Cover Page
Cover Page - shares shares in Millions | 3 Months Ended | |
Apr. 26, 2020 | May 15, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 26, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-23985 | |
Entity Registrant Name | NVIDIA CORP | |
Entity Central Index Key | 0001045810 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
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, $0.001 par value per share | |
Trading Symbol | NVDA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 615 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 26, 2020 | Apr. 28, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 3,080 | $ 2,220 |
Cost of revenue | 1,076 | 924 |
Gross profit | 2,004 | 1,296 |
Operating expenses | ||
Research and development | 735 | 674 |
Sales, general and administrative | 293 | 264 |
Total operating expenses | 1,028 | 938 |
Income from operations | 976 | 358 |
Interest income | 31 | 44 |
Interest expense | (25) | (13) |
Other, net | (1) | 0 |
Other income, net | 5 | 31 |
Income before income tax | 981 | 389 |
Income tax expense (benefit) | 64 | (5) |
Net income | $ 917 | $ 394 |
Net income per share: | ||
Basic (in dollars per share) | $ 1.49 | $ 0.65 |
Diluted (in dollars per share) | $ 1.47 | $ 0.64 |
Weighted average shares used in per share computation: | ||
Basic (in shares) | 614 | 607 |
Diluted (in shares) | 622 | 616 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Apr. 26, 2020 | Apr. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 917 | $ 394 |
Available-for-sale securities: | ||
Net change in unrealized gain | 0 | 7 |
Cash flow hedges: | ||
Net unrealized gain (loss) | (10) | 4 |
Reclassification adjustments for net realized loss included in net income | 1 | 1 |
Net change in unrealized gain (loss) | (11) | 3 |
Other comprehensive income (loss), net of tax | (11) | 10 |
Total comprehensive income | $ 906 | $ 404 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Apr. 26, 2020 | Jan. 26, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 15,494 | $ 10,896 |
Marketable securities | 860 | 1 |
Accounts receivable, net | 1,907 | 1,657 |
Inventories | 1,128 | 979 |
Prepaid expenses and other current assets | 195 | 157 |
Total current assets | 19,584 | 13,690 |
Property and equipment, net | 1,715 | 1,674 |
Operating lease assets | 595 | 618 |
Goodwill | 628 | 618 |
Intangible assets, net | 80 | 49 |
Deferred income tax assets | 533 | 548 |
Other assets | 119 | 118 |
Total assets | 23,254 | 17,315 |
Current liabilities: | ||
Accounts payable | 761 | 687 |
Accrued and other current liabilities | 1,142 | 1,097 |
Total current liabilities | 1,903 | 1,784 |
Long-term debt | 6,959 | 1,991 |
Long-term operating lease liabilities | 519 | 561 |
Other long-term liabilities | 774 | 775 |
Total liabilities | 10,155 | 5,111 |
Commitments and contingencies - see Note 13 | ||
Shareholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock | 1 | 1 |
Additional paid-in capital | 7,354 | 7,045 |
Treasury stock, at cost | (10,036) | (9,814) |
Accumulated other comprehensive income (loss) | (10) | 1 |
Retained earnings | 15,790 | 14,971 |
Total shareholders' equity | 13,099 | 12,204 |
Total liabilities and shareholders' equity | $ 23,254 | $ 17,315 |
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 Jan. 27, 2019 | 606 | |||||
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) | 10 | 10 | ||||
Net income | 394 | 394 | ||||
Issuance of common stock from stock plans (in shares) | 4 | |||||
Issuance of common stock from stock plans | 83 | 83 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (1) | |||||
Tax withholding related to vesting of restricted stock units | (211) | (211) | ||||
Cash dividends declared and paid | (97) | (97) | ||||
Stock-based compensation | 183 | 183 | ||||
Ending balance, common stock outstanding (in shares) at Apr. 28, 2019 | 609 | |||||
Ending balances, shareholders' equity at Apr. 28, 2019 | 9,704 | $ 1 | 6,317 | (9,474) | (2) | 12,862 |
Beginning balance, common stock outstanding (in shares) at Jan. 26, 2020 | 612 | |||||
Beginning balances, shareholders' equity at Jan. 26, 2020 | 12,204 | $ 1 | 7,045 | (9,814) | 1 | 14,971 |
Increase (Decrease) in Shareholders' Equity | ||||||
Other comprehensive income (loss) | (11) | (11) | ||||
Net income | 917 | 917 | ||||
Issuance of common stock from stock plans (in shares) | 4 | |||||
Issuance of common stock from stock plans | 88 | 88 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (1) | |||||
Tax withholding related to vesting of restricted stock units | (222) | (222) | ||||
Cash dividends declared and paid | (98) | (98) | ||||
Stock-based compensation | 221 | 221 | ||||
Ending balance, common stock outstanding (in shares) at Apr. 26, 2020 | 615 | |||||
Ending balances, shareholders' equity at Apr. 26, 2020 | $ 13,099 | $ 1 | $ 7,354 | $ (10,036) | $ (10) | $ 15,790 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Apr. 26, 2020 | Apr. 28, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, dividends per share, declared and paid (in dollars per share) | $ 0.16 | $ 0.16 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Apr. 26, 2020 | Apr. 28, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 917 | $ 394 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 224 | 178 |
Depreciation and amortization | 107 | 91 |
Deferred income taxes | 16 | (42) |
Other | 4 | (2) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (249) | 182 |
Inventories | (151) | 153 |
Prepaid expenses and other assets | (8) | 5 |
Accounts payable | 71 | (123) |
Accrued and other current liabilities | (32) | (129) |
Other long-term liabilities | 10 | 13 |
Net cash provided by operating activities | 909 | 720 |
Cash flows from investing activities: | ||
Proceeds from sales of marketable securities | 1 | 26 |
Proceeds from maturities of marketable securities | 0 | 2,219 |
Purchases of marketable securities | (861) | (622) |
Purchases of property and equipment and intangible assets | (155) | (128) |
Acquisition of business, net of cash acquired | (34) | 0 |
Investments and other, net | (6) | 0 |
Net cash provided by (used in) investing activities | (1,055) | 1,495 |
Cash flows from financing activities: | ||
Issuance of debt, net of issuance costs | 4,979 | 0 |
Proceeds related to employee stock plans | 88 | 83 |
Payments related to tax on restricted stock units | (222) | (211) |
Dividends paid | (98) | (97) |
Other | (3) | 0 |
Net cash provided by (used in) financing activities | 4,744 | (225) |
Change in cash and cash equivalents | 4,598 | 1,990 |
Cash and cash equivalents at beginning of period | 10,896 | 782 |
Cash and cash equivalents at end of period | 15,494 | 2,772 |
Other non-cash investing activity: | ||
Assets acquired by assuming related liabilities | $ 230 | $ 114 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 26, 2020 | |
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 26, 2020 consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 26, 2020, as filed with the SEC, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of results of operations and financial position have been included. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 26, 2020. Significant Accounting Policies 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 26, 2020. Fiscal Year We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal year 2021 is a 53-week year and fiscal year 2020 is a 52-week year. The first quarters of fiscal years 2021 and 2020 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. The inputs into our judgments and estimates consider the economic implications of COVID-19 on our critical and significant accounting estimates. These estimates are based on historical facts and various other assumptions that we believe are reasonable. Adoption of New and Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncement In June 2016, the Financial Accounting Standards Board issued a new accounting standard to replace the existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates for accounts receivable and other financial instruments, including available-for-sale debt securities. The Company adopted the standard in the first quarter of fiscal year 2021 and the impact of the adoption was not material to the Company's consolidated financial statements. |
