1000 - CONDENSED CONSOLIDATED S
1000 - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | ||||
In Thousands, except Per Share data | 3 Months Ended
Jul. 26, 2009 | 3 Months Ended
Jul. 27, 2008 | 6 Months Ended
Jul. 26, 2009 | 6 Months Ended
Jul. 27, 2008 |
Revenue | $776,520 | $892,676 | $1,440,751 | $2,046,064 |
Cost of revenue | 619,797 | 742,759 | 1,094,332 | 1,381,304 |
Gross profit | 156,723 | 149,917 | 346,419 | 664,760 |
Operating expenses | ||||
Research and development | 192,855 | 212,910 | 494,652 | 431,740 |
Sales, general and administrative | 73,975 | 92,399 | 192,839 | 185,433 |
Total operating expenses | 266,830 | 305,309 | 687,491 | 617,173 |
Income (loss) from operations | (110,107) | (155,392) | (341,072) | 47,587 |
Interest income | 5,779 | 12,081 | 11,903 | 26,404 |
Other income (expense), net | (2,773) | (3,289) | (2,753) | (7,573) |
Income (loss) before income tax expense (benefit) | (107,101) | (146,600) | (331,922) | 66,418 |
Income tax expense (benefit) | (1,799) | (25,671) | (25,282) | 10,542 |
Net income (loss) | ($105,302) | ($120,929) | ($306,640) | $55,876 |
Basic net income (loss) per share | -0.19 | -0.22 | -0.56 | 0.1 |
Shares used in basic per share computation | 546,639 | 555,417 | 544,463 | 555,531 |
Diluted net income (loss) per share | -0.19 | -0.22 | -0.56 | 0.09 |
Shares used in diluted per share computation | 546,639 | 555,417 | 544,463 | 592,181 |
2000 - CONDENSED CONSOLIDATED B
2000 - CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Thousands | Jul. 26, 2009
| Jan. 25, 2009
|
Current assets: | ||
Cash and cash equivalents | $523,785 | $417,688 |
Marketable securities | 942,320 | 837,702 |
Accounts receivable, net | 351,960 | 318,435 |
Inventories | 279,216 | 537,834 |
Prepaid expenses and other | 50,548 | 39,794 |
Deferred income taxes | 20,076 | 16,505 |
Total current assets | 2,167,905 | 2,167,958 |
Property and equipment, net | 582,914 | 625,798 |
Goodwill | 369,844 | 369,844 |
Intangible assets, net | 135,678 | 147,101 |
Deposits and other assets | 42,068 | 40,026 |
Total assets | 3,298,409 | 3,350,727 |
Current liabilities: | ||
Accounts payable | 275,978 | 218,864 |
Accrued liabilities and other | 615,343 | 559,727 |
Total current liabilities | 891,321 | 778,591 |
Other long-term liabilities | 134,619 | 151,850 |
Capital lease obligations, long term | 25,060 | 25,634 |
Stockholders' equity | ||
Preferred stock | 0 | 0 |
Common stock | 638 | 629 |
Additional paid-in capital | 2,043,840 | 1,889,257 |
Treasury stock, at cost | (1,463,268) | (1,463,268) |
Accumulated other comprehensive income | 8,670 | 3,865 |
Retained earnings | 1,657,529 | 1,964,169 |
Total stockholders' equity | 2,247,409 | 2,394,652 |
Total liabilities and stockholders' equity | $3,298,409 | $3,350,727 |
3000 - CONDENSED CONSOLIDATED S
3000 - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | ||
In Thousands | 6 Months Ended
Jul. 26, 2009 | 6 Months Ended
Jul. 27, 2008 |
Cash flows from operating activities: | ||
Net income (loss) | ($306,640) | $55,876 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Stock-based compensation expense related to stock option purchase | 135,735 | 0 |
Depreciation and amortization | 99,980 | 87,664 |
Stock based compensation expense | 59,489 | 81,423 |
Other | 2,453 | 3,145 |
Deferred income taxes | (28,031) | 5,547 |
Payments under patent licensing arrangement | (616) | (26,680) |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | (33,758) | (12,373) |
Inventories | 256,564 | (73,139) |
Prepaid expenses and other current assets | (14,325) | 9,136 |
Deposits and other assets | (2,824) | (491) |
Accounts payable | 56,486 | (87,730) |
Accrued liabilities and other long-term liabilities | 52,732 | 183,824 |
Net cash provided by operating activities | 277,245 | 226,202 |
Cash flows from investing activities: | ||
Purchases of marketable securities | (530,110) | (678,704) |
Proceeds from sales and maturities of marketable securities | 427,699 | 810,508 |
Purchases of property and equipment and intangible assets | (38,433) | (255,687) |
Acquisition of businesses, net of cash and cash equivalents | 0 | (27,948) |
Other | 782 | 1,718 |
Net cash used in investing activities | (140,062) | (150,113) |
Cash flows from financing activities: | ||
Payments related to stock option purchase | (78,075) | 0 |
Proceeds from issuance of common stock under employee stock plans | 47,092 | 39,981 |
Payments related to repurchases of common stock | 0 | (123,896) |
Payments under capital lease obligations | (103) | 0 |
Net cash used in financing activities | (31,086) | (83,915) |
Change in cash and cash equivalents | 106,097 | (7,826) |
Cash and cash equivalents at beginning of period | 417,688 | 726,969 |
Cash and cash equivalents at end of period | 523,785 | 719,143 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes, net | 1,693 | 4,459 |
Cash paid for interest on capital lease obligations | 1,643 | 0 |
Other non-cash activities: | ||
Assets acquired by assuming related liabilities | 6,288 | 68,408 |
Unrealized gains (losses) from marketable securities | $4,805 | ($11,252) |
6000 - Summary of Significant A
