Cover
Cover - shares shares in Millions | 3 Months Ended | |
May 02, 2021 | May 21, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 2, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-23985 | |
Entity Registrant Name | NVIDIA CORP | |
Entity Central Index Key | 0001045810 | |
Current Fiscal Year End Date | --01-30 | |
Document Fiscal Year Focus | 2022 | |
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, $0.001 par value per share | |
Trading Symbol | NVDA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 623 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
May 02, 2021 | Apr. 26, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 5,661 | $ 3,080 |
Cost of revenue | 2,032 | 1,076 |
Gross profit | 3,629 | 2,004 |
Operating expenses | ||
Research and development | 1,153 | 735 |
Sales, general and administrative | 520 | 293 |
Total operating expenses | 1,673 | 1,028 |
Income from operations | 1,956 | 976 |
Interest income | 6 | 31 |
Interest expense | (53) | (25) |
Other, net | 135 | (1) |
Other income (expense), net | 88 | 5 |
Income before income tax | 2,044 | 981 |
Income tax expense | 132 | 64 |
Net income | $ 1,912 | $ 917 |
Net income per share: | ||
Basic (in dollars per share) | $ 3.08 | $ 1.49 |
Diluted (in dollars per share) | $ 3.03 | $ 1.47 |
Weighted average shares used in per share computation: | ||
Basic (in shares) | 621 | 614 |
Diluted (in shares) | 632 | 622 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2021 | Apr. 26, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,912 | $ 917 |
Cash flow hedges: | ||
Net unrealized loss | (14) | (10) |
Reclassification adjustments for net realized gain (loss) included in net income | 9 | (1) |
Net change in unrealized loss | (5) | (11) |
Total comprehensive income | $ 1,907 | $ 906 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | May 02, 2021 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 978 | $ 847 |
Marketable securities | 11,689 | 10,714 |
Accounts receivable, net | 3,024 | 2,429 |
Inventories | 1,992 | 1,826 |
Prepaid expenses and other current assets | 444 | 239 |
Total current assets | 18,127 | 16,055 |
Property and equipment, net | 2,268 | 2,149 |
Operating lease assets | 727 | 707 |
Goodwill | 4,193 | 4,193 |
Intangible assets, net | 2,613 | 2,737 |
Deferred income tax assets | 778 | 806 |
Other assets | 2,090 | 2,144 |
Total assets | 30,796 | 28,791 |
Current liabilities: | ||
Accounts payable | 1,218 | 1,201 |
Accrued and other current liabilities | 1,787 | 1,725 |
Short-term debt | 999 | 999 |
Total current liabilities | 4,004 | 3,925 |
Long-term debt | 5,964 | 5,964 |
Long-term operating lease liabilities | 640 | 634 |
Other long-term liabilities | 1,414 | 1,375 |
Total liabilities | 12,022 | 11,898 |
Commitments and contingencies - see Note 13 | ||
Shareholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock | 1 | 1 |
Additional paid-in capital | 9,280 | 8,721 |
Treasury stock, at cost | (11,242) | (10,756) |
Accumulated other comprehensive income | 14 | 19 |
Retained earnings | 20,721 | 18,908 |
Total shareholders' equity | 18,774 | 16,893 |
Total liabilities and shareholders' equity | $ 30,796 | $ 28,791 |
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 Income (Loss) | Retained Earnings |
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 | ||||||
Net income | 917 | 917 | ||||
Other comprehensive loss | (11) | (11) | ||||
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 |
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 |
Ending balance, common stock outstanding (in shares) at Jan. 31, 2021 | 620 | |||||
Ending balances, shareholders' equity at Jan. 31, 2021 | 16,893 | $ 1 | 8,721 | (10,756) | 19 | 18,908 |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 1,912 | 1,912 | ||||
Other comprehensive loss | (5) | (5) | ||||
Issuance of common stock from stock plans (in shares) | 4 | |||||
Issuance of common stock from stock plans | 126 | 126 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (1) | |||||
Tax withholding related to vesting of restricted stock units | (486) | (486) | ||||
Cash dividends declared and paid | (99) | (99) | ||||
Stock-based compensation | 433 | 433 | ||||
Ending balance, common stock outstanding (in shares) at May. 02, 2021 | 623 | |||||
Ending balances, shareholders' equity at May. 02, 2021 | $ 18,774 | $ 1 | $ 9,280 | $ (11,242) | $ 14 | $ 20,721 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
May 02, 2021 | Apr. 26, 2020 | |
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 | 12 Months Ended | |
May 02, 2021 | Apr. 26, 2020 | Jan. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 1,912 | $ 917 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock-based compensation expense | 429 | 224 | |
Depreciation and amortization | 281 | 107 | |
Deferred income taxes | 24 | 16 | |
(Gains) losses on investments in non-affiliates, net | (133) | 3 | |
Other | (3) | 1 | |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (595) | (249) | |
Inventories | (159) | (151) | |
Prepaid expenses and other assets | 2 | (8) | |
Accounts payable | 70 | 71 | |
Accrued and other current liabilities | (1) | (32) | |
Other long-term liabilities | 47 | 10 | |
Net cash provided by operating activities | 1,874 | 909 | |
Cash flows from investing activities: | |||
Proceeds from maturities of marketable securities | 3,140 | 0 | |
Proceeds from sales of marketable securities | 358 | 1 | |
Purchases of marketable securities | (4,470) | (861) | |
Purchases related to property and equipment and intangible assets | (298) | (155) | |
Investments and other, net | (2) | (6) | |
Acquisitions, net of cash acquired | 0 | (34) | |
Net cash used in investing activities | (1,272) | (1,055) | |
Cash flows from financing activities: | |||
Proceeds related to employee stock plans | 126 | 88 | |
Payments related to tax on restricted stock units | (477) | (222) | |
Dividends paid | (99) | (98) | |
Principal payments on property and equipment | (19) | 0 | |
Other | (2) | (3) | |
Issuance of debt, net of issuance costs | 0 | 4,979 | |
Net cash provided by (used in) financing activities | (471) | 4,744 | |
Change in cash and cash equivalents | 131 | 4,598 | |
Cash and cash equivalents at beginning of period | 847 | 10,896 | $ 10,896 |
Cash and cash equivalents at end of period | $ 978 | $ 15,494 | $ 847 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
May 02, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission, or SEC, Regulation S-X. The January 31, 2021 consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2021, 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 31, 2021. Significant Accounting Policies There have been no material changes to our significant accounting policies disclosed 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 31, 2021. Fiscal Year We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal year 2022 is a 52-week year and fiscal year 2021 was a 53-week year. The first quarters of fiscal years 2022 and 2021 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 ongoing 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. These estimates are based on historical facts and various other assumptions that we believe are reasonable. |
Business Combination
Business Combination | 3 Months Ended |
May 02, 2021 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination Pending Acquisition of Arm Limited On September 13, 2020, we entered into a Share Purchase Agreement, or the Purchase Agreement, with Arm Limited, or Arm, and SoftBank Group Capital Limited and SVF Holdco (UK) Limited, or together, SoftBank, for us to acquire, from SoftBank, all allotted and issued ordinary shares of Arm in a transaction valued at $40 billion. We paid $2 billion in cash at signing, or the Signing Consideration, and will pay upon closing of the acquisition $10 billion in cash and issue to SoftBank 44.3 million shares of our common stock, which had an aggregate value of $21.5 billion as of the date of the Purchase Agreement. The transaction includes a potential earn out, which is contingent on the achievement of certain financial performance targets by Arm during the fiscal year ending March 31, 2022. If the financial targets are achieved, SoftBank can elect to receive either up to an additional $5 billion in cash or up to an additional 10.3 million shares of our common stock. We will issue up to $1.5 billion in restricted stock units to Arm employees after closing. The $2 billion paid upon signing was allocated between advanced consideration for the acquisition of $1.36 billion and the prepayment of intellectual