NVIDIA (NVDA) 10-Q 21 May 10 2011 Q1 Quarterly report Financial data

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)
In Thousands, except Share data	3 Months Ended May. 02, 2010	3 Months Ended Apr. 26, 2009
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$1,001,813	$664,231
Cost of revenue	545,436	474,535
Gross profit	456,377	189,696
Operating expenses:
Research and development	218,105	301,797
Sales, general and administrative	90,879	118,864
Total operating expenses	308,984	420,661
Income (loss) from operations	147,393	(230,965)
Interest income	5,571	6,124
Other income (expense), net	(2,239)	20
Income (loss) before income tax expense (benefit)	150,725	(224,821)
Income tax expense (benefit)	13,131	(23,483)
Net income (loss)	$137,594	($201,338)
Basic income (loss) per share	0.24	-0.37
Shares used in basic per share computation	567,183	542,307
Diluted income (loss) per share	0.23	-0.37
Shares used in diluted per share computation	590,997	542,307

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)
In Thousands	3 Months Ended May. 02, 2010	12 Months Ended Jan. 31, 2010
Current assets:
Cash and cash equivalents	$447,262	$447,221
Marketable securities	1,317,634	1,281,006
Accounts receivable, net	529,663	374,963
Inventories	388,139	330,674
Prepaid expenses and other	35,530	38,214
Deferred income taxes	8,752	8,752
Total current assets	2,726,980	2,480,830
Property and equipment, net	548,916	571,858
Goodwill	369,844	369,844
Intangible assets, net	115,423	120,458
Deposits and other assets	41,867	42,928
Total assets	3,803,030	3,585,918
Current liabilities:
Accounts payable	362,740	344,527
Accrued liabilities and other	402,553	439,851
Total current liabilities	765,293	784,378
Other long-term liabilities	152,994	111,950
Capital lease obligations, long term	24,098	24,450
Commitments and contingencies - see Note 12
Stockholders' equity:
Preferred stock	0	0
Common stock	663	653
Additional paid-in capital	2,288,989	2,219,401
Treasury stock, at cost	(1,473,655)	(1,463,268)
Accumulated other comprehensive income	10,872	12,172
Retained earnings	2,033,776	1,896,182
Total stockholders' equity	2,860,645	2,665,140
Total liabilities and stockholders' equity	$3,803,030	$3,585,918

1_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
In Thousands	3 Months Ended May. 02, 2010	3 Months Ended Apr. 26, 2009
Cash flows from operating activities:
Net income (loss)	$137,594	($201,338)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation expense related to stock option purchase	0	135,735
Depreciation and amortization	47,147	50,658
Stock based compensation expense	25,177	34,113
Tax benefit from stock options	0	(7,595)
Other	2,493	1,474
Deferred income taxes	14,398	(15,378)
Payments under patent licensing arrangement	(519)	(88)
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	(155,011)	14,171
Inventories	(56,816)	211,233
Prepaid expenses and other current assets	2,685	5,414
Deposits and other assets	1,061	(4,969)
Accounts payable	16,822	7,250
Accrued liabilities and other long-term liabilities	(40,428)	(88,552)
Net cash provided by (used in) operating activities	(5,397)	142,128
Cash flows from investing activities:
Purchases of marketable securities	(226,963)	(215,088)
Proceeds from sales and maturities of marketable securities	186,701	226,960
Purchases of property and equipment and intangible assets	(17,080)	(20,777)
Net cash provided by (used in) investing activities	(57,342)	(8,905)
Cash flows from financing activities:
Payments related to stock option purchase	0	(78,075)
Proceeds from issuance of common stock under employee stock plans	63,062	39,660
Payments under capital lease obligations	(282)	(222)
Net cash provided by (used in) financing activities	62,780	(38,637)
Change in cash and cash equivalents	41	94,586
Cash and cash equivalents at beginning of period	447,221	417,688
Cash and cash equivalents at end of period	447,262	512,274
Supplemental disclosures of cash flow information:
Cash paid for income taxes, net	1,089	919
Cash paid for interest on capital lease obligations	795	0
Other non-cash activities:
Change in unrealized gains from marketable securities	(1,298)	1,066
Assets acquired by assuming related liabilities	$1,568	$0

Summary of Significant Accounti

Summary of Significant Accounting Policies
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
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 January31, 2010. Fiscal year We operate on a 52 or 53-week year, ending on the last Sunday in January. Fiscal year 2011 is a 52-week year, compared to fiscal year 2010, which was a 53-week year. The first quarter of fiscal years 2011 and 2010 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. 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 assess whether the arrangement fee is fixed and determinable and whether collection is reasonably assured. If we determine that collection of a fee is not rea

Stock Option Purchase

Stock Option Purchase
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
Stock Option Purchase	Note 2 Stock Option Purchase During the three months ended April 26, 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, as amended, or the Securities Exchange Act, 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 consolidated statement of operations for thethree months ended April 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.

