UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 26, 2020

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 0-23985

NVIDIA CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	94-3177549
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)

2788 San Tomas Expressway

Santa Clara, California 95051

(408) 486-2000

(Address, including zip code, and telephone number,

including area code, of principal executive offices)

N/A

(Former name, former address and former fiscal year if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	NVDA	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of common stock, $0.001 par value, outstanding as of May 15, 2020, was 615 million.

NVIDIA CORPORATION

FORM 10-Q

FOR THE QUARTER ENDED April 26, 2020

TABLE OF CONTENTS

		Page
	PART I : FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	a) Condensed Consolidated Statements of Income for the three months ended April 26, 2020 and April 28, 2019	3
	b) Condensed Consolidated Statements of Comprehensive Income for the three months ended April 26, 2020 and April 28, 2019	4
	c) Condensed Consolidated Balance Sheets as of April 26, 2020 and January 26, 2020	5
	d) Condensed Consolidated Statements of Shareholders' Equity for the three months ended April 26, 2020 and April 28, 2019	6
	e) Condensed Consolidated Statements of Cash Flows for the three months ended April 26, 2020 and April 28, 2019	7
	f) Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	28
	PART II : OTHER INFORMATION
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 6.	Exhibits	34
Signature		36

WHERE YOU CAN FIND MORE INFORMATION

Investors and others should note that we announce material financial information to our investors using our investor relations website, press releases, SEC filings and public conference calls and webcasts. We also use the following social media channels as a means of disclosing information about the company, our products, our planned financial and other announcements and attendance at upcoming investor and industry conferences, and other matters and for complying with our disclosure obligations under Regulation FD: 

NVIDIA Twitter Account (https://twitter.com/nvidia)

NVIDIA Company Blog (http://blogs.nvidia.com)

NVIDIA Facebook Page (https://www.facebook.com/nvidia)

NVIDIA LinkedIn Page (http://www.linkedin.com/company/nvidia)

NVIDIA Instagram Page (https://www.instagram.com/nvidia)

In addition, investors and others can view NVIDIA videos on YouTube.

The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these accounts and the blog, in addition to following our press releases, SEC filings and public conference calls and webcasts. This list may be updated from time to time. The information we post through these channels is not a part of this quarterly report on Form 10-Q. These channels may be updated from time to time on NVIDIA's investor relations website.

2

PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS (UNAUDITED)

NVIDIA CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

	Three Months Ended
	April 26,		April 28,
	2020		2019
Revenue	$	3,080	$	2,220
Cost of revenue	1,076		924
Gross profit	2,004		1,296
Operating expenses
Research and development	735		674
Sales, general and administrative	293		264
Total operating expenses	1,028		938
Income from operations	976		358
Interest income	31		44
Interest expense	(25)		(13)
Other, net	(1)		—
Other income, net	5		31
Income before income tax	981		389
Income tax expense (benefit)	64		(5)
Net income	$	917	$	394
Net income per share:
Basic	$	1.49	$	0.65
Diluted	$	1.47	$	0.64
Weighted average shares used in per share computation:
Basic	614		607
Diluted	622		616

See accompanying Notes to Condensed Consolidated Financial Statements.

3

NVIDIA CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions)

(Unaudited)

	Three Months Ended
	April 26,		April 28,
	2020		2019
Net income	$	917	$	394
Other comprehensive income (loss), net of tax
Available-for-sale securities:
Net change in unrealized gain	—		7
Cash flow hedges:
Net unrealized gain (loss)	(10)		4
Reclassification adjustments for net realized loss included in net income	(1)		(1)
Net change in unrealized gain (loss)	(11)		3
Other comprehensive income (loss), net of tax	(11)		10
Total comprehensive income	$	906	$	404

See accompanying Notes to Condensed Consolidated Financial Statements.

