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Segment Information
6 Months Ended
Jul. 28, 2019
Segment Reporting [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.
Our GPU product brands are aimed at specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for artificial intelligence, 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 game 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 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 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 our consolidated financial statements. 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 28, 2019
 
 
 
 
 
 
 
Revenue
$
2,104

 
$
475

 
$

 
$
2,579

Depreciation and amortization expense
$
76

 
$
12

 
$
4

 
$
92

Operating income (loss)
$
746

 
$
122

 
$
(297
)
 
$
571

 
 
 
 
 
 
 
 
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

 
 
 
 
 
 
 
 
Six Months Ended July 28, 2019
 
 
 
 
 
 
 
Revenue
$
4,126

 
$
673

 
$

 
$
4,799

Depreciation and amortization expense
$
152

 
$
24

 
$
7

 
$
183

Operating income (loss)
$
1,415

 
$
78

 
$
(564
)
 
$
929

 
 
 
 
 
 
 
 
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


 
Three Months Ended
 
Six Months Ended
 
July 28,
2019
 
July 29,
2018
 
July 28,
2019
 
July 29,
2018
 
(In millions)
Reconciling items included in "All Other" category:
 
 
 
 
 
 
 
Stock-based compensation expense
$
(224
)
 
$
(132
)
 
$
(401
)
 
$
(262
)
Unallocated cost of revenue and operating expenses
(66
)
 
(65
)
 
(135
)
 
(129
)
Acquisition-related and other costs
(5
)
 
(2
)
 
(15
)
 
(4
)
Legal settlement costs
(2
)
 

 
(13
)
 

Total
$
(297
)
 
$
(199
)
 
$
(564
)
 
$
(395
)

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 28,
 
July 29,
 
July 28,
 
July 29,
 
2019
 
2018
 
2019
 
2018
 
(In millions)
Revenue:
 
 
 
 
 
 
 
Other Asia Pacific
$
756

 
$
676

 
$
1,178

 
$
1,259

Taiwan
635

 
843

 
1,333

 
1,810

China (including Hong Kong)
583

 
760

 
1,136

 
1,514

Europe
288

 
234

 
537

 
469

United States
188

 
413

 
353

 
847

Other countries
129

 
197

 
262

 
431

Total revenue
$
2,579

 
$
3,123

 
$
4,799

 
$
6,330


The following table summarizes information pertaining to our revenue by each of the specialized markets we serve:
 
Three Months Ended
 
Six Months Ended
 
July 28,
 
July 29,
 
July 28,
 
July 29,
 
2019
 
2018
 
2019
 
2018
 
(In millions)
Revenue:
 
 
 
 
 
 
 
Gaming
$
1,313

 
$
1,805

 
$
2,368

 
$
3,528

Professional Visualization
291

 
281

 
557

 
532

Data Center
655

 
760

 
1,289

 
1,461

Automotive
209

 
161

 
375

 
306

OEM and Other
111

 
116

 
210

 
503

Total revenue
$
2,579

 
$
3,123

 
$
4,799

 
$
6,330


One customer represented approximately 11% of our total revenue for the second quarter and the first half of fiscal year 2020, and was attributable primarily to the GPU business. No customer represented 10% or more of total revenue for the second quarter and first half of fiscal year 2019.
One customer represented approximately 20% of our accounts receivable balance as of July 28, 2019, and one customer represented approximately 19% of our accounts receivable balance as of January 27, 2019.