,000 |
Unrealized Loss Position, Fair Value | ' | ' | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 87,221,000 | ' | 87,221,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 354,307,000 | ' | 354,307,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 441,528,000 | ' | 441,528,000 | ' | ' |
Unrealized Loss Position, Aggregate Losses | ' | ' | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | -42,000 | ' | -42,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | -66,000 | ' | -66,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | ($108,000) | ' | ($108,000) | ' | ' |
Fair_Value_of_Cash_Equivalents2
Fair Value of Cash Equivalents and Marketable Securities (Details) (USD $) | Oct. 27, 2013 | Jan. 27, 2013 | |
Financial assets and liabilities measured at fair value: | ' | ' | |
Estimated Fair Value | $2,581,628,000 | $3,297,263,000 | |
Cash equivalents of corporate debt securities | 54,100,000 | ' | |
Marketable securities of corporate debt securities | 1,050,000,000 | ' | |
Estimate of Fair Value | ' | ' | |
Financial assets and liabilities measured at fair value: | ' | ' | |
Total cash equivalents and marketable securities | 2,581,628,000 | ' | |
Quoted Price in Active Markets for Identical Assets (Level 1) | ' | ' | |
Financial assets and liabilities measured at fair value: | ' | ' | |
Money market funds | 56,697,000 | [1] | ' |
Total cash equivalents and marketable securities | 56,697,000 | ' | |
Significant Other Observable Inputs (Level 2) | ' | ' | |
Financial assets and liabilities measured at fair value: | ' | ' | |
Debt securities issued by US Government agencies | 726,996,000 | [2] | ' |
Debt securities issued by United States Treasury | 441,528,000 | [2] | ' |
Corporate debt securities | 1,100,931,000 | [3] | ' |
Mortgage-backed securitieis issued by Government-sponsored entities | 194,600,000 | [2] | ' |
Money market funds | 0 | ' | |
Total cash equivalents and marketable securities | 2,524,931,000 | ' | |
Corporate Debt Securities [Member] | ' | ' | |
Financial assets and liabilities measured at fair value: | ' | ' | |
Estimated Fair Value | 1,100,931,000 | 1,257,930,000 | |
US Government Agencies Debt Securities [Member] | ' | ' | |
Financial assets and liabilities measured at fair value: | ' | ' | |
Estimated Fair Value | 726,996,000 | 868,147,000 | |
US Treasury Securities [Member] | ' | ' | |
Financial assets and liabilities measured at fair value: | ' | ' | |
Estimated Fair Value | 441,528,000 | 786,225,000 | |
Asset-backed Securities [Member] | ' | ' | |
Financial assets and liabilities measured at fair value: | ' | ' | |
Estimated Fair Value | 60,876,000 | 0 | |
Asset backed securities | 60,876,000 | [2] | ' |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' | |
Financial assets and liabilities measured at fair value: | ' | ' | |
Estimated Fair Value | 194,600,000 | 189,171,000 | |
Money Market Funds [Member] | ' | ' | |
Financial assets and liabilities measured at fair value: | ' | ' | |
Estimated Fair Value | $56,697,000 | $195,790,000 | |
[1] | Included in Cash Equivalents on the Condensed Consolidated Balance Sheet. | ||
[2] | Included in Marketable Securities on the Condensed ConsolidatedB Balance Sheet. | ||
[3] | Includes $54.1 million in Cash Equivalents and $1.05 billion in Marketable Securities on the Condensed Consolidated Balance Sheet. |
3dfx_Details
3dfx (Details) (USD $) | 9 Months Ended | |||
