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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 30, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 0-23985
nvidialogoa06.jpg

NVIDIA CORPORATION
(Exact name of registrant as specified in its charter)
Delaware94-3177549
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par value per shareNVDAThe 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 filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging 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 19, 2023, was 2.47 billion.



NVIDIA CORPORATION
FORM 10-Q
FOR THE QUARTER ENDED April 30, 2023
TABLE OF CONTENTS
  Page
  
Financial Statements (Unaudited) 
 a) Condensed Consolidated Statements of Income for the three months ended April 30, 2023 and May 1, 2022
b) Condensed Consolidated Statements of Comprehensive Income for the three months ended April 30, 2023 and May 1, 2022
 c) Condensed Consolidated Balance Sheets as of April 30, 2023 and January 29, 2023
d) Condensed Consolidated Statements of Shareholders' Equity for the three months ended April 30, 2023 and May 1, 2022
 e) Condensed Consolidated Statements of Cash Flows for the three months ended April 30, 2023 and May 1, 2022
 f) Notes to Condensed Consolidated Financial Statements
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Quantitative and Qualitative Disclosures About Market Risk
Controls and Procedures
  
Legal Proceedings
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Exhibits
 
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 Company Blog (http://blogs.nvidia.com)
NVIDIA LinkedIn Page (http://www.linkedin.com/company/nvidia)
NVIDIA Facebook Page (https://www.facebook.com/nvidia)
NVIDIA Instagram Page (https://www.instagram.com/nvidia)
NVIDIA Twitter Account (https://twitter.com/nvidia)
In addition, investors and others can view NVIDIA videos on YouTube (https://www.YouTube.com/nvidia).
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 30,May 1,
20232022
Revenue$7,192 $8,288 
Cost of revenue2,544 2,857 
Gross profit4,648 5,431 
Operating expenses  
Research and development1,875 1,618 
Sales, general and administrative633 592 
Acquisition termination cost
 1,353 
Total operating expenses2,508 3,563 
Income from operations2,140 1,868 
Interest income150 18 
Interest expense(66)(68)
Other, net(15)(13)
Other income (expense), net
69 (63)
Income before income tax2,209 1,805 
Income tax expense166 187 
Net income$2,043 $1,618 
Net income per share:
Basic$0.83 $0.65 
Diluted$0.82 $0.64 
Weighted average shares used in per share computation:
Basic2,470 2,506 
Diluted2,490 2,537 

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 30,May 1,
20232022
 
Net income$2,043 $1,618 
Other comprehensive loss, net of tax
Available-for-sale securities:
Net change in unrealized gain (loss)17 (22)
Cash flow hedges:
Net unrealized loss(13)(29)
Reclassification adjustments for net realized loss included in net income(11)(2)
Net change in unrealized loss(24)(31)
Other comprehensive loss, net of tax(7)(53)
Total comprehensive income$2,036 $1,565 

See accompanying Notes to Condensed Consolidated Financial Statements.

4


NVIDIA CORPORATION AND SUBSIDIARIES 
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
April 30,January 29,
 20232023
ASSETS
Current assets:  
Cash and cash equivalents$5,079 $3,389 
Marketable securities10,241 9,907 
Accounts receivable, net4,080 3,827 
Inventories4,611 5,159 
Prepaid expenses and other current assets872 791 
Total current assets24,883 23,073 
Property and equipment, net3,740 3,807 
Operating lease assets1,094 1,038 
Goodwill4,430 4,372 
Intangible assets, net1,541 1,676 
Deferred income tax assets4,568 3,396 
Other assets4,204 3,820 
Total assets$44,460 $41,182 
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Current liabilities:  
Accounts payable$1,141 $1,193 
Accrued and other current liabilities4,869 4,120 
Short-term debt1,250 1,250 
Total current liabilities7,260 6,563 
Long-term debt9,704 9,703 
Long-term operating lease liabilities939 902 
Other long-term liabilities2,037 1,913 
Total liabilities19,940 19,081 
Commitments and contingencies - see Note 13
Shareholders’ equity:  
Preferred stock  
Common stock2 2 
Additional paid-in capital12,453 11,971 
Accumulated other comprehensive loss(50)(43)
Retained earnings12,115 10,171 
Total shareholders' equity24,520 22,101 
Total liabilities and shareholders' equity$44,460 $41,182 

