Cover Page
Cover Page - shares shares in Millions | 9 Months Ended | |
Oct. 27, 2019 | Nov. 08, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 27, 2019 | |
Document Transition Report | false | |
Entity File Number | 0-23985 | |
Entity Registrant Name | NVIDIA CORP | |
Entity Central Index Key | 0001045810 | |
Current Fiscal Year End Date | --01-26 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3177549 | |
Entity Address, Address Line One | 2788 San Tomas Expressway | |
Entity Address, City or Town | Santa Clara | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95051 | |
City Area Code | 408 | |
Local Phone Number | 486-2000 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | NVDA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 612 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 27, 2019 | Oct. 28, 2018 | Oct. 27, 2019 | Oct. 28, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 3,014 | $ 3,181 | $ 7,813 | $ 9,511 |
Cost of revenue | 1,098 | 1,260 | 3,060 | 3,547 |
Gross profit | 1,916 | 1,921 | 4,753 | 5,964 |
Operating expenses | ||||
Research and development | 712 | 605 | 2,091 | 1,729 |
Sales, general and administrative | 277 | 258 | 806 | 725 |
Total operating expenses | 989 | 863 | 2,897 | 2,454 |
Income from operations | 927 | 1,058 | 1,856 | 3,510 |
Interest income | 45 | 37 | 137 | 94 |
Interest expense | (13) | (15) | (39) | (44) |
Other, net | 0 | 1 | 0 | 12 |
Total other income (expense) | 32 | 23 | 98 | 62 |
Income before income tax | 959 | 1,081 | 1,954 | 3,572 |
Income tax expense (benefit) | 60 | (149) | 109 | (3) |
Net income | $ 899 | $ 1,230 | $ 1,845 | $ 3,575 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.47 | $ 2.02 | $ 3.03 | $ 5.88 |
Diluted (in dollars per share) | $ 1.45 | $ 1.97 | $ 2.99 | $ 5.71 |
Weighted average shares used in per share computation: | ||||
Basic (in shares) | 610 | 609 | 609 | 608 |
Diluted (in shares) | 618 | 625 | 617 | 626 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 27, 2019 | Oct. 28, 2018 | Oct. 27, 2019 | Oct. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 899 | $ 1,230 | $ 1,845 | $ 3,575 |
Available-for-sale securities: | ||||
Net change in unrealized gain | 0 | 3 | 9 | 6 |
Reclassification adjustments for net realized gain included in net income | 0 | 0 | 0 | 1 |
Net change in unrealized gain | 0 | 3 | 9 | 7 |
Cash flow hedges: | ||||
Net unrealized gain (loss) | 0 | 1 | 4 | (7) |
Reclassification adjustments for net realized loss included in net income | (2) | (5) | (4) | (6) |
Net change in unrealized loss | (2) | (4) | 0 | (13) |
Other comprehensive income (loss), net of tax | (2) | (1) | 9 | (6) |
Total comprehensive income | $ 897 | $ 1,229 | $ 1,854 | $ 3,569 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 27, 2019 | Jan. 27, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 9,765 | $ 782 |
Marketable securities | 4 | 6,640 |
Accounts receivable, net | 1,455 | 1,424 |
Inventories | 1,047 | 1,575 |
Prepaid expenses and other current assets | 149 | 136 |
Total current assets | 12,420 | 10,557 |
Property and equipment, net | 1,517 | 1,404 |
Operating lease assets | 527 | 0 |
Goodwill | 618 | 618 |
Intangible assets, net | 43 | 45 |
Deferred income tax assets | 569 | 560 |
Other assets | 116 | 108 |
Total assets | 15,810 | 13,292 |
Current liabilities: | ||
Accounts payable | 591 | 511 |
Accrued and other current liabilities | 884 | 818 |
Total current liabilities | 1,475 | 1,329 |
Long-term debt | 1,990 | 1,988 |
Long-term operating lease liabilities | 469 | 0 |
Other long-term liabilities | 662 | 633 |
Total liabilities | 4,596 | 3,950 |
Commitments and contingencies - see Note 13 | ||
Shareholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock | 1 | 1 |
Additional paid-in capital | 6,824 | 6,051 |
Treasury stock, at cost | (9,726) | (9,263) |
Accumulated other comprehensive loss | (3) | (12) |
Retained earnings | 14,118 | 12,565 |
Total shareholders' equity | 11,214 | 9,342 |
Total liabilities and shareholders' equity | $ 15,810 | $ 13,292 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock Outstanding | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings |
Beginning balance, common stock outstanding (in shares) at Oct. 28, 2018 | 611 | |||||
Beginning balances, shareholders' equity at Jan. 28, 2018 | $ 7,471 | $ 1 | $ 5,351 | $ (6,650) | $ (18) | $ 8,787 |
Increase (Decrease) in Shareholders' Equity | ||||||
Other comprehensive income (loss) | (6) | (6) | ||||
Net income | 3,575 | 3,575 | ||||
Convertible debt conversion (in shares) | 1 | |||||
Issuance of common stock from stock plans (in shares) | 13 | |||||
Issuance of common stock from stock plans | 134 | 134 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (4) | |||||
Tax withholding related to vesting of restricted stock units | (982) | (982) | ||||
Share repurchase (in shares) | (4) | |||||
Share repurchase | (855) | (855) | ||||
Exercise of convertible note hedges (in shares) | (1) | |||||
Exercise of convertible note hedges | 0 | 2 | (2) | |||
Cash dividends declared and paid | (274) | (274) | ||||
Stock-based compensation | 404 | 404 | ||||
Ending balance, common stock outstanding (in shares) at Jan. 28, 2018 | 606 | |||||
Ending balances, shareholders' equity at Oct. 28, 2018 | 9,475 | $ 1 | 5,891 | (8,489) | (24) | 12,096 |
Beginning balance, common stock outstanding (in shares) at Oct. 28, 2018 | 611 | |||||
Beginning balances, shareholders' equity at Jul. 29, 2018 | 8,795 | $ 1 | 5,681 | (7,821) | (23) | 10,957 |
Increase (Decrease) in Shareholders' Equity | ||||||
Other comprehensive income (loss) | (1) | (1) | ||||
Net income | 1,230 | 1,230 | ||||
Convertible debt conversion (in shares) | 1 | |||||
Issuance of common stock from stock plans (in shares) | 6 | |||||
Issuance of common stock from stock plans | 65 | 65 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (2) | |||||
Tax withholding related to vesting of restricted stock units | (467) | (467) | ||||
Share repurchase (in shares) | (1) | |||||
Share repurchase | (200) | (200) | ||||
Exercise of convertible note hedges (in shares) | (1) | |||||
Exercise of convertible note hedges | 1 | (1) | ||||
Cash dividends declared and paid | (91) | (91) | ||||
Stock-based compensation | 144 | 144 | ||||
Ending balance, common stock outstanding (in shares) at Jul. 29, 2018 | 608 | |||||
Ending balances, shareholders' equity at Oct. 28, 2018 | 9,475 | $ 1 | 5,891 | (8,489) | (24) | 12,096 |
Beginning balance, common stock outstanding (in shares) at Oct. 27, 2019 | 612 | |||||
Beginning balances, shareholders' equity at Jan. 27, 2019 | 9,342 | $ 1 | 6,051 | (9,263) | (12) | 12,565 |
Increase (Decrease) in Shareholders' Equity | ||||||
Other comprehensive income (loss) | 9 | 9 | ||||
Net income | 1,845 | 1,845 | ||||
Issuance of common stock from stock plans (in shares) | 9 | |||||
Issuance of common stock from stock plans | 146 | 146 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (3) | |||||
Tax withholding related to vesting of restricted stock units | (463) | (463) | ||||
Cash dividends declared and paid | (292) | (292) | ||||
Stock-based compensation | 627 | 627 | ||||
Ending balance, common stock outstanding (in shares) at Jan. 27, 2019 | 606 | |||||
Ending balances, shareholders' equity at Oct. 27, 2019 | 11,214 | $ 1 | 6,824 | (9,726) | (3) | 14,118 |
Beginning balance, common stock outstanding (in shares) at Oct. 27, 2019 | 612 | |||||
Beginning balances, shareholders' equity at Jul. 28, 2019 | 10,336 | $ 1 | 6,543 | (9,524) | (1) | 13,317 |
Increase (Decrease) in Shareholders' Equity | ||||||
Other comprehensive income (loss) | (2) | (2) | ||||
Net income | 899 | 899 | ||||
Issuance of common stock from stock plans (in shares) | 4 | |||||
Issuance of common stock from stock plans | 63 | 63 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (1) | |||||
Tax withholding related to vesting of restricted stock units | (202) | (202) | ||||
Cash dividends declared and paid | (98) | (98) | ||||
Stock-based compensation | 218 | 218 | ||||
Ending balance, common stock outstanding (in shares) at Jul. 28, 2019 | 609 | |||||
Ending balances, shareholders' equity at Oct. 27, 2019 | $ 11,214 | $ 1 | $ 6,824 | $ (9,726) | $ (3) | $ 14,118 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 27, 2019 | Oct. 28, 2018 | Oct. 27, 2019 | Oct. 28, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, dividends per share, declared and paid (in dollars per share) | $ 0.16 | $ 0.15 | $ 0.48 | $ 0.45 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Oct. 27, 2019 | Oct. 28, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 1,845 | $ 3,575 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 624 | 400 |
Depreciation and amortization | 275 | 184 |
Deferred income taxes | (5) | 30 |
Other | 5 | (35) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (32) | (943) |
Inventories | 531 | (620) |
Prepaid expenses and other assets | 55 | (68) |
Accounts payable | 91 | 224 |
Accrued and other current liabilities | (103) | 147 |
Other long-term liabilities | 10 | (49) |
Net cash provided by operating activities | 3,296 | 2,845 |
Cash flows from investing activities: | ||
Proceeds from maturities of marketable securities | 4,744 | 6,267 |
Proceeds from sales of marketable securities | 3,363 | 114 |
Purchases of marketable securities | (1,461) | (10,112) |
Purchases of property and equipment and intangible assets | (344) | (397) |
Investment in non-affiliates | (6) | (9) |
Net cash provided by (used in) investing activities | 6,296 | (4,137) |
Cash flows from financing activities: | ||
Proceeds related to employee stock plans | 146 | 135 |
Payments related to tax on restricted stock units | (463) | (982) |
Dividends paid | (292) | (273) |
Payments related to repurchases of common stock | 0 | (855) |
Repayment of Convertible Notes | 0 | (12) |
Other | 0 | (2) |
Net cash used in financing activities | (609) | (1,989) |
Change in cash and cash equivalents | 8,983 | (3,281) |
Cash and cash equivalents at beginning of period | 782 | 4,002 |
Cash and cash equivalents at end of period | 9,765 | 721 |
Other non-cash investing activity: | ||
Assets acquired by assuming related liabilities | $ 87 | $ 98 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 27, 2019 | |
