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NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
The following table provides the breakdown of the investments with unrealized losses at January 25, 2009:
We performed an impairment review of our investment portfolio as of January 25, 2009. Factors consider general market conditions, the duration and extent
to which fair value is below cost, and our intent and ability to hold an investment for a sufficient period of time to allow for recovery in value. We also consider
specific adverse conditions related to the financial health of and business outlook for an investee, including industry and sector performance, changes in
technology, operational and financing cash flow factors, and changes in an investee
’
s credit rating. Investments that we identify as having an indicator of
impairment are subject to further analysis to determine if the investment was other than temporarily impaired.
As of January 25, 2009 we had fifty seven investments that were in an unrealized loss position with unrealized loss duration of less than one year. The
gross unrealized losses related to fixed income securities were due to changes in interest rates. We have determined that the gross unrealized losses on investment
securities at January 25, 2009 are temporary in nature. Currently, we have the intent and ability to hold our investments with impairment indicators until maturity.
Based on our quarterly impairment review and having considered the guidance in Statement of Financial Accounting Standards Staff Position No. 115
-
1, or FSP
No. 115
-
1,
A Guide to the Implementation of Statement 115 on Accounting for Certain Investments in Debt and Equity Securities, we recorded other than
temporary impairment charges of $9.9 million during the year ended January 25, 2009. These charges include $5.6 million related to what we believe is an other than
temporary impairment of our investment in the money market funds held by the Reserve International Liquidity Fund, Ltd., or International Reserve Fund; $2.5
million related to a decline in the value of publicly traded equity securities and $1.8 million related to debt securities held by us that were issued by companies that
have filed for bankruptcy as of January 25, 2009. Please refer to Note 17 of these Notes to the Consolidated Financial Statements for further details. We concluded
that our investments were appropriately valued and that, except for the $9.9 million impairment charges recognized during fiscal year 2009, no other than temporary
impairment charges were necessary on our portfolio of available for sale investments as of January 25, 2009.
Net realized gains (losses), excluding any impairment charges, for fiscal year 2009 was $2.1 million. Net realized gains (losses) for fiscal years 2008 and 2007
were not material. As of January 25, 2009, we had a net unrealized gain of $4.4 million, which was comprised of gross unrealized gains of $7.8 million, offset by $3.4
million of gross unrealized losses. As of January 27, 2008, we had a net unrealized gain of $10.7 million, which was comprised of gross unrealized gains of $11.1
million, offset by $0.4 million of gross unrealized losses.
Less than 12 months
12 months or greater
Total
Fair Value
Gross
Unrealized
Losses
Fair Value
Gross
Unrealized
Losses
Fair Value
Gross
Unrealized
Losses
(In thousands)
Corporate debt securities
90,253
(885
)
55,888
(886
)
146,141
(1,771
)
Mortgage backed securities issued by
United States government
-
sponsored
enterprises
4,851
(79
)
95,552
(1,326
)
100,403
(1,405
)
Debt securities of United States government
agencies
24,971
(3
)
20,003
(10
)
44,974
(13
)
Asset
-
backed securities
$
18,484
$
(151
)
$
3,669
$
(76
)
$
22,153
$
(227
)
Total
$
138,559
$
(1,118
)
$
175,112
$
(2,298
)
$
313,671
$
(3,416
)
89