property licenses from Arm of $0.17 billion and royalties of $0.47 billion, both with a 20-year term. The closing of the acquisition is subject to customary closing conditions, including receipt of specified governmental and regulatory consents and approvals and the expiration of any related mandatory waiting period, and Arm's implementation of the reorganization and distribution of Arm’s IoT Services Group and certain other assets and liabilities. We are engaged with regulators in the United States, the United Kingdom, the European Union, China and other jurisdictions. If the Purchase Agreement is terminated under certain circumstances, we will be refunded $1.25 billion of the Signing Consideration. The Signing Consideration was allocated on a fair value basis and any refund of the Signing Consideration will use stated values in the Purchase Agreement. We believe the closing of the acquisition will likely occur in the first quarter of calendar year 2022. Acquisition of Mellanox Technologies, Ltd. On April 27, 2020, we completed the acquisition of all outstanding shares of Mellanox for a total purchase consideration of $7.13 billion. Mellanox is a supplier of high-performance interconnect products for computing, storage and communications applications. We acquired Mellanox to optimize data center workloads to scale across the entire computing, networking, and storage stack. Supplemental Unaudited Pro Forma Information The following unaudited pro forma financial information summarizes the combined results of operations for NVIDIA and Mellanox as if the companies were combined as of the beginning of fiscal year 2020: Pro Forma Three Months Ended April 26, 2020 (In millions) Revenue $ 3,509 Net income $ 918 The unaudited pro forma information includes adjustments related to amortization of acquired intangible assets, adjustments to stock-based compensation expense, fair value of acquired inventory, and transaction costs. The unaudited pro forma information presented above is for informational purposes only and is not necessarily indicative of our consolidated results of operations of the combined business had the acquisition occurred at the beginning of fiscal year 2020 or of the results of our future operations of the combined businesses. |
Leases
Leases | 3 Months Ended |
May 02, 2021 | |
Leases [Abstract] | |
Leases | LeasesOur lease obligations primarily consist of operating leases for our headquarters complex, domestic and international office facilities, and data center space, with lease periods expiring between fiscal years 2022 and 2035. Future minimum lease payments under our non-cancelable operating leases as of May 2, 2021, are as follows: Operating Lease Obligations (In millions) Fiscal Year: 2022 (excluding first quarter of fiscal year 2022) $ 106 2023 144 2024 123 2025 102 2026 94 2027 and thereafter 306 Total 875 Less imputed interest 100 Present value of net future minimum lease payments 775 Less short-term operating lease liabilities 135 Long-term operating lease liabilities $ 640 Operating lease expenses were $39 million and $31 million for the first quarter of fiscal years 2022 and 2021, respectively. Short-term and variable lease expenses for the first quarter of fiscal years 2022 and 2021 were not significant. Other information related to leases was as follows: Three Months Ended May 2, 2021 April 26, 2020 (In millions) Supplemental cash flows information Operating cash flows used for operating leases $ 39 $ 31 Operating lease assets obtained in exchange for lease obligations $ 54 $ 3 As of May 2, 2021, our operating leases had a weighted average remaining lease term of 7.5 years and a weighted average discount rate of 2.77%. As of January 31, 2021, our operating leases had a weighted average remaining lease term of 7.6 years and a weighted average discount rate of 2.87%. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
May 02, 2021 | |
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 May 2, April 26, (In millions) Cost of revenue $ 25 $ 21 Research and development 276 134 Sales, general and administrative 128 69 Total $ 429 $ 224 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 31, 2021 15 $ 264.69 Granted 1 $ 535.82 Vested restricted stock (4) $ 252.22 Balances, May 2, 2021 12 $ 279.79 As of May 2, 2021, there was $3.32 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 1.1 years for ESPP. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
May 02, 2021 | |
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 May 2, April 26, 2021 2020 (In millions, except per share data) Numerator: Net income $ 1,912 $ 917 Denominator: Basic weighted average shares 621 614 Dilutive impact of outstanding equity awards 11 8 Diluted weighted average shares 632 622 Net income per share: Basic (1) $ 3.08 $ 1.49 Diluted (2) $ 3.03 $ 1.47 Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive 1 1 (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 |
May 02, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recognized an income tax expense of $132 million and $64 million for the first quarter of fiscal years 2022 and 2021, respectively. The income tax expense as a percentage of income before income tax was 6.5% and 6.6% for the first quarter of fiscal years 2022 and 2021, respectively. The slight decrease in our effective tax rate for the first quarter of fiscal year 2022 as compared to the first quarter of fiscal year 2021 was primarily due to a change in the jurisdiction of earnings, partially offset by a decrease in the impact of tax benefits from the U.S. federal research tax credit. Our effective tax rates for the first quarter of fiscal years 2022 and 2021 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, the benefit of the U.S. federal research tax credit, and tax benefits related to stock-based compensation. As of May 2, 2021, we intend to indefinitely reinvest approximately $1.3 billion of cumulative undistributed earnings held by Mellanox non-U.S. subsidiaries. We have not provided the amount of unrecognized deferred tax liabilities for temporary differences related to investments in Mellanox non-U.S. subsidiaries as the determination of such amount is not practicable. For the first quarter of fiscal year 2022, there have been no material changes to our tax years that remain subject to examination by major tax jurisdictions. We are currently under examination by the Internal Revenue Service for our fiscal years 2018 and 2019. Additionally, there have been no material changes to our unrecognized tax benefits and any related interest or penalties since the fiscal year ended January 31, 2021. |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 3 Months Ended |
May 02, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities Our cash equivalents and marketable securities related to debt securities are classified as “available-for-sale” debt securities. The following is a summary of cash equivalents and marketable securities as of May 2, 2021 and January 31, 2021: May 2, 2021 Amortized Unrealized Unrealized Estimated Reported as Cash Equivalents Marketable Securities (In millions) Corporate debt securities $ 5,240 $ 2 $ — $ 5,242 $ 323 $ 4,919 Debt securities issued by United States government agencies 3,045 1 — 3,046 — 3,046 Debt securities issued by the United States Treasury 2,820 1 — 2,821 — 2,821 Certificates of deposit 884 — — 884 48 836 Money market funds 319 — — 319 319 — Foreign government bonds 67 — — 67 — 67 Total $ 12,375 $ 4 $ — $ 12,379 $ 690 $ 11,689 January 31, 2021 Amortized Unrealized Unrealized Estimated Reported as Cash Equivalents Marketable Securities (In millions) Corporate debt securities $ 4,442 $ 2 $ — $ 4,444 $ 234 $ 4,210 Debt securities issued by United States government agencies 2,975 1 — 2,976 28 2,948 Debt securities issued by the United States Treasury 2,846 — — 2,846 25 2,821 Certificates of deposit 705 — — 705 37 668 Money market funds 313 — — 313 313 — Foreign government bonds 67 — — 67 — 67 Total $ 11,348 $ 3 $ — $ 11,351 $ 637 $ 10,714 Net realized gains and unrealized gains and losses were not significant for all periods presented. The amortized cost and estimated fair value of cash equivalents and marketable securities as of May 2, 2021 and January 31, 2021 are shown below by contractual maturity. May 2, 2021 January 31, 2021 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (In millions) Less than one year $ 11,499 $ 11,502 $ 10,782 $ 10,783 Due in 1 - 5 years 876 877 566 568 Total $ 12,375 $ 12,379 $ 11,348 $ 11,351 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
May 02, 2021 | |
