Document and Entity Information
Document and Entity Information Document - USD ($) | 9 Months Ended | ||
Oct. 30, 2016 | Nov. 18, 2016 | Jul. 24, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | NVIDIA CORP | ||
Entity Central Index Key | 1,045,810 | ||
Current Fiscal Year End Date | --01-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Oct. 30, 2016 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 539,495,365 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 9,918,351,568 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2016 | Oct. 25, 2015 | Oct. 30, 2016 | Oct. 25, 2015 | ||
Revenue | $ 2,004 | $ 1,305 | $ 4,737 | $ 3,609 | |
Cost of revenue | 821 | 571 | 1,977 | 1,589 | |
Gross profit | 1,183 | 734 | 2,760 | 2,020 | |
Operating expenses | |||||
Research and development | 373 | 329 | 1,069 | 987 | |
Sales, general and administrative | 171 | 152 | 487 | 441 | |
Restructuring and other charges | 0 | 8 | 3 | 97 | |
Total operating expenses | 544 | 489 | 1,559 | 1,525 | |
Income from operations | 639 | 245 | 1,201 | 495 | |
Interest income | 14 | 9 | 37 | 28 | |
Interest expense | (16) | (12) | (39) | (35) | |
Other income (expense), net | (16) | 3 | (19) | 1 | |
Income before income tax expense (benefit) | 621 | 245 | 1,180 | 489 | |
Income tax expense (benefit) | 79 | (1) | 168 | 83 | |
Net income | $ 542 | $ 246 | $ 1,012 | $ 406 | |
Basic net income per share | [1] | $ 1.01 | $ 0.45 | $ 1.89 | $ 0.75 |
Diluted net income per share | [2] | $ 0.83 | $ 0.44 | $ 1.59 | $ 0.72 |
Weighted average shares used in basic per share computation | 538 | 542 | 536 | 544 | |
Weighted average shares used in diluted per share computation | 653 | 565 | 636 | 563 | |
Cash dividends declared and paid per common share | $ 0.1150 | $ 0.0975 | $ 0.3450 | $ 0.2800 | |
[1] | Calculated as net income divided by basic weighted average shares. | ||||
[2] | Calculated as net income divided by diluted weighted average shares. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2016 | Oct. 25, 2015 | Oct. 30, 2016 | Oct. 25, 2015 | |
Net income | $ 542 | $ 246 | $ 1,012 | $ 406 |
Net unrealized gain (loss) on available-for-sale securities | 10 | 3 | 1 | (2) |
Reclassification adjustments for net realized gain (loss) on available-for-sale securities included in net income | 0 | 0 | 1 | (1) |
Net change in unrealized gain (loss) on available-for-sale securities | (10) | 3 | 2 | (3) |
Net change in unrealized gain (loss) on cash flow hedges | 2 | (3) | (3) | (3) |
Other comprehensive loss, net of tax | (8) | 0 | (1) | (6) |
Total comprehensive income | $ 534 | $ 246 | $ 1,011 | $ 400 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 30, 2016 | Jan. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,940 | $ 596 |
Marketable securities | 4,731 | 4,441 |
Accounts receivable, net | 833 | 505 |
Inventories | 679 | 418 |
Prepaid expenses and other current assets | 124 | 93 |
Total current assets | 8,307 | 6,053 |
Property and equipment, net | 503 | 466 |
Goodwill | 618 | 618 |
Intangible assets, net | 120 | 166 |
Other assets | 64 | 67 |
Total assets | 9,612 | 7,370 |
Current liabilities: | ||
Accounts payable | 523 | 296 |
Accrued and other current liabilities | 507 | 642 |
Convertible debt, short-term | 1,011 | 1,413 |
Total current liabilities | 2,041 | 2,351 |
Long-term debt | 1,982 | 0 |
Other long-term liabilities | 213 | 453 |
Capital lease obligations, long-term | 7 | 10 |
Total Liabilities | 4,243 | 2,814 |
Commitments and contingencies - see Note 12 | ||
Convertible debt conversion obligation | 45 | 87 |
Shareholders' equity | ||
Preferred stock | 0 | 0 |
Common stock | 1 | 1 |
Additional paid-in capital | 4,581 | 4,170 |
Treasury stock, at cost | (4,783) | (4,048) |
Accumulated other comprehensive loss | (4) | (4) |
Retained earnings | 5,529 | 4,350 |
Total shareholders' equity | 5,324 | 4,469 |
Total liabilities, convertible debt conversion obligation and shareholders' equity | $ 9,612 | $ 7,370 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Oct. 30, 2016 | Oct. 25, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 1,012 | $ 406 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 176 | 145 |
Deferred income taxes | 146 | 107 |
Depreciation and amortization | 140 | 151 |
Amortization of debt discount and issuance costs | 20 | 22 |
Loss on early debt conversions | 15 | 0 |
Net gain on sale and disposal of long-lived assets and investments | (2) | (7) |
Restructuring and other charges | 0 | 37 |
Other | 8 | 11 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (328) | (63) |
Inventories | (261) | 59 |
Prepaid expenses and other assets | (28) | (25) |
Accounts payable | 218 | 7 |
Accrued and other current liabilities | (136) | (41) |
Other long-term liabilities | (29) | (145) |
Net cash provided by operating activities | 951 | 664 |
Cash flows from investing activities: | ||
Proceeds from sales of marketable securities | 1,239 | 1,651 |
Proceeds from maturities of marketable securities | 712 | 872 |
Proceeds from sale of long-lived assets and investments | 6 | 7 |
Purchases of marketable securities | (2,249) | (2,669) |
Purchases of property and equipment and intangible assets | (125) | (71) |
Reimbursement of headquarters building development costs from banks | 0 | 24 |
Other | (3) | (1) |
Net cash provided by (used in) investing activities | (420) | (187) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 1,988 | 0 |
Payments related to repurchases of common stock | (509) | (452) |
Repayment of convertible debt | (444) | 0 |
Dividends paid | (185) | (152) |
Net proceeds (payments) related to employee stock plans | (29) | 99 |
Payments for debt issuance costs | (4) | 0 |
Payments under capital lease obligations | (3) | (3) |
Other | (1) | 5 |
Net cash used in financing activities | 813 | (503) |
Change in cash and cash equivalents | 1,344 | (26) |
Cash and cash equivalents at beginning of period | 596 | 497 |
Cash and cash equivalents at end of period | 1,940 | 471 |
Other non-cash activity: | ||
Assets acquired by assuming related liabilities | $ 25 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 30, 2016 | |
Accounting Policies [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. The January 31, 2016 consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2016 , as filed with the SEC, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting only of normal recurring adjustments 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 consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2016 . Significant Accounting Policies For a description of significant accounting policies, see Note 1, Organization and Summary of Significant Accounting Policies, of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2016 . There have been no material changes to our significant accounting policies since the filing of the Annual Report on Form 10-K. Fiscal Year We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal year 2017 is a 52-week year and fiscal year 2016 was a 53-week year. The third quarter of fiscal years 2017 and 2016 were both 13-week quarters. Reclassifications Certain prior fiscal year balances have been reclassified to conform to the current fiscal year presentation. Principles of Consolidation Our condensed consolidated financial statements include the accounts of NVIDIA Corporation and our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ 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, litigation, investigation and settlement costs, restructuring and other charges, and other contingencies. These estimates are based on historical facts and various other assumptions that we believe are reasonable. Adoption of New and Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncement In March 2016, the Financial Accounting Standards Board, or FASB, issued an accounting standards update which simplifies certain aspects of stock-based compensation accounting. Among other elements, the new guidance eliminates additional paid in capital, or APIC, pools and requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. In addition, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. The new standard is effective for us beginning in our first quarter of fiscal year 2018 with early adoption permitted. We elected to early adopt this new guidance in the third quarter of fiscal year 2017, which required us to reflect any adjustments as of February 1, 2016. Early adoption of this guidance resulted in the following: • We recorded excess tax benefits within income tax expense, rather than in APIC, of $12 million , $8 million and $42 million for the first, second and third quarters of fiscal year 2017, respectively. • We recorded a cumulative-effect adjustment as of February 1, 2016 to increase retained earnings by $353 million , with a corresponding increase to deferred tax assets, to recognize the net operating loss and federal research tax credit carryforwards attributable to excess tax benefits on stock-based compensation that had not been previously recognized in APIC. • The excess tax benefits are now included in net operating cash rather than net financing cash in our Condensed Consolidated Statements of Cash Flows. We elected to apply this change in presentation prospectively and thus prior periods have not been adjusted. We elected not to change our policy on accounting for forfeitures, although the new guidance provides an option for us to account for forfeitures as they occur, and thus continued to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. The adoption of this new guidance impacted our previously reported quarterly results for fiscal year 2017 as follows: Three Months Ended Six Months Ended July 31, 2016 May 1, 2016 July 31, 2016 As reported As adjusted As reported As adjusted As reported As adjusted (In millions, except per share data) Condensed Consolidated Statements of Income: Income tax expense $ 64 $ 56 $ 45 $ 33 $ 109 $ 89 Net income $ 253 $ 261 $ 196 $ 208 $ 449 $ 469 Basic net income per share $ 0.47 $ 0.49 $ 0.36 $ 0.39 $ 0.84 $ 0.88 Diluted net income per share $ 0.40 $ 0.41 $ 0.33 $ 0.35 $ 0.73 $ 0.76 Weighted average shares used in diluted net income per share computation 631 634 597 599 617 620 Condensed Consolidated Statements of Cash Flows: Net cash provided by operating activities $ 184 $ 201 $ 309 $ 318 $ 493 $ 519 Net cash used in financing activities $ (35 ) $ (52 ) $ (534 ) $ (545 ) $ (570 ) $ (597 ) Recent Accounting Pronouncements Not Yet Adopted In October 2016, the FASB issued an accounting standards update that requires the recognition of income tax consequences for intra-entity transfers of assets other than inventory when the transfer occurs. The update will be effective for us beginning in our first quarter of fiscal year 2019, with early adoption permitted. The adoption of this accounting guidance is not currently expected to have a material impact on our consolidated financial statements. In August 2016, the FASB issued an accounting standards update that clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The update will be effective for us beginning in our first quarter of fiscal year 2019, with early adoption permitted. The adoption of this accounting guidance is not expected to have a material impact on our consolidated financial statements. In February 2016, the FASB issued an accounting standards update regarding the accounting for leases by which we will begin recognizing lease assets and liabilities on the balance sheet for leases with a lease term of more than 12 months. The update will require additional disclosures regarding key information about leasing arrangements. Under existing guidance, operating leases are not recorded as lease assets and lease liabilities on the balance sheet. The update will be effective for us beginning in our first quarter of fiscal year 2020, with early adoption permitted. We are currently evaluating the impact of the adoption of this accounting guidance on our consolidated financial statements. However, we expect the adoption of this accounting guidance to result in an increase in lease assets and a corresponding increase in lease liabilities on our Condensed Consolidated Balance Sheets. The FASB issued an accounting standards update that creates a single source of revenue guidance under U.S. GAAP for all companies, in all industries, effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The new standard will be effective for us beginning in our first quarter of fiscal year 2019, although we are permitted to adopt the standard one year earlier. We will adopt this guidance either by using a full retrospective approach for all periods presented in the period of adoption, or a modified retrospective approach. We are currently evaluating the impact of this accounting guidance on our consolidated financial statements and have not yet determined which transition method we will apply. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Oct. 30, 2016 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Our stock-based compensation expense is associated with stock options, restricted stock units, or RSUs, performance stock units that are based on our corporate financial performance targets, or PSUs, performance stock units that are based on market conditions, or market-based PSUs, and our employee stock purchase plan, or ESPP. Our Condensed Consolidated Statements of Income include stock-based compensation expense, net of amounts capitalized as inventory, as follows: Three Months Ended Nine Months Ended October 30, October 25, October 30, October 25, (In millions) Cost of revenue $ 2 $ 4 $ 10 $ 10 Research and development 36 28 95 82 Sales, general and administrative 27 19 71 53 Total $ 65 $ 51 $ 176 $ 145 Equity Award Activity The following is a summary of our equity award transactions under our equity incentive plans: RSUs, PSUs and Market-based PSUs Outstanding Options Outstanding Number of Shares Weighted Average Grant-Date Fair Value Per Share Number of Shares Weighted Average Exercise Price Per Share (In millions, except per share data) Balances, January 31, 2016 26 $ 19.12 13 $ 14.49 Granted (1) (2) 11 $ 48.88 — $ — Exercised — $ — (4 ) $ 14.44 Vested restricted stock (9 ) $ 17.84 — $ — Canceled and forfeited (1 ) $ 21.58 — $ — Balances, October 30, 2016 27 $ 31.76 9 $ 14.52 (1) Includes PSUs that will be issued and eligible to vest if the corporate financial performance maximum target level for fiscal year 2017 is achieved. Depending on the actual level of achievement of the corporate performance target at the end of fiscal year 2017, the PSUs issued could range from 0 to 2 million shares. (2) Includes market-based PSUs that will be issued and eligible to vest if the maximum target for total shareholder return, or TSR, over the 3-year measurement period is achieved. Depending on the ranking of our TSR compared to the respective TSRs of the companies comprising the Standard & Poor’s 500 Index during a 3-year measurement period, the market-based PSUs issued could range from 0 to 0.3 million shares. Of the total fair value of equity awards granted during the three and nine months ended October 30, 2016, the stock-based compensation expense related to equity awards that are not expected to vest was $72 million and $89 million , respectively. Of the total fair value of equity awards granted during the three and nine months ended October 30, 2015, the stock-based compensation expense related to equity awards that are not expected to vest was $34 million and $43 million , respectively. The following summarizes the aggregate unearned stock-based compensation expense and estimated weighted average amortization period as of October 30, 2016 and January 31, 2016 : October 30, January 31, 2016 2016 (In millions) Aggregate unearned stock-based compensation expense $ 662 $ 381 Estimated weighted average amortization period (In years) Stock options 0.7 1.1 RSUs, PSUs and market-based PSUs 2.8 2.7 ESPP 0.6 0.7 |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Oct. 30, 2016 | |