Acquisition of Mellanox Technol
Acquisition of Mellanox Technologies, Ltd. | 3 Months Ended |
Apr. 26, 2020 | |
Business Combinations [Abstract] | |
Acquisition of Mellanox Technologies, Ltd. | Acquisition of Mellanox Technologies, Ltd.Subsequent to the end of the first quarter of fiscal year 2021, we closed the acquisition of Mellanox Technologies Ltd., or Mellanox, for a transaction value of approximately $7.0 billion in cash on April 27, 2020. |
Leases
Leases | 3 Months Ended |
Apr. 26, 2020 | |
Leases [Abstract] | |
Leases | Leases 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 2021 and 2035. Future minimum lease payments under our non-cancelable operating leases as of April 26, 2020, are as follows: Operating Lease Obligations (In millions) Fiscal Year: 2021 (excluding first quarter of fiscal year 2021) $ 90 2022 116 2023 102 2024 78 2025 61 2026 and thereafter 289 Total 736 Less imputed interest 117 Present value of net future minimum lease payments 619 Less short-term operating lease liabilities 100 Long-term operating lease liabilities $ 519 Operating lease expense for the first quarters of fiscal years 2021 and 2020 was $31 million and $27 million, respectively. Short-term and variable lease expenses for the first quarter of fiscal years 2021 and 2020 were not significant. Other information related to leases was as follows: Three Months Ended April 26, 2020 (In millions) Supplemental cash flows information Operating cash flows used for operating leases $ 31 Operating lease assets obtained in exchange for lease obligations $ 3 As of April 26, 2020, our operating leases had a weighted average remaining lease term of 8.2 years and a weighted average discount rate of 3.45%. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 26, 2020 | |
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 April 26, April 28, (In millions) Cost of revenue $ 21 $ 4 Research and development 134 114 Sales, general and administrative 69 60 Total $ 224 $ 178 Equity Award Activity The following is a summary of equity award transactions under our equity incentive plans: RSUs, PSUs, and Market-based PSUs Outstanding Number of Shares Weighted Average Grant-Date Fair Value Per Share (In millions, except per share data) Balances, January 26, 2020 14 $ 176.72 Granted 1 $ 254.61 Vested restricted stock (3) $ 144.27 Canceled and forfeited (1) $ 161.66 Balances, April 26, 2020 11 $ 191.23 As of April 26, 2020, there was $1.81 billion of aggregate unearned stock-based compensation expense, net of forfeitures. This amount is expected to be recognized over a weighted average period of 2.4 years for RSUs, PSUs, and market-based PSUs, and 0.8 years for ESPP. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Apr. 26, 2020 | |
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 April 26, April 28, 2020 2019 (In millions, except per share data) Numerator: Net income $ 917 $ 394 Denominator: Basic weighted average shares 614 607 Dilutive impact of outstanding equity awards 8 9 Diluted weighted average shares 622 616 Net income per share: Basic (1) $ 1.49 $ 0.65 Diluted (2) $ 1.47 $ 0.64 Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive 1 11 (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 | 3 Months Ended |
Apr. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recognized an income tax expense of $64 million for the first quarter of fiscal year 2021 and income tax benefit of $5 million for the first quarter of fiscal year 2020. The income tax expense as a percentage of income before income tax was 6.6% for the first quarter of fiscal year 2021 and income tax benefit as a percentage of income before income tax was 1.3% for the first quarter of fiscal year 2020. The increase in our effective tax rate for the first quarter of fiscal year 2021 as compared to the first quarter of fiscal year 2020 was primarily due to a decrease of tax benefits from stock-based compensation. Our effective tax rates for the first quarter of fiscal years 2021 and 2020 were lower than the U.S. federal statutory rate of 21% due to income earned in jurisdictions that are subject to taxes lower than the U.S. federal statutory tax rate, tax benefits related to stock-based compensation, and the benefit of the U.S. federal research tax credit. For the first quarter of fiscal year 2021, there have been no material changes to our tax years that remain subject to examination by major tax jurisdictions. Additionally, there have been no material changes to our unrecognized tax benefits and any related interest or penalties since the fiscal year ended January 26, 2020. While we believe that we have adequately provided for all uncertain tax positions, or tax positions where we believe it is not more-likely-than-not that the position will be sustained upon review, amounts asserted by tax authorities could be greater or less than our accrued position. Accordingly, our provisions on federal, state and foreign tax related matters to be recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved with the respective tax authorities. As of April 26, 2020, we do not believe that our estimates, as otherwise provided for, on such tax positions will significantly increase or decrease within the next twelve months. |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 3 Months Ended |
Apr. 26, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities Our cash equivalents and marketable securities are classified as “available-for-sale” debt securities. The following is a summary of cash equivalents and marketable securities as of April 26, 2020 and January 26, 2020: April 26, 2020 Amortized Unrealized Unrealized Estimated Reported as Cash Equivalents Marketable Securities (In millions) Money market funds $ 11,128 $ — $ — $ 11,128 $ 11,128 $ — Corporate debt securities 3,238 — — 3,238 2,951 287 Foreign government bonds 870 — — 870 870 — Certificates of deposit 582 — — 582 222 360 Debt securities issued by United States government agencies 381 — — 381 168 213 Total $ 16,199 $ — $ — $ 16,199 $ 15,339 $ 860 January 26, 2020 Amortized Unrealized Unrealized Estimated Reported as Cash Equivalents Marketable Securities (In millions) Money market funds $ 7,507 $ — $ — $ 7,507 $ 7,507 $ — Debt securities issued by the United States Treasury 1,358 — — 1,358 1,358 — Debt securities issued by United States government agencies 1,096 — — 1,096 1,096 — Corporate debt securities 592 — — 592 592 — Foreign government bonds 200 — — 200 200 — Certificates of deposit 27 — — 27 27 Asset-backed securities 1 — — 1 — 1 Total $ 10,781 $ — $ — $ 10,781 $ 10,780 $ 1 The amortized cost and estimated fair value of cash equivalents and marketable securities of $16.20 billion and $10.78 billion as of April 26, 2020 and January 26, 2020, respectively, are all related to contracts with maturities of less than one year. Unrealized gains and losses were not significant for all periods presented. For the first quarter of fiscal years 2021 and 2020, net realized gains were not significant. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Apr. 26, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and LiabilitiesThe 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 April 26, 2020 January 26, 2020 (In millions) Assets Cash equivalents and marketable securities: Money market funds Level 1 $ 11,128 $ 7,507 Corporate debt securities Level 2 $ 3,238 $ 592 Foreign government bonds Level 2 $ 870 $ 200 Certificates of deposit Level 2 $ 582 $ 27 Debt securities issued by United States government agencies Level 2 $ 381 $ 1,096 Debt securities issued by the United States Treasury Level 2 $ — $ 1,358 Asset-backed securities Level 2 $ — $ 1 Liabilities Other noncurrent liabilities: 2.20% Notes Due 2021 (1) Level 2 $ 1,020 $ 1,065 3.20% Notes Due 2026 (1) Level 2 $ 1,104 $ 1,006 2.85% Notes Due 2030 (1) Level 2 $ 1,635 $ — 3.50% Notes Due 2040 (1) Level 2 $ 1,134 $ — 3.50% Notes Due 2050 (1) Level 2 $ 2,336 $ — 3.70% Notes Due 2060 (1) Level 2 $ 594 $ — (1) These liabilities are carried on our Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs, and are not marked to fair value each period. Refer to Note 12 of these Notes to Condensed Consolidated Financial Statements for additional information. |