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 27, 2019 consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 27, 2019 , as filed with the SEC, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of results of operations and financial position have been included. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 27, 2019 . Significant Accounting Policies Except for adopting a new accounting standard related to leases, there have been no material changes to our significant accounting policies in Note 1 - Organization and Summary of Significant Accounting Policies, of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 27, 2019 . Leases We determine if an arrangement is or contains a lease at inception. Operating leases with lease terms of more than 12 months are included in operating lease assets, accrued and other current liabilities, and long-term operating lease liabilities on our consolidated balance sheet. Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments over the lease term. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using our incremental borrowing rate. Operating lease assets also include initial direct costs incurred and prepaid lease payments, minus any lease incentives. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We combine the lease and non-lease components in determining the operating lease assets and liabilities. Refer to Note 3 of these Notes to Condensed Consolidated Financial Statements for additional information. Fiscal Year We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal years 2020 and 2019 are both 52-week years. The third quarters of fiscal years 2020 and 2019 were both 13-week quarters. Reclassifications Certain prior fiscal year balances have been reclassified to conform to the current fiscal year presentation. Principles of Consolidation Our condensed consolidated financial statements include the accounts of NVIDIA Corporation and our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from our estimates. On an on-going basis, we evaluate our estimates, including those related to revenue recognition, cash equivalents and marketable securities, accounts receivable, inventories, income taxes, goodwill, stock-based compensation, litigation, investigation and settlement costs, restructuring and other charges, and 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 The Financial Accounting Standards Board, or FASB, issued an accounting standards update regarding the accounting for leases under which lease assets and liabilities are recognized on the balance sheet. We adopted this guidance on January 28, 2019 using the optional transition method by recognizing a cumulative-effect adjustment to the consolidated balance sheet. Refer to Note 3 of these Notes to Condensed Consolidated Financial Statements for additional information. Recent Accounting Pronouncement Not Yet Adopted |
Acquisition of Mellanox Technol
Acquisition of Mellanox Technologies, Ltd. | 9 Months Ended |
Oct. 27, 2019 | |
Business Combinations [Abstract] | |
Acquisition of Mellanox Technologies, Ltd. | Acquisition of Mellanox Technologies, Ltd . On March 10, 2019, we entered into an Agreement and Plan of Merger, or the Merger Agreement, with Mellanox Technologies Ltd., or Mellanox, pursuant to which we will acquire all of the issued and outstanding common shares of Mellanox for $125 per share in cash, representing a total enterprise value of approximately $6.9 billion as of the date of the Merger Agreement. In June 2019, Mellanox shareholders approved the acquisition. The closing of the acquisition is subject to approval by regulatory agencies. If the Merger Agreement is terminated under certain circumstances involving the failure to obtain the required regulatory approvals, we could be obligated to pay Mellanox a termination fee of $350 million |
New Lease Accounting Standard
New Lease Accounting Standard | 9 Months Ended |
Oct. 27, 2019 | |
Leases [Abstract] | |
New Lease Accounting Standard | New Lease Accounting Standard Method and Impact of Adoption On January 28, 2019, we adopted the new lease accounting standard using the optional transition method by recognizing a cumulative-effect adjustment to the consolidated balance sheet and not adjusting comparative information for prior periods. In addition, we elected the package of practical expedients permitted under the transition guidance, which allowed us not to reassess (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. The cumulative-effect adjustment upon adoption of the new lease accounting standard resulted in the recognition of $ 470 million of operating lease assets and $ 500 million of operating lease liabilities on our Consolidated Balance Sheet. The difference of $ 30 million represents deferred rent for leases that existed as of the date of adoption, which was an offset to the opening balance of operating lease assets. Lease Obligations Our lease obligations consist of operating leases for our headquarters complex, domestic and international office facilities, and data center space, with lease periods expiring between fiscal years 2020 and 2035 . Future minimum lease payments under our non-cancelable operating leases as of October 27, 2019 , are as follows: Operating Lease Obligations (In millions) Fiscal Year: 2020 (excluding first nine months of fiscal year 2020) $ 28 2021 112 2022 104 2023 83 2024 60 2025 and thereafter 282 Total 669 Less imputed interest 111 Present value of net future minimum lease payments 558 Less short-term operating lease liabilities 89 Long-term operating lease liabilities $ 469 In addition to our existing operating lease obligations, we have entered into an operating lease that will commence in fiscal year 2021 with a lease term of 7 years for $62 million . Future minimum lease payments under our non-cancelable operating leases as of January 27, 2019, based on the previous lease accounting standard, are as follows: Lease Obligations (In millions) Fiscal Year: 2020 $ 100 2021 97 2022 90 2023 77 2024 54 2025 and thereafter 265 Total $ 683 Operating lease expense for the third quarter and first nine months of fiscal year 2020 was $28 million and $83 million , respectively. Operating lease expense for the third quarter and first nine months of fiscal year 2019 was $22 million and $58 million , respectively. Short-term and variable lease expenses for the third quarter and first nine months of fiscal year 2020 were not significant. Other information related to leases was as follows: Three Months Ended Nine Months Ended October 27, 2019 October 27, 2019 (In millions) Supplemental cash flows information Operating cash flows used for operating leases $ 28 $ 78 Operating lease assets obtained in exchange for lease obligations $ 14 $ 122 As of October 27, 2019 , our operating leases had a weighted average remaining lease term of 8.5 years and a weighted average discount rate of 3.68% . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 27, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Our stock-based compensation expense is associated with restricted stock units, or RSUs, performance stock units that are based on our corporate financial performance targets, or PSUs, performance stock units that are based on market conditions, or market-based PSUs, and our employee stock purchase plan, or ESPP. Our Condensed Consolidated Statements of Income include stock-based compensation expense, net of amounts allocated to inventory, as follows: Three Months Ended Nine Months Ended October 27, October 28, October 27, October 28, (In millions) Cost of revenue $ 15 $ 5 $ 27 $ 21 Research and development 141 88 400 237 Sales, general and administrative 67 47 197 142 Total $ 223 $ 140 $ 624 $ 400 Equity Award Activity The following is a summary of equity award transactions under our equity incentive plans: RSUs, PSUs, and Market-based PSUs Outstanding Number of Shares Weighted Average Grant-Date Fair Value Per Share (In millions, except per share data) Balances, January 27, 2019 16 $ 129.92 Granted (1) (2) 7 $ 182.62 Vested restricted stock (7 ) $ 85.22 Canceled and forfeited (1 ) $ 186.34 Balances, October 27, 2019 15 $ 173.01 (1) Includes the number of PSUs granted that will be issued and eligible to vest if the maximum corporate financial performance goal for fiscal year 2020 is achieved. Depending on the actual level of the corporate performance achievement at the end of fiscal year 2020 , the PSUs issued could be up to 0.4 million shares. (2) Includes the number of market-based PSUs granted that will be issued and eligible to vest if the maximum goal for total shareholder return, or TSR, over the 3 -year measurement period is achieved. Depending on the ranking of our TSR compared to those of the companies comprising the Standard & Poor’s 500 Index during that period, the market-based PSUs issued could be up to 60 thousand shares. As of October 27, 2019 , there was $1.95 billion of aggregate unearned stock-based compensation expense, net of forfeitures. This amount is expected to be recognized over a weighted average period of 2.6 years for RSUs, PSUs, and market-based PSUs, and 1.0 year for ESPP. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Oct. 27, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following is a reconciliation of the denominator of the basic and diluted net income per share computations for the periods presented: Three Months Ended Nine Months Ended October 27, October 28, October 27, October 28, 2019 2018 2019 2018 (In millions, except per share data) Numerator: Net income $ 899 $ 1,230 $ 1,845 $ 3,575 Denominator: Basic weighted average shares 610 609 609 608 Dilutive impact of outstanding equity awards 8 16 8 18 Diluted weighted average shares 618 625 617 626 Net income per share: Basic (1) $ 1.47 $ 2.02 $ 3.03 $ 5.88 Diluted (2) $ 1.45 $ 1.97 $ 2.99 $ 5.71 Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive 5 3 11 4 (1) Calculated as net income divided by basic weighted average shares. (2) Calculated as net income divided by diluted weighted average shares. