NVIDIA 2006 Annual Report Download - page 91

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NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS − (Continued)
connection with the redemption of the Notes, we recorded a charge in our consolidated statement of income approximately $13.1
million, which included a $7.6 million redemption premium and $5.5 million for the write−off of unamortized issuance costs.
Lease Obligations
Our headquarters complex is located on a leased site in Santa Clara, California and is comprised of five buildings. The related
leases expire in 2012 and each includes two seven−year renewals at our option. Future minimum lease payments under these operating
leases total $152.8 million over the remaining terms of the leases, including predetermined rent escalations, and are included in the
future minimum lease payment schedule below.
In addition to the commitment of our headquarters, we have other domestic and international office facilities under operating
leases expiring through fiscal 2013. Future minimum lease payments under our noncancelable operating leases as of January 29, 2006,
are as follows:
Operating
Year ending January: (In thousands)
2007 $ 29,557
2008 29,321
2009 28,396
2010 27,794
2011 27,812
2012 and thereafter 29,603
Total $ 172,483
Rent expense for the years ended January 29, 2006, January 30, 2005, and January 25, 2004 was $29.5 million, $28.0 million, and
$26.4 million, respectively.
The following is an analysis of the property and equipment under capital leases by major classes:
January
29, January
30,
2006 2005
(In thousands)
Property and Equipment:
Software and other $ 629 $ 634
Test equipment 6,895 9,125
Computer equipment 4,331 4,331
Leasehold improvements 4 −−
Office furniture and equipment 5,232 5,232
$ 17,091 $ 19,322
Accumulated depreciation and amortization (17,091) (17,835)
Total property and equipment, net $ −− $ 1,487
Litigation
3dfx
On December 15, 2000, NVIDIA Corporation and one of our indirect subsidiaries entered into an agreement to purchase certain
graphics chip assets from 3dfx. The 3dfx asset purchase closed on April 18, 2001.
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