Segment Information

12 Months Ended

Jan. 25, 2015

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 - based on a single underlying graphics architecture.

Our GPU product brands aimed at specialized markets include GeForce for gamers; Quadro for designers; Tesla for researchers, deep learning and big-data analysts; and GRID for cloud-based visual computing users.

We also integrate our GPUs into tiny mobile chips called system-on-a-chip (SOC) processors, which power tablets, and automotive infotainment and safety systems. Our Tegra brand integrates an entire computer onto a single chip, incorporating GPUs and multi-core CPUs with audio, video and input/output capabilities. They can also be integrated with baseband processors to add voice and data communication. Tegra conserves power while delivering state-of-the-art graphics and multimedia processing.

We have a single unifying architecture for our GPU and Tegra Processors. This architecture unification 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 25, 2015:
Revenue	$	3,838,906	$	578,601		$	264,000		$	4,681,507
Depreciation and amortization expense	$	116,683	$	57,282		$	46,160		$	220,125
Operating income (loss)	$	1,113,350	$	(254,435	)	$	(99,926	)	$	758,989
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 25, 2015			January 26, 2014			January 27, 2013
	(In thousands)
Reconciling items included in "All Other" category:
Revenue not allocated to reporting segments	$	264,000		$	264,000		$	264,000
Unallocated corporate operating expenses and other expenses	(168,730		)	(166,483		)	(157,680		)
Stock-based compensation	(157,841		)	(136,295		)	(136,662		)
Acquisition-related costs, net	(37,355		)	(31,652		)	(36,138		)
Other non-recurring expenses and benefits	—			(38		)	(20,127		)
Total	$	(99,926	)	$	(70,468	)	$	(86,607	)

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 25, 2015		January 26, 2014		January 27, 2013
Revenue:	(In thousands)
Taiwan	$	1,594,435	$	1,321,503	$	1,356,838
China	922,121		793,790		780,493
United States	790,614		726,830		799,430
Other Asia Pacific	637,029		675,339		783,573
Europe	368,921		295,160		263,488
Other Americas	368,387		317,540		296,337
Total revenue	$	4,681,507	$	4,130,162	$	4,280,159

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 25, 2015		January 26, 2014
Long-lived assets:	(In thousands)
United States	$	467,277	$	522,461
Taiwan	52,176		51,993
Europe	51,521		50,677
India	48,544		31,456
China	28,073		29,313
Other Asia Pacific	587		1,092
Total long-lived assets	$	648,178	$	686,992

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

	Year Ended
	January 25, 2015		January 26, 2014		January 27, 2013
Revenue:
Customer A	11	%	11	%	13	%
Customer B	9	%	10	%	9	%

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 25, 2015		January 26, 2014
Accounts Receivable:
Customer B	20	%	23	%
Customer C	10	%	9	%