NVIDIA 2005 Annual Report Download - page 63

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NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 − Organization and Summary of Significant Accounting Policies
Our Company
NVIDIA Corporation is a worldwide leader in graphics and digital media processors dedicated to creating products that enhance the
interactive experience on consumer and professional computing platforms. We design, develop and market graphics processing units,
or GPUs, media and communications processors, or MCPs, wireless media processors, or WMPs and related software. Our products
are integral to a wide variety of visual computing platforms, including enterprise personal computers, or PCs, consumer PCs,
professional workstations, notebook PCs, personal digital assistants, cellular phones, game consoles and digital media centers. We
were incorporated in California in April 1993 and reincorporated in Delaware in April 1998. Our objective is to be one of the most
important and influential technology companies in the world.
Fiscal year
We operate on a 52 or 53−week year, ending on the Sunday nearest January 31. Fiscal 2005 was a 53−week year, compared to fiscal
2004 which was a 52−week year. The fourth quarter of fiscal 2005 was a 14−week quarter, compared to the fourth quarter of fiscal
2004 which was a 13−week quarter.
Reclassifications
Certain prior year balances were reclassified to conform to the current year presentation.
Principles of Consolidation
Our consolidated financial statements include the accounts of NVIDIA Corporation and its wholly owned subsidiaries. All material
intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 from those estimates. On an on−going basis, we evaluate our estimates, including those related to
revenue recognition, accounts receivable, inventories, income taxes and contingencies. These estimates are based on historical facts
and various other assumptions that we believe are reasonable.
Cash and Cash Equivalents
We consider all highly liquid investments purchased with an original maturity of three months or less at the time of purchase to be
cash equivalents. As of January 30, 2005, our cash and cash equivalents were $208.5 million, which includes $164.4 million invested
in money market funds.
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