Segment Information

9 Months Ended

Oct. 28, 2012

Notes to financial statements [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 operating decisions and assessing financial performance. We report financial information for three operating segments to our CODM: Graphics Processing Unit, or GPU, Business; Professional Solutions Business, or PSB; and Consumer Products Business, or CPB. The GPU business is comprised of our desktop, notebook, memory and chipset products. Our GPU business also includes license revenue in connection with our patent cross license agreement with Intel. The PSB includes Quadro workstation graphics and Tesla high-performance computing products. The CPB is comprised of Tegra based smartphone and tablet products as well as Icera baseband processors and radio frequency transceivers. Our CPB also includes embedded products for entertainment and automotive devices as well as license and royalty revenue associated with game consoles.

In addition to these operating segments, we also have an “All Other” category that includes non-recurring charges and benefits which we do not allocate to our operating segments as these items are not included in the segment operating performance measures evaluated by our CODM. On June 12, 2012, we pledged a charitable contribution of $25.0 million to Stanford Hospital and Clinics, payable over a ten year period. The charitable contribution was recorded at its net present value of $20.1 million and is considered a non-recurring charge for the nine months ended October 28, 2012. There were no non-recurring charges or benefits for the three and nine months endedOctober 30, 2011.     

Our CODM does not review any information regarding total assets on an operating segment basis. Operating segments do not record inter-segment revenue, and, accordingly, there is none to be reported. The accounting policies for segment reporting are the same for NVIDIA as a whole.

	GPU		PSB		CPB			All Other			Consolidated
	(In thousands)
Three Months Ended October 28, 2012
Revenue	$	739,652	$	220,557	$	243,901		$	—		$	1,204,110
Depreciation and amortization expense	$	32,351	$	4,278	$	20,519		$	—		$	57,148
Operating income (loss)	$	193,226	$	100,895	$	(41,904	)	$	—		$	252,217
Three Months Ended October 30, 2011
Revenue	$	644,802	$	230,295	$	191,083		$	—		$	1,066,180
Depreciation and amortization expense	$	29,547	$	5,427	$	17,413		$	—		$	52,387
Operating income (loss)	$	146,843	$	95,887	$	(45,640	)	$	—		$	197,090
Nine Months Ended October 28, 2012
Revenue	$	1,987,671	$	629,527	$	556,059		$	—		$	3,173,257
Depreciation and amortization expense	$	96,481	$	13,109	$	58,244		$	—		$	167,834
Operating income (loss)	$	434,818	$	283,520	$	(233,545	)	$	(20,127	)	$	464,666
Nine Months Ended October 30, 2011
Revenue	$	1,920,935	$	642,425	$	481,376		$	—		$	3,044,736
Depreciation and amortization expense	$	89,238	$	17,414	$	45,658		$	—		$	152,310
Operating income (loss)	$	406,833	$	235,635	$	(116,486	)	$	—		$	525,982

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 tables summarize information pertaining to our revenue from customers based on invoicing address in different geographic regions:

	Three Months Ended				Nine Months Ended
	October 28,		October 30,		October 28,		October 30,
	2012		2011		2012		2011
	(In thousands)
Revenue:
China	$	205,636	$	209,986	$	580,934	$	732,202
Taiwan	403,769		293,171		1,020,232		857,717
Other Asia Pacific	192,814		223,597		583,858		561,708
United States	257,551		180,245		557,561		442,733
Other Americas	81,463		84,868		239,291		228,223
Europe	62,877		74,313		191,381		222,153
Total revenue	$	1,204,110	$	1,066,180	$	3,173,257	$	3,044,736

Revenue from significant customers, those representing 10% or more of total revenue, was approximately 14% and 12% of our total revenue from one customer for the three and nine months endedOctober 28, 2012, respectively. Revenue from significant customers, those representing 10% or more of total revenue, was approximately 11% of our total revenue from one customer for the three and nine months endedOctober 30, 2011.

Accounts receivable from significant customers, those representing 10% or more of total accounts receivable, was approximately 19% of our accounts receivable balance from one customer at October 28, 2012 and approximately 20% of our accounts receivable balance from one customer at January 29, 2012.