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Segment Information
6 Months Ended
Jul. 30, 2017
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 reportable segments - the GPU business and the Tegra Processor business - based on a single underlying graphics architecture.

Our GPU product brands are aimed at specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users. Our Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core CPUs to drive supercomputing for mobile gaming and entertainment devices, as well as autonomous robots, drones and cars.

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 reportable segments, our CODM assigns 100% of those expenses to the reportable segment that benefits the most.

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 stock-based compensation expense, unallocated cost of revenue and operating expenses, acquisition-related costs, restructuring and other charges, contributions, legal settlement 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 reportable segment basis. Reportable 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 millions)
Three Months Ended July 30, 2017
 
 
 
 
 
 
 
Revenue
$
1,897

 
$
333

 
$

 
$
2,230

Depreciation and amortization expense
$
29

 
$
9

 
$
11

 
$
49

Operating income (loss)
$
761

 
$
71

 
$
(144
)
 
$
688

 
 
 
 
 
 
 
 
Three Months Ended July 31, 2016
 

 
 

 
 

 
 

Revenue
$
1,196

 
$
166

 
$
66

 
$
1,428

Depreciation and amortization expense
$
29

 
$
7

 
$
11

 
$
47

Operating income (loss)
$
379

 
$
(14
)
 
$
(48
)
 
$
317

 
 
 
 
 
 
 
 
Six Months Ended July 30, 2017
 
 
 
 
 
 
 
Revenue
$
3,459

 
$
665

 
$
43

 
$
4,167

Depreciation and amortization expense
$
57

 
$
18

 
$
21

 
$
96

Operating income (loss)
$
1,363

 
$
118

 
$
(239
)
 
$
1,242

 
 
 
 
 
 
 
 
Six Months Ended July 31, 2016
 
 
 
 
 
 
 
Revenue
$
2,275

 
$
326

 
$
132

 
$
2,733

Depreciation and amortization expense
$
57

 
$
14

 
$
21

 
$
92

Operating income (loss)
$
727

 
$
(52
)
 
$
(114
)
 
$
561



 
Three Months Ended
 
Six Months Ended
 
July 30,
2017
 
July 31,
2016
 
July 30,
2017
 
July 31,
2016
 
(In millions)
Reconciling items included in "All Other" category:
 
 
 
 
 
 
 
Unallocated revenue
$

 
$
66

 
$
43

 
$
132

Stock-based compensation expense
(81
)
 
(58
)
 
(158
)
 
(111
)
Unallocated cost of revenue and operating expenses
(59
)
 
(49
)
 
(114
)
 
(104
)
Acquisition-related costs
(4
)
 
(4
)
 
(8
)
 
(8
)
Restructuring and other charges

 
(2
)
 

 
(3
)
Contributions

 
(1
)
 
(2
)
 
(4
)
Legal settlement costs

 

 

 
(16
)
Total
$
(144
)
 
$
(48
)
 
$
(239
)
 
$
(114
)



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 table summarizes information pertaining to our revenue from customers based on the invoicing address by geographic regions:
 
Three Months Ended
 
Six Months Ended
 
July 30,
 
July 31,
 
July 30,
 
July 31,
 
2017
 
2016
 
2017
 
2016
 
(In millions)
Revenue:
 
 
 
 
 
 
 
Taiwan
$
674

 
$
505

 
$
1,277

 
$
949

China
481

 
256

 
810

 
504

Other Asia Pacific
420

 
191

 
797

 
351

United States
278

 
206

 
631

 
400

Other Americas
199

 
103

 
292

 
206

Europe
178

 
167

 
360

 
323

Total revenue
$
2,230

 
$
1,428

 
$
4,167

 
$
2,733



The following table summarizes information pertaining to our revenue by each of the specialized markets we serve:
 
Three Months Ended
 
Six Months Ended
 
July 30,
 
July 31,
 
July 30,
 
July 31,
 
2017
 
2016
 
2017
 
2016
 
(In millions)
Revenue:
 
 
 
 
 
 
 
Gaming
$
1,186

 
$
781

 
$
2,213

 
$
1,468

Professional Visualization
235

 
214

 
440

 
403

Datacenter
416

 
151

 
825

 
294

Automotive
142

 
119

 
282

 
232

OEM & IP
251

 
163

 
407

 
336

Total revenue
$
2,230

 
$
1,428

 
$
4,167

 
$
2,733



Accounts receivable from significant customers, those representing 10% or more of total accounts receivable for the respective periods, is summarized as follows: 
 
 
July 30,
 
January 29,
 
 
2017
 
2017
Accounts Receivable:
 
 
 
 
Customer A
 
14
%
 
19
%