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recognized an income tax expense of $60 million and $109 million for the third quarter and first nine months of fiscal year 2020 , respectively, and an income tax benefit of $149 million and $3 million for the third quarter and first nine months of fiscal year 2019 , respectively. The income tax expense as a percentage of income before income tax was 6.3% and 5.6% for the third quarter and first nine months of fiscal year 2020 , respectively, and income tax benefit as a percentage of income before income tax was 13.8% and nominal for the third quarter and first nine months of fiscal year 2019 , respectively. The increase in our effective tax rate for the third quarter and first nine months of fiscal year 2020 as compared to the third quarter and first nine months of fiscal year 2019 was primarily due to a decrease of tax benefits from stock-based compensation and an absence of the tax benefit related to the reduction in our provisional U.S. tax reform transition tax amount. Our effective tax rates for the first nine months of fiscal years 2020 and 2019 were 5.6% and nominal, respectively, and were lower than the U.S. federal statutory rate of 21% due to income earned in jurisdictions that are subject to taxes lower than the U.S. federal statutory tax rate, tax benefits related to stock-based compensation, the benefit of the U.S. federal research tax credit, and for fiscal year 2019, the reduction in our provisional U.S. tax reform transition tax amount. For the first nine months of fiscal year 2020, there have been no material changes to our tax years that remain subject to examination by major tax jurisdictions. Additionally, there have been no material changes to our unrecognized tax benefits and any related interest or penalties since the fiscal year ended January 27, 2019. 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 27, 2019 , we do not believe that our estimates, as otherwise provided for, on such tax positions will significantly increase or decrease within the next twelve months. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Oct. 27, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities Our cash equivalents and marketable securities are classified as “available-for-sale” debt securities. The following is a summary of cash equivalents and marketable securities as of October 27, 2019 and January 27, 2019 : October 27, 2019 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Reported as Cash Equivalents Marketable Securities (In millions) Debt securities issued by the United States Treasury $ 5,883 $ — $ — $ 5,883 $ 5,883 $ — Corporate debt securities 1,293 — — 1,293 1,293 — Debt securities of United States government agencies 1,204 — — 1,204 1,204 — Money market funds 1,070 — — 1,070 1,070 — Foreign government debt securities 178 — — 178 178 — Certificates of deposit 25 — — 25 25 — Asset-backed securities 4 — — 4 — 4 Total $ 9,657 $ — $ — $ 9,657 $ 9,653 $ 4 January 27, 2019 Amortized Unrealized Unrealized Estimated Reported as Cash Equivalents Marketable Securities (In millions) Corporate debt securities $ 2,626 $ — $ (6 ) $ 2,620 $ 25 $ 2,595 Debt securities of United States government agencies 2,284 — (4 ) 2,280 — 2,280 Debt securities issued by the United States Treasury 1,493 — (1 ) 1,492 176 1,316 Money market funds 483 — — 483 483 — Foreign government debt securities 209 — — 209 — 209 Asset-backed securities 152 — (1 ) 151 — 151 Mortgage-backed securities issued by United States government-sponsored enterprises 88 1 — 89 — 89 Total $ 7,335 $ 1 $ (12 ) $ 7,324 $ 684 $ 6,640 For the third quarter and first nine months of fiscal years 2020 and 2019 , there were no other-than-temporary impairment losses and net realized gains were not significant. The amortized cost and estimated fair value of cash equivalents and marketable securities as of October 27, 2019 and January 27, 2019 are shown below by contractual maturity. October 27, 2019 January 27, 2019 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (In millions) Less than 1 year $ 9,657 $ 9,657 $ 5,042 $ 5,034 Due in 1 - 5 years — — 2,271 2,268 Mortgage-backed securities issued by United States government-sponsored enterprises not due at a single maturity date — — 22 22 Total $ 9,657 $ 9,657 $ 7,335 $ 7,324 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 9 Months Ended |
Oct. 27, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities The fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assets from active markets. We review fair value hierarchy classification on a quarterly basis. Fair Value at Pricing Category October 27, 2019 January 27, 2019 (In millions) Assets Cash equivalents and marketable securities: Debt securities issued by the United States Treasury Level 2 $ 5,883 $ 1,492 Corporate debt securities Level 2 $ 1,293 $ 2,620 Debt securities of United States government agencies Level 2 $ 1,204 $ 2,280 Money market funds Level 1 $ 1,070 $ 483 Foreign government debt securities Level 2 $ 178 $ 209 Certificates of deposit Level 2 $ 25 $ — Asset-backed securities Level 2 $ 4 $ 151 Mortgage-backed securities issued by United States government-sponsored enterprises Level 2 $ — $ 89 Liabilities Other noncurrent liabilities: 2.20% Notes Due 2021 (1) Level 2 $ 1,003 $ 978 3.20% Notes Due 2026 (1) Level 2 $ 1,051 $ 961 (1) These liabilities are carried on our Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs, and are not marked to fair value each period. Refer to Note 12 of these Notes to Condensed Consolidated Financial Statements for additional information. |
Amortizable Intangible Assets
Amortizable Intangible Assets | 9 Months Ended |
Oct. 27, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortizable Intangible Assets | Amortizable Intangible Assets The components of our amortizable intangible assets are as follows: October 27, 2019 January 27, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) (In millions) Acquisition-related intangible assets $ 195 $ (191 ) $ 4 $ 195 $ (188 ) $ 7 Patents and licensed technology 508 (469 ) 39 491 (453 ) 38 Total intangible assets $ 703 $ (660 ) $ 43 $ 686 $ (641 ) $ 45 The increase in gross carrying amount of intangible assets is due to purchases of licensed technology during the first nine months of fiscal year 2020 . Amortization expense associated with intangible assets was $6 million and $19 million for the third quarter and first nine months of fiscal year 2020 , respectively, and $7 million and $24 million for the third quarter and first nine months of fiscal year 2019 , respectively. Future amortization expense related to the net carrying amount of intangible assets as of October 27, 2019 is estimated to be $6 million for the remainder of fiscal year 2020 , $16 million in fiscal year 2021 , $9 million in fiscal year 2022 , $7 million in fiscal year 2023 , and $5 million in fiscal year 2024 |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Oct. 27, 2019 | |
Notes to financial statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Certain balance sheet components are as follows: October 27, January 27, 2019 2019 Inventories: (In millions) Raw materials $ 255 $ 613 Work in-process 265 238 Finished goods 527 724 Total inventories $ 1,047 $ 1,575 October 27, January 27, 2019 2019 Accrued and Other Current Liabilities: (In millions) Customer program accruals $ 353 $ 302 Accrued payroll and related expenses 155 186 Deferred revenue (1) 119 92 Operating lease liabilities 89 — Taxes payable 52 91 Licenses payable 18 12 Professional service fee 18 14 Other 80 121 Total accrued and other current liabilities $ 884 $ 818 (1) Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements and post contract customer support, or PCS. October 27, January 27, 2019 2019 Other Long-Term Liabilities: (In millions) Income tax payable (1) $ 511 $ 513 Deferred revenue (2) 57 46 Deferred income tax liability 25 19 Licenses payable 22 1 Employee benefits liability 22 20 Deferred rent — 21 Other 25 13 Total other long-term liabilities $ 662 $ 633 (1) As of October 27, 2019 , represents the long-term portion of the one-time transition tax payable of $317 million , as well as unrecognized tax benefits of $168 million and related interest and penalties of $26 million . (2) Deferred revenue primarily includes deferrals related to PCS. Deferred Revenue The following table shows the changes in deferred revenue during the first nine months of fiscal years 2020 and 2019 . October 27, October 28, 2019 2018 (In millions) Balance, January 27, 2019 $ 138 $ 63 Deferred revenue added during the period 237 271 Revenue recognized during the period (199 ) (214 ) Balance, October 27, 2019 $ 176 $ 120 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Oct. 27, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We enter into foreign currency forward contracts to mitigate the impact of foreign currency exchange rate movements on our operating expenses. These contracts are designated as cash flow hedges for hedge accounting treatment. Gains or losses on the contracts are recorded in accumulated other comprehensive income or loss and reclassified to operating expense when the related operating expenses are recognized in earnings or ineffectiveness should occur. The fair value of the contracts was not significant as of October 27, 2019 and January 27, 2019 . We also enter into foreign currency forward contracts to mitigate the impact of foreign currency movements on monetary assets and liabilities that are denominated in currencies other than U.S. dollar. These forward contracts were not designated for hedge accounting treatment. Therefore, the change in fair value of these contracts is recorded in other income or expense and offsets the change in fair value of the hedged foreign currency denominated monetary assets and liabilities, which is also recorded in other income or expense. The table below presents the notional value of our foreign currency forward contracts outstanding as of October 27, 2019 and January 27, 2019 : October 27, January 27, (In millions) Designated as cash flow hedges $ 421 $ 408 Not designated for hedge accounting $ 258 $ 241 As of October 27, 2019 , all designated foreign currency forward contracts mature within eighteen months . The expected realized gains and losses deferred into accumulated other comprehensive income (loss) related to foreign currency forward contracts within the next twelve months was no t significant. During the third quarter and first nine months of fiscal years 2020 and 2019 , the impact of derivative financial instruments designated for hedge accounting treatment on other comprehensive income or loss was not significant and all such instruments were determined to be highly effective. Therefore, there were no gains or losses associated with ineffectiveness. |
