Cover
Cover - shares shares in Millions | 6 Months Ended | |
Aug. 01, 2021 | Aug. 13, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 1, 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 | Q2 | |
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, $0.001 par value per share | |
Trading Symbol | NVDA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,500 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2021 | Jul. 26, 2020 | Aug. 01, 2021 | Jul. 26, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 6,507 | $ 3,866 | $ 12,168 | $ 6,946 |
Cost of revenue | 2,292 | 1,591 | 4,324 | 2,667 |
Gross profit | 4,215 | 2,275 | 7,844 | 4,279 |
Operating expenses | ||||
Research and development | 1,245 | 997 | 2,398 | 1,732 |
Sales, general and administrative | 526 | 627 | 1,046 | 920 |
Total operating expenses | 1,771 | 1,624 | 3,444 | 2,652 |
Income from operations | 2,444 | 651 | 4,400 | 1,627 |
Interest income | 6 | 13 | 13 | 44 |
Interest expense | (60) | (54) | (113) | (78) |
Other, net | 4 | (1) | 138 | (2) |
Other income (expense), net | (50) | (42) | 38 | (36) |
Income before income tax | 2,394 | 609 | 4,438 | 1,591 |
Income tax expense (benefit) | 20 | (13) | 153 | 52 |
Net income | $ 2,374 | $ 622 | $ 4,285 | $ 1,539 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.95 | $ 0.25 | $ 1.72 | $ 0.63 |
Diluted (in dollars per share) | $ 0.94 | $ 0.25 | $ 1.69 | $ 0.62 |
Weighted average shares used in per share computation: | ||||
Basic (in shares) | 2,493 | 2,464 | 2,489 | 2,460 |
Diluted (in shares) | 2,532 | 2,504 | 2,529 | 2,496 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2021 | Jul. 26, 2020 | Aug. 01, 2021 | Jul. 26, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,374 | $ 622 | $ 4,285 | $ 1,539 |
Available-for-sale securities: | ||||
Net change in unrealized gain (loss) | 0 | 3 | (1) | 3 |
Reclassification adjustments for net realized gain (loss) included in net income | 0 | (2) | 0 | (2) |
Net change in unrealized gain (loss) | 0 | 1 | (1) | 1 |
Cash flow hedges: | ||||
Net unrealized gain (loss) | (14) | 16 | (27) | 6 |
Reclassification adjustments for net realized gain (loss) included in net income | 8 | (3) | 17 | (4) |
Net change in unrealized gain (loss) | (6) | 13 | (10) | 2 |
Other comprehensive income (loss), net of tax | (6) | 14 | (11) | 3 |
Total comprehensive income | $ 2,368 | $ 636 | $ 4,274 | $ 1,542 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Aug. 01, 2021 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 5,628 | $ 847 |
Marketable securities | 14,026 | 10,714 |
Accounts receivable, net | 3,586 | 2,429 |
Inventories | 2,114 | 1,826 |
Prepaid expenses and other current assets | 452 | 239 |
Total current assets | 25,806 | 16,055 |
Property and equipment, net | 2,364 | 2,149 |
Operating lease assets | 801 | 707 |
Goodwill | 4,193 | 4,193 |
Intangible assets, net | 2,478 | 2,737 |
Deferred income tax assets | 958 | 806 |
Other assets | 2,050 | 2,144 |
Total assets | 38,650 | 28,791 |
Current liabilities: | ||
Accounts payable | 1,474 | 1,201 |
Accrued and other current liabilities | 1,974 | 1,725 |
Short-term debt | 1,000 | 999 |
Total current liabilities | 4,448 | 3,925 |
Long-term debt | 10,943 | 5,964 |
Long-term operating lease liabilities | 716 | 634 |
Other long-term liabilities | 1,396 | 1,375 |
Total liabilities | 17,503 | 11,898 |
Commitments and contingencies - see Note 13 | ||
Shareholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock | 3 | 3 |
Additional paid-in capital | 9,745 | 8,719 |
Treasury stock, at cost | (11,604) | (10,756) |
Accumulated other comprehensive income | 8 | 19 |
Retained earnings | 22,995 | 18,908 |
Total shareholders' equity | 21,147 | 16,893 |
Total liabilities and shareholders' equity | $ 38,650 | $ 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 | 2,450 | |||||
Beginning balances, shareholders' equity at Jan. 26, 2020 | $ 12,204 | $ 3 | $ 7,043 | $ (9,814) | $ 1 | $ 14,971 |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 1,539 | 1,539 | ||||
Other comprehensive income (loss) | 3 | 3 | ||||
Issuance of common stock from stock plans (in shares) | 24 | |||||
Issuance of common stock from stock plans | 94 | 94 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (7) | |||||
Tax withholding related to vesting of restricted stock units | (418) | (418) | ||||
Cash dividends declared and paid | (197) | (197) | ||||
Fair value of partially vested equity awards assumed in connection with acquisitions | 86 | 86 | ||||
Stock-based compensation | 603 | 603 | ||||
Ending balance, common stock outstanding (in shares) at Jul. 26, 2020 | 2,467 | |||||
Ending balances, shareholders' equity at Jul. 26, 2020 | 13,914 | $ 3 | 7,826 | (10,232) | 4 | 16,313 |
Beginning balance, common stock outstanding (in shares) at Apr. 26, 2020 | 2,461 | |||||
Beginning balances, shareholders' equity at Apr. 26, 2020 | 13,099 | $ 3 | 7,352 | (10,036) | (10) | 15,790 |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 622 | 622 | ||||
Other comprehensive income (loss) | 14 | 14 | ||||
Issuance of common stock from stock plans (in shares) | 8 | |||||
Issuance of common stock from stock plans | 6 | 6 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (2) | |||||
Tax withholding related to vesting of restricted stock units | (196) | (196) | ||||
Cash dividends declared and paid | (99) | (99) | ||||
Fair value of partially vested equity awards assumed in connection with acquisitions | 86 | 86 | ||||
Stock-based compensation | 382 | 382 | ||||
Ending balance, common stock outstanding (in shares) at Jul. 26, 2020 | 2,467 | |||||
Ending balances, shareholders' equity at Jul. 26, 2020 | 13,914 | $ 3 | 7,826 | (10,232) | 4 | 16,313 |
Beginning balance, common stock outstanding (in shares) at Jan. 31, 2021 | 2,479 | |||||
Beginning balances, shareholders' equity at Jan. 31, 2021 | 16,893 | $ 3 | 8,719 | (10,756) | 19 | 18,908 |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 4,285 | 4,285 | ||||
Other comprehensive income (loss) | (11) | (11) | ||||
Issuance of common stock from stock plans (in shares) | 22 | |||||
Issuance of common stock from stock plans | 128 | 128 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (5) | |||||
Tax withholding related to vesting of restricted stock units | (848) | (848) | ||||
Cash dividends declared and paid | (198) | (198) | ||||
Stock-based compensation | 898 | 898 | ||||
Ending balance, common stock outstanding (in shares) at Aug. 01, 2021 | 2,496 | |||||
Ending balances, shareholders' equity at Aug. 01, 2021 | 21,147 | $ 3 | 9,745 | (11,604) | 8 | 22,995 |
Beginning balance, common stock outstanding (in shares) at May. 02, 2021 | 2,491 | |||||
Beginning balances, shareholders' equity at May. 02, 2021 | 18,774 | $ 3 | 9,278 | (11,242) | 14 | 20,721 |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 2,374 | 2,374 | ||||
Other comprehensive income (loss) | (6) | (6) | ||||
Issuance of common stock from stock plans (in shares) | 7 | |||||
Issuance of common stock from stock plans | 2 | 2 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (2) | |||||
Tax withholding related to vesting of restricted stock units | (362) | (362) | ||||
Cash dividends declared and paid | (100) | (100) | ||||
Stock-based compensation | 465 | 465 | ||||
Ending balance, common stock outstanding (in shares) at Aug. 01, 2021 | 2,496 | |||||
Ending balances, shareholders' equity at Aug. 01, 2021 | $ 21,147 | $ 3 | $ 9,745 | $ (11,604) | $ 8 | $ 22,995 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2021 | Jul. 26, 2020 | Aug. 01, 2021 | Jul. 26, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, dividends per share, declared and paid (in dollars per share) | $ 0.04 | $ 0.04 | $ 0.08 | $ 0.08 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Aug. 01, 2021 | Jul. 26, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 4,285 | $ 1,539 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 894 | 598 |
Depreciation and amortization | 567 | 511 |
Deferred income taxes | (161) | (64) |
(Gains) losses on investments in non-affiliates, net | (133) | 5 |
Other | 16 | (10) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (1,157) | (205) |
Inventories | (282) | (97) |
Prepaid expenses and other assets | 18 | 34 |
Accounts payable | 279 | 63 |
Accrued and other current liabilities | 132 | 81 |
Other long-term liabilities | 98 | 21 |
Net cash provided by operating activities | 4,556 | 2,476 |
Cash flows from investing activities: | ||
Proceeds from maturities of marketable securities | 5,236 | 1,032 |
Proceeds from sales of marketable securities | 705 | 259 |
Purchases of marketable securities | (9,268) | (8,286) |
Purchases related to property and equipment and intangible assets | (481) | (372) |
