NVIDIA 2003 Annual Report Download - page 63

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NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
repurchase price of 100% of the principal amount, plus accrued interest to the repurchase date. In connection
with its debt financing arrangement, the Company incurred certain direct, incremental costs from third parties
who performed services that assisted in the closing of the related transactions. These costs totaling $9.2 million
are included in deposits and other assets on the Company’s consolidated balance sheet and are amortized using
the straight line method over the term of the financing.
Lease Obligations
In April 2000, the Company entered into leases for its new headquarters complex in Santa Clara, California.
The first phase of two buildings was completed in June 2001, the second phase of one building was completed in
July 2001 and the last phase consisting of one building was completed in February 2002. The leases expire in
2012 and each includes two seven-year renewals at the Company’s option. Future minimum lease payments
under these operating leases total approximately $205.5 million over the remaining terms of the leases and are
included in the future minimum lease schedule below.
In addition to the commitment of the new headquarters, the Company has other office facilities under
operating leases expiring through 2016. Future minimum lease payments under the Company’s noncancelable
capital and operating leases as of January 26, 2003, are as follows:
Year ending January: Operating Capital
(in thousands)
2004 ............................................................. $ 22,995 $ 6,260
2005 ............................................................. 23,210 4,188
2006 ............................................................. 22,970 868
2007 ............................................................. 23,299 —
2008 ............................................................. 23,902 —
2009 and thereafter ................................................. 102,720 —
Total ............................................................ $219,096 11,316
Less amount representing interest, at rates ranging from 8% to 10% ........... (760)
Present value of minimum lease payments ............................... 10,556
Less current portion ................................................. 5,676
Long term portion .................................................. $ 4,880
The following is an analysis of the property and equipment under capital leases by major classes:
January 26,
2003
January 27,
2002
(in thousands)
Classes of Property and Equipment:
Computer equipment ...................................................... $ 4,347 $ 4,348
Test equipment .......................................................... 6,895 6,894
Office equipment and furniture .............................................. 5,261 596
Software and other ....................................................... 634 629
17,137 12,467
Accumulated amortization ................................................. (8,683) (4,249)
Leased property and equipment, net ...................................... $ 8,454 $ 8,218
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