Segment Information

12 Months Ended

Jan. 26, 2014

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. We report our business in two primary reporting segments - the GPU business and the Tegra Processor business.

Our GPU business leverages our GPU technology across multiple end markets. It comprises four primary product lines: GeForce for consumer desktop and notebook PCs; Quadro for professional workstations; Tesla for high-performance computing; and NVIDIA GRID to provide the power of NVIDIA graphics through the cloud. It also includes other related products, licenses and revenue supporting the GPU business, such as memory products.

Our Tegra Processor business comprises primarily product lines based on our Tegra SOC and modem processor technologies, including Tegra for tablets, smartphones and gaming devices; Icera baseband processors and RF transceivers; automotive computers, including infotainment and navigation systems; and gaming devices, such as SHIELD. It also includes embedded products and license and other revenue associated with game consoles.

During the fourth quarter of fiscal year 2014, our CODM completed a refinement of the methodology utilized to assign expenses to the GPU and Tegra Processor businesses to align to the Company’s product architecture and roadmap. With the announcement of our Tegra K1 processor, we now have a single unifying architecture for our GPU and Tegra Processors. This architecture unification prompted a methodology change that leverages our visual computing expertise by charging the operating expenses of certain core engineering functions to the GPU business, while charging the Tegra Processor business for the incremental cost of the teams working directly for that business. In instances where the operating expenses of certain functions benefit both reporting segments, our CODM assigns 100% of those expenses to the reporting segment that benefits the most. The revenue and cost of revenue of the reporting segments was not affected, and comparative periods presented below reflect the impact of this change.

The “All Other” category presented below represents the revenue and expenses that our CODM does not assign to either the GPU business or the Tegra Processor business for purposes of making operating decisions or assessing financial performance. The revenue includes primarily patent licensing revenue and the expenses include corporate infrastructure and support costs, stock-based compensation costs, amortization of acquisition-related intangible assets, other acquisition-related costs, and other non-recurring charges and benefits that our CODM deems to be enterprise in nature.

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. The table below presents details of our reportable segments and the “All Other” category.

	GPU		Tegra Processor			All Other			Consolidated
	(In thousands)
Year Ended January 26, 2014:
Revenue	$	3,468,144	$	398,018		$	264,000		$	4,130,162
Depreciation and amortization expense	$	146,571	$	49,839		$	42,738		$	239,148
Operating income (loss)	$	834,763	$	(268,068	)	$	(70,468	)	$	496,227
Year Ended January 27, 2013:
Revenue	$	3,251,712	$	764,447		$	264,000		$	4,280,159
Depreciation and amortization expense	$	143,262	$	40,793		$	42,180		$	226,235
Operating income (loss)	$	694,338	$	40,508		$	(86,607	)	$	648,239
Year Ended January 29, 2012:
Revenue	$	3,186,764	$	591,166		$	220,000		$	3,997,930
Depreciation and amortization expense	$	129,307	$	35,431		$	39,467		$	204,205
Operating income (loss)	$	721,957	$	43,736		$	(117,394	)	$	648,299

	Year Ended
	January 26, 2014			January 27, 2013			January 29, 2012
	(In thousands)
Reconciling items included in "All Other" category :
Revenue not allocated to reporting segments	$	264,000		$	264,000		$	220,000
Unallocated corporate operating expenses and other expenses	(166,483		)	(157,680		)	(156,268		)
Stock-based compensation	(136,295		)	(136,662		)	(136,354		)
Acquisition-related costs, net	(31,652		)	(36,138		)	(37,472		)
Other non-recurring expenses and benefits	(38		)	(20,127		)	(7,300		)
Total	$	(70,468	)	$	(86,607	)	$	(117,394	)

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 26, 2014		January 27, 2013		January 29, 2012
Revenue:	(In thousands)
China	$	793,790	$	780,493	$	941,811
Taiwan	1,321,503		1,356,838		1,137,175
Other Asia Pacific	675,339		783,573		730,975
Europe	295,160		263,488		296,591
United States	726,830		799,430		596,264
Other Americas	317,540		296,337		295,114
Total revenue	$	4,130,162	$	4,280,159	$	3,997,930

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 26, 2014		January 27, 2013
Long-lived assets:	(In thousands)
United States	$	522,461	$	542,669
Taiwan	51,993		45,868
China	29,313		34,644
India	31,456		31,312
Europe	50,677		28,190
Other Asia Pacific	1,092		941
Total long-lived assets	$	686,992	$	683,624

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

	Year Ended
	January 26, 2014		January 27, 2013		January 29, 2012
Revenue:
Customer A	11	%	13	%	11	%
Customer B	10	%	9	%	7	%

Revenue from customer A was attributable to both the GPU and Tegra Processor businesses, while revenue from customer B was attributable to the GPU business.

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

	January 26, 2014		January 27, 2013
Accounts Receivable:
Customer A	23	%	20	%
Customer B	5	%	10	%
Customer C	9	%	10	%