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 30, October 25, October 30, October 25, 2016 2015 2016 2015 (In millions, except per share data) Numerator: Net income $ 542 $ 246 $ 1,012 $ 406 Denominator: Basic weighted average shares 538 542 536 544 Dilutive impact of outstanding securities: Equity awards outstanding 27 13 25 13 1% Convertible Senior Notes 45 10 42 6 Warrants issued with the 1% Convertible Senior Notes 43 — 33 — Diluted weighted average shares 653 565 636 563 Net income per share: Basic (1) $ 1.01 $ 0.45 $ 1.89 $ 0.75 Diluted (2) $ 0.83 $ 0.44 $ 1.59 $ 0.72 Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive 7 9 9 13 (1) Calculated as net income divided by basic weighted average shares. (2) Calculated as net income divided by diluted weighted average shares. The 1.00% Convertible Senior Notes, or the Convertible Notes, are included in the calculation of diluted net income per share. The Convertible Notes have a dilutive impact on net income per share if our average stock price for the reporting period exceeds the adjusted conversion price of $20.0780 per share. The Warrants outstanding are included in the calculation of diluted net income per share. The Warrants have a dilutive impact on net income per share if our average stock price for the quarter exceeds the adjusted strike price of $27.0281 per share. For the three and nine months ended October 30, 2016 , our average stock price was $63.83 and $47.82 , respectively, which exceeded both the adjusted conversion price and the adjusted strike price, causing the Convertible Notes and the Warrants to have a dilutive impact for these periods. The denominator for diluted net income per share does not include any effect from the convertible note hedge transactions, or the Note Hedges, that we entered into concurrently with the issuance of the Convertible Notes, as its effect would be anti-dilutive. In the event of conversion of the Convertible Notes, the shares delivered to us under the Note Hedges will offset the dilutive effect of the shares that we would issue under the Convertible Notes. Please refer to Note 11 of these Notes to Condensed Consolidated Financial Statements for additional discussion regarding the Convertible Notes. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 30, 2016 | |
Notes to financial statements [Abstract] | |
Income Taxes | Income Taxes We recognized income tax expense of $79 million and $168 million for the three and nine months ended October 30, 2016 , respectively, and $83 million for the nine months ended October 25, 2015 . We recognized income tax benefit of $1 million for the three months ended October 25, 2015 . Income tax expense as a percentage of income before income tax was 12.8% and 14.2% for the three and nine months ended October 30, 2016 , respectively, and 16.9% for the nine months ended October 25, 2015 . Income tax benefit as a percentage of income before income tax was 0.5% for the three months ended October 25, 2015 . Our income tax expense includes $42 million and $62 million of tax benefit for the three and nine months ended October 30, 2016, respectively, from the early adoption of an accounting standard related to stock-based compensation. Please refer to Note 1 of these Notes to Condensed Consolidated Financial Statements for further information. The increase in our effective tax rate in the three months ended October 30, 2016 compared to the same period in the prior fiscal year was primarily due to the absence of the tax benefit related to the restructuring associated with the wind-down of our Icera operations. The decrease in our effective tax rate in the nine months ended October 30, 2016 compared to the same period in the prior fiscal year was primarily due to the favorable benefit of the U.S. federal research tax credit, which was permanently enacted in the fourth quarter of fiscal year 2016, and our early adoption of an accounting standard, partially offset by the absence of the Icera restructuring tax benefit and an increase in the amount of our earnings subject to U.S. tax. Our effective tax rate for the nine months ended October 30, 2016 of 14.2% was lower than the U.S. federal statutory rate of 35% due primarily to income earned in jurisdictions where the tax rate is lower than the U.S. federal statutory tax rate, the benefit of the U.S. federal research tax credit, as well as tax benefits recognized in the period in which they occur for early adoption of an accounting standard and expiration of statutes of limitations in certain non-U.S. jurisdictions. For the nine months ended October 30, 2016 , there have been no material changes to our tax years that remain subject to examination by major tax jurisdictions. Additionally, there have been no material changes to our unrecognized tax benefits and any related interest or penalties since the fiscal year ended January 31, 2016 , other than the closure of our state income tax position in the three months ended July 31, 2016 and the aforementioned recognition of tax benefits upon the expiration of statutes of limitations in certain non-U.S. jurisdictions in the nine months ended October 30, 2016 . While we believe that we have adequately provided for all uncertain tax positions, or tax positions where we believe it is not more-likely-than-not that the position will be sustained upon review, amounts asserted by tax authorities could be greater or less than our accrued position. Accordingly, our provisions on federal, state and foreign tax related matters to be recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved with the respective tax authorities. As of October 30, 2016 , 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. 30, 2016 | |
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 (loss), a component of shareholders’ equity, net of tax, and net realized gains and losses recorded in other income and expense, net, on the Condensed Consolidated Statements of Income. We performed an impairment review of our investment portfolio as of October 30, 2016 . Based on our quarterly impairment review, we concluded that our investments were appropriately valued and that no other-than-temporary impairment charges were necessary on our portfolio of available-for-sale investments as of October 30, 2016 . The following is a summary of cash equivalents and marketable securities as of October 30, 2016 and January 31, 2016 : October 30, 2016 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (In millions) Corporate debt securities $ 2,239 $ 2 $ (2 ) $ 2,239 Debt securities of United States government agencies 1,152 1 (1 ) 1,152 Debt securities issued by United States Treasury 770 1 (1 ) 770 Money market funds 542 — — 542 Asset-backed securities 436 1 — 437 Mortgage-backed securities issued by United States government-sponsored enterprises 162 2 (1 ) 163 Foreign government bonds 68 — — 68 Total $ 5,369 $ 7 $ (5 ) $ 5,371 Classified as: Cash equivalents $ 640 Marketable securities 4,731 Total $ 5,371 January 31, 2016 Amortized Unrealized Unrealized Estimated (In millions) Corporate debt securities $ 1,903 $ 1 $ (3 ) $ 1,901 Debt securities of United States government agencies 1,170 1 (1 ) 1,170 Debt securities issued by United States Treasury 800 1 — 801 Asset-backed securities 435 — — 435 Mortgage-backed securities issued by United States government-sponsored enterprises 229 3 (1 ) 231 Foreign government bonds 92 — — 92 Money market funds 43 — — 43 Total $ 4,672 $ 6 $ (5 ) $ 4,673 Classified as: Cash equivalents $ 232 Marketable securities 4,441 Total $ 4,673 The following table provides the breakdown of the investments with unrealized losses as of October 30, 2016 : Less than 12 months 12 months or greater Total Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) Corporate debt securities $ 977 $ (2 ) $ 58 $ — $ 1,035 $ (2 ) Debt securities issued by United States government agencies 536 (1 ) 27 — 563 (1 ) Debt securities issued by the US Treasury 197 (1 ) — — 197 (1 ) Mortgage-backed securities issued by United States government-sponsored enterprises 43 — 36 (1 ) 79 (1 ) $ 1,753 $ (4 ) $ 121 $ (1 ) $ 1,874 $ (5 ) The gross unrealized losses as of October 30, 2016 related to fixed income securities due to changes in interest rates and are temporary in nature. 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 as of October 30, 2016 and January 31, 2016 and are shown below by contractual maturity: October 30, 2016 January 31, 2016 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (In millions) Less than 1 year $ 2,346 $ 2,347 $ 1,619 $ 1,619 Due in 1 - 5 years 2,967 2,968 3,019 3,020 Mortgage-backed securities issued by United States government-sponsored enterprises not due at a single maturity date 56 56 34 34 Total $ 5,369 $ 5,371 $ 4,672 $ 4,673 Net realized gains and losses were not significant for the three and nine months ended October 30, 2016 and October 25, 2015 . |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 9 Months Ended |
Oct. 30, 2016 | |
Notes to financial statements [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities We measure our cash equivalents, marketable securities, and interest rate swap at fair value using quoted market prices of identical assets or similar assets from active markets. We review the fair value hierarchy classification on a quarterly basis. There were no significant transfers between Levels 1 and 2 assets or liabilities for the three months ended October 30, 2016 , and we did not have any investments or liabilities classified as Level 3 as of October 30, 2016 . Estimated Fair Value at Pricing Category October 30, 2016 January 31, 2016 (In millions) Assets Cash equivalents and marketable securities: Corporate debt securities (1) Level 2 $ 2,239 $ 1,901 Debt securities of United States government agencies (2) Level 2 $ 1,152 $ 1,170 Debt securities issued by United States Treasury (3) Level 2 $ 770 $ 801 Money market funds (4) Level 1 $ 542 $ 43 Asset-backed securities (5) Level 2 $ 437 $ 435 Mortgage-backed securities issued by United States government-sponsored enterprises (5) Level 2 $ 163 $ 231 Foreign government bonds (5) Level 2 $ 68 $ 92 Liabilities Current liabilities: 1.00% Convertible Senior Notes (6) Level 2 $ 3,725 $ 2,273 Other noncurrent liabilities: 2.20% Notes Due 2021 (6) Level 2 $ 997 $ — 3.20% Notes Due 2026 (6) Level 2 $ 997 $ — Interest rate swap (7) Level 2 $ 9 $ 7 (1) Included $35 million and $51 million in cash equivalents as of October 30, 2016 and January 31, 2016 , respectively, and $2.20 billion and $1.85 billion in marketable securities as of October 30, 2016 and January 31, 2016 , respectively, on the Condensed Consolidated Balance Sheets. (2) Included $38 million and $90 million in cash equivalents as of October 30, 2016 and January 31, 2016 , respectively, and $1.11 billion and $1.08 billion in marketable securities as of October 30, 2016 and January 31, 2016 , respectively, on the Condensed Consolidated Balance Sheets. (3) Included $25 million in cash equivalents as of October 30, 2016 and $745 million and $801 million in marketable securities as of October 30, 2016 and January 31, 2016 , respectively, on the Condensed Consolidated Balance Sheets. (4) Reported in cash equivalents on the Condensed Consolidated Balance Sheets. (5) Reported in marketable securities on the Condensed Consolidated Balance Sheets. (6) The Convertible Notes, 2.20% Notes Due 2021, and 3.20% Notes Due 2026 are carried on our Condensed Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs, and are not marked to fair value each period. See Note 11 of these Notes to Condensed Consolidated Financial Statements for additional information. (7) Please refer to Note 9 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding our interest rate swap. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Oct. 30, 2016 | |
Notes to financial statements [Abstract] | |
Intangible Assets | Amortizable Intangible Assets The components of our amortizable intangible assets are as follows: October 30, 2016 January 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Acquisition-related intangible assets $ 193 $ (163 ) $ 30 $ 193 $ (152 ) $ 41 Patents and licensed technology 469 (379 ) 90 462 (337 ) 125 Total intangible assets $ 662 $ (542 ) $ 120 $ 655 $ (489 ) $ 166 Amortization expense associated with intangible assets was $18 million and $53 million for the three and nine months ended October 30, 2016 , respectively, and $18 million and $56 million for the three and nine months ended October 25, 2015 , respectively. Future amortization expense related to the net carrying amount of intangible assets as of October 30, 2016 is estimated to be $16 million for the remainder of fiscal year 2017, $54 million in fiscal year 2018 , $26 million in fiscal year 2019 , $16 million in fiscal year 2020 , $7 million in fiscal year 2021 and a total of $1 million in fiscal year 2022 and beyond. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Oct. 30, 2016 | |