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 30, 2023 AND MAY 1, 2022
(Unaudited)
Common Stock
Outstanding
Additional Paid-in CapitalAccumulated Other Comprehensive LossRetained EarningsTotal Shareholders' Equity
(In millions, except per share data)SharesAmount
Balances, January 29, 20232,466 $2 $11,971 $(43)$10,171 $22,101 
Net income— — — — 2,043 2,043 
Other comprehensive loss— — — (7)— (7)
Issuance of common stock from stock plans 9 — 246 — — 246 
Tax withholding related to vesting of restricted stock units(2)— (507)— — (507)
Cash dividends declared and paid ($0.04 per common share)
— — — — (99)(99)
Stock-based compensation— — 743 — — 743 
Balances, April 30, 20232,473 $2 $12,453 $(50)$12,115 $24,520 
Balances, January 30, 20222,506 $3 $10,385 $(11)$16,235 $26,612 
Net income— — — — 1,618 1,618 
Other comprehensive loss— — — (53)— (53)
Issuance of common stock from stock plans 9 — 204 — — 204 
Tax withholding related to vesting of restricted stock units(2)— (538)— — (538)
Shares repurchased(9)— (1)— (1,995)(1,996)
Cash dividends declared and paid ($0.04 per common share)
— — — — (100)(100)
Stock-based compensation— — 573 — — 573 
Balances, May 1, 20222,504 $3 $10,623 $(64)$15,758 $26,320 
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 30,May 1,
 20232022
Cash flows from operating activities:
Net income$2,043 $1,618 
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense735 578 
Depreciation and amortization384 334 
Losses on investments in non-affiliates14 17 
Deferred income taxes(1,135)(542)
Acquisition termination cost
 1,353 
Other(34)23 
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable(252)(788)
Inventories566 (560)
Prepaid expenses and other assets(215)(1,261)
Accounts payable11 255 
Accrued and other current liabilities689 634 
Other long-term liabilities105 70 
Net cash provided by operating activities2,911 1,731 
Cash flows from investing activities:
Proceeds from maturities of marketable securities2,512 5,947 
Proceeds from sales of marketable securities 1,029 
Purchases of marketable securities(2,801)(3,932)
Purchases related to property and equipment and intangible assets(248)(361)
Acquisitions, net of cash acquired(83)(36)
Investments and other, net(221)(35)
Net cash provided by (used in) investing activities(841)2,612 
Cash flows from financing activities:
Proceeds related to employee stock plans246 204 
Payments related to tax on restricted stock units(507)(532)
Dividends paid(99)(100)
Principal payments on property and equipment and intangible assets(20)(22)
Payments related to repurchases of common stock  (1,996)
Net cash used in financing activities(380)(2,446)
Change in cash and cash equivalents1,690 1,897 
Cash and cash equivalents at beginning of period3,389 1,990 
Cash and cash equivalents at end of period$5,079 $3,887 
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 29, 2023 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 29, 2023, 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 29, 2023. 
Significant Accounting Policies
There have been no material changes to our significant accounting policies disclosed 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 29, 2023.
Fiscal Year
We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal years 2024 and 2023 are both 52-week years. The first quarters of fiscal years 2024 and 2023 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, property, plant, and equipment, and other contingencies. These estimates are based on historical facts and various other assumptions that we believe are reasonable.
In February 2023, we completed an assessment of the useful lives of our property, plant, and equipment. Based on advances in technology and usage rate, we increased the estimated useful life of a majority of our server, storage, and network equipment from three to a range of four to five years, and our assembly and test equipment from five to seven years. This change in accounting estimate became effective at the beginning of fiscal year 2024. Based on the carrying amounts of a majority of our server, storage, network, and assembly and test equipment, net, in use as of the end of fiscal year 2023, the effect of this change in estimate for the three months ended April 30, 2023, was a benefit of $2 million and $31 million for cost of revenue and operating expenses, respectively. This resulted in an increase in operating income of $33 million and net income of $28 million after tax, or $0.01 per both basic and diluted share.