Debt
Debt | 9 Months Ended |
Oct. 27, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-Term Debt 2.20% Notes Due 2021 and 3.20% Notes Due 2026 In fiscal year 2017, we issued $1.00 billion of the 2.20% Notes Due 2021, and $1.00 billion of the 3.20% Notes Due 2026, or collectively, the Notes. Interest on the Notes is payable on March 16 and September 16 of each year. Upon 30 days' notice to holders of the Notes, we may redeem the Notes for cash prior to maturity, at redemption prices that include accrued and unpaid interest, if any, and a make-whole premium. However, no make-whole premium will be paid for redemptions of the Notes Due 2021 on or after August 16, 2021, or for redemptions of the Notes Due 2026 on or after June 16, 2026. The net proceeds from the Notes were $1.98 billion , after deducting debt discount and issuance costs. The Notes are our unsecured senior obligations and rank equally in right of payment with all existing and future unsecured and unsubordinated indebtedness. The Notes are structurally subordinated to the liabilities of our subsidiaries and are effectively subordinated to any secured indebtedness to the extent of the value of the assets securing such indebtedness. All existing and future liabilities of our subsidiaries will be effectively senior to the Notes. The carrying value of the Notes and the associated interest rates were as follows: Expected Remaining Term (years) Effective Interest Rate October 27, 2019 January 27, 2019 (In millions) 2.20% Notes Due 2021 1.9 2.38% $ 1,000 $ 1,000 3.20% Notes Due 2026 6.9 3.31% 1,000 1,000 Unamortized debt discount and issuance costs (10 ) (12 ) Net carrying amount $ 1,990 $ 1,988 Revolving Credit Facility We have a Credit Agreement under which we may borrow up to $575 million for general corporate purposes and can obtain revolving loan commitments up to $425 million . As of October 27, 2019 , we had no t borrowed any amounts under this agreement. Commercial Paper We have a $575 million commercial paper program to support general corporate purposes. As of October 27, 2019 , we had no t issued any commercial paper. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 27, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations As of October 27, 2019 , we had outstanding inventory purchase obligations totaling $980 million and other purchase obligations totaling $138 million . Performance Obligations Revenue related to remaining performance obligations represents the amount of contracted license and development arrangements and PCS that has not been recognized. As of October 27, 2019 , the amount of our remaining performance obligations that has not been recognized as revenue was $395 million , of which we expect to recognize approximately 47 % as revenue over the next twelve months and the remainder thereafter. This amount excludes the value of remaining performance obligations for contracts with an original expected length of one year or less. Accrual for Product Warranty Liabilities The estimated amount of product returns and warranty liabilities was $17 million and $18 million as of October 27, 2019 and January 27, 2019 , respectively, and the activity related to the warranty liabilities were not significant. In connection with certain agreements that we have entered in the past, we have provided indemnification to cover the indemnified party for matters such as tax, product, and employee liabilities. We have included intellectual property indemnification provisions in our technology related agreements with third parties. Maximum potential future payments cannot be estimated because many of these agreements do not have a maximum stated liability. We have not recorded any liability in our Condensed Consolidated Financial Statements for such indemnifications. Litigation Securities Class Action and Derivative Lawsuits On December 21, 2018, a purported securities class action lawsuit was filed in the United States District Court for the Northern District of California, captioned Iron Workers Joint Funds v. Nvidia Corporation, et al. (Case No. 18-cv-7669), naming as defendants NVIDIA and certain of NVIDIA’s officers. On December 28, 2018, a substantially similar purported securities class action was commenced in the Northern District of California, captioned Oto v. Nvidia Corporation, et al. (Case No. 18-cv-07783), naming the same defendants, and seeking substantially similar relief. On February 19, 2019, a number of shareholders filed motions to consolidate the two cases and to be appointed lead plaintiff and for their respective counsel to be appointed lead counsel. On March 12, 2019, the two cases were consolidated under case number 4:18-cv-07669-HSG and titled In Re NVIDIA Corporation Securities Litigation. On May 2, 2019, the Court appointed lead plaintiffs and lead counsel. On June 21, 2019, the lead plaintiffs filed a consolidated class action complaint. The consolidated complaint asserts that the defendants violated Section 10(b) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and SEC Rule 10b-5, by making materially false or misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand between May 10, 2017 and November 14, 2018. The plaintiffs also allege that the NVIDIA executives who they named as defendants violated Section 20(a) of the Exchange Act. The plaintiffs seek class certification, an award of unspecified compensatory damages, an award of reasonable costs and expenses, including attorneys’ fees and expert fees, and further relief as the Court may deem just and proper. On August 2, 2019, NVIDIA moved to dismiss the consolidated class action complaint on the basis that plaintiffs failed to state any claims for violations of the securities laws by NVIDIA or the named defendants. On January 18, 2019, a shareholder, purporting to act on behalf of NVIDIA, filed a derivative lawsuit in the Northern District of California, captioned Han v. Huang, et al. (Case No. 19-cv-00341), seeking to assert claims on behalf of NVIDIA against the members of NVIDIA’s board of directors and certain officers. The lawsuit asserts claims for breach of fiduciary duty, unjust enrichment, waste of corporate assets, and violations of Sections 14(a), 10(b), and 20(a) of the Exchange Act based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiff is seeking unspecified damages and other relief, including reforms and improvements to NVIDIA’s corporate governance and internal procedures. On February 12, 2019, a substantially similar derivative lawsuit was filed in the Northern District of California captioned Yang v. Huang, et. al. (Case No. 19-cv-00766), naming the same named defendants, and seeking the same relief. On February 19, 2019, a third substantially similar derivative lawsuit was filed in the Northern District of California captioned The Booth Family Trust v. Huang, et. al. (Case No. 3:19-cv-00876), naming the same named defendants, and seeking substantially the same relief. On March 12, 2019, the three derivative actions were consolidated under case number 4:19-cv-00341-HSG, and titled In re NVIDIA Corporation Consolidated Derivative Litigation. The parties stipulated to stay the In Re NVIDIA Corporation Consolidated Derivative Litigation pending resolution of any motion to dismiss that NVIDIA may file in the In Re NVIDIA Corporation Securities Litigation. On September 24, 2019, two shareholders, purporting to act on behalf of NVIDIA, filed two identical lawsuits in the District of Delaware. One is captioned Lipchitz v. Huang, et al. (Case No. 1:19-cv-01795-UNA) and the other is captioned Nelson v. Huang, et. al. (Case No. 1:19-cv-01798-UNA). The lawsuits assert claims for breach of fiduciary duty, unjust enrichment, insider trading, misappropriation of information, corporate waste and violations of Sections 14(a), 10(b), and 20(a) of the Exchange Act based on the dissemination of allegedly false, and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs seek unspecified damages and other relief, including disgorgement of profits from the sale of NVIDIA stock and unspecified corporate governance measures. It is possible that additional suits will be filed, or allegations received from shareholders, with respect to these same or other matters, naming NVIDIA and/or its officers and directors as defendants. Litigation Related to Acquisition of Mellanox On May 3, 2019, an alleged stockholder of Mellanox filed a putative class action lawsuit alleging that the proxy statement filed by Mellanox in connection with the stockholder vote on NVIDIA’s pending acquisition of Mellanox violates Sections 14(a) and 20(a) of the Exchange Act and asserting claims under those statutes against Mellanox and its board of directors as well as NVIDIA. The complaint, which is captioned Stein v. Mellanox Technologies, Ltd., et al., Case No. 19-2428 (United States District Court, Northern District of California), seeks declaratory and injunctive relief and unspecified damages. A number of other alleged Mellanox stockholders have filed substantially similar lawsuits against Mellanox and its directors in the United States District Court for the Northern District of California and in the United States District Court for the Southern District of New York, but NVIDIA was not named as a defendant in any of these other lawsuits. As of October 14, 2019, all stockholder lawsuits relating to NVIDIA’s pending acquisition of Mellanox, including the Stein lawsuit, had been voluntarily dismissed by the respective plaintiffs. Accounting for Loss Contingencies We are engaged in legal actions not described above arising in the ordinary course of business and, while there can be no assurance of favorable outcomes, we believe that the ultimate outcome of these actions will not have a material adverse effect on our operating results, liquidity or financial position. As of October 27, 2019 , we have not recorded any accrual for contingent liabilities associated with the legal proceedings described above based on our belief that liabilities, while possible, are not probable. Further, except as specifically described above, any possible loss or range of loss in these matters cannot be reasonably estimated at this time. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Oct. 27, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Capital Return Program Beginning August 2004, our Board of Directors authorized us to repurchase our stock. During the third quarter and first nine months of fiscal year 2020 , we paid $98 million and $292 million , respectively, in cash dividends to our shareholders. Through October 27, 2019 , we have repurchased an aggregate of 260 million shares under our share repurchase program for a total cost of $7.08 billion . All shares delivered from these repurchases have been placed into treasury stock. As of October 27, 2019 , we were authorized, subject to certain specifications, to repurchase additional shares of our common stock up to $7.24 billion through December 2022. Preferred Stock As of October 27, 2019 and January 27, 2019 , there were no shares of preferred stock outstanding. Common Stock We are authorized to issue up to 2.00 billion shares of our common stock at $0.001 per share par value. |
