NVIDIA 2013 Annual Report Download - page 239

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
95
On January 22, 2010, Plaintiffs filed a Consolidated Amended Class Action Complaint for Violations of the Federal
Securities Laws, asserting claims for violations of Section 10(b), Rule 10b-5, and Section 20(a) of the Securities Exchange
Act. The consolidated complaint sought unspecified compensatory damages. We filed a motion to dismiss the consolidated
complaint in March 2010 and a hearing was held on June 24, 2010 before Judge Seeborg. On October 19, 2010, Judge
Seeborg granted our motion to dismiss with leave to amend. On December 2, 2010, co-Lead Plaintiffs filed a Second
Consolidated Amended Complaint. We moved to dismiss the Second Consolidated Amended Complaint on February 14,
2011. Following oral argument, on October 12, 2011, Judge Seeborg granted our motion to dismiss without leave to amend,
and on November 8, 2011, Plaintiffs filed a Notice of Appeal to the Ninth Circuit. The appeal was heard on January 14,
2014 and is currently under submission.
Accounting for Loss Contingencies
While there can be no assurance of favorable outcomes, we believe the claims made by other parties in the above
ongoing matters are without merit and we intend to vigorously defend the actions. With the exception of the 3dfx case, we
have not recorded any accrual for contingent liabilities associated with the legal proceedings described above based on our
belief that liabilities, while possible, are not probable. Further, any possible range of loss in these matters cannot be reasonably
estimated at this time. We are engaged in other legal actions not described above arising in the ordinary course of its business
and, while there can be no assurance of favorable outcomes, we believe that the ultimate outcome of these actions will not
have a material adverse effect on our operating results, liquidity or financial position.
Note 13 - Income Taxes
The income tax expense applicable to income before income taxes consists of the following:
Year Ended
January 26,
2014 January 27, 2013 January 29, 2012
(In thousands)
Current income taxes:
Federal.............................................................................................. $ 7,896 $ 7,506 $ 7,099
State.................................................................................................. 1,234 1,016 789
Foreign............................................................................................. 18,513 16,766 7,630
Total current.......................................................................................... 27,643 25,288 15,518
Deferred taxes:
Federal.............................................................................................. 17,070 28,143 25,111
State.................................................................................................. ———
Foreign............................................................................................. (1,640) 3,717 (6,055)
Total deferred........................................................................................ 15,430 31,860 19,056
Charge in lieu of taxes attributable to employer stock option plans..... 27,191 42,355 47,732
Income tax expense................................................................... $ 70,264 $ 99,503 $ 82,306