4

NVIDIA CORPORATION AND SUBSIDIARIES 

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

	April 26,		January 26,
	2020		2020
ASSETS
Current assets:
Cash and cash equivalents	$	15,494	$	10,896
Marketable securities	860		1
Accounts receivable, net	1,907		1,657
Inventories	1,128		979
Prepaid expenses and other current assets	195		157
Total current assets	19,584		13,690
Property and equipment, net	1,715		1,674
Operating lease assets	595		618
Goodwill	628		618
Intangible assets, net	80		49
Deferred income tax assets	533		548
Other assets	119		118
Total assets	$	23,254	$	17,315
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	761	$	687
Accrued and other current liabilities	1,142		1,097
Total current liabilities	1,903		1,784
Long-term debt	6,959		1,991
Long-term operating lease liabilities	519		561
Other long-term liabilities	774		775
Total liabilities	10,155		5,111
Commitments and contingencies - see Note 13
Shareholders’ equity:
Preferred stock	—		—
Common stock	1		1
Additional paid-in capital	7,354		7,045
Treasury stock, at cost	(10,036)		(9,814)
Accumulated other comprehensive income (loss)	(10)		1
Retained earnings	15,790		14,971
Total shareholders' equity	13,099		12,204
Total liabilities and shareholders' equity	$	23,254	$	17,315

See accompanying Notes to Condensed Consolidated Financial Statements.

5

NVIDIA CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED APRIL 26, 2020 AND APRIL 28, 2019

(Unaudited)

	Common Stock Outstanding			Additional Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Retained Earnings		Total Shareholders' Equity
(In millions, except per share data)	Shares	Amount
Balances, January 26, 2020	612	$	1	$	7,045	$	(9,814)	$	1	$	14,971	$	12,204
Other comprehensive loss	—	—		—		—		(11)		—		(11)
Net income	—	—		—		—		—		917		917
Issuance of common stock from stock plans	4	—		88		—		—		—		88
Tax withholding related to vesting of restricted stock units	(1)	—		—		(222)		—		—		(222)
Cash dividends declared and paid ($0.16 per common share)	—	—		—		—		—		(98)		(98)
Stock-based compensation	—	—		221		—		—		—		221
Balances, April 26, 2020	615	$	1	$	7,354	$	(10,036)	$	(10)	$	15,790	$	13,099
Balances, January 27, 2019	606	$	1	$	6,051	$	(9,263)	$	(12)	$	12,565	$	9,342
Other comprehensive income	—	—		—		—		10		—		10
Net income	—	—		—		—		—		394		394
Issuance of common stock from stock plans	4	—		83		—		—		—		83
Tax withholding related to vesting of restricted stock units	(1)	—		—		(211)		—		—		(211)
Cash dividends declared and paid ($0.16 per common share)	—	—		—		—		—		(97)		(97)
Stock-based compensation	—	—		183		—		—		—		183
Balances, April 28, 2019	609	$	1	$	6,317	$	(9,474)	$	(2)	$	12,862	$	9,704

See accompanying Notes to Condensed Consolidated Financial Statements.

6

NVIDIA CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	Three Months Ended
	April 26,		April 28,
	2020		2019
Cash flows from operating activities:
Net income	$	917	$	394
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	224		178
Depreciation and amortization	107		91
Deferred income taxes	16		(42)
Other	4		(2)
Changes in operating assets and liabilities:
Accounts receivable	(249)		182
Inventories	(151)		153
Prepaid expenses and other assets	(8)		5
Accounts payable	71		(123)
Accrued and other current liabilities	(32)		(129)
Other long-term liabilities	10		13
Net cash provided by operating activities	909		720
Cash flows from investing activities:
Proceeds from sales of marketable securities	1		26
Proceeds from maturities of marketable securities	—		2,219
Purchases of marketable securities	(861)		(622)
Purchases of property and equipment and intangible assets	(155)		(128)
Acquisition of business, net of cash acquired	(34)		—
Investments and other, net	(6)		—
Net cash provided by (used in) investing activities	(1,055)		1,495
Cash flows from financing activities:
Issuance of debt, net of issuance costs	4,979		—
Proceeds related to employee stock plans	88		83
Payments related to tax on restricted stock units	(222)		(211)
Dividends paid	(98)		(97)
Other	(3)		—
Net cash provided by (used in) financing activities	4,744		(225)
Change in cash and cash equivalents	4,598		1,990
Cash and cash equivalents at beginning of period	10,896		782
Cash and cash equivalents at end of period	$	15,494	$	2,772
Other non-cash investing activity:
Assets acquired by assuming related liabilities	$	230	$	114

See accompanying Notes to Condensed Consolidated Financial Statements.