Segment Information
Segment Information | 9 Months Ended |
Oct. 27, 2019 | |
Segment Reporting [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 single underlying architecture. Our GPU product brands are aimed at specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for artificial intelligence, data scientists and big data researchers; and GRID for cloud-based visual computing users. Our Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core CPUs to drive supercomputing for autonomous robots, drones, and cars, as well as for game consoles and mobile gaming and entertainment devices. Under the single unifying architecture for our GPU and Tegra Processors, we leverage our visual computing expertise by charging the operating expenses of certain core engineering functions to the GPU business, while charging the Tegra Processor business for the incremental cost of the teams working directly for that business. In instances where the operating expenses of certain functions benefit both reportable segments, our CODM assigns 100% of those expenses to the reportable segment that benefits the most. The “All Other” category presented below represents the 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 expenses include stock-based compensation expense, corporate infrastructure and support costs, acquisition-related costs, legal settlement costs, contributions, restructuring and other charges, product warranty charge, and other non-recurring charges and benefits that our CODM deems to be enterprise in nature. Our CODM does not review any information regarding total assets on a reportable segment basis. Reportable segments do not record intersegment revenue, and, accordingly, there is none to be reported. The accounting policies for segment reporting are the same as for our consolidated financial statements. The table below presents details of our reportable segments and the “All Other” category. GPU Tegra Processor All Other Consolidated (In millions) Three Months Ended October 27, 2019 Revenue $ 2,565 $ 449 $ — $ 3,014 Depreciation and amortization expense $ 78 $ 10 $ 4 $ 92 Operating income (loss) $ 1,135 $ 85 $ (293 ) $ 927 Three Months Ended October 28, 2018 Revenue $ 2,774 $ 407 $ — $ 3,181 Depreciation and amortization expense $ 51 $ 13 $ 4 $ 68 Operating income (loss) $ 1,214 $ 72 $ (228 ) $ 1,058 Nine Months Ended October 27, 2019 Revenue $ 6,691 $ 1,122 $ — $ 7,813 Depreciation and amortization expense $ 230 $ 34 $ 11 $ 275 Operating income (loss) $ 2,550 $ 163 $ (857 ) $ 1,856 Nine Months Ended October 28, 2018 Revenue $ 8,195 $ 1,316 $ — $ 9,511 Depreciation and amortization expense $ 134 $ 35 $ 15 $ 184 Operating income (loss) $ 3,867 $ 266 $ (623 ) $ 3,510 Three Months Ended Nine Months Ended October 27, October 28, October 27, October 28, (In millions) Reconciling items included in "All Other" category: Stock-based compensation expense $ (223 ) $ (140 ) $ (624 ) $ (400 ) Unallocated cost of revenue and operating expenses (63 ) (76 ) (198 ) (205 ) Acquisition-related and other costs (7 ) 3 (22 ) (1 ) Legal settlement costs — (15 ) (13 ) (17 ) Total $ (293 ) $ (228 ) $ (857 ) $ (623 ) Revenue by geographic region is allocated to individual countries based on the location to which the products are initially billed even if our customers’ revenue is attributable to end customers that are located in a different location. The following table summarizes information pertaining to our revenue from customers based on the invoicing address by geographic regions: Three Months Ended Nine Months Ended October 27, October 28, October 27, October 28, 2019 2018 2019 2018 (In millions) Revenue: Taiwan $ 838 $ 929 $ 2,171 $ 2,739 Other Asia Pacific 805 742 1,983 2,001 China (including Hong Kong) 758 704 1,894 2,218 United States 236 407 589 1,254 Europe 216 230 753 699 Other countries 161 169 423 600 Total revenue $ 3,014 $ 3,181 $ 7,813 $ 9,511 The following table summarizes information pertaining to our revenue by each of the specialized markets we serve: Three Months Ended Nine Months Ended October 27, October 28, October 27, October 28, 2019 2018 2019 2018 (In millions) Revenue: Gaming $ 1,659 $ 1,764 $ 4,027 $ 5,292 Professional Visualization 324 305 881 837 Data Center 726 792 2,015 2,253 Automotive 162 172 537 478 OEM and Other 143 148 353 651 Total revenue $ 3,014 $ 3,181 $ 7,813 $ 9,511 One customer represented approximately 10% of our total revenue for the third quarter and approximately 11% of our total revenue for the first nine months of fiscal year 2020 , and was attributable primarily to the GPU business. No customer represented 10% or more of total revenue for the third quarter and first nine months of fiscal year 2019 . One customer represented approximately 24% of our accounts receivable balance as of October 27, 2019 , and one customer represented approximately 19% of our accounts receivable balance as of January 27, 2019 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 27, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission, or SEC, Regulation S-X. The January 27, 2019 consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 27, 2019 , as filed with the SEC, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of results of operations and financial position have been included. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 27, 2019 . |
Leases | Leases We determine if an arrangement is or contains a lease at inception. Operating leases with lease terms of more than 12 months are included in operating lease assets, accrued and other current liabilities, and long-term operating lease liabilities on our consolidated balance sheet. Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments over the lease term. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using our incremental borrowing rate. Operating lease assets also include initial direct costs incurred and prepaid lease payments, minus any lease incentives. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. |
Fiscal Year | Fiscal Year We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal years 2020 and 2019 are both 52-week years. The third quarters of fiscal years 2020 and 2019 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 materially from our estimates. On an on-going basis, we evaluate our estimates, including those related to revenue recognition, cash equivalents and marketable securities, accounts receivable, inventories, income taxes, goodwill, stock-based compensation, litigation, investigation and settlement costs, restructuring and other charges, and 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 The Financial Accounting Standards Board, or FASB, issued an accounting standards update regarding the accounting for leases under which lease assets and liabilities are recognized on the balance sheet. We adopted this guidance on January 28, 2019 using the optional transition method by recognizing a cumulative-effect adjustment to the consolidated balance sheet. Refer to Note 3 of these Notes to Condensed Consolidated Financial Statements for additional information. Recent Accounting Pronouncement Not Yet Adopted |
New Lease Accounting Standard (
New Lease Accounting Standard (Tables) | 9 Months Ended |
Oct. 27, 2019 | |
Leases [Abstract] | |
Schedule of future minimum lease payments | Future minimum lease payments under our non-cancelable operating leases as of October 27, 2019 , are as follows: Operating Lease Obligations (In millions) Fiscal Year: 2020 (excluding first nine months of fiscal year 2020) $ 28 2021 112 2022 104 2023 83 2024 60 2025 and thereafter 282 Total 669 Less imputed interest 111 Present value of net future minimum lease payments 558 Less short-term operating lease liabilities 89 Long-term operating lease liabilities $ 469 |
Schedule of future minimum rental payments under previous accounting standard | Future minimum lease payments under our non-cancelable operating leases as of January 27, 2019, based on the previous lease accounting standard, are as follows: Lease Obligations (In millions) Fiscal Year: 2020 $ 100 2021 97 2022 90 2023 77 2024 54 2025 and thereafter 265 Total $ 683 |
Schedule of other information related to leases | Other information related to leases was as follows: Three Months Ended Nine Months Ended October 27, 2019 October 27, 2019 (In millions) Supplemental cash flows information Operating cash flows used for operating leases $ 28 $ 78 Operating lease assets obtained in exchange for lease obligations $ 14 $ 122 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 27, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation expense, net of amounts capitalized as inventory | Our Condensed Consolidated Statements of Income include stock-based compensation expense, net of amounts allocated to inventory, as follows: Three Months Ended Nine Months Ended October 27, October 28, October 27, October 28, (In millions) Cost of revenue $ 15 $ 5 $ 27 $ 21 Research and development 141 88 400 237 Sales, general and administrative 67 47 197 142 Total $ 223 $ 140 $ 624 $ 400 |
