Segment Information

3 Months Ended

Apr. 26, 2020

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 decisions and assessing financial performance. Previously, we had reported two operating segments: GPU and Tegra Processor. During the first quarter of fiscal year 2021, we changed our operating segments to be consistent with the revised manner in which our CODM reviews our financial performance and allocates resources. The two new operating segments are "Graphics" and "Compute & Networking". Comparative periods presented reflect this change. Our operating segments are equivalent to our reportable segments.

Our Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro GPUs for enterprise design; GRID software for cloud-based visual and virtual computing; and automotive platforms for infotainment systems. Our Compute & Networking segment includes Data Center platforms and systems for artificial intelligence, or AI, high performance computing, or HPC, and accelerated computing; DRIVE for autonomous vehicles; and Jetson for robotics and other embedded platforms.

Operating results by segment include costs or expenses that are directly attributable to each segment, and costs or expenses that are leveraged across our unified architecture and therefore allocated between our two segments.

The “All Other” category includes the expenses that our CODM does not assign to either Graphics or Compute & Networking 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, 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. Depreciation and amortization expense directly attributable to each reportable segment is included in operating results for each segment. However, the CODM does not evaluate depreciation and amortization expense by operating segment and, therefore, it is not separately presented. There is no intersegment revenue. 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.


	Graphics		Compute & Networking		All Other		Consolidated
	(In millions)
Three Months Ended April 26, 2020
Revenue	$	1,906	$	1,174	$	—	$	3,080

Operating income (loss)	$	836	$	451	$	(311)	$	976

Three Months Ended April 28, 2019
Revenue	$	1,526	$	694	$	—	$	2,220

Operating income (loss)	$	532	$	95	$	(269)	$	358


	Three Months Ended
	April 26, 2020		April 28, 2019
	(In millions)
Reconciling items included in "All Other" category:

Stock-based compensation expense	$	(224)	$	(178)
Unallocated cost of revenue and operating expenses	(82)		(70)
Acquisition-related and other costs	(5)		(10)
Legal settlement costs	—		(11)


Total	$	(311)	$	(269)

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
	April 26,		April 28,
	2020		2019
	(In millions)
Revenue:
Taiwan	$	813	$	698
China (including Hong Kong)	758		553
Other Asia Pacific	607		422
United States	497		165
Europe	254		249
Other countries	151		133
Total revenue	$	3,080	$	2,220

The following table summarizes information pertaining to our revenue by each of the specialized markets we serve:


	Three Months Ended
	April 26,		April 28,
	2020		2019
	(In millions)
Revenue:
Gaming	$	1,339	$	1,055
Professional Visualization	307		266
Data Center	1,141		634
Automotive	155		166
OEM and Other	138		99
Total revenue	$	3,080	$	2,220

No customer represented 10% or more of total revenue for the first quarter of fiscal year 2021. One customer represented 11% of our total revenue for the first quarter of fiscal year 2020, and was attributable primarily to the Graphics segment.

One customer represented 15% and 21% of our accounts receivable balance as of April 26, 2020 and January 26, 2020, respectively.