7

NVIDIA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 - Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission, or SEC, Regulation S-X. The January 26, 2020 consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 26, 2020, as filed with the SEC, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of results of operations and financial position have been included. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 26, 2020. 

Significant Accounting Policies

There have been no material changes to our significant accounting policies in Note 1 - Organization and Summary of Significant Accounting Policies, of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 26, 2020.

Fiscal Year

We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal year 2021 is a 53-week year and fiscal year 2020 is a 52-week year. The first quarters of fiscal years 2021 and 2020 were both 13-week quarters.

Reclassifications

Certain prior fiscal year balances have been reclassified to conform to the current fiscal year presentation.

Principles of Consolidation

Our condensed consolidated financial statements include the accounts of NVIDIA Corporation and our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from our estimates. On an on-going basis, we evaluate our estimates, including those related to revenue recognition, cash equivalents and marketable securities, accounts receivable, inventories, income taxes, goodwill, stock-based compensation, litigation, investigation and settlement costs, restructuring and other charges, and other contingencies. The inputs into our judgments and estimates consider the economic implications of COVID-19 on our critical and significant accounting estimates. These estimates are based on historical facts and various other assumptions that we believe are reasonable.

Adoption of New and Recently Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncement

In June 2016, the Financial Accounting Standards Board issued a new accounting standard to replace the existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates for accounts receivable and other financial instruments, including available-for-sale debt securities. The Company adopted the standard in the first quarter of fiscal year 2021 and the impact of the adoption was not material to the Company's consolidated financial statements.

8

NVIDIA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Note 2 - Acquisition of Mellanox Technologies, Ltd.

Subsequent to the end of the first quarter of fiscal year 2021, we closed the acquisition of Mellanox Technologies Ltd., or Mellanox, for a transaction value of approximately $7.0 billion in cash on April 27, 2020.

Note 3 - Leases

Our lease obligations consist of operating leases for our headquarters complex, domestic and international office facilities, and data center space, with lease periods expiring between fiscal years 2021 and 2035.

Future minimum lease payments under our non-cancelable operating leases as of April 26, 2020, are as follows:   

	Operating Lease Obligations
	(In millions)
Fiscal Year:
2021 (excluding first quarter of fiscal year 2021)	$	90
2022	116
2023	102
2024	78
2025	61
2026 and thereafter	289
Total	736
Less imputed interest	117
Present value of net future minimum lease payments	619
Less short-term operating lease liabilities	100
Long-term operating lease liabilities	$	519

Operating lease expense for the first quarters of fiscal years 2021 and 2020 was $31 million and $27 million, respectively. Short-term and variable lease expenses for the first quarter of fiscal years 2021 and 2020 were not significant.

Other information related to leases was as follows:

	Three Months Ended
	April 26, 2020
	(In millions)
Supplemental cash flows information
Operating cash flows used for operating leases	$	31
Operating lease assets obtained in exchange for lease obligations	$	3

As of April 26, 2020, our operating leases had a weighted average remaining lease term of 8.2 years and a weighted average discount rate of 3.45%.

9

NVIDIA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Note 4 - Stock-Based Compensation

Our stock-based compensation expense is associated with restricted stock units, or RSUs, performance stock units that are based on our corporate financial performance targets, or PSUs, performance stock units that are based on market conditions, or market-based PSUs, and our employee stock purchase plan, or ESPP.