Summary of equity award transactions | The following is a summary of equity award transactions under our equity incentive plans: RSUs, PSUs, and Market-based PSUs Outstanding Number of Shares Weighted Average Grant-Date Fair Value Per Share (In millions, except per share data) Balances, January 27, 2019 16 $ 129.92 Granted (1) (2) 7 $ 182.62 Vested restricted stock (7 ) $ 85.22 Canceled and forfeited (1 ) $ 186.34 Balances, October 27, 2019 15 $ 173.01 (1) Includes the number of PSUs granted that will be issued and eligible to vest if the maximum corporate financial performance goal for fiscal year 2020 is achieved. Depending on the actual level of the corporate performance achievement at the end of fiscal year 2020 , the PSUs issued could be up to 0.4 million shares. (2) Includes the number of market-based PSUs granted that will be issued and eligible to vest if the maximum goal for total shareholder return, or TSR, over the 3 -year measurement period is achieved. Depending on the ranking of our TSR compared to those of the companies comprising the Standard & Poor’s 500 Index during that period, the market-based PSUs issued could be up to 60 thousand shares. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Oct. 27, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of numerators and denominators of basic and diluted net income (loss) per share computations | The following is a reconciliation of the denominator of the basic and diluted net income per share computations for the periods presented: Three Months Ended Nine Months Ended October 27, October 28, October 27, October 28, 2019 2018 2019 2018 (In millions, except per share data) Numerator: Net income $ 899 $ 1,230 $ 1,845 $ 3,575 Denominator: Basic weighted average shares 610 609 609 608 Dilutive impact of outstanding equity awards 8 16 8 18 Diluted weighted average shares 618 625 617 626 Net income per share: Basic (1) $ 1.47 $ 2.02 $ 3.03 $ 5.88 Diluted (2) $ 1.45 $ 1.97 $ 2.99 $ 5.71 Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive 5 3 11 4 (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. 27, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Marketable Securities | The following is a summary of cash equivalents and marketable securities as of October 27, 2019 and January 27, 2019 : October 27, 2019 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Reported as Cash Equivalents Marketable Securities (In millions) Debt securities issued by the United States Treasury $ 5,883 $ — $ — $ 5,883 $ 5,883 $ — Corporate debt securities 1,293 — — 1,293 1,293 — Debt securities of United States government agencies 1,204 — — 1,204 1,204 — Money market funds 1,070 — — 1,070 1,070 — Foreign government debt securities 178 — — 178 178 — Certificates of deposit 25 — — 25 25 — Asset-backed securities 4 — — 4 — 4 Total $ 9,657 $ — $ — $ 9,657 $ 9,653 $ 4 January 27, 2019 Amortized Unrealized Unrealized Estimated Reported as Cash Equivalents Marketable Securities (In millions) Corporate debt securities $ 2,626 $ — $ (6 ) $ 2,620 $ 25 $ 2,595 Debt securities of United States government agencies 2,284 — (4 ) 2,280 — 2,280 Debt securities issued by the United States Treasury 1,493 — (1 ) 1,492 176 1,316 Money market funds 483 — — 483 483 — Foreign government debt securities 209 — — 209 — 209 Asset-backed securities 152 — (1 ) 151 — 151 Mortgage-backed securities issued by United States government-sponsored enterprises 88 1 — 89 — 89 Total $ 7,335 $ 1 $ (12 ) $ 7,324 $ 684 $ 6,640 The amortized cost and estimated fair value of cash equivalents and marketable securities as of October 27, 2019 and January 27, 2019 are shown below by contractual maturity. October 27, 2019 January 27, 2019 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (In millions) Less than 1 year $ 9,657 $ 9,657 $ 5,042 $ 5,034 Due in 1 - 5 years — — 2,271 2,268 Mortgage-backed securities issued by United States government-sponsored enterprises not due at a single maturity date — — 22 22 Total $ 9,657 $ 9,657 $ 7,335 $ 7,324 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended |
Oct. 27, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | Fair Value at Pricing Category October 27, 2019 January 27, 2019 (In millions) Assets Cash equivalents and marketable securities: Debt securities issued by the United States Treasury Level 2 $ 5,883 $ 1,492 Corporate debt securities Level 2 $ 1,293 $ 2,620 Debt securities of United States government agencies Level 2 $ 1,204 $ 2,280 Money market funds Level 1 $ 1,070 $ 483 Foreign government debt securities Level 2 $ 178 $ 209 Certificates of deposit Level 2 $ 25 $ — Asset-backed securities Level 2 $ 4 $ 151 Mortgage-backed securities issued by United States government-sponsored enterprises Level 2 $ — $ 89 Liabilities Other noncurrent liabilities: 2.20% Notes Due 2021 (1) Level 2 $ 1,003 $ 978 3.20% Notes Due 2026 (1) Level 2 $ 1,051 $ 961 (1) These liabilities are carried on our Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs, and are not marked to fair value each period. Refer to Note 12 of these Notes to Condensed Consolidated Financial Statements for additional information. |
Amortizable Intangible Assets (
Amortizable Intangible Assets (Tables) | 9 Months Ended |
Oct. 27, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortizable Intangible Assets Components | The components of our amortizable intangible assets are as follows: October 27, 2019 January 27, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) (In millions) Acquisition-related intangible assets $ 195 $ (191 ) $ 4 $ 195 $ (188 ) $ 7 Patents and licensed technology 508 (469 ) 39 491 (453 ) 38 Total intangible assets $ 703 $ (660 ) $ 43 $ 686 $ (641 ) $ 45 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Oct. 27, 2019 | |
Notes to financial statements [Abstract] | |
Inventories | Certain balance sheet components are as follows: October 27, January 27, 2019 2019 Inventories: (In millions) Raw materials $ 255 $ 613 Work in-process 265 238 Finished goods 527 724 Total inventories $ 1,047 $ 1,575 |
Accrued and Other Current Liabilities | October 27, January 27, 2019 2019 Accrued and Other Current Liabilities: (In millions) Customer program accruals $ 353 $ 302 Accrued payroll and related expenses 155 186 Deferred revenue (1) 119 92 Operating lease liabilities 89 — Taxes payable 52 91 Licenses payable 18 12 Professional service fee 18 14 Other 80 121 Total accrued and other current liabilities $ 884 $ 818 (1) Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements and post contract customer support, or PCS. |
Other Long-term Liabilities | October 27, January 27, 2019 2019 Other Long-Term Liabilities: (In millions) Income tax payable (1) $ 511 $ 513 Deferred revenue (2) 57 46 Deferred income tax liability 25 19 Licenses payable 22 1 Employee benefits liability 22 20 Deferred rent — 21 Other 25 13 Total other long-term liabilities $ 662 $ 633 (1) As of October 27, 2019 , represents the long-term portion of the one-time transition tax payable of $317 million , as well as unrecognized tax benefits of $168 million and related interest and penalties of $26 million . (2) Deferred revenue primarily includes deferrals related to PCS. |
Movement in deferred revenue | The following table shows the changes in deferred revenue during the first nine months of fiscal years 2020 and 2019 . October 27, October 28, 2019 2018 (In millions) Balance, January 27, 2019 $ 138 $ 63 Deferred revenue added during the period 237 271 Revenue recognized during the period (199 ) (214 ) Balance, October 27, 2019 $ 176 $ 120 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Oct. 27, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The table below presents the notional value of our foreign currency forward contracts outstanding as of October 27, 2019 and January 27, 2019 : October 27, January 27, (In millions) Designated as cash flow hedges $ 421 $ 408 Not designated for hedge accounting $ 258 $ 241 |
Debt (Table)
Debt (Table) | 9 Months Ended |
Oct. 27, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | The carrying value of the Notes and the associated interest rates were as follows: Expected Remaining Term (years) Effective Interest Rate October 27, 2019 January 27, 2019 (In millions) 2.20% Notes Due 2021 1.9 2.38% $ 1,000 $ 1,000 3.20% Notes Due 2026 6.9 3.31% 1,000 1,000 Unamortized debt discount and issuance costs (10 ) (12 ) Net carrying amount $ 1,990 $ 1,988 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 27, 2019 | |
Segment Reporting [Abstract] | |
Financial Information by Operating Segment | 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 27, 2019 Revenue $ 2,565 $ 449 $ — $ 3,014 Depreciation and amortization expense $ 78 $ 10 $ 4 $ 92 Operating income (loss) $ 1,135 $ 85 $ (293 ) $ 927 Three Months Ended October 28, 2018 Revenue $ 2,774 $ 407 $ — $ 3,181 Depreciation and amortization expense $ 51 $ 13 $ 4 $ 68 Operating income (loss) $ 1,214 $ 72 $ (228 ) $ 1,058 Nine Months Ended October 27, 2019 Revenue $ 6,691 $ 1,122 $ — $ 7,813 Depreciation and amortization expense $ 230 $ 34 $ 11 $ 275 Operating income (loss) $ 2,550 $ 163 $ (857 ) $ 1,856 Nine Months Ended October 28, 2018 Revenue $ 8,195 $ 1,316 $ — $ 9,511 Depreciation and amortization expense $ 134 $ 35 $ 15 $ 184 Operating income (loss) $ 3,867 $ 266 $ (623 ) $ 3,510 |
Reconciling items included in All Other category | Three Months Ended Nine Months Ended October 27, October 28, October 27, October 28, (In millions) Reconciling items included in "All Other" category: Stock-based compensation expense $ (223 ) $ (140 ) $ (624 ) $ (400 ) Unallocated cost of revenue and operating expenses (63 ) (76 ) (198 ) (205 ) Acquisition-related and other costs (7 ) 3 (22 ) (1 ) Legal settlement costs — (15 ) (13 ) (17 ) Total $ (293 ) $ (228 ) $ (857 ) $ (623 ) |
Schedule of Revenue by Geographic Regions | The following table summarizes information pertaining to our revenue from customers based on the invoicing address by geographic regions: Three Months Ended Nine Months Ended October 27, October 28, October 27, October 28, 2019 2018 2019 2018 (In millions) Revenue: Taiwan $ 838 $ 929 $ 2,171 $ 2,739 Other Asia Pacific 805 742 1,983 2,001 China (including Hong Kong) 758 704 1,894 2,218 United States 236 407 589 1,254 Europe 216 230 753 699 Other countries 161 169 423 600 Total revenue $ 3,014 $ 3,181 $ 7,813 $ 9,511 |