Amortizable Intangible Assets
Amortizable Intangible Assets | 3 Months Ended |
Apr. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortizable Intangible Assets | Amortizable Intangible Assets The components of our amortizable intangible assets are as follows: April 26, 2020 January 26, 2020 Gross Accumulated Net Carrying Gross Accumulated Net Carrying (In millions) (In millions) Acquisition-related intangible assets $ 231 $ (195) $ 36 $ 195 $ (192) $ 3 Patents and licensed technology 522 (478) 44 520 (474) 46 Total intangible assets $ 753 $ (673) $ 80 $ 715 $ (666) $ 49 |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Apr. 26, 2020 | |
Notes to financial statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Certain balance sheet components are as follows: April 26, January 26, 2020 2020 Inventories: (In millions) Raw materials $ 341 $ 249 Work in-process 287 265 Finished goods 500 465 Total inventories $ 1,128 $ 979 April 26, January 26, 2020 2020 Accrued and Other Current Liabilities: (In millions) Customer program accruals $ 444 $ 462 Deferred revenue (1) 174 141 Accrued payroll and related expenses 164 185 Operating lease liabilities 100 91 Licenses and royalties 78 66 Taxes payable 74 61 Product warranty and return provisions 25 24 Professional service fee 20 18 Other 63 49 Total accrued and other current liabilities $ 1,142 $ 1,097 (1) Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements and post contract customer support, or PCS. April 26, January 26, 2020 2020 Other Long-Term Liabilities: (In millions) Income tax payable (1) $ 535 $ 528 Licenses payable 84 110 Deferred revenue (2) 67 60 Deferred income tax liability 32 29 Employee benefits liability 23 22 Other 33 26 Total other long-term liabilities $ 774 $ 775 (1) As of April 26, 2020, income tax payable represents the long-term portion of the one-time transition tax payable of $317 million, as well as unrecognized tax benefits of $185 million and related interest and penalties of $33 million. (2) Deferred revenue primarily includes deferrals related to PCS. Deferred Revenue The following table shows the changes in deferred revenue during the first quarter of fiscal years 2021 and 2020: April 26, April 28, 2020 2019 (In millions) Balance at beginning of period $ 201 $ 138 Deferred revenue added during the period 110 49 Revenue recognized during the period (70) (53) Balance at end of period $ 241 $ 134 Revenue related to remaining performance obligations represents the amount of contracted license and development arrangements and PCS that has not been recognized. This includes related deferred revenue currently recorded and amounts that will be invoiced in future periods. As of April 26, 2020, the amount of our remaining performance obligations that has not been recognized as revenue was $389 million, of which we expect to recognize approximately 47% as revenue over the next twelve months and the remainder thereafter. This amount excludes the value of remaining performance obligations for contracts with an original expected length of one year or less. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Apr. 26, 2020 | |
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 April 26, 2020 and January 26, 2020. We also enter into foreign currency forward contracts to mitigate the impact of foreign currency movements on monetary assets and liabilities that are denominated in currencies other than the U.S. dollar. These forward contracts were not designated for hedge accounting treatment. Therefore, the change in fair value of these contracts is recorded in other income or expense and offsets the change in fair value of the hedged foreign currency denominated monetary assets and liabilities, which is also recorded in other income or expense. The table below presents the notional value of our foreign currency forward contracts outstanding as of April 26, 2020 and January 26, 2020: April 26, January 26, (In millions) Designated as cash flow hedges $ 432 $ 428 Not designated for hedge accounting $ 244 $ 287 As of April 26, 2020, all designated foreign currency forward contracts mature within eighteen months. The expected realized gains and losses deferred into accumulated other comprehensive loss related to foreign currency forward contracts within the next twelve months was not significant. During the first quarter of fiscal years 2021 and 2020, the impact of derivative financial instruments designated for hedge accounting treatment on other comprehensive income or loss was not significant and all such instruments were determined to be highly effective. Therefore, there were no gains or losses associated with ineffectiveness. |
Debt
Debt | 3 Months Ended |
Apr. 26, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-Term Debt In March 2020, we issued $1.50 billion of the 2.85% Notes Due 2030, $1.00 billion of the 3.50% Notes Due 2040, $2.00 billion of the 3.50% Notes Due 2050, and $500 million of the 3.70% Notes Due 2060, or collectively, the March 2020 Notes. Interest on the March 2020 Notes is payable on April 1 and October 1 of each year, beginning on October 1, 2020. Upon 30 days' notice to holders of the Notes, we may redeem the Notes for cash prior to maturity, at redemption prices that include accrued and unpaid interest, if any, and a make-whole premium. However, no make-whole premium will be paid for redemptions of the Notes Due 2030 on or after January 1, 2030, the Notes Due 2040 on or after October 1, 2039, the Notes Due 2050 on or after October 1, 2049, or the Notes Due 2060 on or after October 1, 2059. The net proceeds from the March 2020 Notes were $4.97 billion, after deducting debt discount and estimated issuance costs. In September 2016, we issued $1.00 billion of the 2.20% Notes Due 2021 and $1.00 billion of the 3.20% Notes Due 2026, or collectively, the September 2016 Notes. Interest on the September 2016 Notes is payable on March 16 and September 16 of each year. Upon 30 days' notice to holders of the Notes, we may redeem the Notes for cash prior to maturity, at redemption prices that include accrued and unpaid interest, if any, and a make-whole premium. However, no make-whole premium will be paid for redemptions of the Notes Due 2021 on or after August 16, 2021, or for redemptions of the Notes Due 2026 on or after June 16, 2026. The net proceeds from the September 2016 Notes were $1.98 billion, after deducting debt discount and issuance costs. Both the September 2016 Notes and the March 2020 Notes, or collectively, the Notes, are our unsecured senior obligations and rank equally in right of payment with all existing and future unsecured and unsubordinated indebtedness. The Notes are structurally subordinated to the liabilities of our subsidiaries and are effectively subordinated to any secured indebtedness to the extent of the value of the assets securing such indebtedness. All existing and