NVIDIA 2010 Annual Report Download - page 128

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Note 15 - Stockholders’ Equity
Stock Repurchase Program
Our Board of Directors has authorized us, subject to certain specifications, to repurchase shares of our common stock up to an
aggregate maximum amount of $2.7 billion through May 2010. The repurchases will be made from time to time in the open market, in
privately negotiated transactions, or in structured stock repurchase programs, and may be made in one or more larger repurchases, in
compliance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended, subject to market conditions, applicable legal
requirements, and other factors. The program does not obligate NVIDIA to acquire any particular amount of common stock and the
program may be suspended at any time at our discretion. As part of our share repurchase program, we have entered into, and we may
continue to enter into, structured share repurchase transactions with financial institutions. These agreements generally require that we
make an up-front payment in exchange for the right to receive a fixed number of shares of our common stock upon execution of the
agreement, and a potential incremental number of shares of our common stock, within a pre-determined range, at the end of the term
of the agreement.
We did not enter into any structured share repurchase transactions or otherwise purchase any shares of our common stock during
fiscal year 2010. Through January 31, 2010, we have repurchased an aggregate of 90.9 million shares under our stock repurchase
program for a total cost of $1.46 billion. As of January 31, 2010, we are authorized, subject to certain specifications, to repurchase
shares of our common stock up to an additional amount of $1.24 billion through May 2010.
Please refer to Notes 2 and 3 of these Notes to the Consolidated Financial Statements for further information regarding
stock-based compensation related to our March 2009 stock option purchase and related to equity awards granted under our equity
incentive programs.
Convertible Preferred Stock
As of January 31, 2010 and January 25, 2009, there were no shares of preferred stock outstanding.
Common Stock
At the Annual Meeting of Stockholders held on June 19, 2008, our stockholders approved an increase in our authorized number of
shares of common stock to 2,000,000,000. The par value of our common stock remained unchanged at $0.001 per share.
Please refer to Note 2 of these Notes to the Consolidated Financial Statements for further discussion regarding the cash tender offer
for certain employee stock options completed in March 2009.
Note 16 - Employee Retirement Plans
We have a 401(k) Retirement Plan, or the 401(k) Plan, covering substantially all of our United States employees. Under the Plan,
participating employees may defer up to 100% of their pre-tax earnings, subject to the Internal Revenue Service annual contribution
limits. Some of our non-US subsidiaries have defined benefit and defined contributions plans as required by local statutory
requirements. Our costs under these plans have not been material.
102
Source: NVIDIA CORP, 10-K, March 18, 2010 Powered by Morningstar® Document Research℠