NVIDIA 2009 Annual Report Download - page 107

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:
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)
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.
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Source: NVIDIA CORP, 10-K, March 13, 2009 Powered by Morningstar® Document Research℠