future liabilities of our subsidiaries will be effectively senior to the Notes. The carrying value of the Notes and the associated interest rates were as follows: Expected Remaining Term (years) Effective April 26, 2020 January 26, 2020 (In millions) 2.20% Notes Due 2021 1.4 2.38% $ 1,000 $ 1,000 3.20% Notes Due 2026 6.4 3.31% 1,000 1,000 2.85% Notes Due 2030 9.9 2.93% 1,500 — 3.50% Notes Due 2040 19.9 3.54% 1,000 — 3.50% Notes Due 2050 30.0 3.54% 2,000 — 3.70% Notes Due 2060 40.0 3.73% 500 — Unamortized debt discount and issuance costs (41) (9) Net carrying amount $ 6,959 $ 1,991 The Notes require the Company to comply with certain covenants for which the Company was in compliance as of April 26, 2020. Revolving Credit Facility We have a Credit Agreement under which we may borrow up to $575 million for general corporate purposes and can obtain revolving loan commitments up to $425 million. As of April 26, 2020, we had not borrowed any amounts under this agreement. The Credit Agreement governing the revolving credit facility requires the Company to comply with a leverage ratio covenant. As of April 26, 2020, the Company was in compliance with this financial covenant. Commercial Paper We have a $575 million commercial paper program to support general corporate purposes. As of April 26, 2020, we had not issued any commercial paper. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 26, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations As of April 26, 2020, we had outstanding inventory purchase obligations totaling $1.76 billion and other purchase obligations totaling $287 million. Accrual for Product Warranty Liabilities The estimated amount of product returns and warranty liabilities was $16 million and $15 million as of April 26, 2020 and January 26, 2020, respectively, and the activities related to the warranty liabilities were not significant. In connection with certain agreements that we have entered in the past, we have provided indemnities to cover the indemnified party for matters such as tax, product, and employee liabilities. We have included intellectual property indemnification provisions in our technology related agreements with third parties. Maximum potential future payments cannot be estimated because many of these agreements do not have a maximum stated liability. We have not recorded any liability in our Condensed Consolidated Financial Statements for such indemnifications. 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 March 16, 2020, the Court issued an order dismissing the consolidated class action complaint with leave to amend. The plaintiffs filed an amended complaint on May 13, 2020. On January 18, 2019, a shareholder, purporting to act on 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 Court approved the parties’ stipulation 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. On December 11, 2019, the Court approved the parties’ stipulation to stay the Lipchitz and Huang actions pending resolution of the motion to dismiss filed by NVIDIA in the In Re NVIDIA Corporation Securities Litigation. It is possible that additional suits will be filed, or allegations received from shareholders, with respect to these same or other matters, naming NVIDIA and/or its officers and directors as defendants. Accounting for Loss Contingencies We are engaged in legal actions not described above arising in the ordinary course of business and, while there can be no assurance of favorable outcomes, we believe that the ultimate outcome of these actions will not have a material adverse effect on our operating results, liquidity or financial position. As of April 26, 2020, we have not recorded any accrual for contingent liabilities associated with the legal proceedings described above based on our belief that liabilities, while possible, are not probable. Further, except as specifically described above, any possible loss or range of loss in these matters cannot be reasonably estimated at this time. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Apr. 26, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Capital Return Program Beginning August 2004, our Board of Directors authorized us to repurchase our stock. Through April 26, 2020, we have repurchased an aggregate of 260 million shares under our share repurchase program for a total cost of $7.08 billion. All shares delivered from these repurchases have been placed into treasury stock. As of April 26, 2020, we were authorized, subject to certain specifications, to repurchase additional shares of our common stock up to $7.24 billion through December 2022. During the first quarter of fiscal year 2021, we paid $98 million in cash dividends to our shareholders. |
Segment Information
Segment Information | 3 Months Ended |
Apr. 26, 2020 | |
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 decisions and assessing financial performance. Previously, we had reported two operating segments: GPU and Tegra Processor. During the first quarter of fiscal year 2021, we changed our operating segments to be consistent with the revised manner in which our CODM reviews our financial performance and allocates resources. The two new operating segments are "Graphics" and "Compute & Networking". Comparative periods presented reflect this change. Our operating segments are equivalent to our reportable segments. Our Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro GPUs for enterprise design; GRID software for cloud-based visual and virtual computing; and automotive platforms for infotainment systems. Our Compute & Networking segment includes Data Center platforms and systems for artificial intelligence, or AI, high performance computing, or HPC, and accelerated computing; DRIVE for autonomous vehicles; and Jetson for robotics and other embedded platforms. Operating results by segment include costs or expenses that are directly attributable to each segment, and costs or expenses that are leveraged across our unified architecture and therefore allocated between our two segments. The “All Other” category includes the expenses that our CODM does not assign to either Graphics or Compute & Networking 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, 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. Depreciation and amortization expense directly attributable to each reportable segment is included in operating results for each segment. However, the CODM does not evaluate depreciation and amortization expense by operating segment and, therefore, it is not separately presented. There is no intersegment revenue. The accounting policies for segment reporting are the same as for our consolidated financial statements. The table below presents details of our reportable segments and the “All Other” category. Graphics Compute & Networking All Other Consolidated (In millions) Three Months Ended April 26, 2020 Revenue $ 1,906 $ 1,174 $ — $ 3,080 Operating income (loss) $ 836 $ 451 $ (311) $ 976 Three Months Ended April 28, 2019 Revenue $ 1,526 $ 694 $ — $ 2,220 Operating income (loss) $ 532 $ 95 $ (269) $ 358 Three Months Ended April 26, April 28, (In millions) Reconciling items included in "All Other" category: Stock-based compensation expense $ (224) $ (178) Unallocated cost of revenue and operating expenses (82) (70) Acquisition-related and other costs (5) (10) Legal settlement costs — (11) Total $ (311) $ (269) 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 April 26, April 28, 2020 2019 (In millions) Revenue: Taiwan $ 813 $ 698 China (including Hong Kong) 758 553 Other Asia Pacific 607 422 United States 497 165 Europe 254 249 Other countries 151 133 Total revenue $ 3,080 $ 2,220 The following table summarizes information pertaining to our revenue by each of the specialized markets we serve: Three Months Ended April 26, April 28, 2020 2019 (In millions) Revenue: Gaming $ 1,339 $ 1,055 Professional Visualization 307 266 Data Center 1,141 634 Automotive 155 166 OEM and Other 138 99 Total revenue $ 3,080 $ 2,220 No customer represented 10% or more of total revenue for the first quarter of fiscal year 2021. One customer represented 11% of our total revenue for the first quarter of fiscal year 2020, and was attributable primarily to the Graphics segment. One customer represented 15% and 21% of our accounts receivable balance as of April 26, 2020 and January 26, 2020, respectively. |