Notes to financial statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Certain balance sheet components are as follows: October 30, January 31, 2016 2016 Inventories: (In millions) Raw materials $ 203 $ 105 Work in-process 203 103 Finished goods 273 210 Total inventories $ 679 $ 418 As of October 30, 2016 , we had outstanding inventory purchase obligations totaling $908 million . October 30, January 31, 2016 2016 Accrued and Other Current Liabilities: (In millions) Customer related liabilities (1) $ 175 $ 160 Deferred revenue 170 322 Accrued payroll and related expenses 79 79 Accrued restructuring and other charges (2) 13 23 Professional service fees 13 23 Coupon interest on notes 12 3 Income taxes payable 9 2 Warranty accrual (3) 8 11 Contributions payable 4 3 Leases payable 4 4 Accrued royalties 4 1 Other 16 11 Total accrued and other current liabilities $ 507 $ 642 (1) Customer related liabilities include accrued customer programs, such as rebates and marketing development funds. (2) Please refer to Note 15 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding restructuring and other charges. (3) Please refer to Note 10 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding warranties. October 30, January 31, 2016 2016 Other Long-Term Liabilities: (In millions) Deferred income tax liability (1) $ 88 $ 301 Income taxes payable 85 78 Contributions payable 13 13 Interest rate swap (2) 9 7 Deferred revenue (3) 2 44 Other 16 10 Total other long-term liabilities $ 213 $ 453 (1) Please refer to the “Recently Adopted Accounting Pronouncement” section of Note 1 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding the impact of a recently adopted accounting pronouncement on deferred taxes. (2) Please refer to Note 9 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding our interest rate swap. (3) Deferred revenue under our patent cross licensing agreement with Intel Corporation is now located in short term deferred revenue as less than twelve months remains on the agreement. |
Derivative Financial Instrument
Derivative Financial Instrument | 9 Months Ended |
Oct. 30, 2016 | |
Summary of Derivative Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | Derivative Financial Instruments In August 2015 we entered into an interest rate swap for a portion of the operating lease financing arrangement for our new headquarters building that entitles us to pay amounts based on a fixed interest rate in exchange for receipt of amounts based on variable interest rates. The objective of this interest rate swap is to mitigate variability in the benchmark interest rate on the first $200 million of existing operating lease financing payments. This interest rate swap is designated as a cash flow hedge, will have settlements beginning in the second quarter of fiscal year 2019, and will terminate in the fourth quarter of fiscal year 2023. Gains or losses on this swap are recorded in accumulated other comprehensive income or loss and will subsequently be recorded in earnings at the point when the related operating lease financing expense begins to affect earnings or if ineffectiveness of the swap should occur. During the three and nine months ended October 30, 2016 , we entered into foreign currency forward contracts with a total U.S. dollar equivalent notional value of $64 million and $160 million , respectively, to mitigate the impact of foreign currency exchange rate movements on our operating expenses. We designate these contracts as cash flow hedges and assess the effectiveness of the hedge relationships on a spot to spot basis. Gains or losses on the contracts are recorded in accumulated other comprehensive income or loss and reclassified to operating expense when the related operating expenses are recognized in earnings or ineffectiveness should occur. The fair value of the contracts as of October 30, 2016 was not significant. During the three and nine months ended October 30, 2016 , we also entered into foreign currency forward contracts with a total U.S. dollar equivalent notional value of $54 million and $67 million , respectively, to mitigate the impact of foreign currency movements on monetary assets and liabilities that are denominated in currencies other than our reporting currency. These foreign currency forward contracts were not designated for hedge accounting treatment. Therefore, the change in fair value of these contracts is recorded as a component of other income or expense, net, and offsets the change in fair value of the foreign currency denominated monetary assets and liabilities, which is also recorded in other income or expense, net. Under the master netting agreements with the respective counterparties to our foreign currency forward contracts, we are allowed to net settle transactions with the same counterparty, subject to applicable requirements. However, we present our derivative assets and liabilities at their gross fair values on our Condensed Consolidated Balance Sheets. We are not required to pledge, and are not entitled to receive, cash collateral related to these derivative instruments. As of October 30, 2016 , the maturities of the designated foreign currency forward contracts were three months or less. We formally assess, both at inception and on an ongoing basis, whether derivative financial instruments designated for hedge accounting treatment are highly effective. For the three and nine months ended October 30, 2016 , all derivative financial instruments designated for hedge accounting treatment were determined to be highly effective and there were no gains or losses associated with ineffectiveness. During the three and nine months ended October 30, 2016 , we recognized a net change in unrealized gains (losses) on derivative financial instruments designated for hedge accounting treatment of $2 million and $(3) million , respectively, net of tax, in other comprehensive income. We expect to realize all gains and losses deferred into accumulated other comprehensive income or loss related to foreign currency forward contracts within the next twelve months. However, we do not expect to reclassify any amount from accumulated other comprehensive income or loss into earnings related to the interest rate swap as the underlying operating lease financing payments for our new headquarters building will not start within the next twelve months. |
Guarantees
Guarantees | 9 Months Ended |
Oct. 30, 2016 | |
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. On July 31, 2015, we announced a voluntary recall and replacement of our SHIELD 8-inch tablets that were sold between July 2014 and July 2015. We have determined that the battery in these tablets can overheat, posing a fire hazard. The recall does not affect any other NVIDIA products. During the twelve months ended January 31, 2016, we recorded a $26 million charge against cost of revenue to cover anticipated customer warranty, repair, return, replacement and other associated costs. The estimated product returns and estimated product warranty liabilities as of and for the nine and twelve months ended October 30, 2016 and January 31, 2016 were as follows: October 30, January 31, 2016 2016 (In millions) Balance at beginning of period $ 11 $ 8 Additions 1 27 Deductions (5 ) (24 ) Balance at end of period $ 7 $ 11 In connection with certain agreements that we have entered into in the past, we have provided indemnities to cover the indemnified party for matters such as tax, product, and employee liabilities. We have included intellectual property indemnification provisions in our technology related agreements with third parties. Maximum potential future payments cannot be estimated because many of these agreements do not have a maximum stated liability. We have not recorded any liability in our Condensed Consolidated Financial Statements for such indemnifications. |
Debt
Debt | 9 Months Ended |
Oct. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | Debt Convertible Debt 1.00 % Convertible Senior Notes Due 2018 On December 2, 2013, we issued $1.50 billion of 1.00% convertible senior notes, or the Convertible Notes, due 2018. The Convertible Notes are unsecured, unsubordinated obligations of the Company, which pay interest in cash semi-annually at a rate of 1.00% per annum. The Convertible Notes will mature on December 1, 2018 unless repurchased or converted prior to such date. The Convertible Notes were initially convertible at a rate of 49.5958 shares of common stock per $1,000 principal amount of the Convertible Notes (equivalent to an initial conversion price of $20.1630 per share of common stock). The conversion rate and conversion price are adjusted upon the occurrence of certain events, including our cash dividends or distributions exceeding $0.085 per share. Accordingly, as of October 30, 2016 , the conversion rate has been adjusted to 49.8058 shares of common stock per $1,000 principal amount of the Convertible Notes (equivalent to an adjusted conversion price of $20.0780 per share of common stock) for dividend increases. We separately accounted for the liability and equity components of the Convertible Notes at issuance and the value assigned to the debt component was the estimated fair value, as of the issuance date, of a similar debt without the conversion feature. The difference between the net cash proceeds and this estimated fair value represented the value assigned to the equity component and was recorded as a debt discount. The debt discount is amortized using the effective interest method from the origination date through its stated contractual maturity date. The initial debt component of the Convertible Notes was valued at $1.35 billion based on the contractual cash flows discounted at an appropriate market rate for a non-convertible debt at the date of issuance, which was determined to be 3.15% . The initial carrying value of the permanent equity component reported in additional paid-in-capital was valued at $126 million and recorded as a debt discount. This amount, together with the $23 million purchaser's discount to the par value of the Convertible Notes, represented the total unamortized debt discount of $148 million we recorded at the time of issuance of the Convertible Notes. The aggregate debt discount is amortized as interest expense over the contractual term of the Convertible Notes using the effective interest method using an interest rate of 3.15% . The following table presents the carrying value of the Convertible Notes: October 30, January 31, 2016 2016 (In millions) 1.00% Convertible Senior Notes Due 2018 $ 1,056 $ 1,500 Unamortized debt discount (1) (45 ) (87 ) Net carrying amount $ 1,011 $ 1,413 (1) As of October 30, 2016 , the remaining period over which the unamortized debt discount will be amortized is 2.1 years. The following table presents interest expense for the contractual interest and the accretion of debt discount and issuance costs related to the Convertible Notes: Three Months Ended Nine Months Ended October 30, October 25, October 30, October 25, 2016 2015 2016 2015 (In millions) Contractual coupon interest expense $ 3 $ 4 $ 10 $ 11 Amortization of debt discount and issuance costs 5 7 20 22 Total interest expense related to Convertible Notes $ 8 $ 11 $ 30 $ 33 Holders may convert all or any portion of their Convertible Notes at their option at any time prior to August 1, 2018 only under the following circumstances: (1) during any fiscal quarter, if the last reported sale price of the common stock for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the measurement period) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after August 1, 2018 to the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Convertible Notes regardless of the foregoing conditions. The Convertible Notes first became convertible as of February 1, 2016. As of October 30, 2016, the Convertible Notes continued to be convertible at the holders’ option through January 29, 2017 as the price of our common stock was greater than or equal to 130% of the conversion price for at least 20 trading days during the 30 consecutive trading days ending on the last trading day of our fiscal quarter ended October 30, 2016. As such, the $1,011 million carrying value of the Convertible Notes continued to be classified as a current liability and the $45 million difference between the principal amount and the carrying value of the Convertible Notes continued to be classified as convertible debt conversion obligation in the mezzanine equity section of our Condensed Consolidated Balance Sheet, and will remain there for as long as the Convertible Notes are convertible. The determination of whether or not the Convertible Notes are convertible must continue to be performed on a quarterly basis. Consequently, the Convertible Notes may be reclassified as long-term debt and the convertible debt conversion obligation may be reclassified within shareholders' equity if the conversion threshold is not met in future quarters. Upon conversion of the Convertible Notes, we will pay cash up to the aggregate principal amount of the Convertible Notes. We may pay or deliver cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. Based on the closing price of our common stock on October 28, 2016 (the last trading day of the third quarter of fiscal year 2017) of $70.56 , the if-converted value of our Convertible Notes exceeded their principal amount by approximately $2.66 billion . During both the three and nine months ended October 30, 2016, we paid cash to settle $444 million in principal amount, issued 15 million shares of our common stock with respect to the conversion obligation in excess of the principal amount, and recognized a loss of $15 million on early conversions, of the Convertible Notes. Further, we received additional conversion notices for an aggregate of $229 million in principal amount of the Convertible Notes during the third quarter of fiscal year 2017. Settlements of these conversion requests are expected to be completed in the fourth quarter of fiscal year 2017. Note Hedges and Warrants Concurrently with the issuance of the Convertible Notes, we entered into a convertible note hedge transaction, or the Note Hedges, with a strike price equal to the initial conversion price of the Convertible Notes, or $20.1630 per share. Adjusting for dividends paid through October 30, 2016, the strike price of the Note Hedges has been adjusted to $20.0780 per share. The Note Hedges allow us to receive shares of our common stock and/or cash related to the excess conversion value that we would deliver and/or pay, respectively, to the holders of the Convertible Notes upon conversion. Through October 30, 2016, we had