NVIDIA 2010 Annual Report Download - page 129

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Note 17 - Segment Information
Our Chief Executive Officer, who is considered to be our chief operating decision maker, or CODM, reviews financial
information presented on an operating segment basis for purposes of making operating decisions and assessing financial
performance.
During the last several fiscal years, we have operated and reported four major product-line operating segments to our CODM: the
GPU business, the PSB, the MCP, business, and the CPB. However, effective with the first quarter of fiscal year 2011, we will no
longer separate our MCP and GPU operating segments as such segmentation will no longer be reflective of the way we manage those
businesses. 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 Quadro professional workstation products and other professional
graphics products, including our NVIDIA Tesla high-performance computing products. Our MCP business, as we have reported it
through fiscal year 2010, has been comprised of our ION motherboard GPUs, or mGPU products. Our CPB is comprised of our Tegra
mobile brand and products that support tablets and smartbooks, smartphones, personal media players, or PMPs, internet television,
automotive navigation, and other such devices. CPB also includes license, royalty, other revenue and associated costs related to video
game consoles and other digital consumer electronics devices.
In addition to these operating segments, we have the “All Other” category that includes human resources, legal, finance, general
administration, corporate marketing expenses, charges related to the stock option purchase, restructuring charges and certain vendor
price credits not allocated to specific operating segments all of which total $386.1 million, $346.1 million and $266.2 million for fiscal
years 2010, 2009 and 2008, respectively, that we do not allocate to our other operating segments as these expenses are not included in
the segment operating performance measures evaluated by our CODM. “All Other” also includes the results of operations of other
miscellaneous reporting segments that are neither individually reportable, nor aggregated with another operating segment. Revenue in
the “All Other” category is primarily derived from sales of components. Certain prior period amounts have been revised to conform to
the presentation of our current fiscal year.
Our CODM does not review any information regarding total assets on an operating segment basis. Operating segments do not
record intersegment revenue, and, accordingly, there is none to be reported. The accounting policies for segment reporting are the
same as for NVIDIA as a whole.
GPU PSB MCP CPB All Other Consolidated
(In thousands)
Year Ended January 31, 2010:
Revenue $ 1,764,684 $ 510,223 $ 871,606 $ 163,878 $ 16,054 $ 3,326,445
Depreciation and amortization
expense $ 60,102 $ 20,279 $ 38,209 $ 16,710 $ 61,379 $ 196,679
Operating income (loss) $ 1,456 $ 190,084 $ 96,033 $ (14,195) $ (372,323) $ (98,945)
Year Ended January 25, 2009:
Revenue $ 1,912,262 $ 693,376 $ 655,565 $ 136,334 $ 27,322 $ 3,424,859
Depreciation and amortization
expense $ 55,405 $ 21,587 $ 32,442 $ 19,372 $ 56,217 $ 185,023
Operating income (loss) $ 122,111 $ 322,514 $ (132,921) $ (24,293) $ (358,111) $ (70,700)
Year Ended January 27, 2008:
Revenue $ 2,518,281 $ 588,358 $ 710,353 $ 251,137 $ 29,731 $ 4,097,860
Depreciation and amortization
expense $ 38,272 $ 9,596 $ 28,409 $ 21,482 $ 37,715 $ 135,474
Operating income (loss) $ 717,985 $ 305,395 $ 57,214 $ 28,104 $ (272,352) $ 836,346
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Source: NVIDIA CORP, 10-K, March 18, 2010 Powered by Morningstar® Document Research℠