Goodwill
Goodwill | 3 Months Ended |
Apr. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill During the first quarter of fiscal year 2021, we changed our operating segments to Graphics and Compute & Networking, as discussed in Note 15 of these Notes to Condensed Consolidated Financial Statements. As a result, our reporting units also changed, and we have reassigned the goodwill balance to the new reporting units based on their relative fair values. We determined there was no goodwill impairment immediately prior to the reorganization. As of April 26, 2020, the total carrying amount of goodwill was $628 million and the amount of goodwill allocated to our Graphics and Compute & Networking reporting units were $347 million and $281 million, respectively. In the first quarter of fiscal year 2021, goodwill increased by $10 million related to acquisition activity. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 26, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe 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 26, 2020 consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 26, 2020, as filed with the SEC, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of results of operations and financial position have been included. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 26, 2020. |
Fiscal Year | Fiscal Year We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal year 2021 is a 53-week year and fiscal year 2020 is a 52-week year. The first quarters of fiscal years 2021 and 2020 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. The inputs into our judgments and estimates consider the economic implications of COVID-19 on our critical and significant accounting estimates. These estimates are based on historical facts and various other assumptions that we believe are reasonable. |
Adoption of New and Recently Issued Accounting Pronouncements | Adoption of New and Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncement In June 2016, the Financial Accounting Standards Board issued a new accounting standard to replace the existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates for accounts receivable and other financial instruments, including available-for-sale debt securities. The Company adopted the standard in the first quarter of fiscal year 2021 and the impact of the adoption was not material to the Company's consolidated financial statements. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 26, 2020 | |
Leases [Abstract] | |
Schedule of future minimum lease payments | Future minimum lease payments under our non-cancelable operating leases as of April 26, 2020, are as follows: Operating Lease Obligations (In millions) Fiscal Year: 2021 (excluding first quarter of fiscal year 2021) $ 90 2022 116 2023 102 2024 78 2025 61 2026 and thereafter 289 Total 736 Less imputed interest 117 Present value of net future minimum lease payments 619 Less short-term operating lease liabilities 100 Long-term operating lease liabilities $ 519 |
Schedule of other information related to leases | Other information related to leases was as follows: Three Months Ended April 26, 2020 (In millions) Supplemental cash flows information Operating cash flows used for operating leases $ 31 Operating lease assets obtained in exchange for lease obligations $ 3 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 26, 2020 | |
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 April 26, April 28, (In millions) Cost of revenue $ 21 $ 4 Research and development 134 114 Sales, general and administrative 69 60 Total $ 224 $ 178 |
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 26, 2020 14 $ 176.72 Granted 1 $ 254.61 Vested restricted stock (3) $ 144.27 Canceled and forfeited (1) $ 161.66 Balances, April 26, 2020 11 $ 191.23 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Apr. 26, 2020 | |
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 April 26, April 28, 2020 2019 (In millions, except per share data) Numerator: Net income $ 917 $ 394 Denominator: Basic weighted average shares 614 607 Dilutive impact of outstanding equity awards 8 9 Diluted weighted average shares 622 616 Net income per share: Basic (1) $ 1.49 $ 0.65 Diluted (2) $ 1.47 $ 0.64 Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive 1 11 (1) Calculated as net income divided by basic weighted average shares. (2) Calculated as net income divided by diluted weighted average shares. |
Cash Equivalents and Marketab_2
Cash Equivalents and Marketable Securities (Tables) | 3 Months Ended |
Apr. 26, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Marketable Securities | The following is a summary of cash equivalents and marketable securities as of April 26, 2020 and January 26, 2020: April 26, 2020 Amortized Unrealized Unrealized Estimated Reported as Cash Equivalents Marketable Securities (In millions) Money market funds $ 11,128 $ — $ — $ 11,128 $ 11,128 $ — Corporate debt securities 3,238 — — 3,238 2,951 287 Foreign government bonds 870 — — 870 870 — Certificates of deposit 582 — — 582 222 360 Debt securities issued by United States government agencies 381 — — 381 168 213 Total $ 16,199 $ — $ — $ 16,199 $ 15,339 $ 860 January 26, 2020 Amortized Unrealized Unrealized Estimated Reported as Cash Equivalents Marketable Securities (In millions) Money market funds $ 7,507 $ — $ — $ 7,507 $ 7,507 $ — Debt securities issued by the United States Treasury 1,358 — — 1,358 1,358 — Debt securities issued by United States government agencies 1,096 — — 1,096 1,096 — Corporate debt securities 592 — — 592 592 — Foreign government bonds 200 — — 200 200 — Certificates of deposit 27 — — 27 27 Asset-backed securities 1 — — 1 — 1 Total $ 10,781 $ — $ — $ 10,781 $ 10,780 $ 1 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Apr. 26, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | Fair Value at Pricing Category April 26, 2020 January 26, 2020 (In millions) Assets Cash equivalents and marketable securities: Money market funds Level 1 $ 11,128 $ 7,507 Corporate debt securities Level 2 $ 3,238 $ 592 Foreign government bonds Level 2 $ 870 $ 200 Certificates of deposit Level 2 $ 582 $ 27 Debt securities issued by United States government agencies Level 2 $ 381 $ 1,096 Debt securities issued by the United States Treasury Level 2 $ — $ 1,358 Asset-backed securities Level 2 $ — $ 1 Liabilities Other noncurrent liabilities: 2.20% Notes Due 2021 (1) Level 2 $ 1,020 $ 1,065 3.20% Notes Due 2026 (1) Level 2 $ 1,104 $ 1,006 2.85% Notes Due 2030 (1) Level 2 $ 1,635 $ — 3.50% Notes Due 2040 (1) Level 2 $ 1,134 $ — 3.50% Notes Due 2050 (1) Level 2 $ 2,336 $ — 3.70% Notes Due 2060 (1) Level 2 $ 594 $ — (1) These liabilities are carried on our Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs, and are not marked to fair value each period. Refer to Note 12 of these Notes to Condensed Consolidated Financial Statements for additional information. |
Amortizable Intangible Assets (
Amortizable Intangible Assets (Tables) | 3 Months Ended |