received 15 million shares of our common stock from the exercise of a portion of the Note Hedges related to the settlement of an aggregate of $444 million in principal amount of the Convertible Notes. In addition, concurrent with the offering of the Convertible Notes and the purchase of the Note Hedges, we entered into a separate warrant transaction, or the Warrants, with an initial strike price to the holders of the Warrants of $27.1425 per share. Under the terms of the Warrants, the strike price is adjusted upon the occurrence of certain events, including our cash dividends or distributions that deviate from $0.085 per share. Accordingly, as of October 30, 2016, the strike price was adjusted to $27.0281 per share, reflecting adjustments for our dividend increases made to that date. The Warrants are net share settled and cover, subject to customary anti-dilution adjustments, 75 million shares of our common stock. As of October 30, 2016, the Warrants had not been exercised and remained outstanding. The value of the Warrants was initially recorded in equity and continues to be classified as equity. Long-Term Debt 2.20% Notes Due 2021 and 3.20% Notes Due 2026 On September 16, 2016, we issued $1.00 billion of 2.20% notes due September 16, 2021 and $1.00 billion of 3.20% notes due September 16, 2026 (collectively, the Notes). Interest on the Notes is payable on March 16 and September 16 of each year, beginning on March 16, 2017. Upon 30 days' notice to holders of the Notes, we may redeem the Notes for cash prior to maturity, at redemption prices that include accrued and unpaid interest, if any, and a make-whole premium. However, no make-whole premium will be paid for redemptions of the 2.20% Notes Due 2021 on or after August 16, 2021, or for redemptions of the 3.20% Notes Due 2026 on or after June 16, 2026. The Notes are our unsecured senior obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness. The Notes are structurally subordinated to the liabilities of our subsidiaries and are effectively subordinated to any secured indebtedness to the extent of the value of the assets securing such indebtedness. All existing and future liabilities of our subsidiaries will be effectively senior to the Notes. The net proceeds from the Notes were $1.99 billion , after deducting debt discount and issuance costs. We intend to use the net proceeds from the Notes to prefund the repayment of the principal amount of our Convertible Notes and for general corporate purposes such as dividend payments or share repurchases. The carrying value of our long-term debt and the associated interest rates were as follows: Expected Remaining Term (years) Effective Interest Rate October 30, 2016 (In millions) 2.20% Notes Due 2021 4.9 2.38% $ 1,000 3.20% Notes Due 2026 9.9 3.31% 1,000 Unamortized debt discount and issuance costs (18 ) Net carrying amount $ 1,982 Revolving Credit Facility On October 7, 2016, we entered into a credit agreement, or the Credit Agreement, under which we may borrow, repay and re-borrow amounts from time to time, up to $575 million , for working capital and other general corporate purposes. The commitments under the Credit Agreement are available for a 5-year period ending on October 7, 2021, on which all outstanding obligations would be due and payable. The Credit Agreement also permits us to obtain additional revolving loan commitments up to $425 million , subject to certain conditions. As of October 30, 2016, we had not borrowed any amounts under the Credit Agreement. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 30, 2016 | |
Notes to financial statements [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Financing Arrangement In fiscal year 2016, we began to construct a new headquarters building in Santa Clara, California, which is currently targeted for completion in the fourth quarter of fiscal year 2018. We are financing this construction under an off-balance sheet, build-to-suit operating lease arrangement. As a part of this arrangement, we leased the real property we own where the building will be constructed under a 99 year ground lease to a syndicate of banks and concurrently leased back the building under a real property lease. Under the real property lease, we pay rent, taxes, maintenance costs, utilities, insurance and other property related costs. The lease has an initial 7.5 year term expiring on December 19, 2022, consisting of an approximately 2.5 year construction period followed by a 5 year lease term. We have the option to renew this lease for up to three additional 5 year periods, subject to approval by the banks. We will oversee the construction of the headquarters building. The banks have committed to fund up to $380 million of costs relating to construction. Advances will be made periodically to reimburse us for construction costs we incur. Once construction is complete, the lease balance will remain static at the completed cost for the remaining duration of the lease term. During construction, accrued interest will be capitalized into the lease balance. Following construction, we will pay rent in the form of interest. We have guaranteed the obligations under the lease held by our subsidiary. During the term of the lease, we may elect to purchase the headquarters building for the amount of the banks’ investment in the building and any accrued but unpaid rent. At the end of the lease term, we may elect to buy the building for the outstanding balance on the maturity date or arrange for the cash sale of the building to an unaffiliated third party. The aggregate guarantee made by us under the lease is no more than 87.5% of the costs incurred in connection with the construction of the building. However, under certain default circumstances, the lease guarantee may be 100% of the banks’ investment in the building plus any and all accrued but unpaid interest and all other rent due and payable under the operative agreements. The operative agreements are subject to customary default provisions, including, for example, those relating to payment and performance defaults, and events of bankruptcy. We are also subject to financial covenants including a covenant to maintain a maximum total leverage ratio not to exceed 3.0 to 1.0 and a minimum interest coverage ratio in excess of 3.5 to 1.0 during the term. If certain events of default occur and are continuing under the operative agreements, the banks may accelerate repayment of their investment under the lease. Patent Infringement Cases In September 2014, NVIDIA filed complaints against Qualcomm, Inc. and various Samsung entities in both the United States International Trade Commission, or ITC, and the United States District Court for the District of Delaware alleging infringement of certain patents relating to graphics processing. In November 2014, Samsung filed complaints against NVIDIA in the ITC and the United States District Court for the Eastern District of Virginia, alleging that NVIDIA infringed certain patents. NVIDIA and Samsung, and NVIDIA and Qualcomm, also challenged the validity of certain of each other’s patents through inter partes review before the United States Patent and Trademark Office. On April 28, 2016, NVIDIA and Samsung entered a binding memorandum of understanding which resolved all existing intellectual property disputes between the parties, and requires the immediate dismissal of all pending litigation between them. As a result of this agreement, on May 5, 2016, Samsung filed a Stipulation of Dismissal in the United States District Court for the Eastern District of Virginia. On May 11, 2016, NVIDIA voluntarily dismissed its petition to the United States Court of Appeals for the Federal Circuit to review the ITC’s decision in Investigation No. 337-TA-932. On May 12, 2016, NVIDIA voluntarily dismissed its Complaint in the United States District Court for the District of Delaware. On May 19, 2016, Samsung filed a Corrected Joint Motion to Terminate Investigation No. 337-TA-941. On June 16, 2016, the ITC granted the joint motion and terminated the ITC investigation. The parties have also moved to dismiss all pending inter partes reviews. Also as part of this agreement, NVIDIA and Samsung each received a license to a small number of patents of the other, but no portfolio license was granted nor was any compensation paid by either party. On June 28, 2016, NVIDIA and Samsung executed a settlement agreement based on the April 28, 2016 memorandum of understanding. NVIDIA’s dismissals on May 11, 2016 and May 12, 2016 also terminated its claims against Qualcomm. In December 2015, Advanced Silicon Technologies LLC filed complaints in the ITC and the United States District Court for the District of Delaware alleging infringement of certain patents relating to graphics processing and memory management. NVIDIA and Advanced Silicon Technologies resolved this litigation on April 22, 2016 and NVIDIA agreed to license the patents asserted and other patents owned and controlled by Advanced Silicon Technologies and certain of its affiliates. On April 27, 2016, NVIDIA and Advanced Silicon Technologies jointly moved to terminate the investigation as to NVIDIA. The Office of Unfair Import Investigations supported the motion, and none of the other parties opposed it. On May 10, 2016, the Administrative Law Judge issued an Initial Determination granting the joint request to terminate the investigation as to NVIDIA. On June 1, 2016, the ITC issued a Notice determining not to review the Administrative Law Judge’s determination, thereby finalizing termination of the investigation as to NVIDIA. Pursuant to the license agreement, $10 million was recorded as a charge to cost of revenue during the three months ended May 1, 2016. Accounting for Loss Contingencies 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. 30, 2016 | |
Notes to financial statements [Abstract] | |
Stockholders' Equity | Shareholders’ Equity Capital Return Program Beginning August 2004, our Board of Directors authorized us, subject to certain specifications, to repurchase shares of our common stock. On November 7, 2016, the Board authorized an additional $2.00 billion under our repurchase program and extended it through December 2020. In March 2016, we entered into an accelerated share repurchase, or ASR, agreement with an investment bank, under which we made an upfront payment of $500 million to purchase shares of our common stock and received an initial delivery of 12 million shares. 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. The ASR agreement was settled in July 2016 with a cash payment of $9 million to the investment bank. As a result, a total of 12 million shares were repurchased under the ASR transaction for $509 million , or an average price of $42.06 per share. During the three and nine months ended October 30, 2016 , we also paid $61 million and $185 million , respectively, in cash dividends to our shareholders, equivalent to $0.1150 per share. As a result, we returned $61 million and $694 million to shareholders during the three and nine months ended October 30, 2016 , respectively, in the form of share repurchases and dividend payments. Through October 30, 2016 , we have repurchased an aggregate of 243 million shares under our share repurchase program for a total cost of $4.36 billion . All shares delivered from these repurchases have been placed into treasury stock. As of November 7, 2016, we were authorized, subject to certain specifications, to repurchase additional shares of our common stock up to $2.96 billion through December 2020. We intend to return $1.00 billion to our shareholders in fiscal year 2017 through a combination of share repurchases and cash dividends. For fiscal year 2018, we intend to return $1.25 billion to our shareholders through ongoing quarterly cash dividends and share repurchases. We also declared an increase in our quarterly cash dividend to $0.14 per share from $0.1150 per share, to be paid with our next quarterly cash dividend on December 19, 2016, to all shareholders of record on November 28, 2016. Convertible Preferred Stock As of October 30, 2016 and January 31, 2016, there were no shares of preferred stock outstanding. Common Stock We are authorized to issue up to 2.00 billion shares of our common stock at $0.001 per share par value. |
Segment Information
Segment Information | 9 Months Ended |
Oct. 30, 2016 | |
