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NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS − (Continued)
Note 4 − Goodwill
The carrying amount of goodwill is as follows:
January 29, January 30, January 25,
2006 2005 2004
(In thousands)
3dfx $ 75,326 $ 50,326 $ 50,326
MediaQ 52,913 52,913 53,695
Other 17,078 4,868 4,888
Total goodwill $ 145,317 $ 108,107 $ 108,909
During the fourth quarter of fiscal 2006, we recorded $12.2 million as goodwill for the acquisition of a small international
company. The acquisition was accounted for under the purchase method of accounting and closed on December 30, 2005. During the
third quarter of fiscal 2006, we recorded $25.0 million as goodwill related to the purchase of certain assets of 3dfx. Please refer to
Note 3 of the Notes to Consolidated Financial Statements for further information. In fiscal 2005, the amount allocated to MediaQ
goodwill was adjusted to $52,913 as a result of additional information that became available. This information was primarily related to
liabilities that were less than originally estimated at the time of acquisition.
During fiscal 2005, in conjunction with the reorganization of our business reporting units, we reassigned goodwill to our reporting
units using a relative fair value allocation approach. In computing fair value of our reporting units, we use estimates of future
revenues, costs and cash flows from such units. The amount of goodwill allocated to our GPU, MCP, Handheld GPU, Consumer
Electronics, and All Other segments as of January 29, 2006, was $99.3 million, $15.1 million, $12.7 million, $11.9 million, and $6.3
million, respectively. Please refer to Note 15 of the Notes to Consolidated Financial Statements for further segment information.
Note 5 − Amortizable Intangible Assets
We are currently amortizing our intangible assets with definitive lives over periods ranging from 1 to 5 years on a straight−line
basis. The components of our amortizable intangible assets are as follows:
January 29, 2006 January 30, 2005
Gross
Carrying
Amount Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount Accumulated
Amortization
Net
Carrying
Amount
(In thousands)
Technology licenses $ 21,586 $ (13,595) $ 7,991 $ 17,236 $ (9,841) $ 7,395
Patents 23,750 (19,911) 3,839 23,260 (15,400) 7,860
Acquired intellectual property 27,086 (24,516) 2,570 27,086 (18,578) 8,508
Trademarks 11,310 (10,807) 503 11,310 (8,544) 2,766
Other 1,494 (976) 518 1,494 (509) 985
Total intangible assets $ 85,226 $ (69,805) $ 15,421 $ 80,386 $ (52,872) $ 27,514
Amortization expense associated with intangible assets for fiscal 2006, 2005 and 2004 was $16.9 million, $19.7 million, and
$16.2 million, respectively. Future amortization expense for the net carrying amount of intangible assets at January 29, 2006 is
estimated to be $10.5 million in fiscal 2007, $4.3 million in fiscal 2008, and $0.6 million in fiscal 2009 and thereafter.
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