Stock-Based Compensation

Stock-Based Compensation
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
Stock-Based Compensation	Note 3 - 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 adjusted for estimated forfeitures. 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. In addition to the stock-based compensation expense related to our cash tender offer to purchase certain employee stock options as described in Note 2 Stock Option Purchase, our consolidated statementsof operations include stock-based compensation expense,net of amounts capitalized as inventory, as follows: Three Months Ended May 2, 2010 April 26, 2009 (In thousands) Cost of revenue $ 1,803 $ 2,230 Research and development 14,614 21,270 Sales, general and administrative 8,760 10,613 Total $ 25,177 $ 34,113 During the three months ended May 2, 2010 and April 26, 2009, we granted approximately 2.4 million and 4.9 million stock options, respectively, with an estimated total grant-date fair value of $17.6 million and $27.0 million, respectively, and a per option weighted average grant-date fair value of $7.47 and $5.45, respectively. During the three months ended May 2, 2010 and April 26, 2009, we granted approximately 2.7 million and 4.6 million RSUs, with an estimated total grant-date fair value of $48.5 million and $46.4 million, respectively, and a per RSU weighted average grant-date fair value of $17.94 and $10.17, respectively. Of the estimated total grant-date fair value, we estimated that the stock-based compensation expense related to the equity awards that are not expected to vest was $12.2 million and $11.8 million for the three months ended May 2, 2010 and April 26, 2009, respectively.As of May 2, 2010 and April 26, 2009, the aggregate amount of unearned stock-based compensation expense related to our equity awards was $159.2 million and $130.1 million, respectively, adjusted for estimated forfeitures.As of May 2, 2010 and April 26, 2009, we expect to recognize the unearned stock-based compensation expense related to stock options over an estimated weighted average amortization period of 1.8 years and 2.2 years, respectively. As of May 2, 2010 and April 26, 2009, we expect to recognize the unearned stock-based compensation expense related to RSUs over an estimated weighted average amortization period of 2.4 years and 2.9 years, respectively. Valuation Assumptions We utilize a binomial model for calculating the estimated fair value of new stock-based compensation awards granted under our stock option plans. We have determined that the use of implied volatility is expected to be reflective of market conditions and, therefore, ca

Net Income

Net Income (Loss) Per Share
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
Net Income (Loss) Per Share	Note 4 Net Income (Loss) Per Share 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 May 2, 2010 April 26, 2009 (In thousands, except per share data) Numerator: Net income (loss) $ 137,594 $ (201,338) Denominator: Denominator for basic net income (loss) per share, weighted average shares 567,183 542,307 Effect of dilutive securities: Stock options outstanding 23,814 - Denominator for diluted net income (loss) per share, weighted average shares 590,997 542,307 Net income (loss) per share: Basic net income (loss) per share $ 0.24 $ (0.37) Diluted net income (loss) per share $ 0.23 $ (0.37) Diluted net income (loss) per share for the three months ended May 2, 2010 does not include the effect of anti-dilutive common equivalent shares from stock options and RSUs outstanding of 14.7 million.All of our outstanding stock options were anti-dilutive during the three months ended April 26, 2009, and excluded from the computation of diluted earnings per share due to the net loss for three months ended April 26, 2009.

