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NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Note 7 − Marketable Securities
We account for our investment instruments in accordance with SFAS No. 115, Accounting for Certain Investments in Debt and
Equity Securities. All of our cash equivalents and marketable securities are treated as “available−for−sale” under SFAS No. 115. Cash
equivalents consist of financial instruments which are readily convertible into cash and have original maturities of three months or less
at the time of acquisition. Marketable securities consist primarily of highly liquid investments with a maturity of greater than three
months when purchased and some equity investments. We classify our marketable securities at the date of acquisition in the
available−for−sale category as our intention is to convert them into cash for operations. These securities are reported at fair value with
the related unrealized gains and losses included in accumulated other comprehensive income (loss), a component of stockholders'
equity, net of tax. Realized gains and losses on the sale of marketable securities are determined using the specific−identification
method. Net realized losses for fiscal years 2007 and 2006 were $0.2 million and $2.8 million, respectively.
The following is a summary of cash equivalents and marketable securities at January 28, 2007 and January 29, 2006:
January 28, 2007
Amortized
Cost Unrealized
Gain Unrealized
Loss Estimated
Fair Value
(In thousands)
Asset−backed securities $ 153,471 $ 92 $ (450) $ 153,113
Commercial paper 113,576 −− (2) 113,574
Obligations of the United States government & its
agencies 59,729 −− (627) 59,102
United States corporate notes, bonds and
obligations 277,641 26 (1,099) 276,568
Equity Securities 2,491 3,338 −− 5,829
Money market 467,198 −− −− 467,198
Total $ 1,074,106 $ 3,456 $ (2,178) $ 1,075,384
Classified as:
Cash equivalents $ 501,948
Marketable securities 573,436
Total $ 1,075,384
January 29, 2006
Amortized
Cost Unrealized
Gain Unrealized
Loss Estimated
Fair Value
(In thousands)
Asset−backed securities $ 224,649 $ 1 $ (983) $ 223,667
Commercial paper 138,091 13 (7) 138,097
Obligations of the United States government & its
agencies 72,753 8 (834) 71,927
United States corporate notes, bonds and obligations 179,930 5 (1,467) 178,468
Money market 256,593 −− −− 256,593
Total $ 872,016 $ 27 $ (3,291) $ 868,752
Classified as:
Cash equivalents $ 470,334
Marketable securities 398,418
Total $ 868,752
79
Source: NVIDIA CORP, 10−K, March 16, 2007