6000 - Summary of Significant Accounting Policies | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1 - 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 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. In the opinion of management, all adjustments, consisting only of normal recurring adjustments except as otherwise noted, considered necessary for a fair statement of results of operations and financial position have been included. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January25, 2009. Fiscal year We operate on a 52 or 53-week year, ending on the last Sunday in January. Fiscal year 2010 is a 53-week year,compared to fiscal year 2009 which was a 52-week year. The second quarter of fiscal years 2010 and 2009 are 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 its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an on-going basis, we evaluate our estimates, including those related to revenue recognition, cash equivalents and marketable securities, accounts receivable, inventories, income taxes, goodwill, stock-based compensation, warranty liabilities, litigation, investigation and settlement costs and other contingencies. These estimates are based on historical facts and various other assumptions that we believe are reasonable. Subsequent Events We have evaluated subsequent events through the time of filing this quarterly report on Form 10-Q on August20, 2009. Revenue Recognition Product Revenue We recognize revenue from product sales when persuasive evidence of an arrangement exists, the product has been delivered, the price is fixed or determinable, and collection is reasonably assured. For most sales, we use a binding purchase order and in certain cases we use a contractual agreement as evidence of an arrangement. We consider delivery to occur upon shipment provided title and risk of loss have passed to the customer based on the shipping terms. At the point of sale, we ass |
6010 - Net Income
6010 - Net Income (Loss) Per Share | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
Net Income (Loss) Per Share | |
Net Income (Loss) Per Share | Note 2 Net Income (Loss) Per Share Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period, using the treasury stock method. Under the treasury stock method, the effect of stock options outstanding is not included in the computation of diluted net income per share for periods when their effect is anti-dilutive. The following is a reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share computations for the periods presented: Three Months Ended Six Months Ended July26, 2009 July27, 2008 July26, 2009 July27, 2008 (In thousands, except per share data) Numerator: Net income (loss) $ (105,302 ) $ (120,929 ) $ (306,640 ) $ 55,876 Denominator: Denominator for basic net income per share, weighted average shares 546,639 555,417 544,463 555,531 Effect of dilutive securities : Stock options outstanding - - - 36,650 Denominator for diluted net income (loss) per share, weighted average shares 546,639 555,417 544,463 592,181 Net income per share: Basic net income (loss) per share $ (0.19 ) $ (0.22 ) $ (0.56 ) $ 0.10 Diluted net income (loss) per share $ (0.19 ) $ (0.22 ) $ (0.56 ) $ 0.09 All of our outstanding stock options and restricted stock units were anti-dilutive during the three and six months ended July 26, 2009 and excluded from the computation of diluted earnings per share due to the net loss for the three and six months ended July 26, 2009. All of our outstanding stock options were anti-dilutive during the three months ended July 27, 2008 and excluded from the computation of diluted earnings per share due to the net loss for the three months ended July 27, 2008.Diluted net income per share does not include the effect of anti-dilutive common equivalent shares from stock options outstanding of 33.1 million for the six months ended July 27, 2008. |
6020 - Stock Option Purchase
6020 - Stock Option Purchase | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
Stock Option Purchase | |
Stock Option Purchase | Note 3 Stock Option Purchase In March 2009, we completed a cash tender offer for certain employee stock options. The tender offer applied to outstanding stock options held by employees with an exercise price equal to or greater than $17.50 per share. None of the non-employee members of our Board of Directors or our officers who file reports under Section16(a) of the Securities Exchange Act of 1934 were eligible to participate in the tender offer.All eligible options with exercise prices equal to or greater than $17.50 per share but less than $28.00 per share were eligible to receive a cash payment of $3.00 per option in exchange for the cancellation of the eligible option. All eligible options with exercise prices equal to or greater than $28.00 per share were eligible to receive a cash payment of $2.00 per option in exchange for the cancellation of the eligible option. Our condensed consolidated statement of operations for the six months ended July 26, 2009 includes stock-based compensation charges related to the stock option purchase (in thousands): Cost of revenue $ 11,412 Research and development 90,456 Sales, general and administrative 38,373 Total $ 140,241 A total of 28.5 million options were tendered under the offer for an aggregate cash purchase price of $78.1 million, which was paid in exchange for the cancellation of the eligible options.As a result of the tender offer, we incurred a charge of $140.2 million consisting of $124.1 million related to the remaining unamortized stock based compensation expense associated with the unvested portion of the options tendered in the offer, $11.6 million related to stock-based compensation expense resulting from amounts paid in excess of the fair value of the underlying options, plus $4.5 million related to associated payroll taxes, professional fees and other costs. |