Schedule of Revenue by Major Markets | The following table summarizes information pertaining to our revenue by each of the specialized markets we serve: Three Months Ended Nine Months Ended October 27, October 28, October 27, October 28, 2019 2018 2019 2018 (In millions) Revenue: Gaming $ 1,659 $ 1,764 $ 4,027 $ 5,292 Professional Visualization 324 305 881 837 Data Center 726 792 2,015 2,253 Automotive 162 172 537 478 OEM and Other 143 148 353 651 Total revenue $ 3,014 $ 3,181 $ 7,813 $ 9,511 |
Acquisition of Mellanox Techn_2
Acquisition of Mellanox Technologies, Ltd. (Details) - Mellanox Technologies, Ltd - USD ($) $ / shares in Units, $ in Millions | Mar. 10, 2019 | Oct. 27, 2019 |
Business Acquisition [Line Items] | ||
Merger agreement price (in dollars per share) | $ 125 | |
Merger agreement price | $ 6,900 | |
Potential merger agreement termination fee | $ 350 |
New Lease Accounting Standard -
New Lease Accounting Standard - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 27, 2019 | Oct. 28, 2018 | Oct. 27, 2019 | Oct. 28, 2018 | Jan. 28, 2019 | Jan. 27, 2019 | |
Leases [Abstract] | ||||||
Operating lease assets | $ 527 | $ 527 | $ 470 | $ 0 | ||
Operating lease liabilities | $ 558 | $ 558 | 500 | |||
Deferred rent credit | $ 30 | |||||
Lease not yet commenced, term of contract | 7 years | 7 years | ||||
Lease not yet commenced | $ 62 | $ 62 | ||||
Operating lease expense | $ 28 | $ 22 | $ 83 | $ 58 | ||
Weighted average remaining lease term - operating leases | 8 years 6 months | 8 years 6 months | ||||
Weighted average discount rate - operating leases | 3.68% | 3.68% |
New Lease Accounting Standard_2
New Lease Accounting Standard - Schedule of future minimum payments (Details) - USD ($) $ in Millions | Oct. 27, 2019 | Jan. 28, 2019 | Jan. 27, 2019 |
Leases [Abstract] | |||
2020 (excluding first nine months of fiscal year 2020) | $ 28 | ||
2021 | 112 | ||
2022 | 104 | ||
2023 | 83 | ||
2024 | 60 | ||
2025 and thereafter | 282 | ||
Total | 669 | ||
Less imputed interest | 111 | ||
Present value of net future minimum lease payments | 558 | $ 500 | |
Less short-term operating lease liabilities | 89 | $ 0 | |
Long-term operating lease liabilities | $ 469 | $ 0 |
New Lease Accounting Standard_3
New Lease Accounting Standard - Schedule of future minimum rental payments under previous accounting standard (Details) $ in Millions | Jan. 27, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 100 |
2021 | 97 |
2022 | 90 |
2023 | 77 |
2024 | 54 |
2025 and thereafter | 265 |
Total | $ 683 |
New Lease Accounting Standard_4
New Lease Accounting Standard - Schedule of other lease information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 27, 2019 | Oct. 27, 2019 | |
Leases [Abstract] | ||
Operating cash flows used for operating leases | $ 28 | $ 78 |
Operating lease assets obtained in exchange for lease obligations | $ 14 | $ 122 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 27, 2019 | Oct. 28, 2018 | Oct. 27, 2019 | Oct. 28, 2018 | |
Share-based Compensation | ||||
Total | $ 223 | $ 140 | $ 624 | $ 400 |
Cost of revenue | ||||
Share-based Compensation | ||||
Total | 15 | 5 | 27 | 21 |
Research and development | ||||
Share-based Compensation | ||||
Total | 141 | 88 | 400 | 237 |
Sales, general and administrative | ||||
Share-based Compensation | ||||
Total | $ 67 | $ 47 | $ 197 | $ 142 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Equity Award Transactions (Details) shares in Thousands | 9 Months Ended |
Oct. 27, 2019$ / sharesshares | |
Weighted Average Grant-Date Fair Value Per Share | |
Maximum number of PSUs issuable (in shares) | 400 |
RSUs, PSUs, and Market-based PSUs | |
Number of Shares | |
Beginning balance (in shares) | 16,000 |
Granted (in shares) | 7,000 |
Vested restricted stock (in shares) | (7,000) |
Canceled and forfeited (in shares) | (1,000) |
Ending balance (in shares) | 15,000 |
Weighted Average Grant-Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 129.92 |
Granted (in dollars per share) | $ / shares | 182.62 |
Vested restricted stock (in dollars per share) | $ / shares | 85.22 |
Canceled and forfeited (in dollars per share) | $ / shares | 186.34 |
Ending balance (in dollars per share) | $ / shares | $ 173.01 |
Market-based PSUs | |
Weighted Average Grant-Date Fair Value Per Share | |
Measurement period | 3 years |
Maximum number of market-based PSUs issuable (in shares) | 60 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 9 Months Ended |
Oct. 27, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate amount of unearned stock-based compensation expense related to equity awards, adjusted for estimated forfeitures | $ 1,950 |
RSUs, PSUs, and Market-based PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated weighted average amortization period | 2 years 7 months 6 days |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated weighted average amortization period | 1 year |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 27, 2019 | Oct. 28, 2018 | Oct. 27, 2019 | Oct. 28, 2018 | |
Numerator: | ||||
Net income | $ 899 | $ 1,230 | $ 1,845 | $ 3,575 |
Denominator: | ||||
Basic weighted average shares (in shares) | 610 | 609 | 609 | 608 |
Dilutive impact of outstanding equity awards (in shares) | 8 | 16 | 8 | 18 |
Diluted weighted average shares (in shares) | 618 | 625 | 617 | 626 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.47 | $ 2.02 | $ 3.03 | $ 5.88 |
Diluted (in dollars per share) | $ 1.45 | $ 1.97 | $ 2.99 | $ 5.71 |
Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive (in shares) | 5 | 3 | 11 | 4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 27, 2019 | Oct. 28, 2018 | Oct. 27, 2019 | Oct. 28, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 60 | $ (149) | $ 109 | $ (3) |
Tax expense (benefit) as percentage of income before income tax | 6.30% | (13.80%) | 5.60% |
Marketable Securities - Summary
Marketable Securities - Summary of Securities (Details) - USD ($) $ in Millions | Oct. 27, 2019 | Jan. 27, 2019 |
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | $ 9,657 | $ 7,335 |
Unrealized Gain | 0 | 1 |
Unrealized Loss | 0 | (12) |
Estimated Fair Value | 9,657 | 7,324 |
Reported as | ||
Cash Equivalents | 9,653 | 684 |
Marketable Securities | 4 | 6,640 |
Debt securities issued by the United States Treasury | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 5,883 | 1,493 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | (1) |
Estimated Fair Value | 5,883 | 1,492 |
Reported as | ||
Cash Equivalents | 5,883 | 176 |
Marketable Securities | 0 | 1,316 |
Corporate debt securities | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 1,293 | 2,626 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | (6) |
Estimated Fair Value | 1,293 | 2,620 |
Reported as | ||
Cash Equivalents | 1,293 | 25 |
Marketable Securities | 0 | 2,595 |
Debt securities of United States government agencies | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 1,204 | 2,284 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | (4) |
Estimated Fair Value | 1,204 | 2,280 |
Reported as | ||
Cash Equivalents | 1,204 | 0 |
Marketable Securities | 0 | 2,280 |
Money market funds | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 1,070 | 483 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 1,070 | 483 |
Reported as | ||
Cash Equivalents | 1,070 | 483 |
Marketable Securities | 0 | 0 |
Foreign government debt securities | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 178 | 209 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 178 | 209 |
Reported as | ||
Cash Equivalents | 178 | 0 |
Marketable Securities | 0 | 209 |
Certificates of deposit | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 25 | |
Unrealized Gain | 0 | |
Unrealized Loss | 0 | |
Estimated Fair Value | 25 | |
Reported as | ||
Cash Equivalents | 25 | |
Marketable Securities | 0 | |
Asset-backed securities | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 4 | 152 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | (1) |
Estimated Fair Value | 4 | 151 |
Reported as | ||
Cash Equivalents | 0 | 0 |
Marketable Securities | $ 4 | 151 |
Mortgage-backed securities issued by United States government-sponsored enterprises | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 88 | |
Unrealized Gain | 1 | |
Unrealized Loss | 0 | |
Estimated Fair Value | 89 | |
Reported as | ||
Cash Equivalents | 0 | |
Marketable Securities | $ 89 |
Marketable Securities - Narrati
Marketable Securities - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 27, 2019 | Oct. 28, 2018 | Oct. 27, 2019 | Oct. 28, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Other-than-temporary impairment losses | $ 0 | $ 0 | $ 0 | $ 0 |
Marketable Securities - Contrac
Marketable Securities - Contractual Maturity (Details) - USD ($) $ in Millions | Oct. 27, 2019 | Jan. 27, 2019 |
Amortized Cost | ||
Less than 1 year | $ 9,657 | $ 5,042 |
Due in 1 - 5 years | 0 | 2,271 |
Mortgage-backed securities issued by United States government-sponsored enterprises not due at a single maturity date | 0 | 22 |
Amortized Cost | 9,657 | 7,335 |
Estimated Fair Value | ||
Less than 1 year | 9,657 | 5,034 |
Due in 1 - 5 years | 0 | 2,268 |
Mortgage-backed securities issued by United States government-sponsored enterprises not due at a single maturity date | 0 | 22 |
Estimated Fair Value | $ 9,657 | $ 7,324 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Millions | Oct. 27, 2019 | Jan. 27, 2019 |
Assets | ||
Cash equivalents and marketable securities | $ 9,657 | $ 7,324 |
2.20% Notes Due 2021 | ||
Liabilities | ||
Stated interest rate | 2.20% | |
3.20% Notes Due 2026 | ||
Liabilities | ||
Stated interest rate | 3.20% | |
Debt securities issued by the United States Treasury | ||
Assets | ||
Cash equivalents and marketable securities | $ 5,883 | 1,492 |
Corporate debt securities | ||
Assets | ||
Cash equivalents and marketable securities | 1,293 | 2,620 |
Debt securities of United States government agencies | ||
Assets | ||
Cash equivalents and marketable securities | 1,204 | 2,280 |
Money market funds | ||
Assets | ||
Cash equivalents and marketable securities | 1,070 | 483 |
Foreign government debt securities | ||
Assets | ||
Cash equivalents and marketable securities | 178 | 209 |
Certificates of deposit | ||
Assets | ||
Cash equivalents and marketable securities | 25 | |
Asset-backed securities | ||
Assets | ||
Cash equivalents and marketable securities | 4 | 151 |
Mortgage-backed securities issued by United States government-sponsored enterprises | ||
Assets | ||
Cash equivalents and marketable securities | 89 | |