Oct. 27, 2013 | Jan. 27, 2013 | |||
Notes to financial statements [Abstract] | ' | ' | ||
Aggregate purchase price of acquisition paid initially | $74,200,000 | ' | ||
Accrued legal settlement | 30,600,000 | [1] | 30,600,000 | [1] |
Various administrative expenses and Trustee fees included in conditional settlement payment | 5,600,000 | ' | ||
Conditional settlement assessed to satisfy debts and liabilities owed to the general unsecured creditors of 3dfx | 25,000,000 | ' | ||
Aggregate purchase price of acquisition assessed after conditional settlement | 95,000,000 | ' | ||
Direct transaction costs for acquisition | 4,200,000 | ' | ||
Fair Market Value | ' | ' | ||
Property and equipment | 2,433,000 | ' | ||
Trademarks | 11,310,000 | ' | ||
Goodwill | 85,418,000 | ' | ||
Total | $99,161,000 | ' | ||
Straight-Line Amortization Period | ' | ' | ||
Property and equipment | '1-2 | ' | ||
Trademarks | '5 years 0 months 0 days | ' | ||
[1] | Please refer to Note 11 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the 3dfx litigation. |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Oct. 27, 2013 | Oct. 28, 2012 | Oct. 27, 2013 | Oct. 28, 2012 | Jan. 27, 2013 | |
Amortizable intangible assets components | ' | ' | ' | ' | ' |
Gross Carrying Amount | $642,893,000 | ' | $642,893,000 | ' | $579,041,000 |
Accumulated Amortization | -322,304,000 | ' | -322,304,000 | ' | -266,709,000 |
Net Carrying Amount | 320,589,000 | ' | 320,589,000 | ' | 312,332,000 |
Amortization expense associated with intangible assets | ' | ' | ' | ' | ' |
Amortization expense | 19,600,000 | 17,300,000 | 55,600,000 | 51,100,000 | ' |
Future amortization expense associated with intangible assets | ' | ' | ' | ' | ' |
Remainder of fiscal 2014 | 26,000,000 | ' | 26,000,000 | ' | ' |
Fiscal 2015 | 81,400,000 | ' | 81,400,000 | ' | ' |
Fiscal 2016 | 71,200,000 | ' | 71,200,000 | ' | ' |
Fiscal 2017 | 57,900,000 | ' | 57,900,000 | ' | ' |
Fiscal 2018 | 47,900,000 | ' | 47,900,000 | ' | ' |
Fiscal 2019 and fiscal years subsequent of fiscal 2019 | 36,200,000 | ' | 36,200,000 | ' | ' |
Acquisition-related intangible assets | ' | ' | ' | ' | ' |
Amortizable intangible assets components | ' | ' | ' | ' | ' |
Gross Carrying Amount | 189,239,000 | ' | 189,239,000 | ' | 172,039,000 |
Accumulated Amortization | -109,196,000 | ' | -109,196,000 | ' | -96,389,000 |
Net Carrying Amount | 80,043,000 | ' | 80,043,000 | ' | 75,650,000 |
Patents and Licensed Technology [Member] | ' | ' | ' | ' | ' |
Amortizable intangible assets components | ' | ' | ' | ' | ' |
Gross Carrying Amount | 453,654,000 | ' | 453,654,000 | ' | 407,002,000 |
Accumulated Amortization | -213,108,000 | ' | -213,108,000 | ' | -170,320,000 |
Net Carrying Amount | $240,546,000 | ' | $240,546,000 | ' | $236,682,000 |
Balance_Sheet_Components_Detai
Balance Sheet Components (Details) (USD $) | Oct. 27, 2013 | Jan. 27, 2013 | ||
Inventories | ' | ' | ||
Raw materials | $138,205,000 | $157,990,000 | ||
Work in-process | 77,834,000 | 67,352,000 | ||
Finished goods | 164,280,000 | 187,125,000 | ||
Total inventories | 380,319,000 | 412,467,000 | ||
Outstanding Inventory Purchase Obligations | 383,700,000 | ' | ||
Prepaid Expenses and Other Current assets: | ' | ' | ||
Prepaid maintenance | 17,705,000 | 18,013,000 | ||
Prepaid taxes | 15,626,000 | 9,785,000 | ||
Assets held for sale | 7,547,000 | [1] | 0 | |
