NVIDIA 2004 Annual Report Download - page 49

Download and view the complete annual report

Please find page 49 of the 2004 NVIDIA annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 69

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
January 25, January 26,
2004 2003
Property and Equipment: (In thousands)
Software $ 116,150 $ 48,006
Test equipment 73,287 49,961
Computer equipment 70,173 54,479
Leasehold improvements 58,649 54,416
Construction in process 1,620 4,862
Office furniture and equipment 17,996 17,359
337,875 229,083
Accumulated depreciation and amortization (147,846) (93,931)
Property and equipment, net $ 190,029 $ 135,152
Depreciation expense for fiscal 2004, 2003 and 2002 was $59.3 million, $42.6 million and $24.3 million, respectively. Assets
recorded under capital leases included in property and equipment were $19.5 million and $17.1 million as of January 25, 2004 and
January 26, 2003, respectively. Related accumulated amortization was $14.0 million and $8.7 million as of January 25, 2004 and
January 26, 2003, respectively.
January 25, January 26,
2004 2003
Accrued Liabilities: (In thousands)
Accrued customer programs $ 54,875 $ 50,018
Customer advances 11,530 58,396
Taxes payable 29,609 82,952
Accrued payroll and related expenses 30,270 20,575
Deferred rent 8,151 5,050
Other 10,320 11,476
Total accrued liabilities $ 144,755 $ 228,467
Note 8 – Guarantees
Financial Accounting Standards Board Interpretation No. 45, or FIN 45, Guarantor’s Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness of Others, requires that upon issuance of a guarantee, the guarantor must
recognize a liability for the fair value of the obligation it assumes under that guarantee. In addition, FIN 45 requires disclosures about
the guarantees that an entity has issued, including a rollforward of the entity’s product warranty liabilities.
We record a reduction to revenue for estimated product returns at the time revenue is recognized primarily based on historical return
rates. The reductions to revenue for estimated product returns for fiscal 2004, fiscal 2003 and fiscal 2002 are as follows:
Description
Balance at
Beginning of
Period Additions (1) Deductions (2) Balance at End
of Period
(In thousands)
Year ended January 25, 2004
Allowance for sales returns $ 13,228 $ 23,796 $ (27,603) $ 9,421
Year ended January 26, 2003
Allowance for sales returns $ 15,586 $ 20,147 $ (22,505) $ 13,228
Year ended January 27, 2002
Allowance for sales returns $ 7,092 $ 17,171 $ (8,677) $ 15,586