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NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
We were engaged with Microsoft in discussions related to pricing and volumes of the Xbox platform processors. The Microsoft
Agreement contemplated the use of a third party to resolve disputed matters, and on April 23, 2002 Microsoft submitted the pricing
dispute to binding arbitration. On February 6, 2003, NVIDIA and Microsoft announced that arbitration was over and the companies
had settled all issues related to pricing of the Microsoft Xbox platform processors. In addition to resolving this pricing dispute, we
have agreed to collaborate with Microsoft on future cost reductions for the Xbox, together the Microsoft Settlement. As a result of the
Microsoft Settlement, we recorded $40.4 million in additional revenue in the fourth quarter of fiscal 2003. The balance of $35.1
million in payments that we had received from Microsoft in excess of revenue recognized on sales to Microsoft as of January 26, 2003
was not required to be returned to Microsoft and rather was left with us to credit towards future purchases. This amount was classified
as "Customer Advances" within the balance of Accrued Liabilities in our consolidated balance sheet as of January 26, 2003.
Note 16 − Segment Information
We design, develop and market GPUs, MCPs, UMPs and related software. We operate in one industry segment in the United States
and other Americas, Asia and Europe. Our chief operating decision maker, the Chief Executive Officer, reviews financial information
presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. Revenue by
geographical region is allocated to individual countries based on the location to which the products are initially billed even if the
foreign contract equipment manufacturers’, or CEMs’, and add−in board and motherboard manufacturers’ revenue is attributable to
end customers located in a different location. The following table summarizes information pertaining to our operations in different
geographic areas:
Year Ended Year Ended Year Ended
January 25, January 26, January 27,
2004 2003 2002
Revenue: (In thousands)
U.S. and Other Americas $ 450,869 $ 603,750 $ 243,697
Asia Pacific 1,265,329 1,232,942 1,071,726
Europe 106,747 72,755 54,048
Total revenue $ 1,822,945 $ 1,909,447 $ 1,369,471
As of As of
January 25, January 26,
2004 2003
Long−lived assets (including property & equipment, goodwill and intangible assets): (In thousands)
U.S. and Other Americas $ 335,167 $ 208,698
Asia Pacific 1,653 1,365
Europe 2,081 1,560
Total long−lived assets $ 338,901 $ 211,623
64
NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Revenue from significant customers, those representing approximately 10% or more of total revenue for the respective periods, is
summarized as follows:
Year Ended Year Ended Year Ended
January 25, January 26, January 27,
2004 2003 2002