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NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS − (Continued)
Note 13 − Income Taxes
The provision for income taxes applicable to income before income taxes consists of the following:
Year Ended Year Ended Year Ended
January 30, January 25, January 26,
2005 2004 2003
(In thousands)
Current:
Federal $ −− $ −− $ −−
State 355 221 135
Foreign 8,826 (51,590) 20,555
Total current 9,181 (51,369) 20,690
Deferred:
Federal 4,683 19,861 20,569
State (620) 35,274 9,319
Foreign −− −− −−
Total deferred 4,063 55,135 29,888
Charge in lieu of taxes attributable to employer stock option plans 11,845 8,488 9,180
Provision for income taxes $ 25,089 $ 12,254 $ 59,758
Income before income taxes consists of the following:
Year Ended Year Ended Year Ended
January 30, January 25, January 26,
2005 2004 2003
(In thousands)
Domestic $ 9,556 $ (17,816) $ 20,764
Foreign 115,889 104,489 129,793
$ 125,445 $ 86,673 $ 150,557
The provision for income taxes differs from the amount computed by applying the federal statutory income tax rate of 35% to income
before income taxes as follows:
Year Ended Year Ended Year Ended
January 30, January 25, January 26,
2005 2004 2003
(In thousands)
Tax expense computed at Federal Statutory Rate $ 43,906 $ 30,336 $ 52,695
State income taxes (benefit), net of federal tax effect 230 544 (4,241)
Foreign tax rate differential (8,462) (11,671) 23,222
Research and experimental credit (10,710) (5,230) (12,048)
In−process research and development −− 1,225 −−
Change in estimates −− (36,766) −−
Increase in beginning of year valuation allowance −− 33,599 −−
Other 125 217 130
Provision for income taxes $ 25,089 $ 12,254 $ 59,758
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