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. We report our business in two primary reportable segments - the GPU business and the Tegra Processor business - based on a unified underlying graphics architecture. Our GPU product brands are aimed at specialized markets including GeForce for gamers; Quadro for designers; Tesla for researchers and data scientists focused on artificial intelligence and big-data analytics; and GRID for cloud-based visual computing users. Our Tegra brand integrates an entire computer onto a single chip, incorporating GPUs and multi-core CPUs aimed at online gaming and entertainment devices, as well as autonomous robots, drones and cars. We have a single unifying architecture for our GPU and Tegra Processors. This architecture unification leverages our visual computing expertise by charging the operating expenses of certain core engineering functions to the GPU business, while charging the Tegra Processor business for the incremental cost of the teams working directly for that business. In instances where the operating expenses of certain functions benefit both reportable segments, our CODM assigns 100% of those expenses to the reportable segment that benefits the most. The “All Other” category presented below represents the revenue and expenses that our CODM does not assign to either the GPU business or the Tegra Processor business for purposes of making operating decisions or assessing financial performance. The revenue includes primarily patent licensing revenue and the expenses include stock-based compensation expense, corporate infrastructure and support costs, acquisition-related costs, restructuring and other charges, contributions, product warranty charge, legal settlement costs, and other non-recurring charges and benefits that our CODM deems to be enterprise in nature. Our CODM does not review any information regarding total assets on a reportable segment basis. Reportable segments 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. The table below presents details of our reportable segments and the “All Other” category. GPU Tegra Processor All Other Consolidated (In millions) Three Months Ended October 30, 2016 Revenue $ 1,697 $ 241 $ 66 $ 2,004 Depreciation and amortization expense $ 30 $ 8 $ 10 $ 48 Operating income (loss) $ 678 $ 17 $ (56 ) $ 639 Three Months Ended October 25, 2015 Revenue $ 1,110 $ 129 $ 66 $ 1,305 Depreciation and amortization expense $ 26 $ 11 $ 11 $ 48 Operating income (loss) $ 367 $ (65 ) $ (57 ) $ 245 Nine Months Ended October 30, 2016 Revenue $ 3,972 $ 567 $ 198 $ 4,737 Depreciation and amortization expense $ 87 $ 22 $ 31 $ 140 Operating income (loss) $ 1,405 $ (35 ) $ (169 ) $ 1,201 Nine Months Ended October 25, 2015 Revenue $ 3,009 $ 402 $ 198 $ 3,609 Depreciation and amortization expense $ 81 $ 36 $ 34 $ 151 Operating income (loss) $ 917 $ (164 ) $ (258 ) $ 495 Three Months Ended Nine Months Ended October 30, October 25, October 30, October 25, (In millions) Reconciling items included in "All Other" category: Unallocated revenue $ 66 $ 66 $ 198 $ 198 Stock-based compensation expense (65 ) (51 ) (176 ) (145 ) Unallocated cost of revenue and operating expenses (53 ) (60 ) (156 ) (181 ) Acquisition-related costs (4 ) (4 ) (12 ) (18 ) Restructuring and other charges — (8 ) (3 ) (97 ) Contributions — — (4 ) — Product warranty charge — — — (15 ) Legal settlement costs — — (16 ) — Total $ (56 ) $ (57 ) $ (169 ) $ (258 ) Revenue by geographic region is allocated to individual countries based on the location to which the products are initially billed even if our customers’ revenue is attributable to end customers that are located in a different location. The following table summarizes information pertaining to our revenue from customers based on invoicing address in different geographic regions: Three Months Ended Nine Months Ended October 30, October 25, October 30, October 25, 2016 2015 2016 2015 (In millions) Revenue: Taiwan $ 747 $ 515 $ 1,696 $ 1,348 China 341 229 845 583 Other Asia Pacific 309 181 660 554 United States 282 156 682 474 Europe 171 116 494 341 Other Americas 154 108 360 309 Total revenue $ 2,004 $ 1,305 $ 4,737 $ 3,609 The following table summarizes information pertaining to our revenue by each of the specialized markets we serve: Three Months Ended Nine Months Ended October 30, October 25, October 30, October 25, 2016 2015 2016 2015 (In millions) Revenue: Gaming $ 1,244 $ 761 $ 2,712 $ 2,008 Professional Visualization 207 190 610 547 Datacenter 240 82 534 242 Automotive 127 79 359 227 OEM & IP 186 193 522 585 Total revenue $ 2,004 $ 1,305 $ 4,737 $ 3,609 Revenue from significant customers, those representing 10% or more of total revenue for the respective dates, is summarized as follows: Three Months Ended Nine Months Ended October 30, October 25, October 30, October 25, 2016 2015 2016 2015 Revenue: Customer A 13 % 10 % 12 % 11 % Revenue from Customer A was attributable to the GPU business. Accounts receivable from significant customers, those representing 10% or more of total accounts receivable for the respective periods, is summarized as follows: October 30, January 31, 2016 2016 Accounts Receivable: Customer B 18 % 21 % Customer C 12 % 3 % |
Restructuring and Other Charges
Restructuring and Other Charges | 9 Months Ended |
Oct. 30, 2016 | |
Restructuring and Other Charges [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring and Other Charges In the second quarter of fiscal year 2016, we began the wind-down of our Icera operations. Our operating expenses for the nine months ended October 30, 2016 included $3 million of restructuring and other charges. No restructuring charges were recorded during the three months ended October 30, 2016. The following table provides a summary of the restructuring activities and related liabilities recorded in accrued liabilities on our Condensed Consolidated Balance Sheets as of October 30, 2016 (in millions): Balance as of January 31, 2016 $ 23 Restructuring and other charges 3 Cash payments (14 ) Non-cash adjustments 1 Balance as of October 30, 2016 $ 13 The majority of the remaining balance of $13 million as of October 30, 2016 is expected to be paid during fiscal year 2018. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission, or SEC, Regulation S-X. The January 31, 2016 consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2016 , as filed with the SEC, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting only of normal recurring adjustments 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 consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2016 . Significant Accounting Policies For a description of significant accounting policies, see Note 1, Organization and Summary of Significant Accounting Policies, of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2016 . There have been no material changes to our significant accounting policies since the filing of the Annual Report on Form 10-K. |
Fiscal Year | Fiscal Year We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal year 2017 is a 52-week year and fiscal year 2016 was a 53-week year. The third quarter of fiscal years 2017 and 2016 were both 13-week quarters. |
Reclassifications | Reclassifications Certain prior fiscal year balances have been reclassified to conform to the current fiscal year presentation. |
Principles of Consolidation | Principles of Consolidation Our condensed consolidated financial statements include the accounts of NVIDIA Corporation and our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | 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, litigation, investigation and settlement costs, restructuring and other charges, and other contingencies. These estimates are based on historical facts and various other assumptions that we believe are reasonable. |
Adoption of New and Recently Issued Accounting Pronouncements | Adoption of New and Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncement In March 2016, the Financial Accounting Standards Board, or FASB, issued an accounting standards update which simplifies certain aspects of stock-based compensation accounting. Among other elements, the new guidance eliminates additional paid in capital, or APIC, pools and requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. In addition, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. The new standard is effective for us beginning in our first quarter of fiscal year 2018 with early adoption permitted. We elected to early adopt this new guidance in the third quarter of fiscal year 2017, which required us to reflect any adjustments as of February 1, 2016. Early adoption of this guidance resulted in the following: • We recorded excess tax benefits within income tax expense, rather than in APIC, of $12 million , $8 million and $42 million for the first, second and third quarters of fiscal year 2017, respectively. • We recorded a cumulative-effect adjustment as of February 1, 2016 to increase retained earnings by $353 million , with a corresponding increase to deferred tax assets, to recognize the net operating loss and federal research tax credit carryforwards attributable to excess tax benefits on stock-based compensation that had not been previously recognized in APIC. • The excess tax benefits are now included in net operating cash rather than net financing cash in our Condensed Consolidated Statements of Cash Flows. We elected to apply this change in presentation prospectively and thus prior periods have not been adjusted. We elected not to change our policy on accounting for forfeitures, although the new guidance provides an option for us to account for forfeitures as they occur, and thus continued to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. The adoption of this new guidance impacted our previously reported quarterly results for fiscal year 2017 as follows: Three Months Ended Six Months Ended July 31, 2016 May 1, 2016 July 31, 2016 As reported As adjusted As reported As adjusted As reported As adjusted (In millions, except per share data) Condensed Consolidated Statements of Income: Income tax expense $ 64 $ 56 $ 45 $ 33 $ 109 $ 89 Net income $ 253 $ 261 $ 196 $ 208 $ 449 $ 469 Basic net income per share $ 0.47 $ 0.49 $ 0.36 $ 0.39 $ 0.84 $ 0.88 Diluted net income per share $ 0.40 $ 0.41 $ 0.33 $ 0.35 $ 0.73 $ 0.76 Weighted average shares used in diluted net income per share computation 631 634 597 599 617 620 Condensed Consolidated Statements of Cash Flows: Net cash provided by operating activities $ 184 $ 201 $ 309 $ 318 $ 493 $ 519 Net cash used in financing activities $ (35 ) $ (52 ) $ (534 ) $ (545 ) $ (570 ) $ (597 ) Recent Accounting Pronouncements Not Yet Adopted In October 2016, the FASB issued an accounting standards update that requires the recognition of income tax consequences for intra-entity transfers of assets other than inventory when the transfer occurs. The update will be effective for us beginning in our first quarter of fiscal year 2019, with early adoption permitted. The adoption of this accounting guidance is not currently expected to have a material impact on our consolidated financial statements. In August 2016, the FASB issued an accounting standards update that clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The update will be effective for us beginning in our first quarter of fiscal year 2019, with early adoption permitted. The adoption of this accounting guidance is not expected to have a material impact on our consolidated financial statements. In February 2016, the FASB issued an accounting standards update regarding the accounting for leases by which we will begin recognizing lease assets and liabilities on the balance sheet for leases with a lease term of more than 12 months. The update will require additional disclosures regarding key information about leasing arrangements. Under existing guidance, operating leases are not recorded as lease assets and lease liabilities on the balance sheet. The update will be effective for us beginning in our first quarter of fiscal year 2020, with early adoption permitted. We are currently evaluating the impact of the adoption of this accounting guidance on our consolidated financial statements. However, we expect the adoption of this accounting guidance to result in an increase in lease assets and a corresponding increase in lease liabilities on our Condensed Consolidated Balance Sheets. The FASB issued an accounting standards update that creates a single source of revenue guidance under U.S. GAAP for all companies, in all industries, effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The new standard will be effective for us beginning in our first quarter of fiscal year 2019, although we are permitted to adopt the standard one year earlier. We will adopt this guidance either by using a full retrospective approach for all periods presented in the period of adoption, or a modified retrospective approach. We are currently evaluating the impact of this accounting guidance on our consolidated financial statements and have not yet determined which transition method we will apply. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 30, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncement, Early Adoption | Three Months Ended Six Months Ended July 31, 2016 May 1, 2016 July 31, 2016 As reported As adjusted As reported As adjusted As reported As adjusted (In millions, except per share data) Condensed Consolidated Statements of Income: Income tax expense $ 64 $ 56 $ 45 $ 33 $ 109 $ 89 Net income $ 253 $ 261 $ 196 $ 208 $ 449 $ 469 Basic net income per share $ 0.47 $ 0.49 $ 0.36 $ 0.39 $ 0.84 $ 0.88 Diluted net income per share $ 0.40 $ 0.41 $ 0.33 $ 0.35 $ 0.73 $ 0.76 Weighted average shares used in diluted net income per share computation 631 634 597 599 617 620 Condensed Consolidated Statements of Cash Flows: Net cash provided by operating activities $ 184 $ 201 $ 309 $ 318 $ 493 $ 519 Net cash used in financing activities $ (35 ) $ (52 ) $ (534 ) $ (545 ) $ (570 ) $ (597 ) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Oct. 30, 2016 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |
Stock-based compensation expense, net of amounts capitalized as inventory | Three Months Ended Nine Months Ended October 30, October 25, October 30, October 25, (In millions) Cost of revenue $ 2 $ 4 $ 10 $ 10 Research and development 36 28 95 82 Sales, general and administrative 27 19 71 53 Total $ 65 $ 51 $ 176 $ 145 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | RSUs, PSUs and Market-based PSUs Outstanding Options Outstanding Number of Shares Weighted Average Grant-Date Fair Value Per Share Number of Shares Weighted Average Exercise Price Per Share (In millions, except per share data) Balances, January 31, 2016 26 $ 19.12 13 $ 14.49 Granted (1) (2) 11 $ 48.88 — $ — Exercised — $ — (4 ) $ 14.44 Vested restricted stock (9 ) $ 17.84 — $ — Canceled and forfeited (1 ) $ 21.58 — $ — Balances, October 30, 2016 27 $ 31.76 9 $ 14.52 (1) Includes PSUs that will be issued and eligible to vest if the corporate financial performance maximum target level for fiscal year 2017 is achieved. Depending on the actual level of achievement of the corporate performance target at the end of fiscal year 2017, the PSUs issued could range from 0 to 2 million shares. (2) Includes market-based PSUs that will be issued and eligible to vest if the maximum target for total shareholder return, or TSR, over the 3-year measurement period is achieved. Depending on the ranking of our TSR compared to the respective TSRs of the companies comprising the Standard & Poor’s 500 Index during a 3-year measurement period, the market-based PSUs issued could range from 0 to 0.3 million shares. |
Summary of unearned stock-based compensation expense | October 30, January 31, 2016 2016 (In millions) Aggregate unearned stock-based compensation expense $ 662 $ 381 Estimated weighted average amortization period (In years) Stock options 0.7 1.1 RSUs, PSUs and market-based PSUs 2.8 2.7 ESPP 0.6 0.7 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Oct. 30, 2016 | |
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 30, October 25, October 30, October 25, 2016 2015 2016 2015 (In millions, except per share data) Numerator: Net income $ 542 $ 246 $ 1,012 $ 406 Denominator: Basic weighted average shares 538 542 536 544 Dilutive impact of outstanding securities: Equity awards outstanding 27 13 25 13 1% Convertible Senior Notes 45 10 42 6 Warrants issued with the 1% Convertible Senior Notes 43 — 33 — Diluted weighted average shares 653 565 636 563 Net income per share: Basic (1) $ 1.01 $ 0.45 $ 1.89 $ 0.75 Diluted (2) $ 0.83 $ 0.44 $ 1.59 $ 0.72 Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive 7 9 9 13 (1) Calculated as net income divided by basic weighted average shares. (2) Calculated as net income divided by diluted weighted average shares. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Oct. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |
