Segment Information

12 Months Ended

Jan. 27, 2013

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. Our operating segments are equivalent to our reportable segments. During the last several years, we have operated and reported three reporting segments to our CODM: the GPU business, the Professional Solutions business, and the Consumer Products business. However, during the fourth quarter of fiscal year 2013, we began reporting two segments to reflect the way we are now managing our businesses internally which is based on whether the underlying products leverage our GPU or our Tegra Processor technologies. Comparative periods presented reflect this change.

Our GPU business leverages our GPU technology across multiple end markets. It now comprises of four primary product lines, including GeForce for desktop and notebook PCs and Macs; Quadro for professional workstations; Tesla for high-performance servers and workstations; and NVIDIA GRID for server graphics solutions. It also includes other related products, licenses and revenue supporting the GPU business, such as memory products. Our Tegra Processor business comprises product lines primarily based on our Tegra SOC and modem processor technologies. This includes Tegra for smartphones and tablets for both Android and Windows RT-based devices; automotive computers, including infotainment and navigation systems; and gaming devices such as Project SHIELD. It also includes other related products, licenses, and revenue supporting the Tegra Processor business such as Icera baseband processors and RF transceivers, embedded products, and licenses and other revenue associated with game consoles.    

In addition to the two reporting segments discussed above, the “All Other” category represents unallocated revenue and expenses which primarily includes licensing revenue from our patent cross licensing agreement with Intel. Revenue related to this agreement is recognized ratably over the term of our agreement and is not actively managed. This category also includes corporate operating expenses that we do not allocate to our other reporting segments as such expenses are not directly related to the function or operations of our reporting segments. These expenses include certain corporate infrastructure and support costs that are deemed to be enterprise in nature. Additionally, we do not allocate stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, net warranty charge related to a weak die/packaging material set, and non-recurring charges and benefits. The table below presents details of our reportable segments and the “All Other” category.

Our CODM does not review any information regarding total assets on a reporting segment basis. Reporting 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		Tegra Processor			All Other			Consolidated
	(In thousands)
Year Ended January 27, 2013:
Revenue	$	3,251,712	$	764,447		$	264,000		$	4,280,159
Depreciation and amortization expense	$	127,698	$	56,105		$	42,432		$	226,235
Operating income (loss)	$	884,767	$	(157,923	)	$	(78,605	)	$	648,239
Year Ended January 29, 2012:
Revenue	$	3,186,764	$	591,166		$	220,000		$	3,997,930
Depreciation and amortization expense	$	122,417	$	42,365		$	39,423		$	204,205
Operating income (loss)	$	821,640	$	(60,417	)	$	(112,924	)	$	648,299
Year Ended January 30, 2011:
Revenue	$	3,345,696	$	197,613		$	—		$	3,543,309
Depreciation and amortization expense	$	152,094	$	19,081		$	15,814		$	186,989
Operating income (loss)	$	680,761	$	(49,238	)	$	(375,776	)	$	255,747

	Year Ended
	January 27, 2013			January 29, 2012			January 30, 2011
	(In thousands)
Reconciling items included in "All Other" category :
Revenue not allocated to reporting segments	$	264,000		$	220,000		$	—
Unallocated corporate operating expenses and other expenses	(149,678		)	(151,798		)	(129,341		)
Stock-based compensation	(136,662		)	(136,354		)	(100,353		)
Amortization of acquisition-related intangibles	(17,134		)	(17,190		)	(9,182		)
Other acquisition-related costs	(19,004		)	(20,282		)	—
Net warranty charge related to a weak die/packaging material set	—			—			(193,900		)
Other non-recurring expenses and benefits	(20,127		)	(7,300		)	57,000
Total	$	(78,605	)	$	(112,924	)	$	(375,776	)

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: 

	Year Ended
	January 27, 2013		January 29, 2012		January 30, 2011
Revenue:	(In thousands)
China	$	780,493	$	941,811	$	1,223,199
Taiwan	1,356,838		1,137,175		936,797
Other Asia Pacific	783,573		730,975		519,473
Europe	263,488		296,591		261,421
United States	799,430		596,264		297,265
Other Americas	296,337		295,114		305,154
Total revenue	$	4,280,159	$	3,997,930	$	3,543,309

The following table presents summarized information for long-lived assets by geographic region. Long lived assets consist of property and equipment and deposits and other assets and exclude goodwill and intangible assets.

	January 27, 2013		January 29, 2012
Long-lived assets:	(In thousands)
United States	$	542,669	$	563,699
Taiwan	45,868		40,199
China	34,644		27,360
India	31,312		30,598
Europe	28,190		17,737
Other Asia Pacific	941		811
Total long-lived assets	$	683,624	$	680,404

Revenue from significant customers, those representing 10% or more of total revenue for the respective dates, is summarized as follows:

	Year Ended
	January 27, 2013		January 29, 2012		January 30, 2011
Revenue:
Customer A	13	%	11	%	—
Customer B	—		—		12	%

Accounts receivable from significant customers, those representing 10% or more of total accounts receivable for the respective periods, is summarized as follows: 

	January 27, 2013		January 29, 2012
Accounts Receivable:
Customer A	20	%	20	%
Customer B	10	%	—
Customer C	10	%	—