8

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)


Note 2 - Business Combination
Termination of the Arm Share Purchase Agreement
In February 2022, NVIDIA and SoftBank Group Corp, or SoftBank, announced the termination of the Share Purchase Agreement whereby NVIDIA would have acquired Arm Limited, or Arm, from SoftBank. The parties agreed to terminate due to significant regulatory challenges preventing the completion of the transaction. We recorded an acquisition termination cost of $1.35 billion in fiscal year 2023 reflecting the write-off of the prepayment provided at signing.
Note 3 - Leases
Our lease obligations primarily consist of operating leases for our headquarters complex, domestic and international office facilities, and data center space, with lease periods expiring between fiscal years 2024 and 2035.
Future minimum lease payments under our non-cancelable operating leases as of April 30, 2023 are as follows:
Operating Lease Obligations
 (In millions)
Fiscal Year: 
2024 (excluding first quarter)
$178 
2025218 
2026196 
2027180 
2028159 
2029 and thereafter
357 
Total1,288 
Less imputed interest162 
Present value of net future minimum lease payments1,126 
Less short-term operating lease liabilities187 
Long-term operating lease liabilities$939 
In addition, we have operating leases, primarily for our data centers, that are expected to commence between the second quarter of fiscal year 2024 and fiscal year 2025 with lease terms of 2 to 8 years for $361 million.
Operating lease expenses were $59 million and $44 million for the first quarter of fiscal years 2024 and 2023, respectively. Short-term and variable lease expenses for the first quarter of fiscal years 2024 and 2023 were not significant.
Other information related to leases was as follows:
Three Months Ended
April 30, 2023May 1, 2022
 (In millions)
Supplemental cash flows information 
Operating cash flows used for operating leases$61 $45 
Operating lease assets obtained in exchange for lease obligations$106 $62 
9


As of April 30, 2023, our operating leases had a weighted average remaining lease term of 6.6 years and a weighted average discount rate of 3.33%. As of January 29, 2023, our operating leases had a weighted average remaining lease term of 6.8 years and a weighted average discount rate of 3.21%.
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 30,
2023
May 1,
2022
(In millions)
Cost of revenue$27 $38 
Research and development524 384 
Sales, general and administrative184 156 
Total$735 $578 
Equity Award Activity
The following is a summary of our equity award transactions under our equity incentive plans:
RSUs, PSUs, and Market-based PSUs Outstanding
 Number of SharesWeighted Average Grant-Date Fair Value Per Share
(In millions, except per share data)
Balances, January 29, 202345 $158.45 
Granted2 $226.08 
Vested restricted stock(6)$115.99 
Canceled and forfeited(1)$199.37 
Balances, April 30, 202340 $167.07 
As of April 30, 2023, there was $6.55 billion of aggregate unearned stock-based compensation expense. This amount is expected to be recognized over a weighted average period of 2.5 years for RSUs, PSUs, and market-based PSUs, and 1.1 years for ESPP.

10


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 30,May 1,
20232022
 (In millions, except per share data)
Numerator:  
Net income
$2,043 $1,618 
Denominator:
Basic weighted average shares
2,470 2,506 
Dilutive impact of outstanding equity awards20 31 
Diluted weighted average shares
2,490 2,537 
Net income per share:
Basic (1)
$0.83 $0.65 
Diluted (2)
$0.82 $0.64 
Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive4 3 
(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
Income tax expense was $166 million and $187 million for the first quarter of fiscal years 2024 and 2023, respectively. The income tax expense as a percentage of income before income tax was 7.5% and 10.3% for the first quarter of fiscal years 2024 and 2023, respectively.
The decrease in the effective tax rate was primarily due to the tax impact of the Arm acquisition termination cost recorded in the first quarter of fiscal year 2023, which did not result in a tax benefit, and the increased impact of tax benefits from stock-based compensation, partially offset by decreased tax benefits impact from the foreign-derived intangible income deduction and the U.S. federal research tax credit.
Our effective tax rates for the first quarter of fiscal years 2024 and 2023 were lower than the U.S. federal statutory rate of 21% due to tax benefits from the foreign-derived intangible income deduction, stock-based compensation and the U.S. federal research tax credit.
For the first quarter of fiscal year 2024, there were no material changes to our tax years that remain subject to examination by major tax jurisdictions. We are currently under examination by the Internal Revenue Service for our fiscal years 2018 and 2019. Additionally, there have been no material changes to our unrecognized tax benefits and any related interest or penalties since the fiscal year ended January 29, 2023.
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 30, 2023, we do not believe that our estimates, as otherwise provided for, on such tax positions will significantly increase or decrease within the next 12 months.