Cash Equivalents and Marketable Securities | October 30, 2016 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (In millions) Corporate debt securities $ 2,239 $ 2 $ (2 ) $ 2,239 Debt securities of United States government agencies 1,152 1 (1 ) 1,152 Debt securities issued by United States Treasury 770 1 (1 ) 770 Money market funds 542 — — 542 Asset-backed securities 436 1 — 437 Mortgage-backed securities issued by United States government-sponsored enterprises 162 2 (1 ) 163 Foreign government bonds 68 — — 68 Total $ 5,369 $ 7 $ (5 ) $ 5,371 Classified as: Cash equivalents $ 640 Marketable securities 4,731 Total $ 5,371 January 31, 2016 Amortized Unrealized Unrealized Estimated (In millions) Corporate debt securities $ 1,903 $ 1 $ (3 ) $ 1,901 Debt securities of United States government agencies 1,170 1 (1 ) 1,170 Debt securities issued by United States Treasury 800 1 — 801 Asset-backed securities 435 — — 435 Mortgage-backed securities issued by United States government-sponsored enterprises 229 3 (1 ) 231 Foreign government bonds 92 — — 92 Money market funds 43 — — 43 Total $ 4,672 $ 6 $ (5 ) $ 4,673 Classified as: Cash equivalents $ 232 Marketable securities 4,441 Total $ 4,673 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Less than 12 months 12 months or greater Total Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) Corporate debt securities $ 977 $ (2 ) $ 58 $ — $ 1,035 $ (2 ) Debt securities issued by United States government agencies 536 (1 ) 27 — 563 (1 ) Debt securities issued by the US Treasury 197 (1 ) — — 197 (1 ) Mortgage-backed securities issued by United States government-sponsored enterprises 43 — 36 (1 ) 79 (1 ) $ 1,753 $ (4 ) $ 121 $ (1 ) $ 1,874 $ (5 ) |
Schedule of Amortization Cost and Estimated FV of CE and MS | October 30, 2016 January 31, 2016 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (In millions) Less than 1 year $ 2,346 $ 2,347 $ 1,619 $ 1,619 Due in 1 - 5 years 2,967 2,968 3,019 3,020 Mortgage-backed securities issued by United States government-sponsored enterprises not due at a single maturity date 56 56 34 34 Total $ 5,369 $ 5,371 $ 4,672 $ 4,673 |
Fair Value of Financial Asset26
Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended |
Oct. 30, 2016 | |
Notes to financial statements [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | Estimated Fair Value at Pricing Category October 30, 2016 January 31, 2016 (In millions) Assets Cash equivalents and marketable securities: Corporate debt securities (1) Level 2 $ 2,239 $ 1,901 Debt securities of United States government agencies (2) Level 2 $ 1,152 $ 1,170 Debt securities issued by United States Treasury (3) Level 2 $ 770 $ 801 Money market funds (4) Level 1 $ 542 $ 43 Asset-backed securities (5) Level 2 $ 437 $ 435 Mortgage-backed securities issued by United States government-sponsored enterprises (5) Level 2 $ 163 $ 231 Foreign government bonds (5) Level 2 $ 68 $ 92 Liabilities Current liabilities: 1.00% Convertible Senior Notes (6) Level 2 $ 3,725 $ 2,273 Other noncurrent liabilities: 2.20% Notes Due 2021 (6) Level 2 $ 997 $ — 3.20% Notes Due 2026 (6) Level 2 $ 997 $ — Interest rate swap (7) Level 2 $ 9 $ 7 (1) Included $35 million and $51 million in cash equivalents as of October 30, 2016 and January 31, 2016 , respectively, and $2.20 billion and $1.85 billion in marketable securities as of October 30, 2016 and January 31, 2016 , respectively, on the Condensed Consolidated Balance Sheets. (2) Included $38 million and $90 million in cash equivalents as of October 30, 2016 and January 31, 2016 , respectively, and $1.11 billion and $1.08 billion in marketable securities as of October 30, 2016 and January 31, 2016 , respectively, on the Condensed Consolidated Balance Sheets. (3) Included $25 million in cash equivalents as of October 30, 2016 and $745 million and $801 million in marketable securities as of October 30, 2016 and January 31, 2016 , respectively, on the Condensed Consolidated Balance Sheets. (4) Reported in cash equivalents on the Condensed Consolidated Balance Sheets. (5) Reported in marketable securities on the Condensed Consolidated Balance Sheets. (6) The Convertible Notes, 2.20% Notes Due 2021, and 3.20% Notes Due 2026 are carried on our Condensed Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs, and are not marked to fair value each period. See Note 11 of these Notes to Condensed Consolidated Financial Statements for additional information. (7) Please refer to Note 9 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding our interest rate swap. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Oct. 30, 2016 | |
Notes to financial statements [Abstract] | |
Amortizable Intangible Assets Components | October 30, 2016 January 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Acquisition-related intangible assets $ 193 $ (163 ) $ 30 $ 193 $ (152 ) $ 41 Patents and licensed technology 469 (379 ) 90 462 (337 ) 125 Total intangible assets $ 662 $ (542 ) $ 120 $ 655 $ (489 ) $ 166 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Oct. 30, 2016 | |
Notes to financial statements [Abstract] | |
Inventories | October 30, January 31, 2016 2016 Inventories: (In millions) Raw materials $ 203 $ 105 Work in-process 203 103 Finished goods 273 210 Total inventories $ 679 $ 418 |
Accrued and Other Liabilities | October 30, January 31, 2016 2016 Accrued and Other Current Liabilities: (In millions) Customer related liabilities (1) $ 175 $ 160 Deferred revenue 170 322 Accrued payroll and related expenses 79 79 Accrued restructuring and other charges (2) 13 23 Professional service fees 13 23 Coupon interest on notes 12 3 Income taxes payable 9 2 Warranty accrual (3) 8 11 Contributions payable 4 3 Leases payable 4 4 Accrued royalties 4 1 Other 16 11 Total accrued and other current liabilities $ 507 $ 642 (1) Customer related liabilities include accrued customer programs, such as rebates and marketing development funds. (2) Please refer to Note 15 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding restructuring and other charges. (3) Please refer to Note 10 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding warranties. |
Other Long-term Liabilities | October 30, January 31, 2016 2016 Other Long-Term Liabilities: (In millions) Deferred income tax liability (1) $ 88 $ 301 Income taxes payable 85 78 Contributions payable 13 13 Interest rate swap (2) 9 7 Deferred revenue (3) 2 44 Other 16 10 Total other long-term liabilities $ 213 $ 453 (1) Please refer to the “Recently Adopted Accounting Pronouncement” section of Note 1 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding the impact of a recently adopted accounting pronouncement on deferred taxes. (2) Please refer to Note 9 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding our interest rate swap. (3) Deferred revenue under our patent cross licensing agreement with Intel Corporation is now located in short term deferred revenue as less than twelve months remains on the agreement. |
Guarantees (Tables)
Guarantees (Tables) | 9 Months Ended |
Oct. 30, 2016 | |
Notes to financial statements [Abstract] | |
Guarantees | October 30, January 31, 2016 2016 (In millions) Balance at beginning of period $ 11 $ 8 Additions 1 27 Deductions (5 ) (24 ) Balance at end of period $ 7 $ 11 |
Debt (Table)
Debt (Table) | 9 Months Ended |
Oct. 30, 2016 | |
Debt Disclosure [Abstract] | |
Convertible Debt | The following table presents the carrying value of the Convertible Notes: October 30, January 31, 2016 2016 (In millions) 1.00% Convertible Senior Notes Due 2018 $ 1,056 $ 1,500 Unamortized debt discount (1) (45 ) (87 ) Net carrying amount $ 1,011 $ 1,413 (1) As of October 30, 2016 , the remaining period over which the unamortized debt discount will be amortized is 2.1 years. The following table presents interest expense for the contractual interest and the accretion of debt discount and issuance costs related to the Convertible Notes: Three Months Ended Nine Months Ended October 30, October 25, October 30, October 25, 2016 2015 2016 2015 (In millions) Contractual coupon interest expense $ 3 $ 4 $ 10 $ 11 Amortization of debt discount and issuance costs 5 7 20 22 Total interest expense related to Convertible Notes $ 8 $ 11 $ 30 $ 33 |
Long-term Debt | Expected Remaining Term (years) Effective Interest Rate October 30, 2016 (In millions) 2.20% Notes Due 2021 4.9 2.38% $ 1,000 3.20% Notes Due 2026 9.9 3.31% 1,000 Unamortized debt discount and issuance costs (18 ) Net carrying amount $ 1,982 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 30, 2016 | |
Notes to financial statements [Abstract] | |
Financial Information by Operating Segment | GPU Tegra Processor All Other Consolidated (In millions) Three Months Ended October 30, 2016 Revenue $ 1,697 $ 241 $ 66 $ 2,004 Depreciation and amortization expense $ 30 $ 8 $ 10 $ 48 Operating income (loss) $ 678 $ 17 $ (56 ) $ 639 Three Months Ended October 25, 2015 Revenue $ 1,110 $ 129 $ 66 $ 1,305 Depreciation and amortization expense $ 26 $ 11 $ 11 $ 48 Operating income (loss) $ 367 $ (65 ) $ (57 ) $ 245 Nine Months Ended October 30, 2016 Revenue $ 3,972 $ 567 $ 198 $ 4,737 Depreciation and amortization expense $ 87 $ 22 $ 31 $ 140 Operating income (loss) $ 1,405 $ (35 ) $ (169 ) $ 1,201 Nine Months Ended October 25, 2015 Revenue $ 3,009 $ 402 $ 198 $ 3,609 Depreciation and amortization expense $ 81 $ 36 $ 34 $ 151 Operating income (loss) $ 917 $ (164 ) $ (258 ) $ 495 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | Three Months Ended Nine Months Ended October 30, October 25, October 30, October 25, (In millions) Reconciling items included in "All Other" category: Unallocated revenue $ 66 $ 66 $ 198 $ 198 Stock-based compensation expense (65 ) (51 ) (176 ) (145 ) Unallocated cost of revenue and operating expenses (53 ) (60 ) (156 ) (181 ) Acquisition-related costs (4 ) (4 ) (12 ) (18 ) Restructuring and other charges — (8 ) (3 ) (97 ) Contributions — — (4 ) — Product warranty charge — — — (15 ) Legal settlement costs — — (16 ) — Total $ (56 ) $ (57 ) $ (169 ) $ (258 ) |
Revenue from customers based in different geographic regions | Three Months Ended Nine Months Ended October 30, October 25, October 30, October 25, 2016 2015 2016 2015 (In millions) Revenue: Taiwan $ 747 $ 515 $ 1,696 $ 1,348 China 341 229 845 583 Other Asia Pacific 309 181 660 554 United States 282 156 682 474 Europe 171 116 494 341 Other Americas 154 108 360 309 Total revenue $ 2,004 $ 1,305 $ 4,737 $ 3,609 |
Schedule of Revenue by Major Markets [Table Text Block] | Three Months Ended Nine Months Ended October 30, October 25, October 30, October 25, 2016 2015 2016 2015 (In millions) Revenue: Gaming $ 1,244 $ 761 $ 2,712 $ 2,008 Professional Visualization 207 190 610 547 Datacenter 240 82 534 242 Automotive 127 79 359 227 OEM & IP 186 193 522 585 Total revenue $ 2,004 $ 1,305 $ 4,737 $ 3,609 |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Three Months Ended Nine Months Ended October 30, October 25, October 30, October 25, 2016 2015 2016 2015 Revenue: Customer A 13 % 10 % 12 % 11 % |
Schedule of Account Receivable from Major Customers [Table Text Block] | October 30, January 31, 2016 2016 Accounts Receivable: Customer B 18 % 21 % Customer C 12 % 3 % |
Restructuring and Other Charg32
Restructuring and Other Charges (Tables) | 9 Months Ended |
Oct. 30, 2016 | |
Restructuring and Other Charges [Abstract] | |
Summary of the restructuring activities and related accrued liabilities | Balance as of January 31, 2016 $ 23 Restructuring and other charges 3 Cash payments (14 ) Non-cash adjustments 1 Balance as of October 30, 2016 $ 13 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||||
Oct. 30, 2016 | Jul. 31, 2016 | May 01, 2016 | Oct. 25, 2015 | Jul. 31, 2016 | Oct. 30, 2016 | Oct. 25, 2015 | Jan. 31, 2016 | |||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||||
Excess tax benefits recorded within income tax expense | $ 42 | $ 8 | $ 12 | $ 62 | ||||||||
Income tax expense | 79 | 56 | 33 | $ (1) | $ 89 | 168 | $ 83 | |||||
Net income | $ 542 | $ 261 | $ 208 | $ 246 | $ 469 | $ 1,012 | $ 406 | |||||
Basic net income per share | $ 1.01 | [1] | $ 0.49 | $ 0.39 | $ 0.45 | [1] | $ 0.88 | $ 1.89 | [1] | $ 0.75 | [1] | |
Diluted net income per share | $ 0.83 | [2] | $ 0.41 | $ 0.35 | $ 0.44 | [2] | $ 0.76 | $ 1.59 | [2] | $ 0.72 | [2] | |
Weighted average shares used in diluted per share computation | 653 | 634 | 599 | 565 | 620 | 636 | 563 | |||||
Net cash provided by operating activities | $ 201 | $ 318 | $ 519 | $ 951 | $ 664 | |||||||
Net cash used in financing activities | (52) | (545) | (597) | $ 813 | $ (503) | |||||||
As reported | ||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||||
Income tax expense | 64 | 45 | 109 | |||||||||
Net income | $ 253 | $ 196 | $ 449 | |||||||||
Basic net income per share | $ 0.47 | $ 0.36 | $ 0.84 | |||||||||
Diluted net income per share | $ 0.40 | $ 0.33 | $ 0.73 | |||||||||
Weighted average shares used in diluted per share computation | 631 | 597 | 617 | |||||||||
Net cash provided by operating activities | $ 184 | $ 309 | $ 493 | |||||||||
Net cash used in financing activities | $ (35) | $ (534) | $ (570) | |||||||||
Adjustments for early adoption of new accounting pronouncements | Accounting Standards Update 2016-09 | ||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||||
Cumulative effect adjustment - increase to deferred tax assets | $ 353 | |||||||||||
Adjustments for early adoption of new accounting pronouncements | Accounting Standards Update 2016-09 | Retained earnings | ||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||||
Cumulative effect adjustment - increase to retained earnings | $ 353 | |||||||||||
[1] | Calculated as net income divided by basic weighted average shares. | |||||||||||
[2] | Calculated as net income divided by diluted weighted average shares. |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Oct. 30, 2016 | Oct. 25, 2015 | Oct. 30, 2016 | Oct. 25, 2015 | Jan. 31, 2016 | ||
Share-based Compensation | ||||||
Cost of revenue | $ 2 | $ 4 | $ 10 | $ 10 | ||
Research and development | 36 | 28 | 95 | 82 | ||
Sales, general and administrative | 27 | 19 | 71 | 53 | ||
Stock-based compensation expense | $ 65 | 51 | $ 176 | 145 | ||
Stock Options | ||||||
Stock options beginning balance (in shares) | 13 | |||||