Income Taxes

Income Taxes
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
Income Taxes	Note 5 Income Taxes We recognized income tax expense (benefit) of $13.1 million and ($23.5) million for the three months ended May 2, 2010 and April 26, 2009, respectively.Income tax expense (benefit) as a percentage of income before taxes, or our effective tax rate, was 8.7% and (10.5%) for the three months ended May 2, 2010 and April 26, 2009, respectively. Our effective tax rate on income before tax for the three months ended May 2, 2010 was lower than the United States federal statutory rate of 35% due primarily to income earned in jurisdictions where the tax rate is lower than the United States federal statutory tax rate.Further, our annual projected effective tax rate as of the first quarter of fiscal year 2011 of 15.4% differs from our effective tax rate for the three months ended May 2, 2010 of 8.7% due to favorable discrete events in the quarter primarily attributable to the expiration of statutes of limitations in certain non-U.S. jurisdictions for which we had not previously recognized related tax benefits.The U.S. federal research tax credit expired on December 31, 2009.We will recognize the tax benefit of the U.S. federal research tax credit if and when reenacted into law. The expected tax benefit derived from our loss before tax for the first three months of fiscal year 2010 at the United States federal statutory tax rate of 35% differs from our actual effective tax rate of (10.5%) due primarily to permanent tax differences related to stock-based compensation, including with respect to our stock option purchase completed in the first quarter of 2010, 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. For the three months ended May 2, 2010, 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 31, 2010, other than the recognition of tax benefits related to the expiration of statutes of limitations in certain non-U.S. jurisdictions in the three months ended May 2, 2010. 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 May 2, 2010, we do not believe that our estimates, as otherwise provided for, on such tax positions will significantly increase or decrease within the next twelve months.

Marketable Securities

Marketable Securities
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
Marketable Securities	Note 6 Marketable Securities All of our cash equivalents and marketable securities are classified as available-for-sale securities.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 May 2, 2010.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 three months of fiscal year 2011.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 May 2, 2010. The following is a summary of cash equivalents and marketable securities at May 2, 2010 and January 31, 2010: May 2, 2010 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (In thousands) Debt securities of United Statesgovernment agencies $ 453,711 $ 2,229 $ (55 ) $ 455,885 Corporate debt securities 497,606 3,182 (162 ) 500,626 Mortgage backed securities issued by United States government-sponsored enterprises 155,743 4,881 - 160,624 Money market funds 31,850 - - 31,850 Debt securities issued by United States Treasury 348,372 1,068 (16 ) 349,424 Total $ 1,487,282 $ 11,360 $ (233 ) $ 1,498,409 Classified as: Cash equivalents $ 180,775 Marketable securities 1,317,634 Total $ 1,498,409 January31, 2010 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value (In thousands) Debt securities of United Statesgovernment agencies $ 492,628 $ 3,606 $ (29 ) $ 496,205 Corporate debt securities 514,200 4,064 (44 ) 518,220 Mortgage backed securities issued by United States government-sponsored enterprises 162,693 3,674 (13 ) 166,353 Money market funds 94,339 - - 94,340 Debt securities issued by United States Treasury 316,520 1,318 - 317,838 Asset-backed securities 17 - - 17 Total $ 1,580,397 $ 12,662 $ (86 ) $ 1,592,973 Classified as: Cash equivalents $ 311,967 Marketable securities 1,281,006 Total $ 1,592,973 The amortized cost and estimated fair value of cash equivalents and marketable securities which are primarily debt instruments, are classified as available-for-sale at May 2, 2010 and January31, 2010 and are shown below by contractual maturity. May 2, 2010 January31, 2010 Amortized Cost Estimat

Fair Value of Cash Equivalents

Fair Value of Cash Equivalents and Marketable Securities
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
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.Our Level 1 assets consist of our money market fund deposits.We classify securities within Level 1 assets when the fair value is obtained from real time quotes for transactions in active exchange markets involving identical assets.Our available-for- sale securities are classified as having Level 2 inputs.Our Level 2 assets are valued utilizing a market approach where the market prices of similar assets are provided by a variety of independent industry standard data providers to our investment custodian.There were no significant transfers between Levels 1 and 2 assets for the three months ended May2,2010.Level 3 assets 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 May 2, 2010 (Level 1) (Level 2) (Level 3) (In thousands) Other debt securities issued by United States government agencies (1) $ 455,885 $ - $ 455,885 $ - Corporate debt securities (2) 500,626 - 500,626 - Debt securities issued by United States Treasury (3) 349,424 - 349,424 - Money market funds (4) 31,850 18,891 - 12,959 Mortgage-backed securities issued by government-sponsored entities (5) 160,624 - 160,624 - Total assets $ 1,498,409 $ 18,891 $ 1,466,559 $ 12,959 (1)Includes $66.6 million in Cash and cash equivalents and $389.3 million in Marketable Securities on the Condensed Consolidated Balance Sheet. (2)Includes $41.7million in Cash and cash equivalents and $458.9 million in Marketable Securities on the Condensed Consolidated Balance Sheet. (3) Includes $53.6 million in Cash and cash equivalents and $295.8 million in Marketable Securities on the Condensed Consolidated Balance Sheet. (4)Includes $18.9 million in Cash and cash equivalents and $13.0 million in Marketable Securities on the Condensed Consolidated Balance Sheet. (5) Included in Marketable Securities on the Condensed Consolidated Balance Sheet. For our money market funds that were held by the International Reserve Fund at May 2, 2010, we assessed the fair value of the money market funds by considering the underlying securities held by the International Reserve Fund. The International Reserve Fund has halted redemption requests due to pending litigation.All of the underlying securities held by the International Reserve Fund had matured by October 2009.We valu