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Note 7 - Cash Equivalents and Marketable Securities 
Our cash equivalents and marketable securities related to debt securities are classified as “available-for-sale” debt securities.
The following is a summary of cash equivalents and marketable securities:
 April 30, 2023
Amortized
Cost
Unrealized
Gain
Unrealized
Loss
Estimated
Fair Value
Reported as
 Cash EquivalentsMarketable Securities
 (In millions)
Corporate debt securities$6,723 $4 $(11)$6,716 $2,535 $4,181 
Debt securities issued by the U.S. Treasury3,996 2 (31)3,967 421 3,546 
Debt securities issued by U.S. government agencies2,442 1 (1)2,442 199 2,243 
Money market funds1,502   1,502 1,502  
Certificates of deposit395   395 173 222 
Foreign government bonds49   49  49 
Total$15,107 $7 $(43)$15,071 $4,830 $10,241 
 January 29, 2023
Amortized
Cost
Unrealized
Gain
Unrealized
Loss
Estimated
Fair Value
Reported as
 Cash EquivalentsMarketable Securities
 (In millions)
Corporate debt securities$4,809 $ $(12)$4,797 $1,087 $3,710 
Debt securities issued by the U.S. Treasury4,185 1 (44)4,142  4,142 
Debt securities issued by U.S. government agencies1,836  (2)1,834 50 1,784 
Money market funds1,777   1,777 1,777  
Certificates of deposit365   365 134 231 
Foreign government bonds140   140 100 40 
Total$13,112 $1 $(58)$13,055 $3,148 $9,907 
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The following tables provide the breakdown of unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position:
April 30, 2023
 Less than 12 Months12 Months or GreaterTotal
 Estimated Fair ValueGross Unrealized LossEstimated Fair ValueGross Unrealized LossEstimated Fair ValueGross Unrealized Loss
 (In millions)
Debt securities issued by the U.S. Treasury$1,601 $(11)$1,106 $(20)$2,707 $(31)
Debt securities issued by U.S. government agencies1,259 (1)  1,259 (1)
Corporate debt securities945 (4)838 (7)1,783 (11)
Total$3,805 $(16)$1,944 $(27)$5,749 $(43)
January 29, 2023
 Less than 12 Months12 Months or GreaterTotal
 Estimated Fair ValueGross Unrealized LossEstimated Fair ValueGross Unrealized LossEstimated Fair ValueGross Unrealized Loss
 (In millions)
Debt securities issued by the U.S. Treasury$2,444 $(21)$1,172 $(23)$3,616 $(44)
Corporate debt securities1,188 (7)696 (5)1,884 (12)
Debt securities issued by U.S. government agencies1,307 (2)  1,307 (2)
Total$4,939 $(30)$1,868 $(28)$6,807 $(58)
The gross unrealized losses are related to fixed income securities, driven primarily by changes in interest rates. Net realized gains and losses were not significant for all periods presented.
The amortized cost and estimated fair value of cash equivalents and marketable securities are shown below by contractual maturity.
April 30, 2023January 29, 2023
Amortized CostEstimated Fair ValueAmortized CostEstimated Fair Value
(In millions)
Less than one year$12,654 $12,625 $9,738 $9,708 
Due in 1 - 5 years2,453 2,446 3,374 3,347 
Total$15,107 $15,071 $13,112 $13,055 
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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.
Fair Value at
Pricing CategoryApril 30, 2023January 29, 2023
(In millions)
Assets
Cash equivalents and marketable securities:
Money market fundsLevel 1$1,502 $1,777 
Corporate debt securitiesLevel 2$6,716 $4,797 
Debt securities issued by the U.S. TreasuryLevel 2$3,967 $4,142 
Debt securities issued by U.S. government agenciesLevel 2$2,442 $1,834 
Certificates of depositLevel 2$395 $365 
Foreign government bondsLevel 2$49 $140 
Other assets (Investment in non-affiliated entities):
Publicly-held equity securities (1)Level 1$9 $11 
Privately-held equity securitiesLevel 3$496 $288 
Liabilities (2)
0.309% Notes Due 2023
Level 2$1,243 $1,230 
0.584% Notes Due 2024
Level 2$1,197 $1,185 
3.20% Notes Due 2026
Level 2$976 $966 
1.55% Notes Due 2028
Level 2$1,112 $1,099 
2.85% Notes Due 2030
Level 2$1,375 $1,364 
2.00% Notes Due 2031
Level 2$1,062 $1,044 
3.50% Notes Due 2040
Level 2$862 $870 
3.50% Notes Due 2050
Level 2$1,633 $1,637 
3.70% Notes Due 2060
Level 2$403 $410 
(1)    Unrealized losses of $14 million and $24 million from investments in publicly-traded equity securities were recorded in other income (expense), net, in the first quarter of fiscal years 2024 and 2023, respectively.
(2)    These liabilities are carried on our Condensed Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs.
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Note 9 - Amortizable Intangible Assets and Goodwill
The components of our amortizable intangible assets are as follows:
 April 30, 2023January 29, 2023
 Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
 (In millions)
Acquisition-related intangible assets$3,112 $(1,780)$1,332 $3,093 $(1,614)$1,479 
Patents and licensed technology460 (251)209 446 (249)197 
Total intangible assets$3,572 $(2,031)$1,541 $3,539 $(1,863)$1,676 