Testing materials | 7,282,000 | 7,219,000 | ||
Other | 33,541,000 | 41,903,000 | ||
Total prepaid expenses and other | 81,701,000 | 76,920,000 | ||
Accrued Liabilities | ' | ' | ||
Deferred revenue | 282,658,000 | 273,605,000 | ||
Accrued customer programs | 164,667,000 | [2] | 163,406,000 | [2] |
Warranty accrual | 15,962,000 | [3] | 14,874,000 | [3] |
Accrued payroll and related expenses | 94,984,000 | 98,977,000 | ||
Accrued legal settlement | 30,600,000 | [4] | 30,600,000 | [4] |
Taxes payable, short term | 8,349,000 | 3,173,000 | ||
Other | 55,424,000 | 35,160,000 | ||
Total accrued liabilities and other | 652,644,000 | 619,795,000 | ||
Other Long-term Liabilities | ' | ' | ||
Deferred income tax liability | 204,364,000 | 192,950,000 | ||
Income taxes payable, long term | 117,112,000 | 115,267,000 | ||
Asset retirement obligation | 10,959,000 | 10,165,000 | ||
Deferred Revenue | 38,255,000 | [5] | 236,152,000 | |
Liabilites other noncurrent | 17,094,000 | 34,787,000 | ||
Total other long-term liabilities | $387,784,000 | $589,321,000 | ||
[1] | As of OctoberB 27, 2013, $7.5 million of net properties, plant and equipment held for sale are recorded within bPrepaid Expenses and Otherb on the Condensed Consolidated Balance Sheet. This asset is associated with an office building at an international location that is expected to be sold within the next twelve months. | |||
[2] | Please refer to Note 1 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the nature of accrued customer programs and their accounting treatment related to our revenue recognition policies and estimates. | |||
[3] | Please refer to Note 10 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the warranty accrual. | |||
[4] | Please refer to Note 11 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the 3dfx litigation. | |||
[5] | Represents annual consideration received in advance of our performance obligation under our patent cross licensing agreement with Intel entered into in January 2011. The decrease in deferred revenue, long-term, is a result of revenue recognized during the nine months ended October 27, 2013. |
Guarantees_Details
Guarantees (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
Oct. 27, 2013 | Oct. 28, 2012 | Oct. 27, 2013 | Oct. 28, 2012 | Apr. 28, 2013 | Apr. 29, 2012 | |||||
Estimated product warranty liabilities | ' | ' | ' | ' | ' | ' | ||||
Balance at beginning of period (1) | ' | $15,047,000 | $14,874,000 | $18,406,000 | $17,474,000 | [1] | $16,537,000 | [1] | ||
Additions | 1,143,000 | 1,358,000 | 6,043,000 | 4,715,000 | ' | ' | ||||
Deductions (2) | -2,655,000 | [2] | -2,848,000 | [2] | -4,955,000 | -8,074,000 | ' | ' | ||
Balance at end of period | 15,962,000 | ' | 15,962,000 | ' | 17,474,000 | [1] | 16,537,000 | [1] | ||
Incremental repair and replacement costs for the weak die/packaging material set | 9,100,000 | 10,900,000 | 9,600,000 | 13,200,000 | ' | ' | ||||
Payments related to warranty accrual | $1,300,000 | $1,100,000 | $1,800,000 | $3,000,000 | ' | ' | ||||
[1] | Includes $9.1 million and $9.6 million for the three and nine months ended OctoberB 27, 2013, respectively, and $10.9 million and $13.2 million for the three and nine months ended OctoberB 28, 2012, respectively, related to warranty accrual associated with incremental repair and replacement costs from a weak die/packaging material set. | |||||||||
