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Table of Contents NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Note 8 - Goodwill
The carrying amount of goodwill is as follows:
January 29,
2012 January 30,
2011
(In thousands)
Icera $ 271,186 $ —
PortalPlayer 104,896 104,896
3dfx 75,326 75,326
Mental Images 59,252 59,252
MediaQ 35,167 35,167
ULi 31,115 31,115
Hybrid Graphics 27,906 27,906
Ageia 19,198 19,198
Other 16,984 16,984
Total goodwill $ 641,030 $ 369,844
Goodwill is subject to our annual impairment test during the fourth quarter of our fiscal year, or earlier if indicators of potential impairment exist,
using a fair value-based approach. We completed our most recent annual impairment test during the fourth quarter of fiscal year 2012 and concluded that
there was no impairment. For the purposes of completing our most recent impairment test, we perform either a qualitative or a quantitative analysis on a
reporting unit basis.
In a qualitative analysis, we evaluate factors including, but not limited to, macro economic conditions, market and industry conditions, competitive
environment, operational stability and the overall financial performance of the reporting units including cost factors and budgeted-to-actual revenue results. In
a quantitative analysis, we use estimates of future revenues, costs and cash flows from such units. This assessment is based upon a discounted cash flow
analysis and analysis of our market capitalization. The estimate of cash flow is based upon, among other things, certain assumptions about expected future
operating performance such as revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future
economic and market conditions, and determination of appropriate market comparables.
The amount of goodwill allocated to our GPU business, PSB, and CPB segments as of January 29, 2012 was $133.1 million, $95.1 million and $412.8
million, respectively, and as of January 30, 2011 was $133.1 million, $95.1 million and $141.6 million, respectively. Please refer to Note 18 of these Notes to
the Consolidated Financial Statements for further discussion regarding segments.
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