Investments and other, net | 3 | (7) |
Acquisitions, net of cash acquired | 0 | (7,171) |
Net cash used in investing activities | (3,805) | (14,545) |
Cash flows from financing activities: | ||
Issuance of debt, net of issuance costs | 4,985 | 4,971 |
Proceeds related to employee stock plans | 128 | 94 |
Payments related to tax on restricted stock units | (843) | (418) |
Dividends paid | (198) | (197) |
Principal payments on property and equipment | (40) | 0 |
Other | (2) | (3) |
Net cash provided by financing activities | 4,030 | 4,447 |
Change in cash and cash equivalents | 4,781 | (7,622) |
Cash and cash equivalents at beginning of period | 847 | 10,896 |
Cash and cash equivalents at end of period | $ 5,628 | $ 3,274 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Aug. 01, 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. 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, or the Stock Split, which was conditioned upon obtaining stockholder approval to increase the number of our authorized shares of common stock from 2 billion to 4 billion. On June 3, 2021, at the 2021 Annual Meeting of Stockholders, our stockholders approved the amendment to our Amended and Restated Certificate of Incorporation to increase the number of authorized shares of common stock to 4 billion. As a result, each stockholder of record at the close of business on June 21, 2021 received a dividend of three additional shares of common stock for every share held on the record date, distributed after the close of trading on July 19, 2021. All share, equity award, and per share amounts and related shareholders' equity balances presented herein have been retroactively adjusted to reflect the Stock Split. 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 second 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 | 6 Months Ended |
Aug. 01, 2021 | |
Business Combination and Asset Acquisition [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 177.5 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 41.3 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 working through the regulatory process in the United States, the United Kingdom, the European Union, China and other jurisdictions. Although some Arm licensees have expressed concerns or objected to the transaction, and discussions with regulators are taking longer than initially thought, we are confident in the deal rationale and that regulators should recognize the benefits of the acquisition to Arm, its licensees, and the industry. 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. 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 Six Months Ended July 26, 2020 July 26, 2020 (In millions) Revenue $ 3,866 $ 7,375 Net income $ 964 $ 1,883 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. The pro forma results reflect the inventory step-up expense of $161 million in the first half of fiscal year 2020 and was excluded from the pro forma results for the second quarter and first half of fiscal year 2021. There were no other material nonrecurring adjustments. |
Leases
Leases | 6 Months Ended |
Aug. 01, 2021 | |
Leases [Abstract] | |
Leases | Leases Our 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 August 1, 2021, are as follows: Operating Lease Obligations (In millions) Fiscal Year: 2022 (excluding first half of fiscal year 2022) $ 81 2023 156 2024 139 2025 119 2026 111 2027 and thereafter 355 Total 961 Less imputed interest 113 Present value of net future minimum lease payments 848 Less short-term operating lease liabilities 132 Long-term operating lease liabilities $ 716 Operating lease expenses were $42 million and $35 million for the second quarter of fiscal years 2022 and 2021, respectively, and $81 million and $67 million for the first half of fiscal years 2022 and 2021, respectively. Short-term and variable lease expenses for the second quarter and first half of fiscal years 2022 and 2021 were not significant. Other information related to leases was as follows: Six Months Ended August 1, 2021 July 26, 2020 (In millions) Supplemental cash flows information Operating cash flows used for operating leases $ 75 $ 66 Operating lease assets obtained in exchange for lease obligations $ 164 $ 138 As of August 1, 2021, our operating leases had a weighted average remaining lease term of 7.6 years and a weighted average discount rate of 2.84%. 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 | 6 Months Ended |
Aug. 01, 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 Six Months Ended August 1, July 26, August 1, July 26, (In millions) Cost of revenue $ 32 $ 14 $ 57 $ 35 Research and development 297 228 573 362 Sales, general and administrative 136 132 264 201 Total $ 465 $ 374 $ 894 $ 598 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 59 $ 66.17 Granted 15 $ 181.65 Vested restricted stock (17) $ 62.20 Canceled and forfeited (1) $ 70.78 Balances, August 1, 2021 56 $ 100.01 As of August 1, 2021, there was $5.35 billion of aggregate unearned stock-based compensation expense, net of forfeitures. This amount is expected to be recognized over a weighted average period of 2.7 years for RSUs, PSUs, and market-based PSUs, and 1 year for ESPP. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Aug. 01, 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 Six Months Ended August 1, July 26, August 1, July 26, 2021 2020 2021 2020 (In millions, except per share data) Numerator: Net income $ 2,374 $ 622 $ 4,285 $ 1,539 Denominator: Basic weighted average shares 2,493 2,464 2,489 2,460 Dilutive impact of outstanding equity awards 39 40 40 36 Diluted weighted average shares 2,532 2,504 2,529 2,496 Net income per share: Basic (1) $ 0.95 $ 0.25 $ 1.72 $ 0.63 Diluted (2) $ 0.94 $ 0.25 $ 1.69 $ 0.62 Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive 13 — 15 24 (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 | 6 Months Ended |
Aug. 01, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recognized an income tax expense of $20 million and $153 million for the second quarter and first half of fiscal year 2022, respectively, and an income tax benefit of $13 million and an income tax expense of $52 million for the second quarter and first half of fiscal year 2021, respectively. The income tax expense as a percentage of income before income tax was 0.9% and 3.4% for the second quarter and first half of fiscal year 2022, respectively, and 3.3% for the first half of fiscal year 2021. The income tax benefit as a percentage of income before income tax was 2.0% for the second quarter of fiscal year 2021. On June 28, 2021, we simplified our corporate structure by repatriating the economic rights of certain non-U.S. intellectual property to the United States via domestication of a foreign subsidiary, or the Domestication. The Domestication more closely aligns our corporate structure to our operating structure in accordance with the Organization for Economic Cooperation and Development’s Base Erosion and Profit Shifting conclusions and changes to U.S. and European tax laws. The impact of the Domestication, which is regarded as a change in tax status, resulted in a discrete benefit primarily from re-valuing certain deferred tax assets, net of deferred tax liabilities, of $252 million in the second quarter of fiscal year 2022. The increase in our effective tax rate for the second quarter and first half of fiscal year 2022 as compared to the same periods of fiscal year 2021 was primarily due to a decreased impact of tax benefits from stock-based compensation and the U.S. federal research tax credit, and an increase in the amount of earnings subject to U.S. tax, partially offset by the discrete benefit of the Domestication. Our effective tax rate for the first half of fiscal year 2021 was lower than the U.S. federal statutory rate of 21% due to income earned in jurisdictions that is subject to taxes lower than the U.S. federal statutory tax rate, tax benefits related to stock-based compensation, and the benefit of the U.S. federal research tax credit. Our effective tax rate for the first half of fiscal year 2022 was lower than the U.S. federal statutory rate of 21% due to the discrete benefit of the Domestication, tax benefits related to the foreign-derived intangible income deduction, income earned in jurisdictions that is subject to taxes lower than the U.S. federal statutory tax rate, and tax benefits related to the U.S. federal research tax credit and stock-based compensation. As of August 1, 2021, we intend to indefinitely reinvest approximately $1.6 billion and $231 million of cumulative undistributed earnings held by certain subsidiaries in Israel and the United Kingdom, respectively. We have not provided the amount of unrecognized deferred tax liabilities for temporary differences related to these investments as the determination of such amount is not practicable. For the first half 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 | 6 Months Ended |
