NVIDIA 2010 Annual Report Download - page 109

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NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Note 9 - Amortizable Intangible Assets
The components of our amortizable intangible assets are as follows:
January 31, 2010 January 25, 2009
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Weighted
Average
Useful
Life
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Weighted
Average
Useful
Life
(In thousands) (In years) (In thousands) (In years)
Technology
licenses $ 135,112 $ (48,337) $ $86,775 6.3 $ 130,654 $ (34,610) $ 96,044 6.2
Acquired
intellectual
property 75,339 (49,838 ) 25,501 3.8 75,340 (35,200) 40,140 3.1
Patents 19,347 (11,165) 8,182 5.3 18,588 (7,671) 10,917 5.5
Total intangible
assets $ 229,798 $ $(109,340
)
$ $120,458 $ 224,582 $ (77,481) $ 147,101
Amortization expense associated with intangible assets for fiscal years 2010, 2009 and 2008 was $31.9 million, $32.6 million and
$24.5 million, respectively. Future amortization expense for the net carrying amount of intangible assets at January 31, 2010 is
estimated to be $27.9 million in fiscal year 2011, $25.6 million in fiscal year 2012, $19.0 million in fiscal year 2013, $14.6 million in
fiscal year 2014 and $33.4 million in fiscal years subsequent to fiscal year 2014 until fully amortized.
Note 10 - Marketable Securities
All of the cash equivalents and marketable securities are classified as “available-for-sale” securities. Investments in both fixed rate
instruments and floating rate interest earning instruments carry a degree of interest rate risk. Fixed rate debt securities may have their
market value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than expected if
interest rates fall. Due in part to these factors, our future investment income may fall short of expectations due to changes in interest
rates or if the decline in fair value of our publicly traded debt or equity investments is judged to be other-than-temporary. We may
suffer losses in principal if we are forced to sell securities that decline in market value due to changes in interest rates. However,
because any debt securities we hold are classified as “available-for-sale,” no gains or losses are realized in our statement of operations
due to changes in interest rates unless such securities are sold prior to maturity or unless declines in market values are determined to
be other-than-temporary. These securities are reported at fair value with the related unrealized gains and losses included in
accumulated other comprehensive income, a component of stockholders’ equity, net of tax.
86
Source: NVIDIA CORP, 10-K, March 18, 2010 Powered by Morningstar® Document Research℠