6030 - Stock Based Compensation
6030 - Stock Based Compensation | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 4 - Stock-Based Compensation We measure stock-based compensation expense at the grant date of the related equity awards, based on the fair value of the awards, and recognize the expense using the straight-line attribution method over the requisite employee service period. We estimate the fair value of employee stock options on the date of grant using a binomial model and we use the closing trading price of our common stock on the date of grant as the fair value of awards of restricted stock units, or RSUs. We calculate the fair value of our employee stock purchase plan using the Black-Scholes model. Equity Incentive Plans We consider equity compensation to be long-term compensation and an integral component of our efforts to attract and retain exceptional executives, senior management and world-class employees. In March 2009, we introduced RSUs as a form of equity compensation to all employees. Currently, we grant stock options and RSUs under our equity incentive plans.The description of the key features of the NVIDIA Corporation 2007 Equity Incentive Plan, or the 2007 Plan, PortalPlayer, Inc. 1999 Stock Option Plan, or 1999 Plan, and 1998 Employee Stock Purchase Plan, may be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended January25, 2009. Options granted to new employees that started before the beginning of fiscal year 2010 generally vest ratably quarterly over a three-year period. In addition, options granted prior to the beginning of fiscal year 2010 to existing employees in recognition of performance generally vest as to 25% of the shares two years and three months after the date of grant and as to the remaining 75% of the shares subject to the option in equal quarterly installments over a nine month period.Beginning in fiscal year 2010, options granted to new employees and to existing employees in recognition of performance generally vest as to 33.36% of the shares one year after the date of grant and as to the remaining 66.64% of the shares subject to the option in equal quarterly installments over the remaining period.Options granted under the 2007 Plan generally expire six years from the date of grant. In general, RSUs are subject to the recipients continuing service to NVIDIA. RSUs vest over three years at the rate of 33.36% on pre-determined dates that are close to the anniversary of the grant date and vest ratably on a semi-annual basis thereafter. In addition to the stock-based compensation expense related to our cash tender offer to purchase certain employee stock options as described in Note 3 Stock Option Purchase, our condensed consolidated statementsof operations include stock-based compensation expense,net of amounts capitalized as inventory, as follows: ThreeMonthsEnded Six Months Ended July26, 2009 July27, 2008 July26, 2009 July27, 2008 Cost of revenue $ 4,828 $ 3,333 $ 7,058 $ 6,469 Research and development $ 13,268 $ 24,226 $ 34,538 $ 48,760 Sales, general a |
6040 - Income Taxes
6040 - Income Taxes | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
Income Taxes | |
Income Taxes | Note 5 Income Taxes We recognized income tax expense (benefit) of ($1.8) million and ($25.7) million for the three months ended July 26, 2009 and July 27, 2008, respectively, and ($25.3) million and $10.5 million for the six months ended July 26, 2009 and July 27, 2008, respectively.Income tax expense (benefit) as a percentage of income before taxes, or our effective tax rate, was (1.7%) and (17.5%) for the three months ended July 26, 2009 and July 27, 2008, respectively, and (7.6%) and 15.9% for the six months ended July 26, 2009 and July 27, 2008, respectively. The expected tax benefit derived from our loss before tax for the first six months of fiscal year 2010 at the United States federal statutory tax rate of 35% differs from our actual effective tax rate of (7.6%) due primarily to permanent tax differences related to stock-based compensation and losses recognized in tax jurisdictions where no tax benefit has been recognized, partially offset by the U.S. tax benefit of the federal research tax credit.Further, our annual projected effective tax rate of (3.9%) differs from our actual effective tax rate of (7.6%) primarily due to a one-time discrete item related to our stock option purchase completed in March 2009. Our effective tax rate on income before tax for the first half of fiscal year 2009 is lower than the United States federal statutory rate of 35% due primarily to income earned in jurisdictions where that tax rate is lower than the United States federal statutory tax rate. For the six months ended July 26, 2009, there have been no material changes to our tax years that remain subject to examination by major tax jurisdictions.Additionally, there have been no material changes to our unrecognized tax benefits and any related interest or penalties from our fiscal year ended January 25, 2009. While we believe that we have adequately provided for all uncertain tax positions, amounts asserted by tax authorities could be greater or less than our accrued position. Accordingly, our provisions on federal, state and foreign tax related matters to be recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved with the respective tax authorities. As of July 26, 2009, we do not believe that our estimates, as otherwise provided for, on such tax positions will significantly increase or decrease within the next twelve months. |