[2] | Payments related to the warranty accrual associated with incremental repair and replacement costs from a weak die/packaging material set were $1.3 million and $1.8 million for the three and nine months ended OctoberB 27, 2013 respectively, and $1.1 million and $3.0 million for the three and nine months ended OctoberB 28, 2012, respectively. |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 9 Months Ended | |||
Oct. 27, 2013 | Jan. 27, 2013 | |||
Notes to financial statements [Abstract] | ' | ' | ||
Aggregate purchase price of acquisition paid initially, net of direct costs | $70,000,000 | ' | ||
Excess of assessed fair value over acquisition price paid | 50,000,000 | ' | ||
Assessed value of asset purchase | 108,000,000 | ' | ||
Accrued legal settlement | 30,600,000 | [1] | 30,600,000 | [1] |
Various administrative expenses and Trustee fees included in conditional settlement payment | 5,600,000 | ' | ||
Conditional settlement assessed to satisfy debts and liabilities owed to the general unsecured creditors of 3dfx | 25,000,000 | ' | ||
Net warranty charge against cost of revenue | 181,200,000 | ' | ||
Net warranty charge against sales, general, and administrative expense | $12,700,000 | ' | ||
[1] | Please refer to Note 11 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the 3dfx litigation. |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2014 | Oct. 27, 2013 | Jul. 28, 2013 | Oct. 27, 2013 | |
Accelerated Share Repurchases [Line Items] | ' | ' | ' | ' |
Cost of shares repurchased under stock repurchase program | ' | ' | ' | $2,410,000,000 |
Aggregate maximum amount of common stock to be repurchased | ' | ' | ' | 2,700,000,000 |
Stock repurchase program, additional authorized amount | 1,000,000,000 | ' | ' | ' |
Accelerated Share Repurchases, Settlement (Payment) or Receipt | ' | 750,000,000 | ' | 750,000,000 |
Treasury Stock, Shares, Acquired | ' | 14,600,000 | 36,900,000 | 51,500,000 |
Treasury Stock Acquired, Average Cost Per Share | ' | $14.56 | ' | ' |
Aggregate number of shares repurchased under stock repurchase program (in shares) | ' | ' | ' | 159,000,000 |
Authorized number of shares of common stock (in shares) | ' | 2,000,000,000 | ' | 2,000,000,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $1,290,000,000 | ' | ' | $285,700,000 |
Par value of common stock | ' | $0.00 | ' | $0.00 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Oct. 27, 2013 | Oct. 28, 2012 | Oct. 27, 2013 | Oct. 28, 2012 | Jan. 27, 2013 | ||
Revenue by Operating Segment and Geographic Region | ' | ' | ' | ' | ' | |
Revenue | $1,053,967,000 | $1,204,110,000 | $2,985,944,000 | $3,173,257,000 | ' | |
Depreciation and amortization expense | 62,726,000 | 57,148,000 | 184,310,000 | 167,834,000 | ' | |
Operating income (loss) | 140,988,000 | 252,217,000 | 329,303,000 | 464,666,000 | ' | |
Revenue from significant customers (in percent) | 11.00% | 14.00% | 21.00% | 12.00% | ' | |
Number of customers with significant revenue | 1 | 1 | 2 | 1 | ' | |
Accounts receivable from significant customers (in percent) | 36.00% | ' | 36.00% | ' | 40.00% | |
Number of customers with significant accounts receivable balance | 2 | ' | 2 | ' | 3 | |
Net present value, charitable contribution | ' | ' | ' | 25,000,000 | ' | |
Reconciling items included in All Other category | ' | ' | ' | ' | ' | |
Unallocated corporate opex and other expenses | -37,950,000 | -37,009,000 | -115,763,000 | -111,880,000 | ' | |
