NVIDIA 2015 Annual Report Download - page 121

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government bonds. These investments are denominated in United States dollars. As of January 25, 2015, we did not have
any investments in auction-rate preferred securities.
Please refer to Note 7 of the Notes to the Consolidated Financial Statements in Part IV, Item 15 of this Annual Report
on Form 10-K for additional information.
As of January 25, 2015 and January 26, 2014, we had $4.62 billion and $4.67 billion, respectively, in cash, cash
equivalents and marketable securities. Our investment policy requires the purchase of high grade investment securities and
the diversification of asset types and includes certain limits on our portfolio duration, as specified in our investment policy
guidelines. These guidelines also limit the amount of credit exposure to any one issue, issuer or type of instrument. As of
January 25, 2015, we were in compliance with our investment policy. As of January 25, 2015, our investments in U.S.
government agencies and U.S. government sponsored enterprises represented 35% of our total investment portfolio, while
the financial sector accounted for 30% of our total investment portfolio. All of our investments are with A/A3 or better rated
securities.
We performed an impairment review of our investment portfolio as of January 25, 2015. Based on our quarterly
impairment review, we concluded that our investments were appropriately valued and did not record any impairment during
fiscal year 2015.
Net realized gains were $0.1 million, $2.4 million and $0.5 million for fiscal years 2015, 2014 and 2013, respectively. As
of January 25, 2015, we had a net unrealized gain of $8.4 million, which was comprised of gross unrealized gains of $11.0
million, offset by $2.6 million of gross unrealized losses. As of January 26, 2014, we had a net unrealized gain of $4.8
million, which was comprised of gross unrealized gains of $7.2 million, offset by $2.4 million of gross unrealized losses.
Our accounts receivable are highly concentrated. Two customers accounted for 30% of our accounts receivable balance
at January 25, 2015. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of
our customers to make required payments. This allowance consists of an amount identified for specific customers and an
amount based on overall estimated exposure.
Our cash balances are held in numerous locations throughout the world, including substantial amounts held outside of
the United States. As of January 25, 2015, we had cash, cash equivalents and marketable securities of $1.72 billion held
within the United States and $2.90 billion held outside of the United States. Most of the amounts held outside the United
States may be repatriated to the United States but, under current law, would be subject to U.S. federal income taxes, less
applicable foreign tax credits. Further, repatriation of some foreign balances may be restricted by local laws. As of January
25, 2015, we have not provided for U.S. federal and state income taxes on approximately $2.27 billion of undistributed
earnings of non-United States subsidiaries, as such earnings are considered indefinitely reinvested outside the United States.
Although we have no current need to do so, if we repatriate foreign earnings for cash requirements in the United States, we
would incur U.S. federal and state income tax, less applicable foreign tax credits, and reduced by the current amount of our
U.S. federal and state net operating loss and tax credit carryforwards. Further, in addition to the $1.72 billion of cash, cash
equivalents and marketable securities held within the United States and available to fund our U.S. operations and any other
U.S. cash needs, we have access to external sources of financing if cash is needed in the United States other than by
repatriation of foreign earnings where U.S. income tax may otherwise be due. Accordingly, we do not reasonably expect
any material effect on our business, as a whole, or to our financial flexibility with respect to our current cash balances held
outside of the United States.
Dividend payments and any share repurchases must be made from cash held in the United States. For fiscal year 2015,
we made total cash dividend payments of $186.5 million and repurchased $813.6 million of our common stock, utilizing a
significant amount of our U.S. cash balance previously taxed as of January 25, 2015.