6050 - Marketable Securities
6050 - Marketable Securities | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
Marketable Securities | |
Marketable Securities | Note 6 - Marketable Securities All of the cash equivalents and marketable securities are classified as available-for-sale securities. Investments in both fixed rate instruments and floating rate interest earning instruments carry a degree of interest rate risk. Fixed rate debt securities may have their market value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall. Due in part to these factors, our future investment income may fall short of expectations due to changes in interest rates or if the decline in fair value of our publicly traded debt or equity investments is judged to be other-than-temporary. We may suffer losses in principal if we are forced to sell securities that decline in market value due to changes in interest rates. However, because any debt securities we hold are classified as available-for-sale, no gains or losses are realized in our statement of operations due to changes in interest rates unless such securities are sold prior to maturity or unless declines in market values are determined to be other-than-temporary.These securities are reported at fair value with the related unrealized gains and losses included in accumulated other comprehensive income, a component of stockholders equity, net of tax. We performed an impairment review of our investment portfolio as of July 26, 2009.Based on our quarterly impairment review and having considered the guidance in the relevant accounting literature, wedid not record any other than temporary impairment charges during the first half of fiscal years 2010 and 2009.We concluded that our investments were appropriately valued and that no additional other than temporary impairment charges werenecessary on our portfolio of available for sale investments as of July 26, 2009. The following is a summary of cash equivalents and marketable securities at July 26, 2009 and January25, 2009: July 26, 2009 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (In thousands) Debt securities of United Statesgovernment agencies $ 433,830 $ 4,472 $ (84 ) $ 438,218 Debt securities issued by United States Treasury 285,455 821 (88 ) 286,188 Corporate debt securities 264,288 2,470 (125 ) 266,633 Mortgage backed securities issued by United States government-sponsored enterprises 159,165 1,821 (212 ) 160,774 Money market funds 142,918 - - 142,918 Asset-backed securities 11,242 119 - 11,361 Total $ 1,296,898 $ 9,703 $ (509 ) $ 1,306,092 Classified as: Cash equivalents $ 363,772 Marketable securities 942,320 Total $ 1,306,092 January25, 2009 Amortized Cost Unrealized Gain |
6060 - Fair Value of Cash Equiv
6060 - Fair Value of Cash Equivalents and Marketable Securities | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
Fair Value of Cash Equivalents and Marketable Securities | |
Fair Value of Cash Equivalents and Marketable Securities | Note 7 Fair Value of Cash Equivalents and Marketable Securities We measure our cash equivalents and marketable securities at fair value. The fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assetsfrom active markets. Level1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level2 valuations are obtained from quoted market prices in active markets involving similar assets. Level 3 valuations are based on unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances. Financial assets and liabilities measured at fair value are summarized below: Fair value measurement at reporting date using QuotedPricesin Active Markets for Identical Assets Significant Other Observable Inputs High Level of Judgment July 26, 2009 (Level 1) (Level 2) (Level 3) (In thousands) Debt securities issued by US Government agencies (1) $ 438,218 $ - $ 438,218 $ - Debt securities issued by United States Treasury (2) 286,188 - 286,188 - Corporate debt securities (3) 266,633 - 266,633 - Mortgage-backed securities issued by Government-sponsored entities (4) 160,774 - 160,774 - Money market funds (5) 142,918 120,954 - 21,964 Asset-backed Securities (4) 11,361 - 11,361 - Total cash equivalents and marketable securities $ 1,306,092 $ 120,954 $ 1,163,174 $ 21,964 (1) Includes $111,740 in Cash Equivalents and $326,478 in Marketable Securities on the Condensed ConsolidatedBalance Sheet. (2) Includes $120,080 in Cash Equivalents and $166,108 in Marketable Securities on the Condensed Consolidated Balance Sheet. (3) Includes $10,998 in Cash Equivalents and $255,635 in Marketable Securities on the Condensed Consolidated Balance Sheet. (4) Included in Marketable Securities on the Condensed Consolidated Balance Sheet. (5) Includes $120,954 in Cash Equivalents and $21,964 in Marketable Securities on the Condensed Consolidated Balance Sheet. For our money market funds that were held by the International Reserve Fund at July 26, 2009, we assessed the fair value of the money market funds by considering the underlying securities held by the International Reserve Fund. As the International Reserve Fund has halted redemption requests and is currently believed to be holding all of their securities until maturity, we valued the underlying securities held by the International Reserve Fund at their maturity value using an income approach. Certain of the debt securities held by the International Reserve Fund were issued by companies that had filed for bankruptcy during fiscal year 2009 and, as su |