Apr. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortizable Intangible Assets Components | The components of our amortizable intangible assets are as follows: April 26, 2020 January 26, 2020 Gross Accumulated Net Carrying Gross Accumulated Net Carrying (In millions) (In millions) Acquisition-related intangible assets $ 231 $ (195) $ 36 $ 195 $ (192) $ 3 Patents and licensed technology 522 (478) 44 520 (474) 46 Total intangible assets $ 753 $ (673) $ 80 $ 715 $ (666) $ 49 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Apr. 26, 2020 | |
Notes to financial statements [Abstract] | |
Inventories | Certain balance sheet components are as follows: April 26, January 26, 2020 2020 Inventories: (In millions) Raw materials $ 341 $ 249 Work in-process 287 265 Finished goods 500 465 Total inventories $ 1,128 $ 979 |
Accrued and Other Current Liabilities | April 26, January 26, 2020 2020 Accrued and Other Current Liabilities: (In millions) Customer program accruals $ 444 $ 462 Deferred revenue (1) 174 141 Accrued payroll and related expenses 164 185 Operating lease liabilities 100 91 Licenses and royalties 78 66 Taxes payable 74 61 Product warranty and return provisions 25 24 Professional service fee 20 18 Other 63 49 Total accrued and other current liabilities $ 1,142 $ 1,097 |
Other Long-term Liabilities | April 26, January 26, 2020 2020 Other Long-Term Liabilities: (In millions) Income tax payable (1) $ 535 $ 528 Licenses payable 84 110 Deferred revenue (2) 67 60 Deferred income tax liability 32 29 Employee benefits liability 23 22 Other 33 26 Total other long-term liabilities $ 774 $ 775 (1) As of April 26, 2020, income tax payable represents the long-term portion of the one-time transition tax payable of $317 million, as well as unrecognized tax benefits of $185 million and related interest and penalties of $33 million. (2) Deferred revenue primarily includes deferrals related to PCS. |
Movement in deferred revenue | The following table shows the changes in deferred revenue during the first quarter of fiscal years 2021 and 2020: April 26, April 28, 2020 2019 (In millions) Balance at beginning of period $ 201 $ 138 Deferred revenue added during the period 110 49 Revenue recognized during the period (70) (53) Balance at end of period $ 241 $ 134 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Apr. 26, 2020 | |
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 April 26, 2020 and January 26, 2020: April 26, January 26, (In millions) Designated as cash flow hedges $ 432 $ 428 Not designated for hedge accounting $ 244 $ 287 |
Debt (Table)
Debt (Table) | 3 Months Ended |
Apr. 26, 2020 | |
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 April 26, 2020 January 26, 2020 (In millions) 2.20% Notes Due 2021 1.4 2.38% $ 1,000 $ 1,000 3.20% Notes Due 2026 6.4 3.31% 1,000 1,000 2.85% Notes Due 2030 9.9 2.93% 1,500 — 3.50% Notes Due 2040 19.9 3.54% 1,000 — 3.50% Notes Due 2050 30.0 3.54% 2,000 — 3.70% Notes Due 2060 40.0 3.73% 500 — Unamortized debt discount and issuance costs (41) (9) Net carrying amount $ 6,959 $ 1,991 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 26, 2020 | |
Segment Reporting [Abstract] | |
Financial Information by Operating Segment | Graphics Compute & Networking All Other Consolidated (In millions) Three Months Ended April 26, 2020 Revenue $ 1,906 $ 1,174 $ — $ 3,080 Operating income (loss) $ 836 $ 451 $ (311) $ 976 Three Months Ended April 28, 2019 Revenue $ 1,526 $ 694 $ — $ 2,220 Operating income (loss) $ 532 $ 95 $ (269) $ 358 |
Reconciling items included in All Other category | Three Months Ended April 26, April 28, (In millions) Reconciling items included in "All Other" category: Stock-based compensation expense $ (224) $ (178) Unallocated cost of revenue and operating expenses (82) (70) Acquisition-related and other costs (5) (10) Legal settlement costs — (11) Total $ (311) $ (269) |
Schedule of Revenue by Geographic Regions | Three Months Ended April 26, April 28, 2020 2019 (In millions) Revenue: Taiwan $ 813 $ 698 China (including Hong Kong) 758 553 Other Asia Pacific 607 422 United States 497 165 Europe 254 249 Other countries 151 133 Total revenue $ 3,080 $ 2,220 |
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 April 26, April 28, 2020 2019 (In millions) Revenue: Gaming $ 1,339 $ 1,055 Professional Visualization 307 266 Data Center 1,141 634 Automotive 155 166 OEM and Other 138 99 Total revenue $ 3,080 $ 2,220 |
Acquisition of Mellanox Techn_2
Acquisition of Mellanox Technologies, Ltd. (Details) $ in Billions | Apr. 27, 2020USD ($) |
Mellanox Technologies, Ltd | |
Business Acquisition [Line Items] | |
Merger consideration paid | $ 7 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 26, 2020 | Apr. 28, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 31 | $ 27 |
Weighted average remaining lease term - operating leases | 8 years 2 months 12 days | |
Weighted average discount rate - operating leases | 3.45% |
Leases - Schedule of future min
Leases - Schedule of future minimum payments (Details) - USD ($) $ in Millions | Apr. 26, 2020 | Jan. 26, 2020 |
Leases [Abstract] | ||
2021 (excluding first quarter of fiscal year 2021) | $ 90 | |
2022 | 116 | |
2023 | 102 | |
2024 | 78 | |
2025 | 61 | |
2026 and thereafter | 289 | |
Total | 736 | |
Less imputed interest | 117 | |
Present value of net future minimum lease payments | 619 | |
Less short-term operating lease liabilities | 100 | $ 91 |
Long-term operating lease liabilities | $ 519 | $ 561 |
Leases - Schedule of other leas
Leases - Schedule of other lease information (Details) $ in Millions | 3 Months Ended |
Apr. 26, 2020USD ($) | |
Leases [Abstract] | |
Operating cash flows used for operating leases | $ 31 |
Operating lease assets obtained in exchange for lease obligations | $ 3 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 26, 2020 | Apr. 28, 2019 | |
Share-based Compensation | ||
Total | $ 224 | $ 178 |
Cost of revenue | ||
Share-based Compensation | ||
Total | 21 | 4 |
Research and development | ||
Share-based Compensation | ||
Total | 134 | 114 |
Sales, general and administrative | ||
Share-based Compensation | ||
Total | $ 69 | $ 60 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Equity Award Transactions (Details) - RSUs, PSUs, and Market-based PSUs shares in Millions | 3 Months Ended |
Apr. 26, 2020$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 14 |
Granted (in shares) | shares | 1 |
Vested restricted stock (in shares) | shares | (3) |
Canceled and forfeited (in shares) | shares | (1) |
Ending balance (in shares) | shares | 11 |
Weighted Average Grant-Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 176.72 |
Granted (in dollars per share) | $ / shares | 254.61 |
Vested restricted stock (in dollars per share) | $ / shares | 144.27 |
Canceled and forfeited (in dollars per share) | $ / shares | 161.66 |
Ending balance (in dollars per share) | $ / shares | $ 191.23 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 3 Months Ended |
Apr. 26, 2020USD ($) | |
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 | $ 1,810 |
RSUs, PSUs, and Market-based PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated weighted average amortization period | 2 years 4 months 24 days |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated weighted average amortization period | 9 months 18 days |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 26, 2020 | Apr. 28, 2019 | |
Numerator: | ||
Net income | $ 917 | $ 394 |
Denominator: | ||
Basic weighted average shares (in shares) | 614 | 607 |
Dilutive impact of outstanding equity awards (in shares) | 8 | 9 |
Diluted weighted average shares (in shares) | 622 | 616 |
Net income per share: | ||
Basic (in dollars per share) | $ 1.49 | $ 0.65 |
Diluted (in dollars per share) | $ 1.47 | $ 0.64 |
Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive (in shares) | 1 | 11 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 26, 2020 | Apr. 28, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 64 | $ (5) |