Aug. 01, 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 August 1, 2021 and January 31, 2021: August 1, 2021 Amortized Unrealized Unrealized Estimated Reported as Cash Equivalents Marketable Securities (In millions) Corporate debt securities $ 8,610 $ 2 $ (1) $ 8,611 $ 1,825 $ 6,786 Debt securities issued by the United States Treasury 5,079 1 — 5,080 1,311 3,769 Debt securities issued by United States government agencies 2,371 1 — 2,372 60 2,312 Money market funds 2,097 — — 2,097 2,097 — Certificates of deposit 962 — — 962 44 918 Foreign government bonds 241 — — 241 — 241 Total $ 19,360 $ 4 $ (1) $ 19,363 $ 5,337 $ 14,026 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 August 1, 2021 and January 31, 2021 are shown below by contractual maturity. August 1, 2021 January 31, 2021 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (In millions) Less than one year $ 17,390 $ 17,391 $ 10,782 $ 10,783 Due in 1 - 5 years 1,970 1,972 566 568 Total $ 19,360 $ 19,363 $ 11,348 $ 11,351 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 6 Months Ended |
Aug. 01, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and LiabilitiesThe fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assets from active markets. We review fair value hierarchy classification on a quarterly basis. Fair Value at Pricing Category August 1, 2021 January 31, 2021 (In millions) Assets Cash equivalents and marketable securities: Money market funds Level 1 $ 2,097 $ 313 Corporate debt securities Level 2 $ 8,611 $ 4,444 Debt securities issued by the United States Treasury Level 2 $ 5,080 $ 2,846 Debt securities issued by United States government agencies Level 2 $ 2,372 $ 2,976 Certificates of deposit Level 2 $ 962 $ 705 Foreign government bonds Level 2 $ 241 $ 67 Prepaid expenses and other current assets: Publicly-held equity security (1) Level 1 $ 128 $ — Other assets: Investment in non-affiliated entities (2) Level 3 $ 147 $ 144 Liabilities (3) 2.20% Notes Due 2021 Level 2 $ 1,001 $ 1,011 0.309% Notes Due 2023 Level 2 $ 1,251 $ — 0.584% Notes Due 2024 Level 2 $ 1,254 $ — 3.20% Notes Due 2026 Level 2 $ 1,106 $ 1,124 1.55% Notes Due 2028 Level 2 $ 1,261 $ — 2.85% Notes Due 2030 Level 2 $ 1,640 $ 1,654 2.00% Notes Due 2031 Level 2 $ 1,271 $ — 3.50% Notes Due 2040 Level 2 $ 1,152 $ 1,152 3.50% Notes Due 2050 Level 2 $ 2,320 $ 2,308 3.70% Notes Due 2060 Level 2 $ 603 $ 602 (1) Investment in a publicly-traded equity security subject to short-term selling restrictions. An unrealized loss on the investment of $6 million was recorded in other income (expense), net in the second quarter of fiscal year 2022 and an unrealized gain of $118 million was recorded in other income (expense), net in the first half of fiscal year 2022. (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 August 1, 2021 has not been significant. |
Amortizable Intangible Assets a
Amortizable Intangible Assets and Goodwill | 6 Months Ended |
Aug. 01, 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: August 1, 2021 January 31, 2021 Gross Accumulated Net Carrying Gross Accumulated Net Carrying (In millions) Acquisition-related intangible assets (1) $ 3,277 $ (1,030) $ 2,247 $ 3,280 $ (774) $ 2,506 Patents and licensed technology 709 (478) 231 706 (475) 231 Total intangible assets $ 3,986 $ (1,508) $ 2,478 $ 3,986 $ (1,249) $ 2,737 (1) As of August 1, 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. Amortization expense associated with intangible assets was $138 million and $275 million for the second quarter and first half of fiscal year 2022, respectively, and $284 million and $291 million for the second quarter and first half of fiscal year 2021, respectively. Future amortization expense related to the net carrying amount of intangible assets, excluding IPR&D, as of August 1, 2021 is estimated to be $275 million for the remainder of fiscal year 2022, $547 million in fiscal year 2023, $424 million in fiscal year 2024, $371 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 | 6 Months Ended |
Aug. 01, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Certain balance sheet components are as follows: August 1, January 31, 2021 2021 Inventories: (In millions) Raw materials $ 825 $ 632 Work in-process 553 457 Finished goods 736 737 Total inventories $ 2,114 $ 1,826 August 1, January 31, 2021 2021 Prepaid expenses and other current assets: (In millions) Prepaid expenses $ 195 $ 142 Publicly-held equity security 128 — Other 129 97 Total prepaid expenses and other current assets $ 452 $ 239 August 1, January 31, 2021 2021 Other assets: (In millions) Advanced consideration for acquisition $ 1,357 $ 1,357 Prepaid royalties 422 440 Investment in non-affiliated entities 147 144 Deposits 77 136 Other 47 67 Total other assets $ 2,050 $ 2,144 August 1, January 31, 2021 2021 Accrued and Other Current Liabilities: (In millions) Customer program accruals $ 745 $ 630 Accrued payroll and related expenses 387 297 Deferred revenue (1) 301 288 Operating leases 132 121 Licenses and royalties 102 128 Coupon interest on debt obligations 81 74 Taxes payable 64 61 Product warranty and return provisions 45 39 Professional service fees 32 26 Other 85 61 Total accrued and other current liabilities $ 1,974 $ 1,725 (1) Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements and post-contract customer support, or PCS. August 1, January 31, 2021 2021 Other Long-Term Liabilities: (In millions) Income tax payable (1) $ 897 $ 836 Deferred income tax 229 241 Deferred revenue (2) 189 163 Employee benefits 37 33 Licenses payable 33 56 Other 11 46 Total other long-term liabilities $ 1,396 $ 1,375 (1) As of August 1, 2021, income tax payable represents the long-term portion of the one-time transition tax payable of $251 million, unrecognized tax benefits of $435 million, related interest and penalties of $52 million, and other foreign long-term tax payable of $159 million. (2) Deferred revenue primarily includes deferrals related to PCS. Deferred Revenue The following table shows the changes in deferred revenue during the first half of fiscal years 2022 and 2021: August 1, July 26, 2021 2020 (In millions) Balance at beginning of period $ 451 $ 201 Deferred revenue added during the period 401 213 Addition due to business combinations — 75 Revenue recognized during the period (362) (147) Balance at end of period $ 490 $ 342 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 August 1, 2021, the amount of our remaining performance obligations that has not been recognized as revenue was $646 million, of which we expect to recognize approximately 50% 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 | 6 Months Ended |
Aug. 01, 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 August 1, 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 August 1, 2021 and January 31, 2021: August 1, January 31, (In millions) Designated as cash flow hedges $ 902 $ 840 Not designated for hedge accounting $ 423 $ 441 As of August 1, 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 half 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 | 6 Months Ended |
Aug. 01, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-Term Debt In June 2021, we issued $1.25 billion of the 0.309% Notes Due 2023, $1.25 billion of the 0.584% Notes Due 2024, $1.25 billion of the 1.55% Notes Due 2028, and $1.25 billion of the 2.00% Notes Due 2031, or collectively, the June 2021 Notes. Interest on the 0.584% Notes Due 2024 is payable on June 14 and December 14 of each year, beginning on December 14, 2021. Interest on all other series of the June 2021 Notes is payable on June 15 and December 15 of each year, beginning on December 15, 2021. We may redeem the June 2021 Notes for cash prior to maturity, upon at least 10 but no more than 60 days prior notice, at redemption prices that include accrued and unpaid interest and a make-whole premium. However, no make-whole premium will be paid for redemptions of the Notes Due 2023 on or after June 15, 2022, the Notes Due 2024 on or after June 14, 2023, the Notes Due 2028 on or after April 15, 2028, or the Notes Due 2031 on or after March 15, 2031. The net proceeds from the June 2021 Notes were $4.98 billion, after deducting debt discount and issuance costs. 