NVIDIA 2006 Annual Report Download - page 90

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS − (Continued)
The following table summarizes information about stock options outstanding as of January 29, 2006:
Options Outstanding Options Exercisable
Range of Exercise Prices Number
Outstanding
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise Price Number Exercisable
Weighted
Average
Exercise Price
$0.09 − 0.09 2,000 0.9 $ 0.09 2,000 $ 0.09
0.33 − 0.33 112,300 1.6 $ 0.33 112,300 $ 0.33
0.66 − 0.79 327,710 1.8 $ 0.74 327,710 $ 0.74
1.38 − 1.93 3,128,914 2.2 $ 1.75 3,128,914 $ 1.75
2.21 − 2.25 170,250 2.6 $ 2.25 170,250 $ 2.25
4.09 − 5.88 2,387,233 3.5 $ 4.73 2,385,911 $ 4.73
7.65 − 11.07 3,673,508 5.0 $ 9.54 3,251,830 $ 9.62
11.51 − 17.18 10,083,542 4.0 $ 14.49 6,076,088 $ 14.67
17.53 − 26.25 15,871,324 4.7 $ 23.02 6,350,213 $ 20.85
26.38 − 39.54 7,597,959 5.3 $ 32.15 3,625,484 $ 31.93
42.98 − 53.61 624,000 5.6 $ 43.35 623,750 $ 43.35
65.47 − 65.47 500 6.0 $ 65.47 500 $ 65.47
$0.09 − $65.47 43,979,240 4.4 $ 19.00 26,054,950 $ 15.86
Note 10 − Retirement Plan
We have a 401(k) Retirement Plan, or the Plan, covering substantially all of our United States employees. Under the Plan,
participating employees may defer up to 100 percent of their pre−tax earnings, subject to the Internal Revenue Service annual
contribution limits. We do not make employer contributions to the Plan.
Note 11 − Financial Arrangements, Commitments and Contingencies
Inventory Purchase Obligations
At January 29, 2006, we had outstanding inventory purchase obligations totaling $401.6 million.
Convertible Subordinated Debentures
In October 2000, we sold $300.0 million 4¾% convertible subordinated debentures, or the Notes, due October 15, 2007 in a
public offering. Proceeds from the offering were approximately $290.8 million after deducting underwriting discounts, commissions
and offering expenses. Issuance costs related to the offering totaled $9.2 million and were amortized to interest expense over the term
of the Notes. Interest on the Notes accrued at the rate of 4¾% per annum and was payable semiannually in arrears on April 15 and
October 15 of each year, commencing April 15, 2001. Interest expense, excluding the amortization of issuance costs, related to the
Notes for fiscal 2004 was $10.4 million. The Notes were redeemable at our option on or after October 20, 2003 and were also
convertible at the option of the holder at any time prior to the close of business on the maturity date, unless previously redeemed or
repurchased, into shares of common stock at a conversion price of $46.36 per share, subject to adjustment in certain circumstances.
On October 24, 2003, we fully redeemed the Notes. The aggregate principal amount of the Notes outstanding was $300.0 million,
which included $18.6 million of Notes that we had purchased in the open market during the three months ended October 26, 2003.
The redemption price was equal to approximately 102.7% of the outstanding principal amount of the Notes, plus accrued and unpaid
interest up to, but excluding, the redemption date. In
82