6070 - 3dfx
6070 - 3dfx | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
3dfx | |
3dfx | Note 8 - 3dfx During fiscal year 2002, we completed the purchase of certain assets from 3dfx Interactive, Inc., or 3dfx, for an aggregate purchase price of approximately $74.2 million. On December 15, 2000, NVIDIA Corporation and one of our indirect subsidiaries entered into an Asset Purchase Agreement, or the APA, which closed on April 18, 2001, to purchase certain graphics chip assets from 3dfx. In October 2002, 3dfx filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Northern District of California. In March 2003, the Trustee appointed by the Bankruptcy Court to represent 3dfxs bankruptcy estate served his complaint on NVIDIA.The Trustees complaint asserted claims for, among other things, successor liability and fraudulent transfer and sought additional payments from us. In early November 2005, NVIDIA and the Official Committee of Unsecured Creditors, or the Creditors Committee, agreed to a Plan of Liquidation of 3dfx, which included a conditional settlement of the Trustees claims against us. This conditional settlement was subject to a confirmation process through a vote of creditors and the review and approval of the Bankruptcy Court. The conditional settlement called for a payment by NVIDIA of approximately $30.6 million to the 3dfx estate. Under the settlement, $5.6 million related to various administrative expenses and Trustee fees, and $25.0 million related to the satisfaction of debts and liabilities owed to the general unsecured creditors of 3dfx. Accordingly, during the three month period ended October 30, 2005, we recorded $5.6 million as a charge to settlement costs and $25.0 million as additional purchase price for 3dfx.The Trustee advised that he intended to object to the settlement. The conditional settlement reached in November 2005 never progressed through the confirmation process and the Trustees case still remains pending appeal.As such, we have not reversed the accrual of $30.6 million - $5.6 million as a charge to settlement costs and $25.0 million as additional purchase price for 3dfx that we recorded during the three months ended October 30, 2005, pending resolution of the appeal of the Trustees case. We do not believe the resolution of this matter will have a material impact on our results of operations or financial position. The 3dfx asset purchase price of $95.0 million and $4.2 million of direct transaction costs were allocated based on fair values presented below. The final allocation of the purchase price of the 3dfx assets is contingent upon the outcome of all of the 3dfx litigation. Please refer to Note 12 of these Notes to Condensed Consolidated Financial Statements for further information regarding this litigation. Fair Market Value Straight-Line Amortization Period (In thousands) (Years) Property and equipment $ 2,433 1-2 Trademarks 11,310 5 Goodwill 85,418 - Total $ 99,161 |
6080 - Intangible Assets
6080 - Intangible Assets | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
Intangible Assets | |
Intangible Assets | Note 9 - Intangible Assets We currently amortize our intangible assets with definitive livesover periods ranging from one to ten years using a method that reflects the pattern in which the economicbenefits of the intangible asset are consumed or otherwise used up or, if that pattern can not be reliablydetermined, using a straight-line amortization method.The components of our amortizable intangible assets are as follows: July 26, 2009 January25,2009 Gross Carrying Amount Accumulated Amortization NetCarrying Amount Gross Carrying Amount Accumulated Amortization NetCarrying Amount (In thousands) Technology licenses $ 134,869 $ (41,414 ) $ 93,455 $ 130,654 $ (34,610 ) $ 96,044 Acquired intellectual property 75,340 (42,795 ) 32,545 75,340 (35,200 ) 40,140 Patents 19,188 (9,510 ) 9,678 18,588 (7,671 ) 10,917 Total intangible assets $ 229,397 $ (93,719 ) $ 135,678 $ 224,582 $ (77,481 ) $ 147,101 Amortization expense associated with intangible assets for the three and six months ended July 26, 2009 was $7.9 million and $16.2 million, respectively.Amortization expense associated with intangible assets for the three and six months ended July 27, 2008 was $7.5 million and $15.0 million, respectively. Future amortization expense related to the net carrying amount of intangible assets at July 26, 2009 is estimated to be $15.6 million for the remainder of fiscal year 2010, $27.6 million in fiscal year 2011, $25.2 million in fiscal year 2012, $18.9 million in fiscal year 2013, $14.4 million in fiscal year 2014, and a total of $34.0 million in fiscal year 2015 and fiscal years subsequent of fiscal year 2015. |
6090 - Balance Sheet Components
6090 - Balance Sheet Components | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
Balance Sheet Components | |
