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Segment Information
6 Months Ended
Jul. 29, 2018
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 architecture.
While our GPU and CUDA architecture is unified, our GPU product brands are aimed at specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for artificial intelligence, or 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 autonomous robots, drones, and cars, as well as for consoles and mobile gaming and entertainment devices.

Under the single unifying architecture for our GPU and Tegra Processors, we leverage 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, corporate infrastructure and support costs, acquisition-related costs, legal settlement costs, contributions, restructuring and other charges, product warranty charge, 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 29, 2018
 
 
 
 
 
 
 
Revenue
$
2,656

 
$
467

 
$

 
$
3,123

Depreciation and amortization expense
$
43

 
$
12

 
$
3

 
$
58

Operating income (loss)
$
1,259

 
$
97

 
$
(199
)
 
$
1,157

 
 
 
 
 
 
 
 
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

 
 
 
 
 
 
 
 
Six Months Ended July 29, 2018
 
 
 
 
 
 
 
Revenue
$
5,421

 
$
909

 
$

 
$
6,330

Depreciation and amortization expense
$
83

 
$
22

 
$
11

 
$
116

Operating income (loss)
$
2,653

 
$
194

 
$
(395
)
 
$
2,452

 
 
 
 
 
 
 
 
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


 
Three Months Ended
 
Six Months Ended
 
July 29,
2018
 
July 30,
2017
 
July 29,
2018
 
July 30,
2017
 
(In millions)
Reconciling items included in "All Other" category:
 
 
 
 
 
 
 
Unallocated revenue
$

 
$

 
$

 
$
43

Stock-based compensation expense
(132
)
 
(81
)
 
(262
)
 
(158
)
Unallocated cost of revenue and operating expenses
(65
)
 
(59
)
 
(129
)
 
(114
)
Acquisition-related costs
(2
)
 
(4
)
 
(4
)
 
(8
)
Contributions

 

 

 
(2
)
Total
$
(199
)
 
$
(144
)
 
$
(395
)
 
$
(239
)

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 29,
 
July 30,
 
July 29,
 
July 30,
 
2018
 
2017
 
2018
 
2017
 
(In millions)
Revenue:
 
 
 
 
 
 
 
Taiwan
$
843

 
$
674

 
$
1,810

 
$
1,277

China
760

 
481

 
1,514

 
810

Other Asia Pacific
676

 
420

 
1,259

 
797

United States
413

 
278

 
847

 
631

Europe
234

 
178

 
469

 
360

Other Americas
197

 
199

 
431

 
292

Total revenue
$
3,123

 
$
2,230

 
$
6,330

 
$
4,167


The following table summarizes information pertaining to our revenue by each of the specialized markets we serve:
 
Three Months Ended
 
Six Months Ended
 
July 29,
 
July 30,
 
July 29,
 
July 30,
 
2018
 
2017
 
2018
 
2017
 
(In millions)
Revenue:
 
 
 
 
 
 
 
Gaming
$
1,805

 
$
1,186

 
$
3,528

 
$
2,213

Professional Visualization
281

 
235

 
532

 
440

Datacenter
760

 
416

 
1,461

 
825

Automotive
161

 
142

 
306

 
282

OEM & IP
116

 
251

 
503

 
407

Total revenue
$
3,123

 
$
2,230

 
$
6,330

 
$
4,167


No customer represented 10% or more of total revenue for the second quarter and first half of fiscal years 2019 and 2018.
Accounts receivable from significant customers, those representing more than 10% of total accounts receivable, aggregated approximately 26% of our accounts receivable balance from two customers as of July 29, 2018, and approximately 28% of our accounts receivable balance from two customers as of January 28, 2018.