Segment Information

3 Months Ended

Apr. 28, 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 system-on-a-chip 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 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 Corporation. 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)
Three Months Ended April 28, 2013
Revenue	$	785,612	$	103,127		$	66,000		$	954,739
Depreciation and amortization expense	$	30,225	$	19,236		$	10,283		$	59,744
Operating income (loss)	$	224,646	$	(124,588	)	$	(17,277	)	$	82,781
Three Months Ended April 29, 2012
Revenue	$	726,365	$	132,512		$	66,000		$	924,877
Depreciation and amortization expense	$	31,061	$	12,718		$	10,712		$	54,491
Operating income (loss)	$	153,477	$	(62,536	)	$	(18,115	)	$	72,826

	Three Months Ended
	April 28, 2013			April 29, 2012
	(In thousands)
Reconciling items included in "All Other" category :
Revenue not allocated to reporting segments	$	66,000		$	66,000
Unallocated corporate operating expenses and other expenses	(41,019		)	(39,033		)
Stock-based compensation	(33,397		)	(35,569		)
Amortization of acquisition-related intangibles	(3,915		)	(4,342		)
Other acquisition-related costs	(4,946		)	(5,171		)
Other non-recurring expenses and benefits	—			—
Total	$	(17,277	)	$	(18,115	)

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
	April 28,		April 29,
	2013		2012
	(In thousands)
Revenue:
China	$	175,044	$	178,610
Taiwan	289,881		276,318
Other Asia Pacific	167,257		178,677
United States	185,978		145,942
Other Americas	65,007		75,822
Europe	71,572		69,508
Total revenue	$	954,739	$	924,877

Revenue from significant customers, those representing 10% or more of total revenue, was approximately 21% of our total revenue from the same two customers for the three months endedApril 28, 2013 and April 29, 2012, respectively.

Accounts receivable from significant customers, those representing 10% or more of total accounts receivable, was approximately 38% of our accounts receivable balance from two customers at April 28, 2013 and approximately 40% of our accounts receivable balance from three customers at January 27, 2013.