Inventories | Note 10 - Balance Sheet Components Certain balance sheet components are as follows: July26, 2009 January25, 2009 Inventories: (In thousands) Raw materials $ 53,599 $ 122,024 Work in-process 65,868 38,747 Finished goods 159,749 377,063 Total inventories $ 279,216 $ 537,834 At July 26, 2009, we had outstanding inventory purchase obligations totaling approximately $492 million. |
Prepaid and Other Current Assets | Note 10 - Balance Sheet Components Certain balance sheet components are as follows: July26, 2009 January25, 2009 Prepaid and Other Current Assets: (In thousands) Non-trade receivable $ 23,184 $ 696 Prepaid maintenance contracts 12,150 11,268 Other 15,214 27,830 Total prepaid and other current assets $ 50,548 $ 39,794 |
Accrued Liabilities | Note 10 - Balance Sheet Components Certain balance sheet components are as follows: July26, 2009 January25, 2009 Accrued Liabilities: (In thousands) Accrued customer programs (1) $ 244,469 $ 239,797 Warranty accrual (2) 221,903 150,629 Accrued payroll and related expenses 64,363 82,449 Accrued legal settlement (3) 30,600 30,600 Deferred rent 10,818 11,643 Deferred revenue 6,692 3,774 Other 36,498 40,835 Total accrued liabilities and other $ 615,343 $ 559,727 (1)Please refer to Note 1 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the nature of accrued customer programs and their accounting treatment related to our revenue recognition policies and estimates. (2)Please refer to Note 11 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the warranty accrual. (3)Please refer to Note 12 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the 3dfx litigation. |
Other Long-term Liabilities | Note 10 - Balance Sheet Components Certain balance sheet components are as follows: July26, 2009 January25, 2009 Other Long-term Liabilities: (In thousands) Deferred income tax liability $ 54,805 $ 75,252 Income taxes payable, long term 49,182 49,248 Asset retirement obligation 9,812 9,515 Other long-term liabilities 20,820 17,835 Total other long-term liabilities $ 134,619 $ 151,850 |
6100 - Guarantees
6100 - Guarantees | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
Guarantees | |
Guarantees | Note 11 - Guarantees Product Defect Our products are complex and may contain defects or experience failures due to any number of issues in design, fabrication, packaging, materials and/or use within a system. If any of our products or technologies contains a defect, compatibility issue or other error, we may have to invest additional research and development efforts to find and correct the issue.Such efforts could divert our managements and engineers attention from the development of new products and technologies and could increase our operating costs and reduce our gross margin. In addition, an error or defect in new products or releases or related software drivers after commencement of commercial shipments could result in failure to achieve market acceptance or loss of design wins. Also, we may be required to reimburse customers, including for customers costs to repair or replace the products in the field, which could cause our revenue to decline. A product recall or a significant number of product returns could be expensive, damage our reputation and could result in the shifting of business to our competitors. Costs associated with correcting defects, errors, bugs or other issues could be significant and could materially harm our financial results. During the second quarter of fiscal year 2010, we recorded an additional net warranty charge of $120.0 million against cost of revenue to cover anticipated customer warranty, repair, return, replacement and other costs arising from a weak die/packaging material set in certain versions of our previous generation products used in notebook systems. This charge included an additional accrual of $164.5 million for related estimated costs, offset by reimbursements from insurance carriers of $44.5 million that we recorded during the second quarter of fiscal year 2010. In July 2008, we recorded a $196.0 million charge against cost of revenue for the purpose of supporting the product repair costs of our affected customers around the world. Although the number of units that we estimate will be impacted by this issue remains consistent with our initial estimates in July 2008, the overall cost of remediation and repair of impacted systems has been higher than originally anticipated. The weak die/packaging material combination is not used in any of our products that are currently in production. The previous generation products that are impacted were included in a number of notebook products that were shipped and sold in significant quantities. Certain notebook configurations of these products are failing in the field at higher than normal rates. While we have not been able to determine with certainty a root cause for these failures, testing suggests a weak material set of die/package combination, system thermal management designs, and customer use patterns are contributing factors. We have worked with our customers to develop and have made available for download a software driver to cause the system fan to begin operation at the powering up of the system and reduce the thermal stress on these chips. We have also recommended to our customers that they consider changing the thermal management of |
6110 - Commitments and Continge