3dfx

3dfx
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
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. 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 the 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

Intangible Assets

Intangible Assets
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
Intangible Assets	Note 9 - Intangible Assets The components of our amortizable intangible assets are as follows: May 2, 2010 January31,2010 Gross Carrying Amount Accumulated Amortization NetCarrying Amount Gross Carrying Amount Accumulated Amortization NetCarrying Amount (In thousands) Technology licenses $ 135,629 $ (51,806 ) $ 83,823 $ 135,112 $ (48,337 ) $ $86,775 Acquired intellectual property 75,339 (52,657 ) 22,682 75,339 (49,838 ) 25,501 Patents 20,848 (11,930 ) 8,918 19,347 (11,165 ) 8,182 Total intangible assets $ 231,816 $ (116,393 ) $ 115,423 $ 229,798 $ (109,340 ) $ $120,458 Amortization expense associated with intangible assets was $7.1 million and $8.3 million for the three months ended May 2, 2010 and April 26, 2009, respectively.Future amortization expense related to the net carrying amount of intangible assets at May 2, 2010 is estimated to be $21.3 million for the remainder of fiscal 2011, $26.4 million in fiscal 2012, $19.4 million in fiscal 2013, $14.9 million in fiscal 2014, $14.7 million in fiscal 2015, and a total of $18.7 million in fiscal 2016 and fiscal years subsequent of fiscal 2016.

Balance Sheet Components

Balance Sheet Components
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
Balance Sheet Components	Note 10 - Balance Sheet Components Certain balance sheet components are as follows: May2, 2010 January31, 2010 Inventories: (In thousands) Raw materials $ 111,082 $ 76,935 Work in-process 64,607 67,502 Finished goods 212,450 186,237 Total inventories $ 388,139 $ 330,674 At May 2, 2010, we had outstanding inventory purchase obligations totaling approximately $648.1 million. May 2, 2010 January31, 2010 Prepaid Expenses and Other (In thousands) Prepaid maintenance $ 12,425 $ 15,153 Prepaid insurance 6,938 5,389 Prepaid taxes 3,574 3,574 Prepaid rent 3,337 3,352 Other 9,256 10,746 Total prepaid expenses and other $ 35,530 $ 38,214 May 2, 2010 January31, 2010 (In thousands) Accrued Liabilities: Accrued customer programs (1) $ 239,050 $ 212,107 Warranty accrual (2) 47,563 92,655 Accrued payroll and related expenses 41,626 54,915 Accrued legal settlement (3) 30,600 30,600 Deferred rent 9,544 10,245 Deferred revenue 10,334 9,379 Other 23,836 29,950 Total accrued liabilities and other $ 402,553 $ 439,851 (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 8 of these Notes to Condensed Consolidated Financial Statements for discussion regarding the 3dfx litigation. May2, 2010 January31, 2010 (In thousands) Other Long-term Liabilities: Deferred income tax liability $ 61,815 $ 17,739 Income taxes payable, long term 50,774 53,397 Asset retirement obligation 10,815 10,638 Other long-term liabilities 29,590 30,176 Total other long-term liabilities $ 152,994 $ 111,950

Guarantees

Guarantees
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
Guarantees	Note 11 - Guarantees U.S. generally accepted accounting principles, or U.S. GAAP, require that upon issuance of a guarantee, the guarantor must recognize a liability for the fair value of the obligation it assumes under that guarantee. In addition, U.S. GAAP requires disclosures about the guarantees that an entity has issued, including a tabular reconciliation of the changes of the entitys product warranty liabilities. 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. As of May 2, 2010, our Condensed Consolidated Balance Sheet included an accrued liability to cover the estimated remaining customer warranty, repair, return, replacement and other costs arising from a weak die/packaging material set in certain versions of our previous generation media and communications processor, or MCP, and graphics processing unit, or GPU, products used in notebook configurations.During fiscal years 2010 and 2009, we recorded a warranty charge against cost of revenue of $360.4 million for related estimated costs, offset by reimbursements from insurance carriers of $75.3 million.The weak die/packaging material combination is not used in any of our products that are currently in production. The previous generation MCP and GPU 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 cha