Our Condensed Consolidated Statements of Income include stock-based compensation expense, net of amounts allocated to inventory, as follows:

	Three Months Ended
	April 26, 2020		April 28, 2019
	(In millions)
Cost of revenue	$	21	$	4
Research and development	134		114
Sales, general and administrative	69		60
Total	$	224	$	178

Equity Award Activity

The following is a summary of equity award transactions under our equity incentive plans:

	RSUs, PSUs, and Market-based PSUs Outstanding
	Number of Shares	Weighted Average Grant-Date Fair Value Per Share
	(In millions, except per share data)
Balances, January 26, 2020	14	$	176.72
Granted	1	$	254.61
Vested restricted stock	(3)	$	144.27
Canceled and forfeited	(1)	$	161.66
Balances, April 26, 2020	11	$	191.23

As of April 26, 2020, there was $1.81 billion of aggregate unearned stock-based compensation expense, net of forfeitures. This amount is expected to be recognized over a weighted average period of 2.4 years for RSUs, PSUs, and market-based PSUs, and 0.8 years for ESPP.

10

NVIDIA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Note 5 – Net Income Per Share

The following is a reconciliation of the denominator of the basic and diluted net income per share computations for the periods presented:

	Three Months Ended
	April 26,		April 28,
	2020		2019
	(In millions, except per share data)
Numerator:
Net income	$	917	$	394
Denominator:
Basic weighted average shares	614		607
Dilutive impact of outstanding equity awards	8		9
Diluted weighted average shares	622		616
Net income per share:
Basic (1)	$	1.49	$	0.65
Diluted (2)	$	1.47	$	0.64
Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive	1		11

(1) Calculated as net income divided by basic weighted average shares.

(2) Calculated as net income divided by diluted weighted average shares.

Note 6 – Income Taxes

We recognized an income tax expense of $64 million for the first quarter of fiscal year 2021 and income tax benefit of $5 million for the first quarter of fiscal year 2020. The income tax expense as a percentage of income before income tax was 6.6% for the first quarter of fiscal year 2021 and income tax benefit as a percentage of income before income tax was 1.3% for the first quarter of fiscal year 2020.

The increase in our effective tax rate for the first quarter of fiscal year 2021 as compared to the first quarter of fiscal year 2020 was primarily due to a decrease of tax benefits from stock-based compensation.

Our effective tax rates for the first quarter of fiscal years 2021 and 2020 were lower than the U.S. federal statutory rate of 21% due to income earned in jurisdictions that are subject to taxes lower than the U.S. federal statutory tax rate, tax benefits related to stock-based compensation, and the benefit of the U.S. federal research tax credit.

For the first quarter of fiscal year 2021, there have been no material changes to our tax years that remain subject to examination by major tax jurisdictions. Additionally, there have been no material changes to our unrecognized tax benefits and any related interest or penalties since the fiscal year ended January 26, 2020.

While we believe that we have adequately provided for all uncertain tax positions, or tax positions where we believe it is not more-likely-than-not that the position will be sustained upon review, amounts asserted by tax authorities could be greater or less than our accrued position. Accordingly, our provisions on federal, state and foreign tax related matters to be recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved with the respective tax authorities. As of April 26, 2020, we do not believe that our estimates, as otherwise provided for, on such tax positions will significantly increase or decrease within the next twelve months.

Note 7 - Cash Equivalents and Marketable Securities 

Our cash equivalents and marketable securities are classified as “available-for-sale” debt securities.