6110 - Commitments and Contingencies | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 12 - Commitments and Contingencies 3dfx On December 15, 2000, NVIDIA and one of our indirect subsidiaries entered into an Asset Purchase Agreement, or APA, to purchase certain graphics chip assets from 3dfx.The transaction closed on April 18, 2001.That acquisition, and 3dfxs October 2002 bankruptcy filing, led to four lawsuits against NVIDIA: two brought by 3dfxs former landlords, one by 3dfxs bankruptcy trustee and the fourth by a committee of 3dfxs equity security holders in the bankruptcy estate. Landlord Lawsuits. In May 2002, we were served with a California state court complaint filed by the landlord of 3dfxs San Jose, California commercial real estate lease, Carlyle Fortran Trust, or Carlyle. In December 2002, we were served with a California state court complaint filed by the landlord of 3dfxs Austin, Texas commercial real estate lease, CarrAmerica Realty Corporation, or CarrAmerica. The landlords both asserted claims for, among other things, interference with contract, successor liability and fraudulent transfer. The landlords sought to recover damages in the aggregate amount of approximately $15 million, representing amounts then owed on the 3dfx leases.The cases were later removed to the United States Bankruptcy Court for the Northern District of California when 3dfx filed its bankruptcy petition and consolidated for pretrial purposes with an action brought by the bankruptcy trustee. In 2005, the U.S. District Court for the Northern District of California withdrew the reference to the Bankruptcy Court for the landlords actions, and on November 10, 2005, granted our motion to dismiss both landlords complaints.The landlords filed amended complaints in early February 2006, and NVIDIA again filed motions to dismiss those claims. On September 29, 2006, the District Court dismissed the CarrAmerica action in its entirety and without leave to amend.On December 15, 2006, the District Court also dismissed the Carlyle action in its entirety.Both landlords filed timely notices of appeal from those orders. On July 17, 2008, the United States Court of Appeals for the Ninth Circuit held oral argument on the landlords appeals. On November 25, 2008, the Court of Appeals issued its opinion affirming the dismissal of Carlyles complaint in its entirety.The Court of Appeals also affirmed the dismissal of most of CarrAmericas complaint, but reversed the District Courts dismissal of CarrAmericas claims for interference with contractual relations and fraud.On December 8, 2008, Carlyle filed a Request for Rehearing En Banc, which CarrAmerica joined. That same day, Carlyle also filed a Motion for Clarification of the Courts Opinion.On January 22, 2009, the Court of Appeals denied the Request for Rehearing En Banc, but clarified its opinion affirming dismissal of the claims by stating that CarrAmerica had standing to pursue claims for interference with contractual relations, fraud, conspiracy and tort of another, and remanding Carlyles case with instructions that the District Court evaluate whether the Trustee had abandoned any claims, which Carlyle might have standing to pursue. On April 2, 2009, Carlyle filed a petitionfor a writ |
6120 - Stockholders' Equity
6120 - Stockholders' Equity | |
1/25/2009 - 7/26/2009
USD / shares | |
Stockholders' Equity | |
Stockholders' Equity | Note 13 - Stockholders Equity Stock Repurchase Program During fiscal year 2005, we announced that our Board of Directors, or Board, had authorized a stock repurchase program to repurchase shares of our common stock, subject to certain specifications, up to an aggregate maximum amount of $300 million.During fiscal year 2007, the Board further approved an increase of $400 million to the original stock repurchase program. In fiscal year 2008, we announced a stock repurchase programunder which we may purchase up to an additional $1.0 billion of our common stock over a three year period through May 2010. On August 12, 2008, we announced that our Board further authorized an additional increase of $1.0 billion to the stock repurchase program. As a result of these increases, we have an ongoing authorization from the Board, subject to certain specifications, to repurchase shares of our common stock up to an aggregate maximum amount of $2.7 billion through May 2010. The repurchases will be made from time to time in the open market, in privately negotiated transactions, or in structured stock repurchase programs, and may be made in one or more larger repurchases, in compliance with the Securities Exchange Act of 1934 Rule 10b-18, subject to market conditions, applicable legal requirements, and other factors. The program does not obligate NVIDIA to acquire any particular amount of common stock and the program may be suspended at any time at our discretion.As part of our share repurchase program, we have entered into, and we may continue to enter into, structured share repurchase transactions with financial institutions. These agreements generally require that we make an up-front payment in exchange for the right to receive a fixed number of shares of our common stock upon execution of the agreement, and a potential incremental number of shares of our common stock, within a pre-determined range, at the end of the term of the agreement. During