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. On August 16, 2021, we repaid the $1.00 billion of 2.20% Notes Due 2021. The September 2016 Notes, the March 2020 Notes, and the June 2021 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 August 1, 2021 January 31, 2021 (In millions) 2.20% Notes Due 2021 0.1 2.38% $ 1,000 $ 1,000 0.309% Notes Due 2023 1.9 0.41% 1,250 — 0.584% Notes Due 2024 2.9 0.66% 1,250 — 3.20% Notes Due 2026 5.1 3.31% 1,000 1,000 1.55% Notes Due 2028 6.9 1.64% 1,250 — 2.85% Notes Due 2030 8.7 2.93% 1,500 1,500 2.00% Notes Due 2031 9.9 2.09% 1,250 — 3.50% Notes Due 2040 18.7 3.54% 1,000 1,000 3.50% Notes Due 2050 28.7 3.54% 2,000 2,000 3.70% Notes Due 2060 38.7 3.73% 500 500 Unamortized debt discount and issuance costs (57) (37) Net carrying amount 11,943 6,963 Less short-term portion (1,000) (999) Total long-term portion $ 10,943 $ 5,964 As of August 1, 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 August 1, 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 August 1, 2021, we had not issued any commercial paper. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Aug. 01, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations As of August 1, 2021, we had outstanding inventory purchase and long-term supply commitment obligations totaling $4.79 billion, of which $4.59 billion is expected to occur over the next 12 months and the remaining balance over 36 months. Other purchase obligations totaling $565 million are primarily expected to occur over the next 18 months. Accrual for Product Warranty Liabilities The estimated amount of product warranty liabilities was $31 million and $22 million as of August 1, 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 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 August 11, 2021, plaintiffs filed an 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. Accounting for Loss Contingencies As of August 1, 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 | 6 Months Ended |
Aug. 01, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Capital Return Program Beginning August 2004, our Board of Directors authorized us to repurchase our stock. Through August 1, 2021, we have repurchased an aggregate of 1.04 billion 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 August 1, 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 second quarter and first half of fiscal year 2022, we paid $100 million and $198 million in cash dividends to our shareholders, respectively. |
Segment Information
Segment Information | 6 Months Ended |
Aug. 01, 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 August 1, 2021 Revenue $ 3,907 $ 2,600 $ — $ 6,507 Operating income (loss) $ 2,127 $ 1,034 $ (717) $ 2,444 Three Months Ended July 26, 2020 Revenue $ 2,085 $ 1,781 $ — $ 3,866 Operating income (loss) $ 911 $ 691 $ (951) $ 651 Six Months Ended August 1, 2021 Revenue $ 7,358 $ 4,810 $ — $ 12,168 Operating income (loss) $ 3,913 $ 1,895 $ (1,408) $ 4,400 Six Months Ended July 26, 2020 Revenue $ 3,991 $ 2,955 $ — $ 6,946 Operating income (loss) $ 1,747 $ 1,142 $ (1,262) $ 1,627 Three Months Ended Six Months Ended August 1, July 26, August 1, July 26, (In millions) Reconciling items included in "All Other" category: Stock-based compensation expense $ (465) $ (374) $ (894) $ (598) Acquisition-related and other costs (158) (474) (325) (479) Unallocated cost of revenue and operating expenses (90) (86) (180) (168) IP-related costs (4) (17) (9) (17) Total $ (717) $ (951) $ (1,408) $ (1,262) 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 Six Months Ended August 1, July 26, August 1, July 26, 2021 2020 2021 2020 (In millions) Revenue: Taiwan $ 1,961 $ 954 $ 3,745 $ 1,766 China (including Hong Kong) 1,720 855 3,111 1,614 Other Asia Pacific 1,047 698 2,048 1,305 United States 996 944 1,764 1,441 Europe 429 240 810 494 Other countries 354 175 690 326 Total revenue $ 6,507 $ 3,866 $ 12,168 $ 6,946 The following table summarizes information pertaining to our revenue by each of the specialized markets we serve: Three Months Ended Six Months Ended August 1, July 26, August 1, July 26, 2021 2020 2021 2020 (In millions) Revenue: Gaming $ 3,061 $ 1,654 $ 5,821 $ 2,993 Data Center 2,366 1,752 4,414 2,893 Professional Visualization 519 203 891 510 Automotive 152 111 306 266 OEM and Other 409 146 736 284 Total revenue $ 6,507 $ 3,866 $ 12,168 $ 6,946 No customer represented 10% or more of total revenue for the second quarter and first half of fiscal years 2022 or 2021. One customer represented 13% and 16% of our accounts receivable balance as of August 1, 2021 and January 31, 2021, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Aug. 01, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission, or SEC, Regulation S-X. The January 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. 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, or the Stock Split, which was conditioned upon obtaining stockholder approval to increase the number of our authorized shares of common stock from 2 billion to 4 billion. On June 3, 2021, at the 2021 Annual Meeting of Stockholders, our stockholders approved the amendment to our Amended and Restated Certificate of Incorporation to increase the number of authorized shares of common stock to 4 billion. As a result, each stockholder of record at the close of business on June 21, 2021 received a dividend of three additional shares of common stock for every share held on the record date, distributed after the close of trading on July 19, 2021. All share, equity award, and per share amounts and related shareholders' equity balances presented herein have been retroactively adjusted to reflect the Stock Split. |
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 second 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) | 6 Months Ended |
Aug. 01, 2021 | |
Business Combination and Asset Acquisition [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 Six Months Ended July 26, 2020 July 26, 2020 (In millions) Revenue $ 3,866 $ 7,375 Net income $ 964 $ 1,883 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Aug. 01, 2021 | |
Leases [Abstract] | |
Schedule of future minimum lease payments | Future minimum lease payments under our non-cancelable operating leases as of August 1, 2021, are as follows: Operating Lease Obligations (In millions) Fiscal Year: 2022 (excluding first half of fiscal year 2022) $ 81 2023 156 2024 139 2025 119 2026 111 2027 and thereafter 355 Total 961 Less imputed interest 113 Present value of net future minimum lease payments 848 Less short-term operating lease liabilities 132 Long-term operating lease liabilities $ 716 |
Schedule of other information related to leases | Other information related to leases was as follows: Six Months Ended August 1, 2021 July 26, 2020 (In millions) Supplemental cash flows information Operating cash flows used for operating leases $ 75 $ 66 Operating lease assets obtained in exchange for lease obligations $ 164 $ 138 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Aug. 01, 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 Six Months Ended August 1, July 26, August 1, July 26, (In millions) Cost of revenue $ 32 $ 14 $ 57 $ 35 Research and development 297 228 573 362 Sales, general and administrative 136 132 264 201 Total $ 465 $ 374 $ 894 $ 598 |
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 59 $ 66.17 Granted 15 $ 181.65 Vested restricted stock (17) $ 62.20 Canceled and forfeited (1) $ 70.78 Balances, August 1, 2021 56 $ 100.01 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Aug. 01, 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 Six Months Ended August 1, July 26, August 1, July 26, 2021 2020 2021 2020 (In millions, except per share data) Numerator: Net income $ 2,374 $ 622 $ 4,285 $ 1,539 Denominator: Basic weighted average shares 2,493 2,464 2,489 2,460 Dilutive impact of outstanding equity awards 39 40 40 36 Diluted weighted average shares 2,532 2,504 2,529 2,496 Net income per share: Basic (1) $ 0.95 $ 0.25 $ 1.72 $ 0.63 Diluted (2) $ 0.94 $ 0.25 $ 1.69 $ 0.62 Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive 13 — 15 24 (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) | 6 Months Ended |
Aug. 01, 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 August 1, 2021 and January 31, 2021: August 1, 2021 Amortized Unrealized Unrealized Estimated Reported as Cash Equivalents Marketable Securities (In millions) Corporate debt securities $ 8,610 $ 2 $ (1) $ 8,611 $ 1,825 $ 6,786 Debt securities issued by the United States Treasury 5,079 1 — 5,080 1,311 3,769 Debt securities issued by United States government agencies 2,371 1 — 2,372 60 2,312 Money market funds 2,097 — — 2,097 2,097 — Certificates of deposit 962 — — 962 44 918 Foreign government bonds 241 — — 241 — 241 Total $ 19,360 $ 4 $ (1) $ 19,363 $ 5,337 $ 14,026 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 August 1, 2021 and January 31, 2021 are shown below by contractual maturity. August 1, 2021 January 31, 2021 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (In millions) Less than one year $ 17,390 $ 17,391 $ 10,782 $ 10,783 Due in 1 - 5 years 1,970 1,972 566 568 Total $ 19,360 $ 19,363 $ 11,348 $ 11,351 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended |
