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Segment Information
9 Months Ended
Oct. 29, 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 October 29, 2017
 
 
 
 
 
 
 
Revenue
$
2,217

 
$
419

 
$

 
$
2,636

Depreciation and amortization expense
$
32

 
$
9

 
$
9

 
$
50

Operating income (loss)
$
978

 
$
88

 
$
(171
)
 
$
895

 
 
 
 
 
 
 
 
Three Months Ended October 30, 2016
 

 
 

 
 

 
 

Revenue
$
1,697

 
$
241

 
$
66

 
$
2,004

Depreciation and amortization expense
$
30

 
$
8

 
$
10

 
$
48

Operating income (loss)
$
678

 
$
17

 
$
(56
)
 
$
639

 
 
 
 
 
 
 
 
Nine Months Ended October 29, 2017
 
 
 
 
 
 
 
Revenue
$
5,676

 
$
1,084

 
$
43

 
$
6,803

Depreciation and amortization expense
$
88

 
$
27

 
$
30

 
$
145

Operating income (loss)
$
2,342

 
$
206

 
$
(411
)
 
$
2,137

 
 
 
 
 
 
 
 
Nine Months Ended October 30, 2016
 
 
 
 
 
 
 
Revenue
$
3,972

 
$
567

 
$
198

 
$
4,737

Depreciation and amortization expense
$
87

 
$
22

 
$
31

 
$
140

Operating income (loss)
$
1,405

 
$
(35
)
 
$
(169
)
 
$
1,201



 
Three Months Ended
 
Nine Months Ended
 
October 29,
2017
 
October 30,
2016
 
October 29,
2017
 
October 30,
2016
 
(In millions)
Reconciling items included in "All Other" category:
 
 
 
 
 
 
 
Unallocated revenue
$

 
$
66

 
$
43

 
$
198

Stock-based compensation expense
(107
)
 
(65
)
 
(265
)
 
(176
)
Unallocated cost of revenue and operating expenses
(61
)
 
(53
)
 
(176
)
 
(156
)
Acquisition-related costs
(3
)
 
(4
)
 
(11
)
 
(12
)
Restructuring and other charges

 

 

 
(3
)
Contributions

 

 
(2
)
 
(4
)
Legal settlement costs

 

 

 
(16
)
Total
$
(171
)
 
$
(56
)
 
$
(411
)
 
$
(169
)



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
 
Nine Months Ended
 
October 29,
 
October 30,
 
October 29,
 
October 30,
 
2017
 
2016
 
2017
 
2016
 
(In millions)
Revenue:
 
 
 
 
 
 
 
Taiwan
$
864

 
$
747

 
$
2,140

 
$
1,696

Other Asia Pacific
612

 
309

 
1,409

 
660

China
515

 
341

 
1,325

 
845

United States
263

 
282

 
894

 
682

Other Americas
187

 
154

 
480

 
360

Europe
195

 
171

 
555

 
494

Total revenue
$
2,636

 
$
2,004

 
$
6,803

 
$
4,737


The following table summarizes information pertaining to our revenue by each of the specialized markets we serve:
 
Three Months Ended
 
Nine Months Ended
 
October 29,
 
October 30,
 
October 29,
 
October 30,
 
2017
 
2016
 
2017
 
2016
 
(In millions)
Revenue:
 
 
 
 
 
 
 
Gaming
$
1,561

 
$
1,244

 
$
3,774

 
$
2,712

Professional Visualization
239

 
207

 
679

 
610

Datacenter
501

 
240

 
1,326

 
534

Automotive
144

 
127

 
426

 
359

OEM & IP
191

 
186

 
598

 
522

Total revenue
$
2,636

 
$
2,004

 
$
6,803

 
$
4,737



Accounts receivable from significant customers, those representing 10% or more of total accounts receivable for the respective periods, is summarized as follows: 
 
 
October 29,
 
January 29,
 
 
2017
 
2017
Accounts Receivable:
 
 
 
 
Customer A
 
17
%
 
19
%