the three and six months ended July 26, 2009, we did not enter into any structured share repurchase transactions or otherwise purchase any shares of our common stock.Through July 26, 2009, we have repurchased an aggregate of 90.9 million shares under our stock repurchase program for a total cost of $1.46billion.As of July 26, 2009, we are authorized, subject to certain specifications, to repurchase shares of our common stock up to an additional amount of $1.24 billion through May 2010. Please refer to Note 3 and Note 4 of the Notes to Condensed Consolidated Financial Statements for further information regarding stock-based compensation related to our March 2009 stock option purchase and related to equity awards granted under our equity incentive programs. Convertible Preferred Stock As of July 26, 2009 and January 25, 2009, there were no shares of preferred stock outstanding. |
6130 - Comprehensive Income
6130 - Comprehensive Income (Loss) | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
Comprehensive Income (Loss) | |
Comprehensive Income (Loss) | Note 14 - Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income or loss components include unrealized gains or losses on available-for-sale securities, net of tax. The components of comprehensive income, net of tax, were as follows: Three Months Ended Six Months Ended July26, 2009 July27, 2008 July27, 2009 July27, 2008 (In thousands) Net income (loss) $ (105,302 ) $ (120,929 ) $ (306,640 ) $ 55,876 Net change in unrealized gains (losses) on available-for-sale securities, net of tax 3,896 (2,545 ) 5,505 (8,176 ) Reclassification adjustments for net realized gains (losses) on available-for-sale securities included in net income (loss), net of tax (157 ) 30 (700 ) (824 ) Total comprehensive income (loss) $ (101,563 ) $ (123,444 ) $ (301,835 ) $ 46,876 |
6140 - Segment Information
6140 - Segment Information | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
Segment Information | |
Segment Information | Note 15 - Segment Information Our Chief Executive Officer, who is considered to be our chief operating decision maker, or CODM, reviews financial information presented on anoperating segment basis for purposes of making operating decisions and assessing financial performance. We report financial information for four operating segments to our CODM: the GPU business, which is comprised primarily of our GeForce products that support desktop and notebook personal computers, or PCs, plus memory products; the professional solutions business, or PSB, which is comprised of our NVIDIA Quadro professional workstation products and other professional graphics products, including our NVIDIA Teslahigh-performance computing products; the media and communications processor, or MCP, business which is comprised of NVIDIA nForce core logic and motherboard GPU products; and our consumer products business, or CPB, which is comprised of our GoForce and Tegra mobile brands and products that support handheld personal media players, or PMPs, personal digital assistants, or PDAs, cellular phones and other handheld devices.CPB also includes license, royalty, other revenue and associated costs related to video game consoles and other digital consumer electronics devices. In addition to these operating segments, we have the All Other category that includes human resources, legal, finance, general administration, corporate marketing expenses and charges related to the stock option purchase, all of which total $56.8 million and $256.2 million, respectively, for three and six months ended July 26, 2009, and total $80.8 million and $156.9 million, respectively, for the three and six months ended July 27, 2008, that we do not allocate to our other operating segments as these expenses are not included in the segment operating performance measures evaluated by our CODM.All Other also includes the results of operations of other miscellaneous reporting segments that are neither individually reportable, nor aggregated with another operating segment. Revenue in the All Other category is primarily derived from sales of components. Our CODM does not review any information regarding total assets on an operating segment basis. Operating segments do not record intersegment revenue, and, accordingly, there is none to be reported.The accounting policies for segment reporting are the same as for NVIDIA as a whole. GPU PSB MCP CPB All Other Consolidated (In thousands) Three Months Ended July 26, 2009: Revenue $ 372,413 $ 116,626 $ 237,411 $ 46,151 $ 3,919 $ 776,520 Depreciation and amortization expense $ 14,728 $ 5,211 $ 10,121 $ 4,338 $ 14,924 $ 49,322 Operating income(loss) $ (144,717 ) $ 41,365 $ 53,126 $ 3,455 $ (63,336 ) $ (110,107 ) Three Months Ended July 27, 2008: Revenue $ 503,489 $ 179,653 $ 166, |
Document Information
Document Information | |
6 Months Ended
Jul. 26, 2009 USD / shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Period End Date | 2009-07-26 |
Amendment Flag | false |
Amendment Description | none |
Entity Information
Entity Information (USD $) | |||
6 Months Ended
Jul. 26, 2009 | Aug. 17, 2009
| Jul. 27, 2008
| |
Entity Information [Line Items] | |||
Entity Registrant Name | NVIDIA Corporation | ||
Entity Central Index Key | 0001045810 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $6,100,000,000 | ||
Entity Common Stock, Shares Outstanding | 547,800,000 |