Stock Options granted (in shares) | 0 | |||||
Stock options exercised (in shares) | (4) | |||||
Stock options canceled (in shares) | 0 | |||||
Stock options ending balance (in shares) | 9 | 9 | 13 | |||
Weighted average exercise price of stock options at beginning of period | $ 14.49 | |||||
Weighted average exercise price of stock options granted | 0 | |||||
Weighted average exercise price of stock options exercised | 14.44 | |||||
Weighted average exercise price of stock options canceled | 0 | |||||
Weighted average exercise price of stock options at end of period | $ 14.52 | $ 14.52 | $ 14.49 | |||
RSUs, PSUs, and Market-based PSUs | ||||||
RSUs, PSUs and mkt-based PSUs beginning balance (in shares) | 26 | |||||
RSUs, PSUs and mkt-based PSUs granted (in shares) | [1],[2] | 11 | ||||
RSUs, PSUs and mkt-based PSUs vested (in shares) | (9) | |||||
RSUs, PSUs and mkt-based PSUs canceled (in shares) | (1) | |||||
RSUs, PSUs, and mkt-based PSUs ending balance (in shares) | 27 | 27 | 26 | |||
Weighted average grant date fair value of RSUs, PSUs and mkt-based PSUs at beginning of period | $ 19.12 | |||||
Weighted avg grant-date FV of RSUs, PSUs and mkt-based PSUs | 48.88 | |||||
Weighted average grant-date fair value of RSUs, PSUs and mkt-based PSUs vested | 17.84 | |||||
Weighted average grant date fair value of RSUs, PSUs and mkt-based PSUs canceled | 21.58 | |||||
Weighted avg grant date FV of RSUs, PSUs and mkt-based PSUs at end of period | $ 31.76 | $ 31.76 | $ 19.12 | |||
Minimum number of PSUs issuable | 0 | 0 | ||||
Maximum number of PSUs issuable | 2 | 2 | ||||
Minimum number of market-based PSUs issuable | 0 | 0 | ||||
Maximum number of market-based PSUs issuable | 0.3 | 0.3 | ||||
Stock-based compensation expense related to equity awards not expected to vest | $ 72 | $ 34 | $ 89 | $ 43 | ||
Summary of unearned SBC expense | ||||||
Aggregate amount of unearned stock-based compensation expense related to equity awards, adjusted for estimated forfeitures | $ 662 | $ 662 | $ 381 | |||
Employee Stock Option | ||||||
Summary of unearned SBC expense | ||||||
Estimated weighted average amortization period | 8 months 12 days | 1 year 1 month 6 days | ||||
RSUs, PSUs, and Market-based PSUs | ||||||
Summary of unearned SBC expense | ||||||
Estimated weighted average amortization period | 2 years 9 months 17 days | 2 years 8 months 12 days | ||||
Employee Stock Purchase Plan | ||||||
Summary of unearned SBC expense | ||||||
Estimated weighted average amortization period | 7 months 5 days | 8 months 12 days | ||||
[1] | Includes PSUs that will be issued and eligible to vest if the corporate financial performance maximum target level for fiscal year 2017 is achieved. Depending on the actual level of achievement of the corporate performance target at the end of fiscal year 2017, the PSUs issued could range from 0 to 2 million shares. | |||||
[2] | Includes market-based PSUs that will be issued and eligible to vest if the maximum target for total shareholder return, or TSR, over the 3-year measurement period is achieved. Depending on the ranking of our TSR compared to the respective TSRs of the companies comprising the Standard & Poor’s 500 Index during a 3-year measurement period, the market-based PSUs issued could range from 0 to 0.3 million shares. |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||
Oct. 30, 2016 | Jul. 31, 2016 | May 01, 2016 | Oct. 25, 2015 | Jul. 31, 2016 | Oct. 30, 2016 | Oct. 25, 2015 | |||||
Numerator: | |||||||||||
Net income | $ 542 | $ 261 | $ 208 | $ 246 | $ 469 | $ 1,012 | $ 406 | ||||
Denominator: | |||||||||||
Basic weighted average shares | 538 | 542 | 536 | 544 | |||||||
Effect of dilutive securities: | |||||||||||
Equity awards outstanding | 27 | 13 | 25 | 13 | |||||||
1% Convertible Senior Notes | 45 | 10 | 42 | 6 | |||||||
Warrants issued with the Notes | 43 | 0 | 33 | 0 | |||||||
Weighted average shares used in diluted per share computation | 653 | 634 | 599 | 565 | 620 | 636 | 563 | ||||
Net income per share: | |||||||||||
Basic net income per share | $ 1.01 | [1] | $ 0.49 | $ 0.39 | $ 0.45 | [1] | $ 0.88 | $ 1.89 | [1] | $ 0.75 | [1] |
Diluted net income per share | $ 0.83 | [2] | $ 0.41 | $ 0.35 | $ 0.44 | [2] | $ 0.76 | $ 1.59 | [2] | $ 0.72 | [2] |
Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive | 7 | 9 | 9 | 13 | |||||||
Stated interest rate - Convertible Notes | 1.00% | 1.00% | |||||||||
Conversion price - Convertible Notes | $ 20.0780 | $ 20.0780 | |||||||||
Warrant Strike Price | 27.0281 | ||||||||||
Average stock price | $ 63.83 | $ 47.82 | |||||||||
[1] | Calculated as net income divided by basic weighted average shares. | ||||||||||
[2] | Calculated as net income divided by diluted weighted average shares. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Oct. 30, 2016 | Jul. 31, 2016 | May 01, 2016 | Oct. 25, 2015 | Jul. 31, 2016 | Oct. 30, 2016 | Oct. 25, 2015 | |
Income Taxes | |||||||
Income tax expense (benefit) | $ 79 | $ 56 | $ 33 | $ (1) | $ 89 | $ 168 | $ 83 |
Effective Income Tax Rate, Continuing Operations | 12.80% | (0.50%) | 14.20% | 16.90% | |||
Excess tax benefits recorded within income tax expense | $ 42 | $ 8 | $ 12 | $ 62 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 35.00% |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 30, 2016 | Jan. 31, 2016 | |
Summary of cash equivalents and marketable securities: | ||
Document Period End Date | Oct. 30, 2016 | |
Amortized Cost | $ 5,369 | $ 4,672 |
Unrealized Gain | 7 | 6 |
Unrealized Loss | (5) | (5) |
Classified as: | ||
Cash equivalents | 640 | 232 |
Marketable securities | 4,731 | 4,441 |
Total cash equivalents and marketable securities | 5,371 | 4,673 |
Amortized Cost | ||
Less than one year | 2,346 | 1,619 |
Due in 1-5 years | 2,967 | 3,019 |
Mortgage-backed securities issued by government-sponsored enterprises not due to a single maturity date | 56 | 34 |
Total | 5,369 | 4,672 |
Estimated Fair Value | ||
Less than one year | 2,347 | 1,619 |
Due in 1-5 years | 2,968 | 3,020 |
Mortgage-backed securities issued by government-sponsored enterprises not due to a single maturity date | 56 | 34 |
Total | 5,371 | 4,673 |
Unrealized Loss Position, Fair Value | ||
Unrealized Loss, Less than Twelve Months, Fair Value | 1,753 | |
Unrealized Loss, Twelve Months or Longer, Fair Value | 121 | |
Unrealized Loss, Fair Value, Total | 1,874 | |
Unrealized Loss Position, Aggregate Losses | ||
Unrealized Loss, Less than 12 Months, Accumulated Loss | (4) | |
Unrealized Loss, 12 Months or Longer, Accumulated Loss | (1) | |
Gross Unrealized Loss, Total | (5) | |
Corporate debt securities | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 2,239 | 1,903 |
Unrealized Gain | 2 | 1 |
Unrealized Loss | (2) | (3) |
Classified as: | ||
Cash equivalents | 35 | 51 |
Total cash equivalents and marketable securities | 2,239 | 1,901 |
Unrealized Loss Position, Fair Value | ||
Unrealized Loss, Less than Twelve Months, Fair Value | 977 | |
Unrealized Loss, Twelve Months or Longer, Fair Value | 58 | |
Unrealized Loss, Fair Value, Total | 1,035 | |
Unrealized Loss Position, Aggregate Losses | ||
Unrealized Loss, Less than 12 Months, Accumulated Loss | (2) | |
Unrealized Loss, 12 Months or Longer, Accumulated Loss | 0 | |
Gross Unrealized Loss, Total | (2) | |
Debt securities of United States government agencies | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 1,152 | 1,170 |
Unrealized Gain | 1 | 1 |
Unrealized Loss | (1) | (1) |
Classified as: | ||
Cash equivalents | 38 | 90 |
Total cash equivalents and marketable securities | 1,152 | 1,170 |
Unrealized Loss Position, Fair Value | ||
Unrealized Loss, Less than Twelve Months, Fair Value | 536 | |
Unrealized Loss, Twelve Months or Longer, Fair Value | 27 | |
Unrealized Loss, Fair Value, Total | 563 | |
Unrealized Loss Position, Aggregate Losses | ||
Unrealized Loss, Less than 12 Months, Accumulated Loss | (1) | |
Unrealized Loss, 12 Months or Longer, Accumulated Loss | 0 | |
Gross Unrealized Loss, Total | (1) | |
Debt securities issued by the United States Treasury | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 770 | 800 |
Unrealized Gain | 1 | 1 |
Unrealized Loss | (1) | 0 |
Classified as: | ||
Cash equivalents | 25 | |
Total cash equivalents and marketable securities | 770 | 801 |
Unrealized Loss Position, Fair Value | ||
Unrealized Loss, Less than Twelve Months, Fair Value | 197 | |
Unrealized Loss, Twelve Months or Longer, Fair Value | 0 | |
Unrealized Loss, Fair Value, Total | 197 | |
Unrealized Loss Position, Aggregate Losses | ||
Unrealized Loss, Less than 12 Months, Accumulated Loss | (1) | |
Unrealized Loss, 12 Months or Longer, Accumulated Loss | 0 | |
Gross Unrealized Loss, Total | (1) | |
Asset-backed Securities | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 436 | 435 |
Unrealized Gain | 1 | 0 |
Unrealized Loss | 0 | 0 |
Classified as: | ||
Total cash equivalents and marketable securities | 437 | 435 |
Mortgage backed securities issued by United Sates government-sponsored enterprises | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 162 | 229 |
Unrealized Gain | 2 | 3 |
Unrealized Loss | (1) | (1) |
Classified as: | ||
Total cash equivalents and marketable securities | 163 | 231 |
Unrealized Loss Position, Fair Value | ||
Unrealized Loss, Less than Twelve Months, Fair Value | 43 | |
Unrealized Loss, Twelve Months or Longer, Fair Value | 36 | |
Unrealized Loss, Fair Value, Total | 79 | |
Unrealized Loss Position, Aggregate Losses | ||
Unrealized Loss, Less than 12 Months, Accumulated Loss | 0 | |
Unrealized Loss, 12 Months or Longer, Accumulated Loss | (1) | |
Gross Unrealized Loss, Total | (1) | |
Foreign government bonds | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 68 | 92 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Classified as: | ||
Total cash equivalents and marketable securities | 68 | 92 |
Money market funds | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 542 | 43 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Classified as: | ||
Total cash equivalents and marketable securities | $ 542 | $ 43 |
Fair Value of Financial Asset38
Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 30, 2016 | Jan. 31, 2016 | ||
Financial assets and liabilities measured at fair value: | |||
Document Period End Date | Oct. 30, 2016 | ||
Cash equivalents | $ 640 | $ 232 | |
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets and liabilities measured at fair value: | |||
Convertible Debt, Fair Value Disclosures | [1] | 3,725 | 2,273 |
Fair value of interest rate swap liability | [2] | 9 | 7 |
Corporate debt securities | |||
Financial assets and liabilities measured at fair value: | |||
Cash equivalents | 35 | 51 | |
Marketable securities | 2,200 | 1,850 | |
Corporate debt securities | Fair Value, Inputs, Level 2 [Member] | |||
Financial assets and liabilities measured at fair value: | |||
Assets, Fair Value Disclosure, Recurring | [3] | 2,239 | 1,901 |
Debt securities of United States government agencies | |||
Financial assets and liabilities measured at fair value: | |||
Cash equivalents | 38 | 90 | |
Marketable securities | 1,110 | 1,080 | |
Debt securities of United States government agencies | Fair Value, Inputs, Level 2 [Member] | |||
Financial assets and liabilities measured at fair value: | |||
Assets, Fair Value Disclosure, Recurring | [4] | 1,152 | 1,170 |
Debt securities issued by the United States Treasury | |||
Financial assets and liabilities measured at fair value: | |||
Cash equivalents | 25 | ||
Marketable securities | 745 | 801 | |
Debt securities issued by the United States Treasury | Fair Value, Inputs, Level 2 [Member] | |||
Financial assets and liabilities measured at fair value: | |||
Assets, Fair Value Disclosure, Recurring | [5] | 770 | 801 |
Asset-backed Securities | Fair Value, Inputs, Level 2 [Member] | |||
Financial assets and liabilities measured at fair value: | |||
Assets, Fair Value Disclosure, Recurring | [6] | 437 | 435 |
Mortgage backed securities issued by United Sates government-sponsored enterprises | Fair Value, Inputs, Level 2 [Member] | |||
Financial assets and liabilities measured at fair value: | |||
Assets, Fair Value Disclosure, Recurring | [6] | 163 | 231 |
Foreign government bonds | Fair Value, Inputs, Level 2 [Member] | |||
Financial assets and liabilities measured at fair value: | |||
Assets, Fair Value Disclosure, Recurring | [6] | 68 | 92 |
Money market funds | Fair Value, Inputs, Level 1 [Member] | |||
Financial assets and liabilities measured at fair value: | |||
Assets, Fair Value Disclosure, Recurring | [7] | 542 | 43 |
2021 Notes [Member] | |||
Financial assets and liabilities measured at fair value: | |||
Long-term Debt, Fair Value | [1] | 0 | |
2021 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Financial assets and liabilities measured at fair value: | |||
Long-term Debt, Fair Value | [1] | 997 | |
2026 Notes [Member] | |||
Financial assets and liabilities measured at fair value: | |||
Long-term Debt, Fair Value | [1] | $ 0 | |
2026 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Financial assets and liabilities measured at fair value: | |||
Long-term Debt, Fair Value | [1] | $ 997 | |
[1] | The Convertible Notes, 2.20% Notes Due 2021, and 3.20% Notes Due 2026 are carried on our Condensed Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs, and are not marked to fair value each period. See Note 11 of these Notes to Condensed Consolidated Financial Statements for additional information. | ||
[2] | Please refer to Note 9 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding our interest rate swap. | ||
[3] | Included $35 million and $51 million in cash equivalents as of October 30, 2016 and January 31, 2016, respectively, and $2.20 billion and $1.85 billion in marketable securities as of October 30, 2016 and January 31, 2016, respectively, on the Condensed Consolidated Balance Sheets. | ||
[4] | Included $38 million and $90 million in cash equivalents as of October 30, 2016 and January 31, 2016, respectively, and $1.11 billion and $1.08 billion in marketable securities as of October 30, 2016 and January 31, 2016, respectively, on the Condensed Consolidated Balance Sheets. | ||
[5] | Included $25 million in cash equivalents as of October 30, 2016 and $745 million and $801 million in marketable securities as of October 30, 2016 and January 31, 2016, respectively, on the Condensed Consolidated Balance Sheets. | ||
[6] | Reported in marketable securities on the Condensed Consolidated Balance Sheets. | ||