Amortization expense associated with intangible assets was $181 million and $155 million for the first quarter of fiscal years 2024 and 2023, respectively.
The following table outlines the estimated future amortization expense related to the net carrying amount of intangible assets as of April 30, 2023:
Future Amortization Expense
 (In millions)
Fiscal Year: 
2024 (excluding first quarter)
$433 
2025554 
2026259 
2027149 
202837 
2029 and thereafter109 
Total$1,541 
In the first quarter of fiscal year 2024, goodwill increased by $58 million from an acquisition, and was assigned to our Compute & Networking segment.
Note 10 - Balance Sheet Components 
Certain balance sheet components are as follows:
April 30,January 29,
 20232023
Inventories:(In millions)
Raw materials$1,809 $2,430 
Work in-process930 466 
Finished goods1,872 2,263 
Total inventories$4,611 $5,159 
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April 30,January 29,
 20232023
Other Assets:(In millions)
Prepaid supply and capacity agreements$3,002 $2,989 
Investment in non-affiliated entities505 299 
Prepaid royalties381 387 
Prepaid cloud services171 23 
Other145 122 
Total other assets$4,204 $3,820 

April 30,January 29,
 20232023
Accrued and Other Current Liabilities:(In millions)
Taxes payable$1,544 $467 
Customer program accruals1,245 1,196 
Excess inventory purchase obligations786 954 
Deferred revenue (1)367 354 
Accrued payroll and related expenses320 530 
Operating leases187 176 
Licenses and royalties143 149 
Product warranty and return provisions112 108 
Other165 186 
Total accrued and other current liabilities$4,869 $4,120 
(1)    Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements, support for hardware and software, and cloud services.
April 30,January 29,
 20232023
Other Long-Term Liabilities:(In millions)
Income tax payable (1)$1,300 $1,204 
Deferred income tax290 247 
Deferred revenue (2)230 218 
Licenses payable155 181 
Other62 63 
Total other long-term liabilities$2,037 $1,913 
(1)    Income tax payable is comprised of the long-term portion of the one-time transition tax payable, unrecognized tax benefits, and related interest and penalties.
(2)    Deferred revenue primarily includes deferrals related to support for hardware and software.