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 May 2, 2021 January 31, 2021 (In millions) Assets Cash equivalents and marketable securities: Money market funds Level 1 $ 319 $ 313 Corporate debt securities Level 2 $ 5,242 $ 4,444 Debt securities issued by United States government agencies Level 2 $ 3,046 $ 2,976 Debt securities issued by the United States Treasury Level 2 $ 2,821 $ 2,846 Certificates of deposit Level 2 $ 884 $ 705 Foreign government bonds Level 2 $ 67 $ 67 Prepaid expenses and other current assets: Publicly-held equity security (1) Level 1 $ 133 $ — Other assets: Investment in non-affiliated entities (2) Level 3 $ 146 $ 144 Liabilities 2.20% Notes Due 2021 (3) Level 2 $ 1,006 $ 1,011 3.20% Notes Due 2026 (3) Level 2 $ 1,101 $ 1,124 2.85% Notes Due 2030 (3) Level 2 $ 1,592 $ 1,654 3.50% Notes Due 2040 (3) Level 2 $ 1,095 $ 1,152 3.50% Notes Due 2050 (3) Level 2 $ 2,158 $ 2,308 3.70% Notes Due 2060 (3) Level 2 $ 552 $ 602 (1) The balance as of May 2, 2021 includes an investment that was reclassified from privately-held equity securities following the commencement of public market trading of the issuer in the first quarter of fiscal year 2022. As of May 2, 2021, the investment is subject to short-term selling restrictions. Due to the public market trading of the issuer, an unrealized gain on the investment of $124 million was recorded in other income (expense), net in the first quarter of fiscal year 2022. The net cumulative unrealized gain on the investment was $130 million as of May 2, 2021. (2) Investment in private non-affiliated entities is recorded at fair value on a non-recurring basis only if an impairment or observable price adjustment occurs in the period with changes in fair value recorded through net income. The amount recorded as of May 2, 2021 has not been significant. |
Amortizable Intangible Assets a
Amortizable Intangible Assets and Goodwill | 3 Months Ended |
May 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortizable Intangible Assets and Goodwill | Amortizable Intangible Assets and Goodwill The components of our amortizable intangible assets are as follows: May 2, 2021 January 31, 2021 Gross Accumulated Net Carrying Gross Accumulated Net Carrying (In millions) Acquisition-related intangible assets (1) $ 3,280 $ (904) $ 2,376 $ 3,280 $ (774) $ 2,506 Patents and licensed technology 719 (482) 237 706 (475) 231 Total intangible assets $ 3,999 $ (1,386) $ 2,613 $ 3,986 $ (1,249) $ 2,737 (1) As of May 2, 2021, acquisition-related intangible assets include the fair value of a Mellanox in-process research and development, or IPR&D, project of $630 million, which has not yet commenced amortization. Once the project reaches technological feasibility, we will begin to amortize the intangible asset over its estimated useful life. Amortization expense associated with intangible assets was $137 million and $7 million for the first quarter of fiscal years 2022 and 2021, respectively. Future amortization expense related to the net carrying amount of intangible assets, excluding IPR&D, as of May 2, 2021 is estimated to be $412 million for the remainder of fiscal year 2022, $546 million in fiscal year 2023, $424 million in fiscal year 2024, $370 million in fiscal year 2025, $99 million in fiscal year 2026, and $132 million in fiscal year 2027 and thereafter. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
May 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Certain balance sheet components are as follows: May 2, January 31, 2021 2021 Inventories: (In millions) Raw materials $ 734 $ 632 Work in-process 504 457 Finished goods 754 737 Total inventories $ 1,992 $ 1,826 May 2, January 31, 2021 2021 Prepaid expenses and other current assets: (In millions) Prepaid expenses $ 179 $ 142 Publicly-held equity security (1) 133 — Other 132 97 Total prepaid expenses and other current assets $ 444 $ 239 (1) The balance as of May 2, 2021 includes an investment that was reclassified from privately-held equity securities following the commencement of public market trading of the issuer in the first quarter of fiscal year 2022. As of May 2, 2021, the investment is subject to short-term selling restrictions. Due to the public market trading of the issuer, an unrealized gain on the investment of $124 million was recorded in other income (expense), net in the first quarter of fiscal year 2022. The net cumulative unrealized gain on the investment was $130 million as of May 2, 2021. May 2, January 31, 2021 2021 Other assets: (In millions) Advanced consideration for acquisition $ 1,357 $ 1,357 Prepaid royalties 428 440 Investment in non-affiliated entities 146 144 Deposits 123 136 Other 36 67 Total other assets $ 2,090 $ 2,144 May 2, January 31, 2021 2021 Accrued and Other Current Liabilities: (In millions) Customer program accruals $ 700 $ 630 Deferred revenue (1) 333 288 Accrued payroll and related expenses 265 297 Operating leases 135 121 Licenses and royalties 96 128 Taxes payable 96 61 Product warranty and return provisions 45 39 Professional service fees 33 26 Coupon interest on debt obligations 19 74 Other 65 61 Total accrued and other current liabilities $ 1,787 $ 1,725 (1) Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements and post-contract customer support, or PCS. May 2, January 31, 2021 2021 Other Long-Term Liabilities: (In millions) Income tax payable (1) $ 864 $ 836 Deferred income tax 234 241 Deferred revenue (2) 173 163 Licenses payable 59 56 Employee benefits 34 33 Other 50 46 Total other long-term liabilities $ 1,414 $ 1,375 (1) As of May 2, 2021, income tax payable represents the long-term portion of the one-time transition tax payable of $284 million, unrecognized tax benefits of $374 million, related interest and penalties of $48 million, and other foreign long-term tax payable of $158 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 2022 and 2021: May 2, April 26, 2021 2020 (In millions) Balance at beginning of period $ 451 $ 201 Deferred revenue added during the period 178 110 Revenue recognized during the period (123) (70) Balance at end of period $ 506 $ 241 Revenue related to remaining performance obligations represents the remaining contracted license, 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 May 2, 2021, the amount of our remaining performance obligations that has not been recognized as revenue was $680 million, of which we expect to recognize approximately 48% as revenue over the next 12 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 |
May 02, 2021 | |
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 May 2, 2021 and January 31, 2021. 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 May 2, 2021 and January 31, 2021: May 2, January 31, (In millions) Designated as cash flow hedges $ 888 $ 840 Not designated for hedge accounting $ 402 $ 441 As of May 2, 2021, all designated foreign currency forward contracts mature within 18 months. The expected realized gains and losses deferred into accumulated other comprehensive income or loss related to foreign currency forward contracts within the next 12 months was not significant. During the first quarter of fiscal years 2022 and 2021, 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 |
May 02, 2021 | |
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. 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. 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 May 2, 2021 January 31, 2021 (In millions) 2.20% Notes Due 2021 0.4 2.38% $ 1,000 $ 1,000 3.20% Notes Due 2026 5.4 3.31% 1,000 1,000 2.85% Notes Due 2030 8.9 2.93% 1,500 1,500 3.50% Notes Due 2040 18.9 3.54% 1,000 1,000 3.50% Notes Due 2050 28.9 3.54% 2,000 2,000 3.70% Notes Due 2060 38.9 3.73% 500 500 Unamortized debt discount and issuance costs (37) (37) Net carrying amount 6,963 6,963 Less short-term portion (999) (999) Total long-term portion $ 5,964 $ 5,964 As of May 2, 2021, we were in compliance with the required covenants under the Notes. Credit Facilities 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 May 2, 2021, we had not borrowed any amounts and were in compliance with the required covenants under this agreement. The Credit Agreement expires October 2021. We have a $575 million commercial paper program to support general corporate purposes. As of May 2, 2021, we had not issued any commercial paper. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations As of May 2, 2021, we had outstanding inventory purchase obligations totaling $3.46 billion which are expected to occur over the next 12 months, and other purchase obligations totaling $396 million, which are primarily expected to occur over the next 18 months. Accrual for Product Warranty Liabilities The estimated amount of product warranty liabilities was $30 million and $22 million as of May 2, 2021 and January 31, 2021, 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 The plaintiffs in the putative securities class action lawsuit, captioned 4:18-cv-07669-HSG, initially filed on December 21, 2018 in the United States District Court for the Northern District of California, and titled In Re NVIDIA Corporation Securities Litigation, filed an amended complaint on May 13, 2020. The amended complaint asserted that NVIDIA and certain NVIDIA executives 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. Plaintiffs also alleged that the NVIDIA executives who they named as defendants violated Section 20(a) of the Exchange Act. Plaintiffs sought 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 March 2, 2021, the district court granted NVIDIA’s motion to dismiss the complaint without leave to amend, entered judgment in favor of NVIDIA and closed the case. On March 30, 2021, plaintiffs filed a notice of appeal from judgment in the United States Court of Appeals for the Ninth Circuit, case number 21-15604. The putative derivative lawsuit pending in the United States District Court for the Northern District of California, captioned 4:19-cv-00341-HSG, initially filed January 18, 2019 and titled In re NVIDIA Corporation Consolidated Derivative Litigation, remains stayed pending resolution of the plaintiffs’ appeal in the In Re NVIDIA Corporation Securities Litigation action. 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 plaintiffs are seeking unspecified damages and other relief, including reforms and improvements to NVIDIA’s corporate governance and internal procedures. The putative derivative actions initially filed September 24, 2019 and pending in the United States District Court for the District of Delaware, Lipchitz v. Huang, et al. (Case No. 1:19-cv-01795-UNA) and Nelson v. Huang, et. al. (Case No. 1:19-cv-01798- UNA), remain stayed pending resolution of the plaintiffs’ appeal in the In Re NVIDIA Corporation Securities Litigation action. 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. Accounting for Loss Contingencies As of May 2, 2021, 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. 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. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
May 02, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Capital Return Program Beginning August 2004, our Board of Directors authorized us to repurchase our stock. Through May 2, 2021, 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 May 2, 2021, 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 2022, we paid $99 million in cash dividends to our shareholders. |
Segment Information
Segment Information | 3 Months Ended |
May 02, 2021 | |
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. Our two operating segments are "Graphics" and "Compute & Networking." 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/NVIDIA RTX 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; Mellanox networking and interconnect solutions; automotive AI Cockpit, autonomous driving development agreements, and autonomous vehicle solutions; cryptocurrency mining processors, or CMP; 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, IP-related 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 May 2, 2021 Revenue $ 3,451 $ 2,210 $ — $ 5,661 Operating income (loss) $ 1,786 $ 861 $ (691) $ 1,956 Three Months Ended April 26, 2020 Revenue $ 1,906 $ 1,174 $ — $ 3,080 Operating income (loss) $ 836 $ 451 $ (311) $ 976 Three Months Ended May 2, April 26, (In millions) Reconciling items included in "All Other" category: Stock-based compensation expense $ (429) $ (224) Acquisition-related and other costs (167) (5) Unallocated cost of revenue and operating expenses (90) (82) IP-related costs (5) — Total $ (691) $ (311) 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 May 2, April 26, 2021 2020 (In millions) Revenue: Taiwan $ 1,784 $ 813 China (including Hong Kong) 1,391 758 Other Asia Pacific 1,001 607 United States 768 497 Europe 381 254 Other countries 336 151 Total revenue $ 5,661 $ 3,080 The following table summarizes information pertaining to our revenue by each of the specialized markets we serve: Three Months Ended May 2, April 26, 2021 2020 (In millions) Revenue: Gaming $ 2,760 $ 1,339 Data Center 2,048 1,141 Professional Visualization 372 307 Automotive 154 155 OEM and Other 327 138 Total revenue $ 5,661 $ 3,080 No customer represented 10% or more of total revenue for the first quarter of fiscal years 2022 or 2021. |
Subsequent Events
Subsequent Events | 3 Months Ended |
May 02, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On May 21, 2021, our Board of Directors declared a four-for-one split of our common stock in the form of a stock dividend, conditioned on obtaining stockholder approval at our 2021 Annual Meeting of Stockholders to be held on June 3, 2021, of an amendment to our Amended and Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 2 billion to 4 billion. The following table reflects basic and diluted weighted average shares and net income per share on an unaudited pro forma basis giving effect to the four-for-one stock split as if it had been effective for all periods presented: Pro Forma (Unaudited) Three Months Ended Twelve Months Ended May 2, April 26, January 31, January 26, January 27, 2021 2020 2021 2020 2019 (In millions, except per share data) Numerator: Net income $ 1,912 $ 917 $ 4,332 $ 2,796 $ 4,141 Denominator: Basic weighted average shares 2,484 2,456 2,468 2,436 2,432 Dilutive impact of outstanding equity awards 44 32 44 36 68 Diluted weighted average shares 2,528 2,488 2,512 2,472 2,500 Net income per share: Basic (1) $ 0.77 $ 0.37 $ 1.76 $ 1.15 $ 1.70 Diluted (2) $ 0.76 $ 0.37 $ 1.72 $ 1.13 $ 1.66 (1) Calculated as net income divided by basic weighted average shares. (2) Calculated as net income divided by diluted weighted average shares. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
May 02, 2021 | |
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 31, 2021 consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2021, 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 31, 2021. |
Fiscal Year | Fiscal Year We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal year 2022 is a 52-week year and fiscal year 2021 was a 53-week year. The first quarters of fiscal years 2022 and 2021 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 ongoing 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. These estimates are based on historical facts and various other assumptions that we believe are reasonable. |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
May 02, 2021 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information | The following unaudited pro forma financial information summarizes the combined results of operations for NVIDIA and Mellanox as if the companies were combined as of the beginning of fiscal year 2020: Pro Forma Three Months Ended April 26, 2020 (In millions) Revenue $ 3,509 Net income $ 918 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
May 02, 2021 | |
Leases [Abstract] | |
Schedule of future minimum lease payments | Future minimum lease payments under our non-cancelable operating leases as of May 2, 2021, are as follows: Operating Lease Obligations (In millions) Fiscal Year: 2022 (excluding first quarter of fiscal year 2022) $ 106 2023 144 2024 123 2025 102 2026 94 2027 and thereafter 306 Total 875 Less imputed interest 100 Present value of net future minimum lease payments 775 Less short-term operating lease liabilities 135 Long-term operating lease liabilities $ 640 |
Schedule of other information related to leases | Other information related to leases was as follows: Three Months Ended May 2, 2021 April 26, 2020 (In millions) Supplemental cash flows information Operating cash flows used for operating leases $ 39 $ 31 Operating lease assets obtained in exchange for lease obligations $ 54 $ 3 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
May 02, 2021 | |
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 May 2, April 26, (In millions) Cost of revenue $ 25 $ 21 Research and development 276 134 Sales, general and administrative 128 69 Total $ 429 $ 224 |
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 31, 2021 15 $ 264.69 Granted 1 $ 535.82 Vested restricted stock (4) $ 252.22 Balances, May 2, 2021 12 $ 279.79 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