Aug. 01, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | Fair Value at Pricing Category August 1, 2021 January 31, 2021 (In millions) Assets Cash equivalents and marketable securities: Money market funds Level 1 $ 2,097 $ 313 Corporate debt securities Level 2 $ 8,611 $ 4,444 Debt securities issued by the United States Treasury Level 2 $ 5,080 $ 2,846 Debt securities issued by United States government agencies Level 2 $ 2,372 $ 2,976 Certificates of deposit Level 2 $ 962 $ 705 Foreign government bonds Level 2 $ 241 $ 67 Prepaid expenses and other current assets: Publicly-held equity security (1) Level 1 $ 128 $ — Other assets: Investment in non-affiliated entities (2) Level 3 $ 147 $ 144 Liabilities (3) 2.20% Notes Due 2021 Level 2 $ 1,001 $ 1,011 0.309% Notes Due 2023 Level 2 $ 1,251 $ — 0.584% Notes Due 2024 Level 2 $ 1,254 $ — 3.20% Notes Due 2026 Level 2 $ 1,106 $ 1,124 1.55% Notes Due 2028 Level 2 $ 1,261 $ — 2.85% Notes Due 2030 Level 2 $ 1,640 $ 1,654 2.00% Notes Due 2031 Level 2 $ 1,271 $ — 3.50% Notes Due 2040 Level 2 $ 1,152 $ 1,152 3.50% Notes Due 2050 Level 2 $ 2,320 $ 2,308 3.70% Notes Due 2060 Level 2 $ 603 $ 602 (1) Investment in a publicly-traded equity security subject to short-term selling restrictions. An unrealized loss on the investment of $6 million was recorded in other income (expense), net in the second quarter of fiscal year 2022 and an unrealized gain of $118 million was recorded in other income (expense), net in the first half of fiscal year 2022. (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 August 1, 2021 has not been significant. (3) These liabilities are carried on our Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs, and are not marked to fair value each period. Refer to Note 12 of the Notes to Condensed Consolidated Financial Statements for additional information. |
Amortizable Intangible Assets_2
Amortizable Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Aug. 01, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortizable Intangible Assets Components | The components of our amortizable intangible assets are as follows: August 1, 2021 January 31, 2021 Gross Accumulated Net Carrying Gross Accumulated Net Carrying (In millions) Acquisition-related intangible assets (1) $ 3,277 $ (1,030) $ 2,247 $ 3,280 $ (774) $ 2,506 Patents and licensed technology 709 (478) 231 706 (475) 231 Total intangible assets $ 3,986 $ (1,508) $ 2,478 $ 3,986 $ (1,249) $ 2,737 (1) As of August 1, 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. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Aug. 01, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventories | August 1, January 31, 2021 2021 Inventories: (In millions) Raw materials $ 825 $ 632 Work in-process 553 457 Finished goods 736 737 Total inventories $ 2,114 $ 1,826 |
Prepaid Expenses and Other Current Assets | August 1, January 31, 2021 2021 Prepaid expenses and other current assets: (In millions) Prepaid expenses $ 195 $ 142 Publicly-held equity security 128 — Other 129 97 Total prepaid expenses and other current assets $ 452 $ 239 |
Other Assets | August 1, January 31, 2021 2021 Other assets: (In millions) Advanced consideration for acquisition $ 1,357 $ 1,357 Prepaid royalties 422 440 Investment in non-affiliated entities 147 144 Deposits 77 136 Other 47 67 Total other assets $ 2,050 $ 2,144 |
Accrued and Other Current Liabilities | August 1, January 31, 2021 2021 Accrued and Other Current Liabilities: (In millions) Customer program accruals $ 745 $ 630 Accrued payroll and related expenses 387 297 Deferred revenue (1) 301 288 Operating leases 132 121 Licenses and royalties 102 128 Coupon interest on debt obligations 81 74 Taxes payable 64 61 Product warranty and return provisions 45 39 Professional service fees 32 26 Other 85 61 Total accrued and other current liabilities $ 1,974 $ 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 | August 1, January 31, 2021 2021 Other Long-Term Liabilities: (In millions) Income tax payable (1) $ 897 $ 836 Deferred income tax 229 241 Deferred revenue (2) 189 163 Employee benefits 37 33 Licenses payable 33 56 Other 11 46 Total other long-term liabilities $ 1,396 $ 1,375 (1) As of August 1, 2021, income tax payable represents the long-term portion of the one-time transition tax payable of $251 million, unrecognized tax benefits of $435 million, related interest and penalties of $52 million, and other foreign long-term tax payable of $159 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 half of fiscal years 2022 and 2021: August 1, July 26, 2021 2020 (In millions) Balance at beginning of period $ 451 $ 201 Deferred revenue added during the period 401 213 Addition due to business combinations — 75 Revenue recognized during the period (362) (147) Balance at end of period $ 490 $ 342 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Aug. 01, 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 August 1, 2021 and January 31, 2021: August 1, January 31, (In millions) Designated as cash flow hedges $ 902 $ 840 Not designated for hedge accounting $ 423 $ 441 |
Debt (Table)
Debt (Table) | 6 Months Ended |
Aug. 01, 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 August 1, 2021 January 31, 2021 (In millions) 2.20% Notes Due 2021 0.1 2.38% $ 1,000 $ 1,000 0.309% Notes Due 2023 1.9 0.41% 1,250 — 0.584% Notes Due 2024 2.9 0.66% 1,250 — 3.20% Notes Due 2026 5.1 3.31% 1,000 1,000 1.55% Notes Due 2028 6.9 1.64% 1,250 — 2.85% Notes Due 2030 8.7 2.93% 1,500 1,500 2.00% Notes Due 2031 9.9 2.09% 1,250 — 3.50% Notes Due 2040 18.7 3.54% 1,000 1,000 3.50% Notes Due 2050 28.7 3.54% 2,000 2,000 3.70% Notes Due 2060 38.7 3.73% 500 500 Unamortized debt discount and issuance costs (57) (37) Net carrying amount 11,943 6,963 Less short-term portion (1,000) (999) Total long-term portion $ 10,943 $ 5,964 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Aug. 01, 2021 | |
Segment Reporting [Abstract] | |
Financial Information by Operating Segment | Graphics Compute & Networking All Other Consolidated (In millions) Three Months Ended August 1, 2021 Revenue $ 3,907 $ 2,600 $ — $ 6,507 Operating income (loss) $ 2,127 $ 1,034 $ (717) $ 2,444 Three Months Ended July 26, 2020 Revenue $ 2,085 $ 1,781 $ — $ 3,866 Operating income (loss) $ 911 $ 691 $ (951) $ 651 Six Months Ended August 1, 2021 Revenue $ 7,358 $ 4,810 $ — $ 12,168 Operating income (loss) $ 3,913 $ 1,895 $ (1,408) $ 4,400 Six Months Ended July 26, 2020 Revenue $ 3,991 $ 2,955 $ — $ 6,946 Operating income (loss) $ 1,747 $ 1,142 $ (1,262) $ 1,627 |
Reconciling items included in All Other category | Three Months Ended Six Months Ended August 1, July 26, August 1, July 26, (In millions) Reconciling items included in "All Other" category: Stock-based compensation expense $ (465) $ (374) $ (894) $ (598) Acquisition-related and other costs (158) (474) (325) (479) Unallocated cost of revenue and operating expenses (90) (86) (180) (168) IP-related costs (4) (17) (9) (17) Total $ (717) $ (951) $ (1,408) $ (1,262) |
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 Six Months Ended August 1, July 26, August 1, July 26, 2021 2020 2021 2020 (In millions) Revenue: Taiwan $ 1,961 $ 954 $ 3,745 $ 1,766 China (including Hong Kong) 1,720 855 3,111 1,614 Other Asia Pacific 1,047 698 2,048 1,305 United States 996 944 1,764 1,441 Europe 429 240 810 494 Other countries 354 175 690 326 Total revenue $ 6,507 $ 3,866 $ 12,168 $ 6,946 |
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 Six Months Ended August 1, July 26, August 1, July 26, 2021 2020 2021 2020 (In millions) Revenue: Gaming $ 3,061 $ 1,654 $ 5,821 $ 2,993 Data Center 2,366 1,752 4,414 2,893 Professional Visualization 519 203 891 510 Automotive 152 111 306 266 OEM and Other 409 146 736 284 Total revenue $ 6,507 $ 3,866 $ 12,168 $ 6,946 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | Jun. 21, 2021shares | Jun. 03, 2021shares | May 02, 2021shares |
Accounting Policies [Abstract] | |||
Stock split ratio | 4 | ||
Authorized number of shares of common stock (in shares) | 4,000,000,000 | 2,000,000,000 | |
Number of additional shares issued for each currently outstanding share during stock split (in shares) | 3 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) shares in Millions, $ in Millions | Sep. 13, 2020 | Apr. 27, 2020 | Mar. 31, 2022 | Aug. 01, 2021 | Jul. 26, 2020 | Jul. 28, 2019 | Jan. 31, 2021 |
Business Acquisition [Line Items] | |||||||
Advanced consideration for acquisition | $ 1,357 | $ 1,357 | |||||