Tax expense (benefit) as percentage of income before income tax | 6.60% | (1.30%) |
Cash Equivalents and Marketab_3
Cash Equivalents and Marketable Securities - Summary of Securities (Details) - USD ($) $ in Millions | Apr. 26, 2020 | Jan. 26, 2020 |
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | $ 16,199 | $ 10,781 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 16,199 | 10,781 |
Reported as | ||
Cash Equivalents | 15,339 | 10,780 |
Marketable Securities | 860 | 1 |
Money market funds | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 11,128 | 7,507 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 11,128 | 7,507 |
Reported as | ||
Cash Equivalents | 11,128 | 7,507 |
Marketable Securities | 0 | 0 |
Corporate debt securities | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 3,238 | 592 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 3,238 | 592 |
Reported as | ||
Cash Equivalents | 2,951 | 592 |
Marketable Securities | 287 | 0 |
Foreign government bonds | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 870 | 200 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 870 | 200 |
Reported as | ||
Cash Equivalents | 870 | 200 |
Marketable Securities | 0 | 0 |
Certificates of deposit | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 582 | 27 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 582 | 27 |
Reported as | ||
Cash Equivalents | 222 | 27 |
Marketable Securities | 360 | |
Debt securities issued by United States government agencies | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 381 | 1,096 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 381 | 1,096 |
Reported as | ||
Cash Equivalents | 168 | 1,096 |
Marketable Securities | $ 213 | 0 |
Debt securities issued by the United States Treasury | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 1,358 | |
Unrealized Gain | 0 | |
Unrealized Loss | 0 | |
Estimated Fair Value | 1,358 | |
Reported as | ||
Cash Equivalents | 1,358 | |
Marketable Securities | 0 | |
Asset-backed securities | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 1 | |
Unrealized Gain | 0 | |
Unrealized Loss | 0 | |
Estimated Fair Value | 1 | |
Reported as | ||
Cash Equivalents | 0 | |
Marketable Securities | $ 1 |
Cash Equivalents and Marketab_4
Cash Equivalents and Marketable Securities - Narrative (Details) - USD ($) $ in Millions | Apr. 26, 2020 | Jan. 26, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash equivalents and marketable securities | $ 16,199 | $ 10,781 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Millions | Apr. 26, 2020 | Mar. 31, 2020 | Jan. 26, 2020 | Sep. 30, 2016 |
Assets | ||||
Cash equivalents and marketable securities | $ 16,199 | $ 10,781 | ||
2.20% Notes Due 2021 | ||||
Liabilities | ||||
Stated interest rate | 2.20% | 2.20% | ||
3.20% Notes Due 2026 | ||||
Liabilities | ||||
Stated interest rate | 3.20% | 3.20% | ||
2.85% Notes Due 2030 | ||||
Liabilities | ||||
Stated interest rate | 2.85% | 2.85% | ||
3.50% Notes Due 2040 | ||||
Liabilities | ||||
Stated interest rate | 3.50% | 3.50% | ||
3.50% Notes Due 2050 | ||||
Liabilities | ||||
Stated interest rate | 3.50% | 3.50% | ||
3.70% Notes Due 2060 | ||||
Liabilities | ||||
Stated interest rate | 3.70% | 3.70% | ||
Money market funds | ||||
Assets | ||||
Cash equivalents and marketable securities | $ 11,128 | 7,507 | ||
Corporate debt securities | ||||
Assets | ||||
Cash equivalents and marketable securities | 3,238 | 592 | ||
Foreign government bonds | ||||
Assets | ||||
Cash equivalents and marketable securities | 870 | 200 | ||
Certificates of deposit | ||||
Assets | ||||
Cash equivalents and marketable securities | 582 | 27 | ||
Debt securities issued by United States government agencies | ||||
Assets | ||||
Cash equivalents and marketable securities | 381 | 1,096 | ||
Debt securities issued by the United States Treasury | ||||
Assets | ||||
Cash equivalents and marketable securities | 1,358 | |||
Asset-backed securities | ||||
Assets | ||||
Cash equivalents and marketable securities | 1 | |||
Fair Value, Inputs, Level 1 | Money market funds | ||||
Assets | ||||
Cash equivalents and marketable securities | 11,128 | 7,507 | ||
Fair Value, Inputs, Level 2 | 2.20% Notes Due 2021 | ||||
Liabilities | ||||
Notes | 1,020 | 1,065 | ||
Fair Value, Inputs, Level 2 | 3.20% Notes Due 2026 | ||||
Liabilities | ||||
Notes | 1,104 | 1,006 | ||
Fair Value, Inputs, Level 2 | 2.85% Notes Due 2030 | ||||
Liabilities | ||||
Notes | 1,635 | 0 | ||
Fair Value, Inputs, Level 2 | 3.50% Notes Due 2040 | ||||
Liabilities | ||||
Notes | 1,134 | 0 | ||
Fair Value, Inputs, Level 2 | 3.50% Notes Due 2050 | ||||
Liabilities | ||||
Notes | 2,336 | 0 | ||
Fair Value, Inputs, Level 2 | 3.70% Notes Due 2060 | ||||
Liabilities | ||||
Notes | 594 | 0 | ||
Fair Value, Inputs, Level 2 | Corporate debt securities | ||||
Assets | ||||
Cash equivalents and marketable securities | 3,238 | 592 | ||
Fair Value, Inputs, Level 2 | Foreign government bonds | ||||
Assets | ||||
Cash equivalents and marketable securities | 870 | 200 | ||
Fair Value, Inputs, Level 2 | Certificates of deposit | ||||
Assets | ||||
Cash equivalents and marketable securities | 582 | 27 | ||
Fair Value, Inputs, Level 2 | Debt securities issued by United States government agencies | ||||
Assets | ||||
Cash equivalents and marketable securities | 381 | 1,096 | ||
Fair Value, Inputs, Level 2 | Debt securities issued by the United States Treasury | ||||
Assets | ||||
Cash equivalents and marketable securities | 0 | 1,358 | ||
Fair Value, Inputs, Level 2 | Asset-backed securities | ||||
Assets | ||||
Cash equivalents and marketable securities | $ 0 | $ 1 |
Amortizable Intangible Assets_2
Amortizable Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 26, 2020 | Apr. 28, 2019 | Jan. 26, 2020 | |
Amortizable intangible assets components | |||
Amortization expense | $ 7 | $ 7 | |
Future amortization expense associated with intangible assets | |||
Remainder of fiscal 2021 | 20 | ||
Fiscal 2022 | 21 | ||
Fiscal 2023 | 18 | ||
Fiscal 2024 | 12 | ||
Fiscal 2025 | 7 | ||
Fiscal 2026 and thereafter | 2 | ||
Acquisition-related intangible assets | |||
Amortizable intangible assets components | |||
Gross Carrying Amount | 231 | $ 195 | |
Accumulated Amortization | (195) | (192) | |
Net Carrying Amount | 36 | 3 | |
Patents and licensed technology | |||
Amortizable intangible assets components | |||
Gross Carrying Amount | 522 | 520 | |
Accumulated Amortization | (478) | (474) | |
Net Carrying Amount | 44 | 46 | |
Total intangible assets | |||
Amortizable intangible assets components | |||
Gross Carrying Amount | 753 | 715 | |
Accumulated Amortization | (673) | (666) | |
Net Carrying Amount | $ 80 | $ 49 |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 26, 2020 | Apr. 28, 2019 | Jan. 26, 2020 | |
Inventories: | |||
Raw materials | $ 341 | $ 249 | |
Work in-process | 287 | 265 | |
Finished goods | 500 | 465 | |
Total inventories | 1,128 | 979 | |
Accrued and Other Current Liabilities: | |||
Customer program accruals | 444 | 462 | |
Deferred revenue | 174 | 141 | |
Accrued payroll and related expenses | 164 | 185 | |
Operating lease liabilities | 100 | 91 | |
Licenses and royalties | 78 | 66 | |
Taxes payable | 74 | 61 | |
Product warranty and return provisions | 25 | 24 | |
Professional service fee | 20 | 18 | |
Other | 63 | 49 | |
Total accrued and other current liabilities | 1,142 | 1,097 | |
Other Long-Term Liabilities: | |||
Income taxes payable | 535 | 528 | |
Licenses payable | 84 | 110 | |
Deferred revenue | 67 | 60 | |
Deferred income tax liability | 32 | 29 | |
Employee benefits liability | 23 | 22 | |
Other | 33 | 26 | |
Total other long-term liabilities | 774 | $ 775 | |
One time transition tax payable, noncurrent | 317 | ||
Unrecognized tax benefits | 185 | ||
Interest and penalties related to unrecognized tax benefits | 33 | ||