May 02, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of numerators and denominators of basic and diluted net income 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 May 2, April 26, 2021 2020 (In millions, except per share data) Numerator: Net income $ 1,912 $ 917 Denominator: Basic weighted average shares 621 614 Dilutive impact of outstanding equity awards 11 8 Diluted weighted average shares 632 622 Net income per share: Basic (1) $ 3.08 $ 1.49 Diluted (2) $ 3.03 $ 1.47 Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive 1 1 (1) Calculated as net income divided by basic weighted average shares. (2) Calculated as net income divided by diluted weighted average shares. Pro Forma (Unaudited) Three Months Ended Twelve Months Ended May 2, April 26, January 31, January 26, January 27, 2021 2020 2021 2020 2019 (In millions, except per share data) Numerator: Net income $ 1,912 $ 917 $ 4,332 $ 2,796 $ 4,141 Denominator: Basic weighted average shares 2,484 2,456 2,468 2,436 2,432 Dilutive impact of outstanding equity awards 44 32 44 36 68 Diluted weighted average shares 2,528 2,488 2,512 2,472 2,500 Net income per share: Basic (1) $ 0.77 $ 0.37 $ 1.76 $ 1.15 $ 1.70 Diluted (2) $ 0.76 $ 0.37 $ 1.72 $ 1.13 $ 1.66 (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 |
May 02, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Marketable Securities | The following is a summary of cash equivalents and marketable securities as of May 2, 2021 and January 31, 2021: May 2, 2021 Amortized Unrealized Unrealized Estimated Reported as Cash Equivalents Marketable Securities (In millions) Corporate debt securities $ 5,240 $ 2 $ — $ 5,242 $ 323 $ 4,919 Debt securities issued by United States government agencies 3,045 1 — 3,046 — 3,046 Debt securities issued by the United States Treasury 2,820 1 — 2,821 — 2,821 Certificates of deposit 884 — — 884 48 836 Money market funds 319 — — 319 319 — Foreign government bonds 67 — — 67 — 67 Total $ 12,375 $ 4 $ — $ 12,379 $ 690 $ 11,689 January 31, 2021 Amortized Unrealized Unrealized Estimated Reported as Cash Equivalents Marketable Securities (In millions) Corporate debt securities $ 4,442 $ 2 $ — $ 4,444 $ 234 $ 4,210 Debt securities issued by United States government agencies 2,975 1 — 2,976 28 2,948 Debt securities issued by the United States Treasury 2,846 — — 2,846 25 2,821 Certificates of deposit 705 — — 705 37 668 Money market funds 313 — — 313 313 — Foreign government bonds 67 — — 67 — 67 Total $ 11,348 $ 3 $ — $ 11,351 $ 637 $ 10,714 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of cash equivalents and marketable securities as of May 2, 2021 and January 31, 2021 are shown below by contractual maturity. May 2, 2021 January 31, 2021 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (In millions) Less than one year $ 11,499 $ 11,502 $ 10,782 $ 10,783 Due in 1 - 5 years 876 877 566 568 Total $ 12,375 $ 12,379 $ 11,348 $ 11,351 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
May 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | Fair Value at Pricing Category May 2, 2021 January 31, 2021 (In millions) Assets Cash equivalents and marketable securities: Money market funds Level 1 $ 319 $ 313 Corporate debt securities Level 2 $ 5,242 $ 4,444 Debt securities issued by United States government agencies Level 2 $ 3,046 $ 2,976 Debt securities issued by the United States Treasury Level 2 $ 2,821 $ 2,846 Certificates of deposit Level 2 $ 884 $ 705 Foreign government bonds Level 2 $ 67 $ 67 Prepaid expenses and other current assets: Publicly-held equity security (1) Level 1 $ 133 $ — Other assets: Investment in non-affiliated entities (2) Level 3 $ 146 $ 144 Liabilities 2.20% Notes Due 2021 (3) Level 2 $ 1,006 $ 1,011 3.20% Notes Due 2026 (3) Level 2 $ 1,101 $ 1,124 2.85% Notes Due 2030 (3) Level 2 $ 1,592 $ 1,654 3.50% Notes Due 2040 (3) Level 2 $ 1,095 $ 1,152 3.50% Notes Due 2050 (3) Level 2 $ 2,158 $ 2,308 3.70% Notes Due 2060 (3) Level 2 $ 552 $ 602 (1) The balance as of May 2, 2021 includes an investment that was reclassified from privately-held equity securities following the commencement of public market trading of the issuer in the first quarter of fiscal year 2022. As of May 2, 2021, the investment is subject to short-term selling restrictions. Due to the public market trading of the issuer, an unrealized gain on the investment of $124 million was recorded in other income (expense), net in the first quarter of fiscal year 2022. The net cumulative unrealized gain on the investment was $130 million as of May 2, 2021. (2) Investment in private non-affiliated entities is recorded at fair value on a non-recurring basis only if an impairment or observable price adjustment occurs in the period with changes in fair value recorded through net income. The amount recorded as of May 2, 2021 has not been significant. |
Amortizable Intangible Assets_2
Amortizable Intangible Assets and Goodwill (Tables) | 3 Months Ended |
May 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortizable Intangible Assets Components | The components of our amortizable intangible assets are as follows: May 2, 2021 January 31, 2021 Gross Accumulated Net Carrying Gross Accumulated Net Carrying (In millions) Acquisition-related intangible assets (1) $ 3,280 $ (904) $ 2,376 $ 3,280 $ (774) $ 2,506 Patents and licensed technology 719 (482) 237 706 (475) 231 Total intangible assets $ 3,999 $ (1,386) $ 2,613 $ 3,986 $ (1,249) $ 2,737 (1) As of May 2, 2021, acquisition-related intangible assets include the fair value of a Mellanox in-process research and development, or IPR&D, project of $630 million, which has not yet commenced amortization. Once the project reaches technological feasibility, we will begin to amortize the intangible asset over its estimated useful life. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
May 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventories | May 2, January 31, 2021 2021 Inventories: (In millions) Raw materials $ 734 $ 632 Work in-process 504 457 Finished goods 754 737 Total inventories $ 1,992 $ 1,826 |
Prepaid Expenses and Other Current Assets | May 2, January 31, 2021 2021 Prepaid expenses and other current assets: (In millions) Prepaid expenses $ 179 $ 142 Publicly-held equity security (1) 133 — Other 132 97 Total prepaid expenses and other current assets $ 444 $ 239 |
Other Assets | May 2, January 31, 2021 2021 Other assets: (In millions) Advanced consideration for acquisition $ 1,357 $ 1,357 Prepaid royalties 428 440 Investment in non-affiliated entities 146 144 Deposits 123 136 Other 36 67 Total other assets $ 2,090 $ 2,144 |
Accrued and Other Current Liabilities | May 2, January 31, 2021 2021 Accrued and Other Current Liabilities: (In millions) Customer program accruals $ 700 $ 630 Deferred revenue (1) 333 288 Accrued payroll and related expenses 265 297 Operating leases 135 121 Licenses and royalties 96 128 Taxes payable 96 61 Product warranty and return provisions 45 39 Professional service fees 33 26 Coupon interest on debt obligations 19 74 Other 65 61 Total accrued and other current liabilities $ 1,787 $ 1,725 (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 | May 2, January 31, 2021 2021 Other Long-Term Liabilities: (In millions) Income tax payable (1) $ 864 $ 836 Deferred income tax 234 241 Deferred revenue (2) 173 163 Licenses payable 59 56 Employee benefits 34 33 Other 50 46 Total other long-term liabilities $ 1,414 $ 1,375 (1) As of May 2, 2021, income tax payable represents the long-term portion of the one-time transition tax payable of $284 million, unrecognized tax benefits of $374 million, related interest and penalties of $48 million, and other foreign long-term tax payable of $158 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 2022 and 2021: May 2, April 26, 2021 2020 (In millions) Balance at beginning of period $ 451 $ 201 Deferred revenue added during the period 178 110 Revenue recognized during the period (123) (70) Balance at end of period $ 506 $ 241 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
May 02, 2021 | |
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 May 2, 2021 and January 31, 2021: May 2, January 31, (In millions) Designated as cash flow hedges $ 888 $ 840 Not designated for hedge accounting $ 402 $ 441 |
Debt (Table)
Debt (Table) | 3 Months Ended |
May 02, 2021 | |