Payments to acquire businesses, net of cash acquired | $ 0 | $ 7,171 | |||||
Arm Limited | |||||||
Business Acquisition [Line Items] | |||||||
Total cash consideration | $ 2,000 | ||||||
Restricted stock units issuable | 1,500 | ||||||
Advanced consideration for acquisition | 1,360 | ||||||
Prepaid royalties | 470 | ||||||
Potential refund receivable | 1,250 | ||||||
Arm Limited | Forecast | |||||||
Business Acquisition [Line Items] | |||||||
Merger agreement price | $ 40,000 | ||||||
Total cash consideration | $ 10,000 | ||||||
Business combination, shares issued (in shares) | 177.5 | ||||||
Business combination, shares issuable, value | $ 21,500 | ||||||
Arm Limited | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Earnout payable | $ 5,000 | ||||||
Earnout shares payable (in shares) | 41.3 | ||||||
Arm Limited | Intellectual Property License | |||||||
Business Acquisition [Line Items] | |||||||
Intellectual property license | $ 170 | ||||||
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 | ||||||
Fair value adjustment, inventory | $ 161 |
Business Combination - Pro Form
Business Combination - Pro Forma Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jul. 26, 2020 | Jul. 26, 2020 | |
Business Combination and Asset Acquisition [Abstract] | ||
Revenue | $ 3,866 | $ 7,375 |
Net income | $ 964 | $ 1,883 |
Leases - Schedule of future min
Leases - Schedule of future minimum payments (Details) - USD ($) $ in Millions | Aug. 01, 2021 | Jan. 31, 2021 |
Leases [Abstract] | ||
2022 (excluding first half of fiscal year 2022) | $ 81 | |
2023 | 156 | |
2024 | 139 | |
2025 | 119 | |
2026 | 111 | |
2027 and thereafter | 355 | |
Total | 961 | |
Less imputed interest | 113 | |
Present value of net future minimum lease payments | 848 | |
Less short-term operating lease liabilities | 132 | $ 121 |
Long-term operating lease liabilities | $ 716 | $ 634 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 01, 2021 | Jul. 26, 2020 | Aug. 01, 2021 | Jul. 26, 2020 | Jan. 31, 2021 | |
Leases [Abstract] | |||||
Operating lease expense | $ 42 | $ 35 | $ 81 | $ 67 | |
Weighted average remaining lease term - operating leases | 7 years 7 months 6 days | 7 years 7 months 6 days | 7 years 7 months 6 days | ||
Weighted average discount rate - operating leases | 2.84% | 2.84% | 2.87% |
Leases - Schedule of other leas
Leases - Schedule of other lease information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Aug. 01, 2021 | Jul. 26, 2020 | |
Supplemental cash flows information | ||
Operating cash flows used for operating leases | $ 75 | $ 66 |
Operating lease assets obtained in exchange for lease obligations | $ 164 | $ 138 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2021 | Jul. 26, 2020 | Aug. 01, 2021 | Jul. 26, 2020 | |
Share-based Compensation | ||||
Stock-based compensation expense | $ 465 | $ 374 | $ 894 | $ 598 |
Cost of revenue | ||||
Share-based Compensation | ||||
Stock-based compensation expense | 32 | 14 | 57 | 35 |
Research and development | ||||
Share-based Compensation | ||||
Stock-based compensation expense | 297 | 228 | 573 | 362 |
Sales, general and administrative | ||||
Share-based Compensation | ||||
Stock-based compensation expense | $ 136 | $ 132 | $ 264 | $ 201 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Equity Award Transactions (Details) - RSUs, PSUs, and Market-based PSUs shares in Millions | 6 Months Ended |
Aug. 01, 2021$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 59 |
Granted (in shares) | shares | 15 |
Vested restricted stock (in shares) | shares | (17) |
Canceled and forfeited (in shares) | shares | (1) |
Ending balance (in shares) | shares | 56 |
Weighted Average Grant-Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 66.17 |
Granted (in dollars per share) | $ / shares | 181.65 |
Vested restricted stock (in dollars per share) | $ / shares | 62.20 |
Canceled and forfeited (in dollars per share) | $ / shares | 70.78 |
Ending balance (in dollars per share) | $ / shares | $ 100.01 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 6 Months Ended |
Aug. 01, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate unearned stock-based compensation expense, net of forfeitures | $ 5,350 |
RSUs, PSUs, and Market-based PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average recognition period | 2 years 8 months 12 days |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average recognition period | 1 year |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2021 | Jul. 26, 2020 | Aug. 01, 2021 | Jul. 26, 2020 | |
Numerator: | ||||
Net income | $ 2,374 | $ 622 | $ 4,285 | $ 1,539 |
Denominator: | ||||
Basic weighted average shares (in shares) | 2,493 | 2,464 | 2,489 | 2,460 |
Dilutive impact of outstanding equity awards (in shares) | 39 | 40 | 40 | 36 |
Diluted weighted average shares (in shares) | 2,532 | 2,504 | 2,529 | 2,496 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.95 | $ 0.25 | $ 1.72 | $ 0.63 |
Diluted (in dollars per share) | $ 0.94 | $ 0.25 | $ 1.69 | $ 0.62 |
Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive (in shares) | 13 | 0 | 15 | 24 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2021 | Jul. 26, 2020 | Aug. 01, 2021 | Jul. 26, 2020 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense (benefit) | $ 20 | $ (13) | $ 153 | $ 52 |
Tax expense (benefit) as percentage of income before income tax | 0.90% | (2.00%) | 3.40% | 3.30% |
Discrete income tax benefit, domestication | $ 252 | |||
Israel | ||||
Income Tax Contingency [Line Items] | ||||
Undistributed earnings of foreign subsidiaries | 1,600 | $ 1,600 | ||
United Kingdom | ||||
Income Tax Contingency [Line Items] | ||||
Undistributed earnings of foreign subsidiaries | $ 231 | $ 231 |
Cash Equivalents and Marketab_3
Cash Equivalents and Marketable Securities - Summary of Securities (Details) - USD ($) $ in Millions | Aug. 01, 2021 | Jan. 31, 2021 |
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | $ 19,360 | $ 11,348 |
Unrealized Gain | 4 | 3 |
Unrealized Loss | (1) | 0 |
Estimated Fair Value | 19,363 | 11,351 |
Reported as | ||
Cash Equivalents | 5,337 | 637 |
Marketable Securities | 14,026 | 10,714 |
Corporate debt securities | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 8,610 | 4,442 |
Unrealized Gain | 2 | 2 |
Unrealized Loss | (1) | 0 |
Estimated Fair Value | 8,611 | 4,444 |
Reported as | ||
Cash Equivalents | 1,825 | 234 |
Marketable Securities | 6,786 | 4,210 |
Debt securities issued by the United States Treasury | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 5,079 | 2,846 |
Unrealized Gain | 1 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 5,080 | 2,846 |
Reported as | ||
Cash Equivalents | 1,311 | 25 |
Marketable Securities | 3,769 | 2,821 |
Debt securities issued by United States government agencies | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 2,371 | 2,975 |
Unrealized Gain | 1 | 1 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 2,372 | 2,976 |
Reported as | ||
Cash Equivalents | 60 | 28 |
Marketable Securities | 2,312 | 2,948 |
Money market funds | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 2,097 | 313 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 2,097 | 313 |
Reported as | ||
Cash Equivalents | 2,097 | 313 |
Marketable Securities | 0 | 0 |
Certificates of deposit | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 962 | 705 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 962 | 705 |
Reported as | ||
Cash Equivalents | 44 | 37 |
Marketable Securities | 918 | 668 |
Foreign government bonds | ||
Summary of cash equivalents and marketable securities: | ||
Amortized Cost | 241 | 67 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 241 | 67 |
Reported as | ||
Cash Equivalents | 0 | 0 |
Marketable Securities | $ 241 | $ 67 |
Cash Equivalents and Marketab_4
Cash Equivalents and Marketable Securities - Contractual Maturity (Details) - USD ($) $ in Millions | Aug. 01, 2021 | Jan. 31, 2021 |
Amortized Cost | ||
Less than one year | $ 17,390 | $ 10,782 |
Due in 1 - 5 years | 1,970 | 566 |
Amortized Cost | 19,360 | 11,348 |
Estimated Fair Value | ||
Less than one year | 17,391 | 10,783 |
Due in 1 - 5 years | 1,972 | 568 |
Estimated Fair Value | $ 19,363 | $ 11,351 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Aug. 01, 2021 | Aug. 01, 2021 | Jun. 30, 2021 | Jan. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2016 | |
Cash equivalents and marketable securities: | ||||||
Cash equivalents and marketable securities | $ 19,363 | $ 19,363 | $ 11,351 | |||
Prepaid expenses and other current assets: | ||||||
Publicly-held equity security | 128 | 128 | 0 | |||
Other assets: | ||||||
Investment in non-affiliated entities | 147 | 147 | 144 | |||
Liabilities (3) | ||||||
Unrealized loss recognized during the period | $ 6 | |||||