16


Deferred Revenue
The following table shows the changes in deferred revenue during the first quarter of fiscal years 2024 and 2023:
April 30,May 1,
 20232022
(In millions)
Balance at beginning of period$572 $502 
Deferred revenue additions during the period287 212 
Revenue recognized during the period(262)(177)
Balance at end of period$597 $537 
Revenue allocated to remaining performance obligations, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods, was $639 million as of April 30, 2023. We expect to recognize approximately 46% of this revenue over the next twelve months and the remainder thereafter. This excludes revenue related to performance obligations for contracts with a length of one year or less.
Note 11 - Derivative Financial Instruments
We enter into foreign currency forward contracts to mitigate the impact of foreign currency exchange rate movements on our operating expenses. These contracts are designated as cash flow hedges for hedge accounting treatment. Gains or losses on the contracts are recorded in accumulated other comprehensive income or loss and reclassified to operating expense when the related operating expenses are recognized in earnings or ineffectiveness should occur.
We also enter into foreign currency forward contracts to mitigate the impact of foreign currency movements on monetary assets and liabilities that are denominated in currencies other than the U.S. dollar. These forward contracts were not designated for hedge accounting treatment. Therefore, the change in fair value of these contracts is recorded in other income or expense and offsets the change in fair value of the hedged foreign currency denominated monetary assets and liabilities, which is also recorded in other income or expense.
The table below presents the notional value of our foreign currency forward contracts outstanding:
 April 30,
2023
January 29,
2023
(In millions)
Designated as cash flow hedges$1,142 $1,128 
Non-designated hedges$350 $366 
The unrealized gains and losses or fair value of our foreign currency forward contracts was not significant as of April 30, 2023 and January 29, 2023.
As of April 30, 2023, all designated foreign currency forward contracts mature within 18 months. The expected realized gains and losses deferred into accumulated other comprehensive income or loss related to foreign currency forward contracts within the next twelve months was not significant.
During the first quarter of fiscal years 2024 and 2023, the impact of derivative financial instruments designated for hedge accounting treatment on other comprehensive income or loss was not significant and all such instruments were determined to be highly effective.
17


Note 12 - Debt
Long-Term Debt
The carrying value of our outstanding notes, the calendar year of maturity, and the associated interest rates were as follows:
Carrying Value at
Expected
Remaining Term (years)
Effective
Interest Rate
April 30, 2023January 29, 2023
(In millions)
0.309% Notes Due 2023
0.10.41%$1,250 $1,250 
0.584% Notes Due 2024
1.10.66%1,250 1,250 
3.20% Notes Due 2026
3.43.31%1,000 1,000 
1.55% Notes Due 2028
5.11.64%1,250 1,250 
2.85% Notes Due 2030
6.92.93%1,500 1,500 
2.00% Notes Due 2031
8.12.09%1,250 1,250 
3.50% Notes Due 2040
16.93.54%1,000 1,000 
3.50% Notes Due 2050
26.93.54%2,000 2,000 
3.70% Notes Due 2060
36.93.73%500 500 
Unamortized debt discount and issuance costs(46)(47)
Net carrying amount10,954 10,953 
Less short-term portion(1,250)(1,250)
Total long-term portion$9,704 $9,703 
All our notes are unsecured senior obligations. All existing and future liabilities of our subsidiaries will be effectively senior to the notes. Our notes pay interest semi-annually. We may redeem each of our notes prior to maturity, subject to a make-whole premium as defined in the applicable form of note.
As of April 30, 2023, we were in compliance with the required covenants, which are non-financial in nature, under the outstanding notes.
Commercial Paper
We have a $575 million commercial paper program to support general corporate purposes. As of April 30, 2023, we had not issued any commercial paper.
Note 13 - Commitments and Contingencies
Purchase Obligations
Our purchase obligations reflect our commitments to purchase components used to manufacture our products, including long-term supply and capacity agreements, certain software and technology licenses, other goods and services and long-lived assets.
As of April 30, 2023, we had outstanding inventory purchase and long-term supply and capacity obligations totaling $7.27 billion. During the normal course of business, to manage manufacturing lead times and help ensure adequate supply, we enter into agreements with contract manufacturers that allow them to procure inventory based upon criteria as defined by us, and in certain instances, these agreements allow us the option to cancel, reschedule, and adjust our requirements based on our business needs prior to firm orders being placed, but these changes may result in the payment of costs incurred through the date of cancellation.
18


Other non-inventory purchase obligations of $3.26 billion include $2.43 billion of multi-year cloud service agreements.
Total future purchase commitments as of April 30, 2023 are as follows:
Commitments
 (In millions)
Fiscal Year: 
2024 (excluding first quarter)
$6,667 
20251,816 
2026753 
2027704 
2028332