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 May 2, 2021 January 31, 2021 (In millions) 2.20% Notes Due 2021 0.4 2.38% $ 1,000 $ 1,000 3.20% Notes Due 2026 5.4 3.31% 1,000 1,000 2.85% Notes Due 2030 8.9 2.93% 1,500 1,500 3.50% Notes Due 2040 18.9 3.54% 1,000 1,000 3.50% Notes Due 2050 28.9 3.54% 2,000 2,000 3.70% Notes Due 2060 38.9 3.73% 500 500 Unamortized debt discount and issuance costs (37) (37) Net carrying amount 6,963 6,963 Less short-term portion (999) (999) Total long-term portion $ 5,964 $ 5,964 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
May 02, 2021 | |
Segment Reporting [Abstract] | |
Financial Information by Operating Segment | Graphics Compute & Networking All Other Consolidated (In millions) Three Months Ended May 2, 2021 Revenue $ 3,451 $ 2,210 $ — $ 5,661 Operating income (loss) $ 1,786 $ 861 $ (691) $ 1,956 Three Months Ended April 26, 2020 Revenue $ 1,906 $ 1,174 $ — $ 3,080 Operating income (loss) $ 836 $ 451 $ (311) $ 976 |
Reconciling items included in All Other category | Three Months Ended May 2, April 26, (In millions) Reconciling items included in "All Other" category: Stock-based compensation expense $ (429) $ (224) Acquisition-related and other costs (167) (5) Unallocated cost of revenue and operating expenses (90) (82) IP-related costs (5) — Total $ (691) $ (311) |
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 May 2, April 26, 2021 2020 (In millions) Revenue: Taiwan $ 1,784 $ 813 China (including Hong Kong) 1,391 758 Other Asia Pacific 1,001 607 United States 768 497 Europe 381 254 Other countries 336 151 Total revenue $ 5,661 $ 3,080 |
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 May 2, April 26, 2021 2020 (In millions) Revenue: Gaming $ 2,760 $ 1,339 Data Center 2,048 1,141 Professional Visualization 372 307 Automotive 154 155 OEM and Other 327 138 Total revenue $ 5,661 $ 3,080 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 3 Months Ended |
May 02, 2021 | |
Subsequent Events [Abstract] | |
Reconciliation of numerators and denominators of basic and diluted net income 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 May 2, April 26, 2021 2020 (In millions, except per share data) Numerator: Net income $ 1,912 $ 917 Denominator: Basic weighted average shares 621 614 Dilutive impact of outstanding equity awards 11 8 Diluted weighted average shares 632 622 Net income per share: Basic (1) $ 3.08 $ 1.49 Diluted (2) $ 3.03 $ 1.47 Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive 1 1 (1) Calculated as net income divided by basic weighted average shares. (2) Calculated as net income divided by diluted weighted average shares. Pro Forma (Unaudited) Three Months Ended Twelve Months Ended May 2, April 26, January 31, January 26, January 27, 2021 2020 2021 2020 2019 (In millions, except per share data) Numerator: Net income $ 1,912 $ 917 $ 4,332 $ 2,796 $ 4,141 Denominator: Basic weighted average shares 2,484 2,456 2,468 2,436 2,432 Dilutive impact of outstanding equity awards 44 32 44 36 68 Diluted weighted average shares 2,528 2,488 2,512 2,472 2,500 Net income per share: Basic (1) $ 0.77 $ 0.37 $ 1.76 $ 1.15 $ 1.70 Diluted (2) $ 0.76 $ 0.37 $ 1.72 $ 1.13 $ 1.66 (1) Calculated as net income divided by basic weighted average shares. (2) Calculated as net income divided by diluted weighted average shares. |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) shares in Millions | Sep. 13, 2020 | Apr. 27, 2020 | Mar. 31, 2022 | May 02, 2021 | Apr. 26, 2020 | Jan. 31, 2021 |
Business Acquisition [Line Items] | ||||||
Advanced consideration for acquisition | $ 1,357,000,000 | $ 1,357,000,000 | ||||
Payments to acquire businesses, net of cash acquired | $ 0 | $ 34,000,000 | ||||
Arm Limited | ||||||
Business Acquisition [Line Items] | ||||||
Total cash consideration | $ 2,000,000,000 | |||||
Restricted stock units issuable | 1,500,000,000 | |||||
Advanced consideration for acquisition | 1,360,000,000 | |||||
Prepaid royalties | 470,000,000 | |||||
Potential refund receivable | 1,250,000,000 | |||||
Arm Limited | Forecast | ||||||
Business Acquisition [Line Items] | ||||||
Merger agreement price | $ 40,000,000,000 | |||||
Total cash consideration | $ 10,000,000,000 | |||||
Business combination, shares issued (in shares) | 44.3 | |||||
Business combination, shares issuable, value | $ 21,500,000,000 | |||||
Arm Limited | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Earnout payable | $ 5,000,000,000 | |||||
Earnout shares payable (in shares) | 10.3 | |||||
Arm Limited | Intellectual Property License | ||||||
Business Acquisition [Line Items] | ||||||
Intellectual property license | $ 170,000,000 | |||||
Intangible assets, useful life | 20 years | |||||
Arm Limited | Prepaid Royalties | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, useful life | 20 years | |||||
Mellanox Technologies, Ltd | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire businesses, net of cash acquired | $ 7,130,000,000 |
Business Combination - Pro Form
Business Combination - Pro Forma Information (Details) $ in Millions | 3 Months Ended |
Apr. 26, 2020USD ($) | |
Business Combinations [Abstract] | |
Revenue | $ 3,509 |
Net income | $ 918 |
Leases - Schedule of future min
Leases - Schedule of future minimum payments (Details) - USD ($) $ in Millions | May 02, 2021 | Jan. 31, 2021 |
Leases [Abstract] | ||
2022 (excluding first quarter of fiscal year 2022) | $ 106 | |
2023 | 144 | |
2024 | 123 | |
2025 | 102 | |
2026 | 94 | |
2027 and thereafter | 306 | |
Total | 875 | |
Less imputed interest | 100 | |
Present value of net future minimum lease payments | 775 | |
Less short-term operating lease liabilities | 135 | $ 121 |
Long-term operating lease liabilities | $ 640 | $ 634 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 02, 2021 | Apr. 26, 2020 | Jan. 31, 2021 | |
Leases [Abstract] | |||
Operating lease expense | $ 39 | $ 31 | |
Weighted average remaining lease term - operating leases | 7 years 6 months | 7 years 7 months 6 days | |
Weighted average discount rate - operating leases | 2.77% | 2.87% |
Leases - Schedule of other leas
Leases - Schedule of other lease information (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2021 | Apr. 26, 2020 | |
Supplemental cash flows information | ||
Operating cash flows used for operating leases | $ 39 | $ 31 |
Operating lease assets obtained in exchange for lease obligations | $ 54 | $ 3 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2021 | Apr. 26, 2020 | |
Share-based Compensation | ||
Stock-based compensation expense | $ 429 | $ 224 |
Cost of revenue | ||
Share-based Compensation | ||
Stock-based compensation expense | 25 | 21 |
Research and development | ||
Share-based Compensation | ||
Stock-based compensation expense | 276 | 134 |
Sales, general and administrative | ||
Share-based Compensation | ||
Stock-based compensation expense | $ 128 | $ 69 |
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 |
May 02, 2021$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 15 |
Granted (in shares) | shares | 1 |
Vested restricted stock (in shares) | shares | (4) |
Ending balance (in shares) | shares | 12 |
Weighted Average Grant-Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 264.69 |
Granted (in dollars per share) | $ / shares | 535.82 |
Vested restricted stock (in dollars per share) | $ / shares | 252.22 |
Ending balance (in dollars per share) | $ / shares | $ 279.79 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 3 Months Ended |
May 02, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate unearned stock-based compensation expense, net of forfeitures | $ 3,320 |
RSUs, PSUs, and Market-based PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average recognition period | 2 years 4 months 24 days |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average recognition period | 1 year 1 month 6 days |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
May 02, 2021 | Apr. 26, 2020 | |
Numerator: | ||
Net income | $ 1,912 | $ 917 |
Denominator: | ||
Basic weighted average shares (in shares) | 621 | 614 |
Dilutive impact of outstanding equity awards (in shares) | 11 | 8 |
Diluted weighted average shares (in shares) | 632 | 622 |
Net income per share: | ||
Basic (in dollars per share) | $ 3.08 | $ 1.49 |
Diluted (in dollars per share) | $ 3.03 | $ 1.47 |
Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive (in shares) | 1 | 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2021 | Apr. 26, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 132 | $ 64 |
Tax expense as percentage of income before income tax | 6.50% | 6.60% |
Undistributed earnings of foreign subsidiaries | $ 1,300 |
Cash Equivalents and Marketab_3
Cash Equivalents and Marketable Securities - Summary of Securities (Details) - USD ($) $ in Millions | May 02, 2021 | Jan. 31, 2021 |