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
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.As of May 2, 2010, the landlord suits and the bankruptcy trustee suit remain subject to ongoing litigation. 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

Stockholders' Equity

Stockholders' Equity
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
Stockholders' Equity	Note 13 - Stockholders Equity Stock Repurchase Program Our Board of Directors has authorized us, subject to certain specifications, to repurchase shares of our common stock up to an aggregate maximum amount of $2.7 billion through May 2013.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 Rule 10b-18 of the Securities Exchange Act of 1934, as amended, 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. We did not enter into any structured share repurchase transactions or otherwise purchase any shares of our common stock during the three months ended May 2, 2010 and April 26, 2009.Through May 2, 2010, we have repurchased an aggregate of 90.9 million shares under our stock repurchase program for a total cost of $1.46billion.As of May 2, 2010, 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 2013. Convertible Preferred Stock As of May 2, 2010 and January31, 2010, there were no shares of preferred stock outstanding. Common Stock At the Annual Meeting of Stockholders held on June 19, 2008, our stockholders approved an increase in our authorized number of shares of common stock to 2,000,000,000. The par value of our common stock remained unchanged at $0.001 per share. Please refer to Note 2 of these Notes to the Condensed Consolidated Financial Statements for further discussion regarding the cash tender offer for certain employee stock options completed in March 2009.

Comprehensive Income

Comprehensive Income (Loss)
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
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 May 2, 2010 April 26, 2009 (In thousands) Net income (loss) $ 137,594 $ (201,338 ) Net change in unrealized gains (losses) on available-for-sale securities, net of tax (1,084 ) 1,609 Reclassification adjustments for net realized gains (losses) on available-for-sale securities included in net income (loss), net of tax (214 ) (543 ) Total comprehensive income (loss) $ 136,296 $ (200,272 )

Segment Information

Segment Information
	3 Months Ended May. 02, 2010
Notes to Financial Statements [Abstract]
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 an operating segment basis for purposes of making operating decisions and assessing financial performance. During the first quarter of fiscal year 2011, we began reporting internally the results of our former MCP segment along with the results of our GPU segment to reflect the way we manage the GPU business.Comparative periods presented reflect this change.Our GPU business is comprised primarily of our GeForce and ION products that support desktop, notebook and netbook personal computers, or PCs.The GPU business also includes memory products.Our professional solutions business, or PSB, is comprised of our Quadro professional workstation products and other professional graphics products, including our NVIDIA Tesla high-performance computing products. Our consumer products business, or CPB, is comprised of our Tegra mobile brand and products that support tablets and smartbooks, smartphones, personal media players, or PMPs, internet television, automotive navigation, and other such devices. CPB also includes license, royalty, other revenue and associated costs related to video game consoles and other digital consumer electronics devices. The All Other category includes non-recurring charges 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. There were no non-recurring charges for the three months ended May 2, 2010.Non-recurring charges related our cash tender offer to purchase certain employee stock options were $140.2 million for the three months ended April 26, 2009.Please refer to Note 2 of the Notes to the Condensed Consolidated Financial Statements for further discussion regarding the cash tender offer. 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 CPB All Other Consolidated (In thousands) Three Months Ended May 2, 2010: Revenue $ 780,853 $ 189,730 $ 31,230 $ - $ 1,001,813 Depreciation and amortization expense $ 34,506 $ 5,395 $ 6,893 $ - $ 46,794 Operating income (loss) $ 115,344 $ 73,865 $ (41,816 ) $ - $ 147,393 Three Months Ended April 26, 2009: Revenue $ 547,384 $ 106,148 $ 10,699 $ - $ 664,231 Depreciation and amortization expense $ 36,171 $ 7,178 $ 7,309 $ - $ 50,658 Operating income (loss) $ (68,599 ) $ 21,104 $ (43,229 ) $ (140,241 ) $ (230,965) Revenue by geographic region is allocated to individual countries based on the location to which the products are initially billed even if our customer

Document Information

Document Information
	3 Months Ended May. 02, 2010
Document Information [Text Block]
Document Type	10-Q
Document Period End Date	2010-05-02
Amendment Flag	false

Entity Information

Entity Information (USD $)
	3 Months Ended May. 02, 2010	May. 17, 2010	Jul. 26, 2009
Entity [Text Block]
Entity Registrant Name	NVIDIA CORP
Entity Central Index Key	0001045810
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$6,700,000,000
Entity Common Stock, Shares Outstanding		572,168,377
Document Fiscal Year Focus	2,011
Document Fiscal Period Focus	Q1