Fair Value, Inputs, Level 1 | Money market funds | ||
Assets | ||
Cash equivalents and marketable securities | 1,070 | 483 |
Fair Value, Inputs, Level 2 | 2.20% Notes Due 2021 | ||
Liabilities | ||
Notes | 1,003 | 978 |
Fair Value, Inputs, Level 2 | 3.20% Notes Due 2026 | ||
Liabilities | ||
Notes | 1,051 | 961 |
Fair Value, Inputs, Level 2 | Debt securities issued by the United States Treasury | ||
Assets | ||
Cash equivalents and marketable securities | 5,883 | 1,492 |
Fair Value, Inputs, Level 2 | Corporate debt securities | ||
Assets | ||
Cash equivalents and marketable securities | 1,293 | 2,620 |
Fair Value, Inputs, Level 2 | Debt securities of United States government agencies | ||
Assets | ||
Cash equivalents and marketable securities | 1,204 | 2,280 |
Fair Value, Inputs, Level 2 | Foreign government debt securities | ||
Assets | ||
Cash equivalents and marketable securities | 178 | 209 |
Fair Value, Inputs, Level 2 | Certificates of deposit | ||
Assets | ||
Cash equivalents and marketable securities | 25 | 0 |
Fair Value, Inputs, Level 2 | Asset-backed securities | ||
Assets | ||
Cash equivalents and marketable securities | 4 | 151 |
Fair Value, Inputs, Level 2 | Mortgage-backed securities issued by United States government-sponsored enterprises | ||
Assets | ||
Cash equivalents and marketable securities | $ 0 | $ 89 |
Amortizable Intangible Assets_2
Amortizable Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 27, 2019 | Oct. 28, 2018 | Oct. 27, 2019 | Oct. 28, 2018 | Jan. 27, 2019 | |
Amortizable intangible assets components | |||||
Amortization expense | $ 6 | $ 7 | $ 19 | $ 24 | |
Future amortization expense associated with intangible assets | |||||
Remainder of fiscal 2020 | 6 | 6 | |||
Fiscal 2021 | 16 | 16 | |||
Fiscal 2022 | 9 | 9 | |||
Fiscal 2023 | 7 | 7 | |||
Fiscal 2024 | 5 | 5 | |||
Acquisition-related intangible assets | |||||
Amortizable intangible assets components | |||||
Gross Carrying Amount | 195 | 195 | $ 195 | ||
Accumulated Amortization | (191) | (191) | (188) | ||
Net Carrying Amount | 4 | 4 | 7 | ||
Patents and licensed technology | |||||
Amortizable intangible assets components | |||||
Gross Carrying Amount | 508 | 508 | 491 | ||
Accumulated Amortization | (469) | (469) | (453) | ||
Net Carrying Amount | 39 | 39 | 38 | ||
Total intangible assets | |||||
Amortizable intangible assets components | |||||
Gross Carrying Amount | 703 | 703 | 686 | ||
Accumulated Amortization | (660) | (660) | (641) | ||
Net Carrying Amount | $ 43 | $ 43 | $ 45 |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 27, 2019 | Oct. 28, 2018 | Jan. 27, 2019 | |
Inventories: | |||
Raw materials | $ 255 | $ 613 | |
Work in-process | 265 | 238 | |
Finished goods | 527 | 724 | |
Total inventories | 1,047 | 1,575 | |
Accrued and Other Current Liabilities: | |||
Customer program accruals | 353 | 302 | |
Accrued payroll and related expenses | 155 | 186 | |
Deferred revenue | 119 | 92 | |
Operating lease liabilities | 89 | 0 | |
Taxes payable | 52 | 91 | |
Licenses payable | 18 | 12 | |
Professional service fee | 18 | 14 | |
Other | 80 | 121 | |
Total accrued and other current liabilities | 884 | 818 | |
Other Long-Term Liabilities: | |||
Income taxes payable | 511 | 513 | |
Deferred revenue | 57 | 46 | |
Deferred income tax liability | 25 | 19 | |
Licenses payable | 22 | 1 | |
Employee benefits liability | 22 | 20 | |
Deferred rent | 0 | 21 | |
Other | 25 | 13 | |
Total other long-term liabilities | 662 | $ 633 | |
One time transition tax payable, noncurrent | 317 | ||
Unrecognized tax benefits | 168 | ||
Interest and penalties related to unrecognized tax benefits | 26 | ||
Movement in Deferred Revenue [Roll Forward] | |||
Balance, January 27, 2019 | 138 | $ 63 | |
Deferred revenue added during the period | 237 | 271 | |
Revenue recognized during the period | (199) | (214) | |
Balance, October 27, 2019 | $ 176 | $ 120 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Notional Values (Details) - USD ($) $ in Millions | Oct. 27, 2019 | Jan. 27, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Designated as cash flow hedges | $ 421 | $ 408 |
Not designated for hedge accounting | $ 258 | $ 241 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 27, 2019 | Oct. 28, 2018 | Oct. 27, 2019 | Oct. 28, 2018 | |
Derivative [Line Items] | ||||
Gain (loss) associated with ineffectiveness | $ 0 | $ 0 | $ 0 | $ 0 |
Foreign currency forward contracts | ||||
Derivative [Line Items] | ||||
Derivative, maturity period | 18 months |
Debt - Narrative (Details)
Debt - Narrative (Details) | 9 Months Ended |
Oct. 27, 2019USD ($) | |
Debt Instrument [Line Items] | |
Debt redemption, notice period | 30 days |
Proceeds from issuance of debt | $ 1,980,000,000 |
Commercial paper outstanding | 0 |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Current borrowing capacity | 575,000,000 |
Additional borrowing capacity | 425,000,000 |
Line of credit outstanding | 0 |
Commercial Paper | |
Debt Instrument [Line Items] | |
Current borrowing capacity | 575,000,000 |
2.20% Notes Due 2021 | |
Debt Instrument [Line Items] | |
Face amount of debt | $ 1,000,000,000 |
Stated interest rate | 2.20% |
3.20% Notes Due 2026 | |
Debt Instrument [Line Items] | |
Face amount of debt | $ 1,000,000,000 |
Stated interest rate | 3.20% |
Debt - Schedule of Instruments
Debt - Schedule of Instruments (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 27, 2019 | Jan. 27, 2019 | |
Debt Instrument [Line Items] | ||
Unamortized debt discount and issuance costs | $ (10) | $ (12) |
Net carrying amount | $ 1,990 | 1,988 |
2.20% Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Expected Remaining Term (years) | 1 year 10 months 24 days | |
Effective Interest Rate | 2.38% | |
Long-term debt, gross | $ 1,000 | 1,000 |
3.20% Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Expected Remaining Term (years) | 6 years 10 months 24 days | |
Effective Interest Rate | 3.31% | |
Long-term debt, gross | $ 1,000 | $ 1,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Oct. 27, 2019 | Jan. 27, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding inventory purchase obligations | $ 980 | |
Outstanding other purchase obligations | 138 | |
Revenue, remaining performance obligation | $ 395 | |
Revenue, remaining performance obligation (as a percent) | 47.00% | |
Warranty accrual | $ 17 | $ 18 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 27, 2019 | Oct. 27, 2019 | Oct. 28, 2018 | Jan. 27, 2019 | |
Equity [Abstract] | ||||
Dividends paid | $ 98 | $ 292 | $ 273 | |
Aggregated number of shares repurchased under stock repurchase program (in shares) | 260,000,000 | 260,000,000 | ||
Aggregated cost of shares repurchased | $ 7,080 | $ 7,080 | ||
Remaining authorized repurchase amount | $ 7,240 | $ 7,240 | ||
Preferred stock outstanding (in shares) | 0 | 0 | 0 | |
Authorized number of shares of common stock (in shares) | 2,000,000,000 | 2,000,000,000 | ||
Par value of common stock (in dollars per share) | $ 0.001 | $ 0.001 |
Segment Information - Summary o
Segment Information - Summary of Segments (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 27, 2019USD ($) | Oct. 28, 2018USD ($) | Oct. 27, 2019USD ($)segment | Oct. 28, 2018USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 3,014 | $ 3,181 | $ 7,813 | $ 9,511 |
Depreciation and amortization expense | 92 | 68 | 275 | 184 |
Operating income (loss) | 927 | 1,058 | 1,856 | 3,510 |
Gaming | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,659 | 1,764 | 4,027 | 5,292 |
Professional Visualization | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 324 | 305 | 881 | 837 |
Data Center | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 726 | 792 | 2,015 | 2,253 |
Automotive | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 162 | 172 | 537 | 478 |
OEM and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 143 | 148 | 353 | 651 |
Taiwan | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 838 | 929 | 2,171 | 2,739 |
Other Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 805 | 742 | 1,983 | 2,001 |
China (including Hong Kong) | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 758 | 704 | 1,894 | 2,218 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 236 | 407 | 589 | 1,254 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 216 | 230 | 753 | 699 |
Other countries | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 161 | 169 | 423 | 600 |
Operating Segments | GPU | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,565 | 2,774 | 6,691 | 8,195 |
Depreciation and amortization expense | 78 | 51 | 230 | 134 |
Operating income (loss) | 1,135 | 1,214 | 2,550 | 3,867 |
Operating Segments | Tegra Processor | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 449 | 407 | 1,122 | 1,316 |
Depreciation and amortization expense | 10 | 13 | 34 | 35 |
Operating income (loss) | 85 | 72 | 163 | 266 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Depreciation and amortization expense | 4 | 4 | 11 | 15 |
Operating income (loss) | $ (293) | $ (228) | $ (857) | $ (623) |
Segment Information - Reconcili
Segment Information - Reconciling Items (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 27, 2019 | Oct. 28, 2018 | Oct. 27, 2019 | Oct. 28, 2018 | |
Segment Reporting Information [Line Items] | ||||
Stock-based compensation expense | $ (223) | $ (140) | $ (624) | $ (400) |
Income from operations | 927 | 1,058 | 1,856 | 3,510 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation expense | (223) | (140) | (624) | (400) |
Unallocated cost of revenue and operating expenses | (63) | (76) | (198) | (205) |
Acquisition-related and other costs | (7) | 3 | (22) | (1) |
Legal settlement costs | 0 | (15) | (13) | (17) |
Income from operations | $ (293) | $ (228) | $ (857) | $ (623) |
Segment Information - Concentra
Segment Information - Concentration Risk (Details) - Customer Concentration Risk - Significant Customer | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Oct. 27, 2019 | Oct. 27, 2019 | Jan. 27, 2019 | |
Sales Revenue | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk (as percent) | 10.00% | 11.00% | |
Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk (as percent) | 24.00% | 19.00% |
Uncategorized Items - nvda2020q
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 8,000,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 8,000,000 |