NVIDIA 2013 Annual Report Download - page 244

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
100
Convertible Preferred Stock
As of January 26, 2014 and January 27, 2013, there were no shares of preferred stock outstanding.
Note 15 - Employee Retirement Plans
We have a 401(k) Retirement 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. Effective January 2013, we began matching a portion of the employee contributions. Our contribution
expense in fiscal year 2014 was $5.1 million and it was not material in fiscal year 2013. Some of our non-U.S. subsidiaries
have defined benefit and defined contribution plans as required by local statutory requirements. Our costs under these plans
have not been material.
Note 16 - 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. Our operating segments are equivalent to our reportable segments. We report our business in two primary
reporting segments - the GPU business and the Tegra Processor business.
Our GPU business leverages our GPU technology across multiple end markets. It comprises four primary product lines:
GeForce for consumer desktop and notebook PCs; Quadro for professional workstations; Tesla for high-performance
computing; and NVIDIA GRID to provide the power of NVIDIA graphics through the cloud. It also includes other related
products, licenses and revenue supporting the GPU business, such as memory products.
Our Tegra Processor business comprises primarily product lines based on our Tegra SOC and modem processor
technologies, including Tegra for tablets, smartphones and gaming devices; Icera baseband processors and RF transceivers;
automotive computers, including infotainment and navigation systems; and gaming devices, such as SHIELD. It also includes
embedded products and license and other revenue associated with game consoles.
During the fourth quarter of fiscal year 2014, our CODM completed a refinement of the methodology utilized to assign
expenses to the GPU and Tegra Processor businesses to align to the Company’s product architecture and roadmap. With
the announcement of our Tegra K1 processor, we now have a single unifying architecture for our GPU and Tegra Processors.
This architecture unification prompted a methodology change that leverages our visual computing expertise by charging
the operating expenses of certain core engineering functions to the GPU business, while charging the Tegra Processor
business for the incremental cost of the teams working directly for that business. In instances where the operating expenses
of certain functions benefit both reporting segments, our CODM assigns 100% of those expenses to the reporting segment
that benefits the most. The revenue and cost of revenue of the reporting segments was not affected, and comparative periods
presented below reflect the impact of this change.
The “All Other” category presented below represents the revenue and expenses that our CODM does not assign to
either the GPU business or the Tegra Processor business for purposes of making operating decisions or assessing financial
performance. The revenue includes primarily patent licensing revenue and the expenses include corporate infrastructure
and support costs, stock-based compensation costs, amortization of acquisition-related intangible assets, other acquisition-
related costs, and other non-recurring charges and benefits that our CODM deems to be enterprise in nature.