The following is a summary of cash equivalents and marketable securities as of April 26, 2020 and January 26, 2020:

	April 26, 2020
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value		Reported as
									Cash Equivalents		Marketable Securities
	(In millions)
Money market funds	$	11,128	$	—	$	—	$	11,128	$	11,128	$	—
Corporate debt securities	3,238		—		—		3,238		2,951		287
Foreign government bonds	870		—		—		870		870		—
Certificates of deposit	582		—		—		582		222		360
Debt securities issued by United States government agencies	381		—		—		381		168		213
Total	$	16,199	$	—	$	—	$	16,199	$	15,339	$	860

	January 26, 2020
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value		Reported as
									Cash Equivalents		Marketable Securities
	(In millions)
Money market funds	$	7,507	$	—	$	—	$	7,507	$	7,507	$	—
Debt securities issued by the United States Treasury	1,358		—		—		1,358		1,358		—
Debt securities issued by United States government agencies	1,096		—		—		1,096		1,096		—
Corporate debt securities	592		—		—		592		592		—
Foreign government bonds	200		—		—		200		200		—
Certificates of deposit	27		—		—		27		27
Asset-backed securities	1		—		—		1		—		1
Total	$	10,781	$	—	$	—	$	10,781	$	10,780	$	1

The amortized cost and estimated fair value of cash equivalents and marketable securities of $16.20 billion and $10.78 billion as of April 26, 2020 and January 26, 2020, respectively, are all related to contracts with maturities of less than one year. Unrealized gains and losses were not significant for all periods presented. For the first quarter of fiscal years 2021 and 2020, net realized gains were not significant.

Note 8 – Fair Value of Financial Assets and Liabilities

The fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assets from active markets. We review fair value hierarchy classification on a quarterly basis.

12

NVIDIA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

		Fair Value at
	Pricing Category	April 26, 2020		January 26, 2020
		(In millions)
Assets
Cash equivalents and marketable securities:
Money market funds	Level 1	$	11,128	$	7,507
Corporate debt securities	Level 2	$	3,238	$	592
Foreign government bonds	Level 2	$	870	$	200
Certificates of deposit	Level 2	$	582	$	27
Debt securities issued by United States government agencies	Level 2	$	381	$	1,096
Debt securities issued by the United States Treasury	Level 2	$	—	$	1,358
Asset-backed securities	Level 2	$	—	$	1
Liabilities
Other noncurrent liabilities:
2.20% Notes Due 2021 (1)	Level 2	$	1,020	$	1,065
3.20% Notes Due 2026 (1)	Level 2	$	1,104	$	1,006
2.85% Notes Due 2030 (1)	Level 2	$	1,635	$	—
3.50% Notes Due 2040 (1)	Level 2	$	1,134	$	—
3.50% Notes Due 2050 (1)	Level 2	$	2,336	$	—
3.70% Notes Due 2060 (1)	Level 2	$	594	$	—

(1) These liabilities are carried on our Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs, and are not marked to fair value each period. Refer to Note 12 of these Notes to Condensed Consolidated Financial Statements for additional information.

Note 9 - Amortizable Intangible Assets

The components of our amortizable intangible assets are as follows:

	April 26, 2020						January 26, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In millions)						(In millions)
Acquisition-related intangible assets	$	231	$	(195)	$	36	$	195	$	(192)	$	3
Patents and licensed technology	522		(478)		44		520		(474)		46
Total intangible assets	$	753	$	(673)	$	80	$	715	$	(666)	$	49

Amortization expense associated with intangible assets was $7 million for both the first quarters of fiscal years 2021 and 2020. Future amortization expense related to the net carrying amount of intangible assets as of April 26, 2020 is estimated to be $20 million for the remainder of fiscal year 2021, $21 million in fiscal year 2022, $18 million in fiscal year 2023, $12 million in fiscal year 2024, $7 million in fiscal year 2025, and $2 million in fiscal year 2026 and thereafter.

13

NVIDIA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Note 10 - Balance Sheet Components 

Certain balance sheet components are as follows:

	April 26,		January 26,
	2020		2020
Inventories:	(In millions)
Raw materials	$	341	$	249
Work in-process	287		265
Finished goods	500		465
Total inventories	$	1,128	$	979

	April 26,		January 26,
	2020		2020
Accrued and Other Current Liabilities:	(In millions)
Customer program accruals	$	444	$	462
Deferred revenue (1)	174		141
Accrued payroll and related expenses	164		185
Operating lease liabilities	100		91
Licenses and royalties	78		66
Taxes payable	74