Unrealized gain recognized during the period | $ 118 | |||||
2.20% Notes Due 2021 | ||||||
Liabilities (3) | ||||||
Stated interest rate | 2.20% | 2.20% | 2.20% | |||
0.309% Notes Due 2023 | ||||||
Liabilities (3) | ||||||
Stated interest rate | 0.309% | 0.309% | 0.309% | |||
0.584% Notes Due 2024 | ||||||
Liabilities (3) | ||||||
Stated interest rate | 0.584% | 0.584% | 0.584% | |||
3.20% Notes Due 2026 | ||||||
Liabilities (3) | ||||||
Stated interest rate | 3.20% | 3.20% | 3.20% | |||
1.55% Notes Due 2028 | ||||||
Liabilities (3) | ||||||
Stated interest rate | 1.55% | 1.55% | 1.55% | |||
2.85% Notes Due 2030 | ||||||
Liabilities (3) | ||||||
Stated interest rate | 2.85% | 2.85% | 2.85% | |||
2.00% Notes Due 2031 | ||||||
Liabilities (3) | ||||||
Stated interest rate | 2.00% | 2.00% | 2.00% | |||
3.50% Notes Due 2040 | ||||||
Liabilities (3) | ||||||
Stated interest rate | 3.50% | 3.50% | 3.50% | |||
3.50% Notes Due 2050 | ||||||
Liabilities (3) | ||||||
Stated interest rate | 3.50% | 3.50% | 3.50% | |||
3.70% Notes Due 2060 | ||||||
Liabilities (3) | ||||||
Stated interest rate | 3.70% | 3.70% | 3.70% | |||
Money market funds | ||||||
Cash equivalents and marketable securities: | ||||||
Cash equivalents and marketable securities | $ 2,097 | $ 2,097 | 313 | |||
Corporate debt securities | ||||||
Cash equivalents and marketable securities: | ||||||
Cash equivalents and marketable securities | 8,611 | 8,611 | 4,444 | |||
Debt securities issued by the United States Treasury | ||||||
Cash equivalents and marketable securities: | ||||||
Cash equivalents and marketable securities | 5,080 | 5,080 | 2,846 | |||
Debt securities issued by United States government agencies | ||||||
Cash equivalents and marketable securities: | ||||||
Cash equivalents and marketable securities | 2,372 | 2,372 | 2,976 | |||
Certificates of deposit | ||||||
Cash equivalents and marketable securities: | ||||||
Cash equivalents and marketable securities | 962 | 962 | 705 | |||
Foreign government bonds | ||||||
Cash equivalents and marketable securities: | ||||||
Cash equivalents and marketable securities | 241 | 241 | 67 | |||
Level 1 | ||||||
Prepaid expenses and other current assets: | ||||||
Publicly-held equity security | 128 | 128 | 0 | |||
Level 1 | Money market funds | ||||||
Cash equivalents and marketable securities: | ||||||
Cash equivalents and marketable securities | 2,097 | 2,097 | 313 | |||
Level 2 | 2.20% Notes Due 2021 | ||||||
Liabilities (3) | ||||||
Notes | 1,001 | 1,001 | 1,011 | |||
Level 2 | 0.309% Notes Due 2023 | ||||||
Liabilities (3) | ||||||
Notes | 1,251 | 1,251 | 0 | |||
Level 2 | 0.584% Notes Due 2024 | ||||||
Liabilities (3) | ||||||
Notes | 1,254 | 1,254 | 0 | |||
Level 2 | 3.20% Notes Due 2026 | ||||||
Liabilities (3) | ||||||
Notes | 1,106 | 1,106 | 1,124 | |||
Level 2 | 1.55% Notes Due 2028 | ||||||
Liabilities (3) | ||||||
Notes | 1,261 | 1,261 | 0 | |||
Level 2 | 2.85% Notes Due 2030 | ||||||
Liabilities (3) | ||||||
Notes | 1,640 | 1,640 | 1,654 | |||
Level 2 | 2.00% Notes Due 2031 | ||||||
Liabilities (3) | ||||||
Notes | 1,271 | 1,271 | 0 | |||
Level 2 | 3.50% Notes Due 2040 | ||||||
Liabilities (3) | ||||||
Notes | 1,152 | 1,152 | 1,152 | |||
Level 2 | 3.50% Notes Due 2050 | ||||||
Liabilities (3) | ||||||
Notes | 2,320 | 2,320 | 2,308 | |||
Level 2 | 3.70% Notes Due 2060 | ||||||
Liabilities (3) | ||||||
Notes | 603 | 603 | 602 | |||
Level 2 | Corporate debt securities | ||||||
Cash equivalents and marketable securities: | ||||||
Cash equivalents and marketable securities | 8,611 | 8,611 | 4,444 | |||
Level 2 | Debt securities issued by the United States Treasury | ||||||
Cash equivalents and marketable securities: | ||||||
Cash equivalents and marketable securities | 5,080 | 5,080 | 2,846 | |||
Level 2 | Debt securities issued by United States government agencies | ||||||
Cash equivalents and marketable securities: | ||||||
Cash equivalents and marketable securities | 2,372 | 2,372 | 2,976 | |||
Level 2 | Certificates of deposit | ||||||
Cash equivalents and marketable securities: | ||||||
Cash equivalents and marketable securities | 962 | 962 | 705 | |||
Level 2 | Foreign government bonds | ||||||
Cash equivalents and marketable securities: | ||||||
Cash equivalents and marketable securities | 241 | 241 | 67 | |||
Level 3 | ||||||
Other assets: | ||||||
Investment in non-affiliated entities | $ 147 | $ 147 | $ 144 |
Amortizable Intangible Assets_3
Amortizable Intangible Assets and Goodwill (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Aug. 01, 2021 | Jul. 26, 2020 | Aug. 01, 2021 | Jul. 26, 2020 | Jan. 31, 2021 | |
Amortizable intangible assets components | |||||
Gross Carrying Amount | $ 3,986,000,000 | $ 3,986,000,000 | $ 3,986,000,000 | ||
Accumulated Amortization | (1,508,000,000) | (1,508,000,000) | (1,249,000,000) | ||
Net Carrying Amount | 2,478,000,000 | 2,478,000,000 | 2,737,000,000 | ||
Amortization expense | 138,000,000 | $ 284,000,000 | 275,000,000 | $ 291,000,000 | |
Changes to carrying amount of goodwill | 0 | 0 | |||
Future amortization expense associated with intangible assets | |||||
Expected amortization expense, remainder of fiscal year | 275,000,000 | 275,000,000 | |||
Expected amortization expense, year one | 547,000,000 | 547,000,000 | |||
Expected amortization expense, year two | 424,000,000 | 424,000,000 | |||
Expected amortization expense, year three | 371,000,000 | 371,000,000 | |||
Expected amortization expense, year four | 99,000,000 | 99,000,000 | |||
Expected amortization expense, year five and thereafter | 132,000,000 | 132,000,000 | |||
Acquisition-related intangible assets | |||||
Amortizable intangible assets components | |||||
Gross Carrying Amount | 3,277,000,000 | 3,277,000,000 | 3,280,000,000 | ||
Accumulated Amortization | (1,030,000,000) | (1,030,000,000) | (774,000,000) | ||
Net Carrying Amount | 2,247,000,000 | 2,247,000,000 | 2,506,000,000 | ||
Patents and licensed technology | |||||
Amortizable intangible assets components | |||||
Gross Carrying Amount | 709,000,000 | 709,000,000 | 706,000,000 | ||
Accumulated Amortization | (478,000,000) | (478,000,000) | (475,000,000) | ||
Net Carrying Amount | 231,000,000 | 231,000,000 | $ 231,000,000 | ||
Mellanox Technologies, Ltd | |||||
Amortizable intangible assets components | |||||
IPR&D | $ 630,000,000 | $ 630,000,000 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventory (Details) - USD ($) $ in Millions | Aug. 01, 2021 | Jan. 31, 2021 |
Inventories: | ||
Raw materials | $ 825 | $ 632 |
Work in-process | 553 | 457 |
Finished goods | 736 | 737 |
Total inventories | $ 2,114 | $ 1,826 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Aug. 01, 2021 | Jan. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 195 | $ 142 |
Publicly-held equity security | 128 | 0 |
Other | 129 | 97 |
Total prepaid expenses and other current assets | $ 452 | $ 239 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Assets (Details) - USD ($) $ in Millions | Aug. 01, 2021 | Jan. 31, 2021 |
Other assets: | ||
Advanced consideration for acquisition | $ 1,357 | $ 1,357 |
Prepaid royalties | 422 | 440 |
Investment in non-affiliated entities | 147 | 144 |
Deposits | 77 | 136 |
Other | 47 | 67 |
Total other assets | $ 2,050 | $ 2,144 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | Aug. 01, 2021 | Jan. 31, 2021 |
Accrued and Other Current Liabilities: | ||
Customer program accruals | $ 745 | $ 630 |
Accrued payroll and related expenses | 387 | 297 |
Deferred revenue | 301 | 288 |
Operating leases | 132 | 121 |
Licenses and royalties | 102 | 128 |
Coupon interest on debt obligations | 81 | 74 |
Taxes payable | 64 | 61 |
Product warranty and return provisions | 45 | 39 |
Professional service fees | 32 | 26 |
Other | 85 | 61 |
Total accrued and other current liabilities | $ 1,974 | $ 1,725 |
Balance Sheet Components - Ot_2
Balance Sheet Components - Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Aug. 01, 2021 | Jan. 31, 2021 |
Other Long-Term Liabilities: | ||
Income taxes payable | $ 897 | $ 836 |
Deferred income tax | 229 | 241 |
Deferred revenue | 189 | 163 |
Employee benefits | 37 | 33 |
Licenses payable | 33 | 56 |
Other | 11 | 46 |
Total other long-term liabilities | 1,396 | $ 1,375 |
One time transition tax payable, noncurrent | 251 | |
Unrecognized tax benefits | 435 | |
Interest and penalties related to unrecognized tax benefits | 52 | |
Foreign long-term tax payable | $ 159 |
Balance Sheet Components - Chan
Balance Sheet Components - Change in Deferred Revenue (Details) - USD ($) $ in Millions | 6 Months Ended | |
Aug. 01, 2021 | Jul. 26, 2020 | |
Change in Deferred Revenue | ||
Balance at beginning of period | $ 451 | $ 201 |
Deferred revenue added during the period | 401 | 213 |
