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NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 1
-
Organization and Summary of Significant Accounting Policies
Our Company
NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. Our products are
designed to generate realistic, interactive graphics on consumer and professional computing devices. We have four major product
-
line operating segments: the
graphics processing unit, or GPU, business, the professional solutions business, or PSB, the media and communications processor, or MCP, business, and the
consumer products business, or CPB. Our GPU business is comprised primarily of our GeForce products that support desktop and notebook personal computers,
or PCs, plus memory products. Our PSB is comprised of our NVIDIA Quadro professional workstation products and other professional graphics products,
including our NVIDIA Tesla high
-
performance computing products. Our MCP business is comprised of NVIDIA nForce core logic and motherboard GPU
products. Our CPB is comprised of our Tegra and GoForce mobile brands and products that support handheld personal media players, or PMPs, personal digital
assistants, or PDAs, cellular phones and other handheld devices. CPB also includes license, royalty, other revenue and associated costs related to video game
consoles and other digital consumer electronics devices. We were incorporated in California in April 1993 and reincorporated in Delaware in April 1998. Our
headquarter facilities are in Santa Clara, California. Our Internet address is www.nvidia.com. The contents of our website are not a part of these Notes to the
consolidated financial statements.
All references to “
NVIDIA,
” “
we,
” “us,” “our” or the “Company” mean NVIDIA Corporation and its subsidiaries, except where it is made clear that the term
means only the parent company.
Fiscal Year
We operate on a 52 or 53
-
week year, ending on the last Sunday in January. Fiscal years 2009, 2008 and 2007 were 52
-
week years.
Stock Splits
In August 2007, our Board of Directors, or the Board, approved a three
-
for
-
two stock split of our outstanding shares of common stock on Monday, August
20, 2007 to be effected in the form of a stock dividend. The stock split was effective on Monday, September 10, 2007 and entitled each stockholder of record on
August 20, 2007 to receive one additional share for every two outstanding shares of common stock held and cash in lieu of fractional shares. All share and per
-
share numbers contained herein have been retroactively adjusted to reflect this stock split.
In March 2006, our Board approved a two
-
for
-
one stock split of our outstanding shares of common stock to be effected in the form of a 100% stock
dividend. The stock split was effective on Thursday, April 6, 2006 for stockholders of record at the close of business on Friday, March 17, 2006. All share and per
-
share numbers contained herein have been retroactively adjusted to reflect this stock split.
Reclassifications
Certain prior fiscal year balances have been reclassified to conform to the current fiscal year presentation.
Principles of Consolidation
Our consolidated financial statements include the accounts of NVIDIA Corporation and its wholly
-
owned subsidiaries. All material intercompany balances
and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an on
-
going basis, we evaluate our estimates, including those related to revenue recognition, cash equivalents and marketable securities, accounts receivable,
inventories, income taxes, goodwill, stock
-
based compensation, warranty liabilities, litigation, investigation and settlement costs and other contingencies. These
estimates are based on historical facts and various other assumptions that we believe are reasonable.
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