Change in Deferred Revenue | |||
Balance at beginning of period | 201 | $ 138 | |
Deferred revenue added during the period | 110 | 49 | |
Revenue recognized during the period | (70) | (53) | |
Balance at end of period | $ 241 | $ 134 |
Balance Sheet Components - Reve
Balance Sheet Components - Revenue Remaining Performance Obligation (Details) $ in Millions | Apr. 26, 2020USD ($) |
Notes to financial statements [Abstract] | |
Revenue, remaining performance obligation | $ 389 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation (as a percent) | 47.00% |
Revenue, remaining performance obligation, expected timing of satisfaction | 12 months |
Derivative Financial Instrume_3
Derivative Financial Instruments - Notional Values (Details) - USD ($) $ in Millions | Apr. 26, 2020 | Jan. 26, 2020 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Designated as cash flow hedges | $ 432 | $ 428 |
Not designated for hedge accounting | $ 244 | $ 287 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) | 3 Months Ended |
Apr. 26, 2020 | |
Foreign currency forward contracts | |
Derivative [Line Items] | |
Derivative, maturity period | 18 months |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2020 | Sep. 30, 2016 | Apr. 26, 2020 | Apr. 28, 2019 | |
Debt Instrument [Line Items] | ||||
Issuance of debt, net of issuance costs | $ 4,979,000,000 | $ 0 | ||
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 | |||
2.85% Notes Due 2030 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 1,500,000,000 | |||
Stated interest rate | 2.85% | 2.85% | ||
3.50% Notes Due 2040 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 1,000,000,000 | |||
Stated interest rate | 3.50% | 3.50% | ||
3.50% Notes Due 2050 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 2,000,000,000 | |||
Stated interest rate | 3.50% | 3.50% | ||
3.70% Notes Due 2060 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 500,000,000 | |||
Stated interest rate | 3.70% | 3.70% | ||
March 2020 Notes, Collectively | ||||
Debt Instrument [Line Items] | ||||
Debt redemption, notice period | 30 days | |||
Issuance of debt, net of issuance costs | $ 4,970,000,000 | |||
2.20% Notes Due 2021 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 1,000,000,000 | |||
Stated interest rate | 2.20% | 2.20% | ||
3.20% Notes Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 1,000,000,000 | |||
Stated interest rate | 3.20% | 3.20% | ||
September 2016 Notes, Collectively | ||||
Debt Instrument [Line Items] | ||||
Debt redemption, notice period | 30 days | |||
Issuance of debt, net of issuance costs | $ 1,980,000,000 |
Debt - Schedule of Instruments
Debt - Schedule of Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 26, 2020 | Mar. 31, 2020 | Jan. 26, 2020 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||||
Unamortized debt discount and issuance costs | $ (41) | $ (9) | ||
Net carrying amount | $ 6,959 | 1,991 | ||
2.20% Notes Due 2021 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.20% | 2.20% | ||
Expected Remaining Term (years) | 1 year 4 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] | ||||
Stated interest rate | 3.20% | 3.20% | ||
Expected Remaining Term (years) | 6 years 4 months 24 days | |||
Effective Interest Rate | 3.31% | |||
Long-term debt, gross | $ 1,000 | 1,000 | ||
2.85% Notes Due 2030 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.85% | 2.85% | ||
Expected Remaining Term (years) | 9 years 10 months 24 days | |||
Effective Interest Rate | 2.93% | |||
Long-term debt, gross | $ 1,500 | 0 | ||
3.50% Notes Due 2040 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.50% | 3.50% | ||
Expected Remaining Term (years) | 19 years 10 months 24 days | |||
Effective Interest Rate | 3.54% | |||
Long-term debt, gross | $ 1,000 | 0 | ||
3.50% Notes Due 2050 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.50% | 3.50% | ||
Expected Remaining Term (years) | 30 years | |||
Effective Interest Rate | 3.54% | |||
Long-term debt, gross | $ 2,000 | 0 | ||
3.70% Notes Due 2060 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.70% | 3.70% | ||
Expected Remaining Term (years) | 40 years | |||
Effective Interest Rate | 3.73% | |||
Long-term debt, gross | $ 500 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Apr. 26, 2020 | Jan. 26, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding inventory purchase obligations | $ 1,760 | |
Outstanding other purchase obligations | 287 | |
Warranty accrual | $ 16 | $ 15 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 26, 2020 | Apr. 28, 2019 | |
Equity [Abstract] | ||
Aggregated number of shares repurchased under stock repurchase program (in shares) | 260 | |
Aggregated cost of shares repurchased | $ 7,080 | |
Remaining authorized repurchase amount | 7,240 | |
Dividends paid | $ 98 | $ 97 |
Segment Information - Summary o
Segment Information - Summary of Segments (Details) $ in Millions | 3 Months Ended | |
Apr. 26, 2020USD ($)segment | Apr. 28, 2019USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 2 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 3,080 | $ 2,220 |
Operating income (loss) | 976 | 358 |
Gaming | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,339 | 1,055 |
Professional Visualization | ||
Segment Reporting Information [Line Items] | ||
Revenue | 307 | 266 |
Data Center | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,141 | 634 |
Automotive | ||
Segment Reporting Information [Line Items] | ||
Revenue | 155 | 166 |
OEM and Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 138 | 99 |
Taiwan | ||
Segment Reporting Information [Line Items] | ||
Revenue | 813 | 698 |
China (including Hong Kong) | ||
Segment Reporting Information [Line Items] | ||
Revenue | 758 | 553 |
Other Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Revenue | 607 | 422 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenue | 497 | 165 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Revenue | 254 | 249 |
Other countries | ||
Segment Reporting Information [Line Items] | ||
Revenue | 151 | 133 |
Operating Segments | Graphics | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,906 | 1,526 |
Operating income (loss) | 836 | 532 |
Operating Segments | Compute & Networking | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,174 | 694 |
Operating income (loss) | 451 | 95 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 0 | 0 |
Operating income (loss) | $ (311) | $ (269) |
Segment Information - Reconcili
Segment Information - Reconciling Items (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 26, 2020 | Apr. 28, 2019 | |
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | $ (224) | $ (178) |
Income from operations | 976 | 358 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | (224) | (178) |
Unallocated cost of revenue and operating expenses | (82) | (70) |
Acquisition-related and other costs | (5) | (10) |
Legal settlement costs | 0 | (11) |
Income from operations | $ (311) | $ (269) |
Segment Information - Concentra
Segment Information - Concentration Risk (Details) - Customer Concentration Risk - Significant Customer | 3 Months Ended | |
Apr. 26, 2020 | Apr. 28, 2019 | |
Sales Revenue | Graphics | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk (as percent) | 11.00% | |
Accounts Receivable | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk (as percent) | 15.00% | 21.00% |
Goodwill (Details)
Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Apr. 26, 2020 | Jan. 26, 2020 | |
Goodwill [Line Items] | ||
Goodwill impairment | $ 0 | |
Goodwill | $ 628,000,000 | $ 618,000,000 |
Goodwill, additions through acquisition activity | 10,000,000 | |
Graphics | ||
Goodwill [Line Items] | ||
Goodwill | 347,000,000 | |
Compute & Networking | ||
Goodwill [Line Items] | ||
Goodwill | $ 281,000,000 |