Stock based compensation expense | -34,299,000 | -33,069,000 | -100,091,000 | -100,893,000 | ' | |
Amortization of Acquired Intangible Assets | -4,906,000 | -4,402,000 | -12,801,000 | -12,809,000 | ' | |
Other acquisition-related (costs) credits | 329,000 | -4,666,000 | -9,601,000 | -14,631,000 | ' | |
Other non-recurring expenses | -2,235,000 | 0 | -4,525,000 | -20,127,000 | [1] | ' |
Taiwan [Member] | ' | ' | ' | ' | ' | |
Revenue by Operating Segment and Geographic Region | ' | ' | ' | ' | ' | |
Revenue | 319,018,000 | 403,769,000 | 927,903,000 | 1,020,232,000 | ' | |
China [Member] | ' | ' | ' | ' | ' | |
Revenue by Operating Segment and Geographic Region | ' | ' | ' | ' | ' | |
Revenue | 206,374,000 | 205,636,000 | 565,504,000 | 580,934,000 | ' | |
Other Asia Pacific [Member] | ' | ' | ' | ' | ' | |
Revenue by Operating Segment and Geographic Region | ' | ' | ' | ' | ' | |
Revenue | 174,691,000 | 192,814,000 | 507,065,000 | 583,858,000 | ' | |
United States [Member] | ' | ' | ' | ' | ' | |
Revenue by Operating Segment and Geographic Region | ' | ' | ' | ' | ' | |
Revenue | 195,529,000 | 257,551,000 | 545,303,000 | 557,561,000 | ' | |
Other Americas [Member] | ' | ' | ' | ' | ' | |
Revenue by Operating Segment and Geographic Region | ' | ' | ' | ' | ' | |
Revenue | 79,382,000 | 81,463,000 | 220,920,000 | 239,291,000 | ' | |
Europe [Member] | ' | ' | ' | ' | ' | |
Revenue by Operating Segment and Geographic Region | ' | ' | ' | ' | ' | |
Revenue | 78,973,000 | 62,877,000 | 219,249,000 | 191,381,000 | ' | |
GPU | ' | ' | ' | ' | ' | |
Revenue by Operating Segment and Geographic Region | ' | ' | ' | ' | ' | |
Revenue | 876,833,000 | 894,209,000 | 2,521,058,000 | 2,419,198,000 | ' | |
Depreciation and amortization expense | 33,439,000 | 32,375,000 | 95,990,000 | 94,833,000 | ' | |
Operating income (loss) | 286,905,000 | 264,087,000 | 781,778,000 | 633,594,000 | ' | |
Tegra Processor | ' | ' | ' | ' | ' | |
Revenue by Operating Segment and Geographic Region | ' | ' | ' | ' | ' | |
Revenue | 111,134,000 | 243,901,000 | 266,886,000 | 556,059,000 | ' | |
Depreciation and amortization expense | 17,714,000 | 14,087,000 | 56,067,000 | 41,204,000 | ' | |
Operating income (loss) | -132,856,000 | 1,276,000 | -407,694,000 | -106,588,000 | ' | |
All Other | ' | ' | ' | ' | ' | |
Revenue by Operating Segment and Geographic Region | ' | ' | ' | ' | ' | |
Revenue | 66,000,000 | 66,000,000 | 198,000,000 | 198,000,000 | ' | |
Depreciation and amortization expense | 11,573,000 | 10,686,000 | 32,253,000 | 31,797,000 | ' | |
Operating income (loss) | ($13,061,000) | ($13,146,000) | ($44,781,000) | ($62,340,000) | ' | |
[1] | For the nine months ended October 28, 2012, we recorded a non-recurring charge of $20.1 million. This charge represents the net present value of a $25.0 million charitable contribution pledged to Stanford Hospital and Clinics on June 12, 2012 and is payable over a ten year period. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | |
In Billions, except Per Share data, unless otherwise specified | Jan. 26, 2014 | Oct. 27, 2013 |
Subsequent Event [Line Items] | ' | ' |
Stock repurchase program, additional authorized amount | $1 | ' |
Increase in dividend | ' | 13.00% |
Cash dividends declared and paid per common share | $0.09 | $0.08 |
EstimatedAnnualCommonStockDividendsPerShare | $0.34 | $0.30 |