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | $ 12,375 | $ 11,348 |
Unrealized Gain | 4 | 3 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 12,379 | 11,351 |
Reported as | ||
Cash Equivalents | 690 | 637 |
Marketable Securities | 11,689 | 10,714 |
Corporate debt securities | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 5,240 | 4,442 |
Unrealized Gain | 2 | 2 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 5,242 | 4,444 |
Reported as | ||
Cash Equivalents | 323 | 234 |
Marketable Securities | 4,919 | 4,210 |
Debt securities issued by United States government agencies | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 3,045 | 2,975 |
Unrealized Gain | 1 | 1 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 3,046 | 2,976 |
Reported as | ||
Cash Equivalents | 0 | 28 |
Marketable Securities | 3,046 | 2,948 |
Debt securities issued by the United States Treasury | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 2,820 | 2,846 |
Unrealized Gain | 1 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 2,821 | 2,846 |
Reported as | ||
Cash Equivalents | 0 | 25 |
Marketable Securities | 2,821 | 2,821 |
Certificates of deposit | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 884 | 705 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 884 | 705 |
Reported as | ||
Cash Equivalents | 48 | 37 |
Marketable Securities | 836 | 668 |
Money market funds | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 319 | 313 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 319 | 313 |
Reported as | ||
Cash Equivalents | 319 | 313 |
Marketable Securities | 0 | 0 |
Foreign government bonds | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 67 | 67 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 67 | 67 |
Reported as | ||
Cash Equivalents | 0 | 0 |
Marketable Securities | $ 67 | $ 67 |
Cash Equivalents and Marketab_4
Cash Equivalents and Marketable Securities - Contractual Maturity (Details) - USD ($) $ in Millions | May 02, 2021 | Jan. 31, 2021 |
Amortized Cost | ||
Less than one year | $ 11,499 | $ 10,782 |
Due in 1 - 5 years | 876 | 566 |
Amortized Cost | 12,375 | 11,348 |
Estimated Fair Value | ||
Less than one year | 11,502 | 10,783 |
Due in 1 - 5 years | 877 | 568 |
Estimated Fair Value | $ 12,379 | $ 11,351 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |||
May 02, 2021 | Jan. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2016 | |
Cash equivalents and marketable securities: | ||||
Cash equivalents and marketable securities | $ 12,379 | $ 11,351 | ||
Prepaid expenses and other current assets: | ||||
Publicly-held equity security | 133 | 0 | ||
Other assets: | ||||
Investment in non-affiliated entities | 146 | 144 | ||
Liabilities | ||||
Unrealized gain recognized during the period | 124 | |||
Cumulative unrealized net gain | $ 130 | |||
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 | ||||
Cash equivalents and marketable securities: | ||||
Cash equivalents and marketable securities | $ 319 | 313 | ||
Corporate debt securities | ||||
Cash equivalents and marketable securities: | ||||
Cash equivalents and marketable securities | 5,242 | 4,444 | ||
Debt securities issued by United States government agencies | ||||
Cash equivalents and marketable securities: | ||||
Cash equivalents and marketable securities | 3,046 | 2,976 | ||
Debt securities issued by the United States Treasury | ||||
Cash equivalents and marketable securities: | ||||
Cash equivalents and marketable securities | 2,821 | 2,846 | ||
Certificates of deposit | ||||
Cash equivalents and marketable securities: | ||||
Cash equivalents and marketable securities | 884 | 705 | ||
Foreign government bonds | ||||
Cash equivalents and marketable securities: | ||||
Cash equivalents and marketable securities | 67 | 67 | ||
Level 1 | ||||
Prepaid expenses and other current assets: | ||||
Publicly-held equity security | 133 | 0 | ||
Level 1 | Money market funds | ||||
Cash equivalents and marketable securities: | ||||
Cash equivalents and marketable securities | 319 | 313 | ||
Level 2 | 2.20% Notes Due 2021 | ||||
Liabilities | ||||
Notes | 1,006 | 1,011 | ||
Level 2 | 3.20% Notes Due 2026 | ||||
Liabilities | ||||
Notes | 1,101 | 1,124 | ||
Level 2 | 2.85% Notes Due 2030 | ||||
Liabilities | ||||
Notes | 1,592 | 1,654 | ||
Level 2 | 3.50% Notes Due 2040 | ||||
Liabilities | ||||
Notes | 1,095 | 1,152 | ||
Level 2 | 3.50% Notes Due 2050 | ||||
Liabilities | ||||
Notes | 2,158 | 2,308 | ||
Level 2 | 3.70% Notes Due 2060 | ||||
Liabilities | ||||
Notes | 552 | 602 | ||
Level 2 | Corporate debt securities | ||||
Cash equivalents and marketable securities: | ||||
Cash equivalents and marketable securities | 5,242 | 4,444 | ||
Level 2 | Debt securities issued by United States government agencies | ||||
Cash equivalents and marketable securities: | ||||
Cash equivalents and marketable securities | 3,046 | 2,976 | ||
Level 2 | Debt securities issued by the United States Treasury | ||||
Cash equivalents and marketable securities: | ||||
Cash equivalents and marketable securities | 2,821 | 2,846 | ||
Level 2 | Certificates of deposit | ||||
Cash equivalents and marketable securities: | ||||
Cash equivalents and marketable securities | 884 | 705 | ||
Level 2 | Foreign government bonds | ||||
Cash equivalents and marketable securities: | ||||
Cash equivalents and marketable securities | 67 | 67 | ||
Level 3 | ||||
Other assets: | ||||
Investment in non-affiliated entities | $ 146 | $ 144 |
Amortizable Intangible Assets_3
Amortizable Intangible Assets and Goodwill (Details) - USD ($) | 3 Months Ended | ||
May 02, 2021 | Apr. 26, 2020 | Jan. 31, 2021 | |
Amortizable intangible assets components | |||
Gross Carrying Amount | $ 3,999,000,000 | $ 3,986,000,000 | |
Accumulated Amortization | (1,386,000,000) | (1,249,000,000) | |
Net Carrying Amount | 2,613,000,000 | 2,737,000,000 | |
Amortization expense | 137,000,000 | $ 7,000,000 | |
Changes to carrying amount of goodwill | 0 | ||
Future amortization expense associated with intangible assets | |||
Expected amortization expense, remainder of fiscal year | 412,000,000 | ||
Expected amortization expense, year one | 546,000,000 | ||
Expected amortization expense, year two | 424,000,000 | ||
Expected amortization expense, year three | 370,000,000 | ||
Year four | 99,000,000 | ||
Expected amortization expense, year five and thereafter | 132,000,000 | ||
Acquisition-related intangible assets | |||
Amortizable intangible assets components | |||
Gross Carrying Amount | 3,280,000,000 | 3,280,000,000 | |
Accumulated Amortization | (904,000,000) | (774,000,000) | |
Net Carrying Amount | 2,376,000,000 | 2,506,000,000 | |
Patents and licensed technology | |||
Amortizable intangible assets components | |||
Gross Carrying Amount | 719,000,000 | 706,000,000 | |
Accumulated Amortization | (482,000,000) | (475,000,000) | |
Net Carrying Amount | 237,000,000 | $ 231,000,000 | |
Mellanox Technologies, Ltd | |||
Amortizable intangible assets components | |||
IPR&D | $ 630,000,000 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventory (Details) - USD ($) $ in Millions | May 02, 2021 | Jan. 31, 2021 |
Inventories: | ||
Raw materials | $ 734 | $ 632 |
Work in-process | 504 | 457 |
Finished goods | 754 | 737 |
Total inventories | $ 1,992 | $ 1,826 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2021 | Jan. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 179 | $ 142 |
Publicly-held equity security | 133 | 0 |
Other | 132 | 97 |
Total prepaid expenses and other current assets | 444 | $ 239 |
Unrealized gain recognized during the period | 124 | |
Cumulative unrealized net gain | $ 130 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Assets (Details) - USD ($) $ in Millions | May 02, 2021 | Jan. 31, 2021 |
Other assets: | ||
Advanced consideration for acquisition | $ 1,357 | $ 1,357 |
Prepaid royalties | 428 | 440 |
Investment in non-affiliated entities | 146 | 144 |
Deposits | 123 | 136 |
Other | 36 | 67 |
Total other assets | $ 2,090 | $ 2,144 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | May 02, 2021 | Jan. 31, 2021 |
Accrued and Other Current Liabilities: | ||
Customer program accruals | $ 700 | $ 630 |
Deferred revenue | 333 | 288 |
Accrued payroll and related expenses | 265 | 297 |
Operating leases | 135 | 121 |
Licenses and royalties | 96 | 128 |
Taxes payable | 96 | 61 |
Product warranty and return provisions | 45 | 39 |
Professional service fees | 33 | 26 |
Coupon interest on debt obligations | 19 | 74 |
Other | 65 | 61 |
Total accrued and other current liabilities | $ 1,787 | $ 1,725 |
Balance Sheet Components - Ot_2