Addition due to business combinations | 0 | 75 |
Revenue recognized during the period | (362) | (147) |
Balance at end of period | $ 490 | $ 342 |
Balance Sheet Components - Reve
Balance Sheet Components - Revenue Remaining Performance Obligation (Details) $ in Millions | Aug. 01, 2021USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue, remaining performance obligation | $ 646 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-08-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation (as a percent) | 50.00% |
Revenue, remaining performance obligation, expected timing of satisfaction | 12 months |
Derivative Financial Instrume_3
Derivative Financial Instruments - Notional Values (Details) - USD ($) $ in Millions | Aug. 01, 2021 | Jan. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Designated as cash flow hedges | $ 902 | $ 840 |
Not designated for hedge accounting | $ 423 | $ 441 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) | 6 Months Ended |
Aug. 01, 2021 | |
Foreign currency forward contracts | |
Derivative [Line Items] | |
Derivative, maturity period | 18 months |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Aug. 16, 2021 | Jun. 30, 2021 | Aug. 01, 2021 | Jul. 26, 2020 | Mar. 31, 2020 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||||||
Issuance of debt, net of issuance costs | $ 4,985,000,000 | $ 4,971,000,000 | ||||
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 | |||||
Notes Issued June 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Issuance of debt, net of issuance costs | $ 4,980,000,000 | |||||
Notes Issued June 2021 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt redemption, notice period | 10 days | |||||
Notes Issued June 2021 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt redemption, notice period | 60 days | |||||
0.309% Notes Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 1,250,000,000 | |||||
Stated interest rate | 0.309% | 0.309% | ||||
0.584% Notes Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 1,250,000,000 | |||||
Stated interest rate | 0.584% | 0.584% | ||||
1.55% Notes Due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 1,250,000,000 | |||||
Stated interest rate | 1.55% | 1.55% | ||||
2.00% Notes Due 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 1,250,000,000 | |||||
Stated interest rate | 2.00% | 2.00% | ||||
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% | ||||
2.20% Notes Due 2021 | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 2.20% | |||||
Repayments of debt | $ 1,000,000,000 | |||||
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 | 6 Months Ended | ||||
Aug. 01, 2021 | Jun. 30, 2021 | Jan. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | |||||
Unamortized debt discount and issuance costs | $ (57) | $ (37) | |||
Net carrying amount | 11,943 | 6,963 | |||
Less short-term portion | (1,000) | (999) | |||
Long-term debt | $ 10,943 | 5,964 | |||
2.20% Notes Due 2021 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 2.20% | 2.20% | |||
Expected Remaining Term (years) | 1 month 6 days | ||||
Effective Interest Rate | 2.38% | ||||
Long-term debt, gross | $ 1,000 | 1,000 | |||
0.309% Notes Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 0.309% | 0.309% | |||
Expected Remaining Term (years) | 1 year 10 months 24 days | ||||
Effective Interest Rate | 0.41% | ||||
Long-term debt, gross | $ 1,250 | 0 | |||
0.584% Notes Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 0.584% | 0.584% | |||
Expected Remaining Term (years) | 2 years 10 months 24 days | ||||
Effective Interest Rate | 0.66% | ||||
Long-term debt, gross | $ 1,250 | 0 | |||
3.20% Notes Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 3.20% | 3.20% | |||
Expected Remaining Term (years) | 5 years 1 month 6 days | ||||
Effective Interest Rate | 3.31% | ||||
Long-term debt, gross | $ 1,000 | 1,000 | |||
1.55% Notes Due 2028 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 1.55% | 1.55% | |||
Expected Remaining Term (years) | 6 years 10 months 24 days | ||||
Effective Interest Rate | 1.64% | ||||
Long-term debt, gross | $ 1,250 | 0 | |||
2.85% Notes Due 2030 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 2.85% | 2.85% | |||
Expected Remaining Term (years) | 8 years 8 months 12 days | ||||
Effective Interest Rate | 2.93% | ||||
Long-term debt, gross | $ 1,500 | 1,500 | |||
2.00% Notes Due 2031 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 2.00% | 2.00% | |||
Expected Remaining Term (years) | 9 years 10 months 24 days | ||||
Effective Interest Rate | 2.09% | ||||
Long-term debt, gross | $ 1,250 | 0 | |||
3.50% Notes Due 2040 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 3.50% | 3.50% | |||
Expected Remaining Term (years) | 18 years 8 months 12 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 8 months 12 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 8 months 12 days | ||||
Effective Interest Rate | 3.73% | ||||
Long-term debt, gross | $ 500 | $ 500 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 6 Months Ended | |
Aug. 01, 2021 | Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding inventory purchase obligations | $ 4,790 | |
Outstanding inventory purchase obligations, due within 12 months | $ 4,590 | |
Outstanding inventory purchase obligations, expected term | 36 months | |
Outstanding other purchase obligations | $ 565 | |
Outstanding other purchase obligations, expected term | 18 months | |
Warranty accrual | $ 31 | $ 22 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |
Aug. 01, 2021 | Aug. 01, 2021 | Jul. 26, 2020 | |
Equity [Abstract] | |||
Aggregated number of shares repurchased under stock repurchase program (in shares) | 1,040 | 1,040 | |
Aggregated cost of shares repurchased | $ 7,080 | $ 7,080 | |
Remaining authorized repurchase amount | 7,240 | 7,240 | |
Dividends paid | $ 100 | $ 198 | $ 197 |
Segment Information - Summary o
Segment Information - Summary of Segments (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2021USD ($) | Jul. 26, 2020USD ($) | Aug. 01, 2021USD ($)segment | Jul. 26, 2020USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 6,507 | $ 3,866 | $ 12,168 | $ 6,946 |
Operating income (loss) | 2,444 | 651 | 4,400 | 1,627 |
Gaming | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,061 | 1,654 | 5,821 | 2,993 |
Data Center | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,366 | 1,752 | 4,414 | 2,893 |
Professional Visualization | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 519 | 203 | 891 | 510 |
Automotive | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 152 | 111 | 306 | 266 |
OEM and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 409 | 146 | 736 | 284 |
Taiwan | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,961 | 954 | 3,745 | 1,766 |
China (including Hong Kong) | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,720 | 855 | 3,111 | 1,614 |
Other Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,047 | 698 | 2,048 | 1,305 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 996 | 944 | 1,764 | 1,441 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 429 | 240 | 810 | 494 |
Other countries | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 354 | 175 | 690 | 326 |
Operating Segments | Graphics | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,907 | 2,085 | 7,358 | 3,991 |
Operating income (loss) | 2,127 | 911 | 3,913 | 1,747 |
Operating Segments | Compute & Networking | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,600 | 1,781 | 4,810 | 2,955 |
Operating income (loss) | 1,034 | 691 | 1,895 | 1,142 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating income (loss) | $ (717) | $ (951) | $ (1,408) | $ (1,262) |
Segment Information - Reconcili
Segment Information - Reconciling Items (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2021 | Jul. 26, 2020 | Aug. 01, 2021 | Jul. 26, 2020 | |
Segment Reporting Information [Line Items] | ||||
Stock-based compensation expense | $ (465) | $ (374) | $ (894) | $ (598) |
Income from operations | 2,444 | 651 | 4,400 | 1,627 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation expense | (465) | (374) | (894) | (598) |
Acquisition-related and other costs | (158) | (474) | (325) | (479) |
Unallocated cost of revenue and operating expenses | (90) | (86) | (180) | (168) |
IP-related costs | (4) | (17) | (9) | (17) |
Income from operations | $ (717) | $ (951) | $ (1,408) | $ (1,262) |
Segment Information - Concentra
Segment Information - Concentration Risk (Details) | 6 Months Ended | 12 Months Ended |
Aug. 01, 2021 | Jan. 31, 2021 | |
Accounts Receivable | Customer Concentration Risk | Significant Customer | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk (as percent) | 13.00% | 16.00% |