[7] | (4)Reported in cash equivalents on the Condensed Consolidated Balance Sheets. |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2016 | Oct. 25, 2015 | Oct. 30, 2016 | Oct. 25, 2015 | Jan. 31, 2016 | |
Amortizable intangible assets components | |||||
Amortization expense | $ 18 | $ 18 | $ 53 | $ 56 | |
Future amortization expense associated with intangible assets | |||||
Remainder of fiscal 2017 | 16 | 16 | |||
Fiscal 2,018 | 54 | 54 | |||
Fiscal 2,019 | 26 | 26 | |||
Fiscal 2,020 | 16 | 16 | |||
Fiscal 2,021 | 7 | 7 | |||
Fiscal 2022 and beyond | 1 | 1 | |||
Acquisition-related intangible assets | |||||
Amortizable intangible assets components | |||||
Gross Carrying Amount | 193 | 193 | $ 193 | ||
Accumulated Amortization | (163) | (163) | (152) | ||
Net Carrying Amount | 30 | 30 | 41 | ||
Patents and licensed technology | |||||
Amortizable intangible assets components | |||||
Gross Carrying Amount | 469 | 469 | 462 | ||
Accumulated Amortization | (379) | (379) | (337) | ||
Net Carrying Amount | 90 | 90 | 125 | ||
Total intangible assets | |||||
Amortizable intangible assets components | |||||
Gross Carrying Amount | 662 | 662 | 655 | ||
Accumulated Amortization | (542) | (542) | (489) | ||
Net Carrying Amount | $ 120 | $ 120 | $ 166 |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) $ in Millions | Oct. 30, 2016 | Jan. 31, 2016 | |
Inventories | |||
Raw materials | $ 203 | $ 105 | |
Work in-process | 203 | 103 | |
Finished goods | 273 | 210 | |
Total inventories | 679 | 418 | |
Outstanding Inventory Purchase Obligations | 908 | ||
Accrued Liabilities and Other Current Liabilities | |||
Customer related liabilities | [1] | 175 | 160 |
Deferred Revenue | 170 | 322 | |
Accrued payroll and related expenses | 79 | 79 | |
Accrued restructuring and other charges | [2] | 13 | 23 |
Professional service fees | 13 | 23 | |
Coupon interest on Notes | 12 | 3 | |
Income taxes payable | 9 | 2 | |
Warranty accrual | [3] | 8 | 11 |
Contributions payable | 4 | 3 | |
Leases payable | 4 | 4 | |
Accrued royalties | 4 | 1 | |
Other | 16 | 11 | |
Total accrued and other current liabilities | 507 | 642 | |
Other Long-Term Liabilities | |||
Deferred income tax liability | [4] | 88 | 301 |
Income taxes payable | 85 | 78 | |
Contributions Payable | 13 | 13 | |
Interest rate swap | [5] | 9 | 7 |
Deferred Revenue | [6] | 2 | 44 |
Other | 16 | 10 | |
Total other long-term liabilities | $ 213 | $ 453 | |
[1] | Customer related liabilities include accrued customer programs, such as rebates and marketing development funds. | ||
[2] | Please refer to Note 15 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding restructuring and other charges. | ||
[3] | Please refer to Note 10 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding warranties. | ||
[4] | Please refer to the “Recently Adopted Accounting Pronouncement” section of Note 1 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding the impact of a recently adopted accounting pronouncement on deferred taxes. | ||
[5] | Please refer to Note 9 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding our interest rate swap. | ||
[6] | Deferred revenue under our patent cross licensing agreement with Intel Corporation is now located in short term deferred revenue as less than twelve months remains on the agreement. |
Derivative Financial Instrume41
Derivative Financial Instrument (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 30, 2016 | Oct. 30, 2016 | |
Summary of Derivative Instruments [Abstract] | ||
Notional amount of Interest rate swap | $ 200 | |
Notional amount of FX forward contract, designated as hedge | $ 64 | 160 |
Notional amount of FX forward contract, non-designated as hedge | 54 | 67 |
Unrealized gains (losses) on cash flow hedges | $ 2 | $ (3) |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Oct. 30, 2016 | Jan. 31, 2016 | |
Estimated product warranty liabilities | ||
Balance at beginning of period | $ 11 | $ 8 |
Additions | 1 | 27 |
Deductions | (5) | (24) |
Balance at end of period | $ 7 | 11 |
SHIELD warranty charge | $ 26 |
Debt (Details)
Debt (Details) $ / shares in Units, shares in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 30, 2016USD ($)$ / sharesshares | Oct. 25, 2015USD ($) | Oct. 30, 2016USD ($)$ / sharesshares | Oct. 25, 2015USD ($) | Oct. 28, 2016$ / shares | Jan. 31, 2016USD ($) | |||
Debt Instrument | ||||||||
Convertible Notes - Initial face value | $ 1,500,000,000 | |||||||
Stated interest rate - Convertible Notes | 1.00% | 1.00% | ||||||
Initial conversion ratio | 49.5958 | |||||||
Principal amount of Convertible Notes | $ 1,000 | $ 1,000 | ||||||
Initial conversion price | $ / shares | $ 20.1630 | $ 20.1630 | ||||||
Initial dividend | $ / shares | $ 0.085 | |||||||
Conversion ratio - Convertible Notes | 49.8058 | |||||||
Conversion price - Convertible Notes | $ / shares | $ 20.0780 | $ 20.0780 | ||||||
Initial debt component - Convertible Notes | $ 1,350,000,000 | |||||||
Effective interest rate - Convertible Notes | 3.15% | 3.15% | ||||||
Initial carrying amount of equity component | $ 126,000,000 | $ 126,000,000 | ||||||
Purchaser's discount of Convertible Notes | 23,000,000 | |||||||
Initial unamortized debt discount at issuance | 148,000,000 | |||||||
Convertible Notes - Face Amount | 1,056,000,000 | 1,056,000,000 | $ 1,500,000,000 | |||||
Unamortized debt discount - Convertible Notes | (45,000,000) | [1] | (45,000,000) | [1] | (87,000,000) | |||
Convertible Notes | 1,011,000,000 | $ 1,011,000,000 | 1,413,000,000 | |||||
Remaining discount amortization period | 2 years 1 month 6 days | |||||||
Coupon interest expense | 3,000,000 | $ 4,000,000 | $ 10,000,000 | $ 11,000,000 | ||||
Amortization of Debt Issuance Costs and Discounts | 5,000,000 | 7,000,000 | 20,000,000 | 22,000,000 | ||||
Total interest expense related to Convertible Notes | $ 8,000,000 | $ 11,000,000 | 30,000,000 | 33,000,000 | ||||
Terms of conversion feature - Convertible Notes | Holders may convert all or any portion of their Convertible Notes at their option at any time prior to August 1, 2018 only under the following circumstances: (1) during any fiscal quarter, if the last reported sale price of the common stock for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the measurement period) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after August 1, 2018 to the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Convertible Notes regardless of the foregoing conditions. | |||||||
Threshold percentage of stock price trigger - Convertible Notes | 130.00% | |||||||
Convertible debt, short-term | $ 1,011,000,000 | 1,011,000,000 | 1,413,000,000 | |||||
Convertible debt conversion obligation | 45,000,000 | 45,000,000 | 87,000,000 | |||||
Closing stock price | $ / shares | $ 70.56 | |||||||
If-converted value in excess of principal - Convertible Notes | 2,660,000,000 | |||||||
Repayment of Convertible Notes | $ 444,000,000 | $ 444,000,000 | ||||||
Shares issued - Convertible Notes | shares | 15 | 15 | ||||||
Loss on early debt conversions | $ 15,000,000 | $ 15,000,000 | 0 | |||||
Amount of conversion notice received to be settled in Q417 | $ 229,000,000 | $ 229,000,000 | ||||||
Note Hedges Initial Strike Price | $ / shares | $ 20.1630 | $ 20.1630 | ||||||
Note Hedges Strike Price | $ / shares | $ 20.0780 | $ 20.0780 | ||||||
Shares received from Note Hedges | shares | 15 | 15 | ||||||
Initial Warrant Strike Price | $ / shares | $ 27.1425 | |||||||
Warrant Strike Price | $ / shares | $ 27.0281 | |||||||
Number of Shares Covered by Warrants | shares | 75 | 75 | ||||||
Proceeds from issuance of debt | $ 1,988,000,000 | $ 1,988,000,000 | $ 0 | |||||
Unamortized discount and issuance costs | (18,000,000) | (18,000,000) | ||||||
Long-term debt | 1,982,000,000 | 1,982,000,000 | $ 0 | |||||
Revoling credit facility, Current borrowing capacity | 575,000,000 | 575,000,000 | ||||||
Additional borrowing capacity from Revolving Credit Facility | 425,000,000 | 425,000,000 | ||||||
2021 Notes [Member] | ||||||||
Debt Instrument | ||||||||
Long-term Debt, Gross | $ 1,000,000,000 | $ 1,000,000,000 | ||||||
Long-term Debt, Stated interest rate | 2.20% | 2.20% | ||||||
Expected remaining term - Long-term debt | 4 years 10 months 24 days | |||||||
Effective interest rate - Long-term debt | 2.38% | |||||||
2026 Notes [Member] | ||||||||
Debt Instrument | ||||||||
Long-term Debt, Gross | $ 1,000,000,000 | $ 1,000,000,000 | ||||||
Long-term Debt, Stated interest rate | 3.20% | 3.20% | ||||||
Expected remaining term - Long-term debt | 9 years 10 months 24 days | |||||||
Effective interest rate - Long-term debt | 3.31% | |||||||
[1] | As of October 30, 2016, the remaining period over which the unamortized debt discount will be amortized is 2.1 years. |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 30, 2016USD ($) | Oct. 30, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Ground lease to a syndicate of banks - Synthetic Lease | 99 years | |
Total Synthetic Lease term | 7 years 6 months | |
Estimated construction period | 2 years 6 months | |
Lease term - Synthetic Lease | 5 years | |
Maximum number of renewal options | 3 | 3 |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | |
Expected construction costs for Synthetic lease financing | $ 380 | $ 380 |
Maximum residual value guarantee percentage | 87.50% | 87.50% |
Maximum total leverage ratio | 3 | 3 |
Minimum interest coverage ratio | 3.5 | 3.5 |
Legal settlement recorded as COGS | $ 10 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jan. 29, 2017 | Oct. 30, 2016 | May 01, 2016 | Oct. 25, 2015 | Oct. 30, 2016 | Oct. 25, 2015 | Nov. 07, 2016 | |
Accelerated Share Repurchases [Line Items] | |||||||
Accelerated Share Repurchases, Payment | $ 500 | ||||||
Stock Repurchased Initial Delivery, Shares | 12 | ||||||
Accelerated Share Repurchase Program, Adjustment | $ 9 | ||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 42.06 | ||||||
Stock Repurchased and Retired During Period, Shares | 12 | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ 509 | ||||||
Aggregate number of shares repurchased under stock repurchase program (in shares) | 243 | ||||||
Aggregated cost of shares repurchased | $ 4,360 | $ 4,360 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 2,960 | 2,960 | |||||
Dividends, Cash [Abstract] | |||||||
Payments of Dividends | $ 61 | $ 185 | $ 152 | ||||
Cash dividends declared and paid per common share | $ 0.1150 | $ 0.0975 | $ 0.3450 | $ 0.2800 | |||
Total Return to Shareholders | $ 61 | $ 694 | |||||
intended return to shareholder in 2017 | 1,000 | ||||||
intended return to shareholder in 2018 | $ 1,250 | ||||||
Authorized number of shares of common stock (in shares) | 2,000 | 2,000 | |||||
Par value of common stock | $ 0.001 | $ 0.001 | |||||
Subsequent Event [Member] | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Stock repurchase program, additional authorized amount | $ 2,000 | ||||||
Dividends, Cash [Abstract] | |||||||
Cash dividends declared and paid per common share | $ 0.14 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2016 | Oct. 25, 2015 | Oct. 30, 2016 | Oct. 25, 2015 | Jan. 31, 2016 | |
Revenue by Operating Segment and Geographic Region | |||||
Revenue | $ 2,004 | $ 1,305 | $ 4,737 | $ 3,609 | |
Depreciation and amortization expense | 48 | 48 | 140 | 151 | |
Operating income (loss) | 639 | 245 | 1,201 | 495 | |
Reconciling items included in All Other category | |||||
Stock-based compensation expense | (65) | (51) | (176) | (145) | |
Unallocated cost of revenue and operating expenses | (53) | (60) | (156) | (181) | |
Acquisition-related costs | (4) | (4) | (12) | (18) | |
Restructuring and other charges | 0 | (8) | (3) | (97) | |
Contributions | 0 | 0 | (4) | 0 | |
Product Warranty Expense | 0 | 0 | 0 | (15) | |
Legal Settlement Costs | $ 0 | $ 0 | $ (16) | $ 0 | |
Customer A | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue from significant customers (in percent) | 13.00% | 10.00% | 12.00% | 11.00% | |
Customer B | |||||
Revenue by Operating Segment and Geographic Region | |||||
Accounts receivable from significant customers (in percent) | 18.00% | 18.00% | 21.00% | ||
Top Customer C [Member] | |||||
Revenue by Operating Segment and Geographic Region | |||||
Accounts receivable from significant customers (in percent) | 12.00% | 12.00% | 3.00% | ||
Taiwan | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue | $ 747 | $ 515 | $ 1,696 | $ 1,348 | |
China | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue | 341 | 229 | 845 | 583 | |
Other Asia Pacific | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue | 309 | 181 | 660 | 554 | |
United States | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue | 282 | 156 | 682 | 474 | |
Europe | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue | 171 | 116 | 494 | 341 | |
Other Americas | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue | 154 | 108 | 360 | 309 | |
Gaming | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue | 1,244 | 761 | 2,712 | 2,008 | |
Professional Visualization | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue | 207 | 190 | 610 | 547 | |
Datacenter | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue | 240 | 82 | 534 | 242 | |
Automotive | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue | 127 | 79 | 359 | 227 | |
OEM & IP | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue | 186 | 193 | 522 | 585 | |
GPU | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue | 1,697 | 1,110 | 3,972 | 3,009 | |
Depreciation and amortization expense | 30 | 26 | 87 | 81 | |
Operating income (loss) | 678 | 367 | 1,405 | 917 | |
Tegra Processor | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue | 241 | 129 | 567 | 402 | |
Depreciation and amortization expense | 8 | 11 | 22 | 36 | |
Operating income (loss) | 17 | (65) | (35) | (164) | |
All Other | |||||
Revenue by Operating Segment and Geographic Region | |||||
Revenue | 66 | 66 | 198 | 198 | |
Depreciation and amortization expense | 10 | 11 | 31 | 34 | |
Operating income (loss) | $ (56) | $ (57) | $ (169) | $ (258) |
Restructuring and Other Charg47
Restructuring and Other Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2016 | Oct. 25, 2015 | Oct. 30, 2016 | Oct. 25, 2015 | ||
Restructuring and Other Charges [Abstract] | |||||
Restructuring reserve beg balance | [1] | $ 23 | |||
Restructuring and other charges | $ 0 | $ 8 | 3 | $ 97 | |
Payments for Restructuring | (14) | ||||
Restructuring Reserve, Settled without Cash | 1 | ||||
Restructuring reserve end balance | [1] | $ 13 | $ 13 | ||
[1] | Please refer to Note 15 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding restructuring and other charges. |