Balance Sheet Components - Other Long-Term Liabilities (Details) - USD ($) $ in Millions | May 02, 2021 | Jan. 31, 2021 |
Other Long-Term Liabilities: | ||
Income taxes payable | $ 864 | $ 836 |
Deferred income tax | 234 | 241 |
Deferred revenue | 173 | 163 |
Licenses payable | 59 | 56 |
Employee benefits | 34 | 33 |
Other | 50 | 46 |
Total other long-term liabilities | 1,414 | $ 1,375 |
One time transition tax payable, noncurrent | 284 | |
Unrecognized tax benefits | 374 | |
Interest and penalties related to unrecognized tax benefits | 48 | |
Foreign long-term tax payable | $ 158 |
Balance Sheet Components - Chan
Balance Sheet Components - Change in Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2021 | Apr. 26, 2020 | |
Change in Deferred Revenue | ||
Balance at beginning of period | $ 451 | $ 201 |
Deferred revenue added during the period | 178 | 110 |
Revenue recognized during the period | (123) | (70) |
Balance at end of period | $ 506 | $ 241 |
Balance Sheet Components - Reve
Balance Sheet Components - Revenue Remaining Performance Obligation (Details) $ in Millions | May 02, 2021USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue, remaining performance obligation | $ 680 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-03 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation (as a percent) | 48.00% |
Revenue, remaining performance obligation, expected timing of satisfaction | 12 months |
Derivative Financial Instrume_3
Derivative Financial Instruments - Notional Values (Details) - USD ($) $ in Millions | May 02, 2021 | Jan. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Designated as cash flow hedges | $ 888 | $ 840 |
Not designated for hedge accounting | $ 402 | $ 441 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) | 3 Months Ended |
May 02, 2021 | |
Foreign currency forward contracts | |
Derivative [Line Items] | |
Derivative, maturity period | 18 months |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | May 02, 2021 | Mar. 31, 2020 | Sep. 30, 2016 |
Debt Instrument [Line Items] | |||
Commercial paper outstanding | $ 0 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowing capacity | 575,000,000 | ||
Additional borrowing capacity | 425,000,000 | ||
Line of credit outstanding | 0 | ||
Commercial Paper | |||
Debt Instrument [Line Items] | |||
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% | |
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% |
Debt - Schedule of Instruments
Debt - Schedule of Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |||
May 02, 2021 | Jan. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||||
Unamortized debt discount and issuance costs | $ (37) | $ (37) | ||
Net carrying amount | 6,963 | 6,963 | ||
Less short-term portion | (999) | (999) | ||
Long-term debt | $ 5,964 | 5,964 | ||
2.20% Notes Due 2021 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.20% | 2.20% | ||
Expected Remaining Term (years) | 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) | 5 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) | 8 years 10 months 24 days | |||
Effective Interest Rate | 2.93% | |||
Long-term debt, gross | $ 1,500 | 1,500 | ||
3.50% Notes Due 2040 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.50% | 3.50% | ||
Expected Remaining Term (years) | 18 years 10 months 24 days | |||
Effective Interest Rate | 3.54% | |||
Long-term debt, gross | $ 1,000 | 1,000 | ||
3.50% Notes Due 2050 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.50% | 3.50% | ||
Expected Remaining Term (years) | 28 years 10 months 24 days | |||
Effective Interest Rate | 3.54% | |||
Long-term debt, gross | $ 2,000 | 2,000 | ||
3.70% Notes Due 2060 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.70% | 3.70% | ||
Expected Remaining Term (years) | 38 years 10 months 24 days | |||
Effective Interest Rate | 3.73% | |||
Long-term debt, gross | $ 500 | $ 500 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2021 | Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding inventory purchase obligations | $ 3,460 | |
Outstanding inventory purchase obligations, expected term | 12 months | |
Outstanding other purchase obligations | $ 396 | |
Outstanding other purchase obligations, expected term | 18 months | |
Warranty accrual | $ 30 | $ 22 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
May 02, 2021 | Apr. 26, 2020 | |
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 | $ 99 | $ 98 |
Segment Information - Summary o
Segment Information - Summary of Segments (Details) $ in Millions | 3 Months Ended | |
May 02, 2021USD ($)segment | Apr. 26, 2020USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 2 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 5,661 | $ 3,080 |
Operating income (loss) | 1,956 | 976 |
Gaming | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,760 | 1,339 |
Data Center | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,048 | 1,141 |
Professional Visualization | ||
Segment Reporting Information [Line Items] | ||
Revenue | 372 | 307 |
Automotive | ||
Segment Reporting Information [Line Items] | ||
Revenue | 154 | 155 |
OEM and Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 327 | 138 |
Taiwan | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,784 | 813 |
China (including Hong Kong) | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,391 | 758 |
Other Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,001 | 607 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenue | 768 | 497 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Revenue | 381 | 254 |
Other countries | ||
Segment Reporting Information [Line Items] | ||
Revenue | 336 | 151 |
Operating Segments | Graphics | ||
Segment Reporting Information [Line Items] | ||
Revenue | 3,451 | 1,906 |
Operating income (loss) | 1,786 | 836 |
Operating Segments | Compute & Networking | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,210 | 1,174 |
Operating income (loss) | 861 | 451 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 0 | 0 |
Operating income (loss) | $ (691) | $ (311) |
Segment Information - Reconcili
Segment Information - Reconciling Items (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2021 | Apr. 26, 2020 | |
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | $ (429) | $ (224) |
Income from operations | 1,956 | 976 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | (429) | (224) |
Acquisition-related and other costs | (167) | (5) |
Unallocated cost of revenue and operating expenses | (90) | (82) |
IP-related costs | (5) | 0 |
Income from operations | $ (691) | $ (311) |
Segment Information - Concentra
Segment Information - Concentration Risk (Details) | 3 Months Ended | 12 Months Ended |
May 02, 2021 | Jan. 26, 2020 | |
Accounts Receivable | Customer Concentration Risk | Significant Customer | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk (as percent) | 13.00% | 16.00% |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | Jun. 03, 2021shares | May 02, 2021USD ($)$ / sharesshares | Apr. 26, 2020USD ($)$ / sharesshares | Jan. 31, 2021USD ($)$ / sharesshares | Jan. 26, 2020USD ($)$ / sharesshares | Jan. 27, 2019USD ($)$ / sharesshares |
Subsequent Event [Line Items] | ||||||
Authorized number of shares of common stock (in shares) | 2,000,000,000 | |||||
Numerator: | ||||||
Net income | $ | $ 1,912 | $ 917 | ||||
Denominator: | ||||||
Basic weighted average shares (in shares) | 621,000,000 | 614,000,000 | ||||
Dilutive impact of outstanding equity awards (in shares) | 11,000,000 | 8,000,000 | ||||
Diluted weighted average shares (in shares) | 632,000,000 | 622,000,000 | ||||
Basic (in dollars per share) | $ / shares | $ 3.08 | $ 1.49 | ||||
Diluted (in dollars per share) | $ / shares | $ 3.03 | $ 1.47 | ||||
Forecast | ||||||
Subsequent Event [Line Items] | ||||||
Stock split ratio | 4 | |||||
Authorized number of shares of common stock (in shares) | 4,000,000,000 | |||||
Pro Forma | ||||||
Numerator: | ||||||
Net income | $ | $ 1,912 | $ 917 | $ 4,332 | $ 2,796 | $ 4,141 | |
Denominator: | ||||||
Basic weighted average shares (in shares) | 2,484,000,000 | 2,456,000,000 | 2,468,000,000 | 2,436,000,000 | 2,432,000,000 | |
Dilutive impact of outstanding equity awards (in shares) | 44,000,000 | 32,000,000 | 44,000,000 | 36,000,000 | 68,000,000 | |
Diluted weighted average shares (in shares) | 2,528,000,000 | 2,488,000,000 | 2,512,000,000 | 2,472,000,000 | 2,500,000,000 | |
Basic (in dollars per share) | $ / shares | $ 0.77 | $ 0.37 | $ 1.76 | $ 1.15 | $ 1.70 | |
Diluted (in dollars per share) | $ / shares | $ 0.76 | $ 0.37 | $ 1.72 | $ 1.13 | $ 1.66 |