NVIDIA 2015 Annual Report Download - page 122

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Convertible Notes
On December 2, 2013, we issued $1.50 billion of 1.00% Convertible Senior Notes, or the Notes, due in 2018 and
concurrently entered into separate note hedge and warrant transactions and used $14.3 million to repurchase shares of our
common stock from purchasers of the Notes in privately negotiated transactions. The Notes will mature on December 1,
2018 unless earlier repurchased or converted in accordance with their terms prior to such date. As of January 25, 2015, none
of the conditions allowing holders of the Notes to convert had been met. Please refer to Note 11 of the Notes to the
Consolidated Financial Statements in Part IV, Item 15 of this Annual Report on Form 10-K for further discussion.
Capital Return to Shareholders
Our Board of Directors has authorized us to repurchase up to $3.70 billion of our common stock through January 2016.
As of January 25, 2015, we had repurchased $3,265.2 million of that amount, leaving up to $434.8 million available under
this authorization through January 2016. During fiscal year 2015, we repurchased 44.4 million shares of our common stock
for $813.6 million and paid $186.5 million in cash dividends - equivalent to $0.085 per share on a quarterly basis, or $0.34
per share on an annual basis - to our common shareholders. As a result, we returned $1.0 billion to shareholders during
fiscal year 2015 in the form of share repurchases and dividend payments.
On November 6, 2014 we announced our intention to return approximately $600.0 million to our shareholders in fiscal
year 2016 through a combination of share repurchases and cash dividends. On February 11, 2015, we declared that we
would pay our next quarterly cash dividend of $0.085 per share on March 19, 2015, to all shareholders of record on February
26, 2015.
Our cash dividend program and the payment of future cash dividends under that program are subject to continued
capital availability and our Board's continuing determination that the dividend program and the declaration of dividends
thereunder are in the best interests of our shareholders and are in compliance with all laws and agreements of NVIDIA
applicable to the declaration and payment of cash dividends. Please refer to Note 14 of the Notes to Consolidated Financial
Statements in Part IV, Item 15 of this Annual Report on Form 10-K for further discussion.
Operating Capital and Capital Expenditure Requirements
We believe that our existing cash balances and anticipated cash flows from operations will be sufficient to meet our
operating, acquisition, share repurchase, cash dividend and capital requirements for at least the next twelve months. However,
there is no assurance that we will not need to raise additional equity or debt financing within this time frame. Additional
financing may not be available on favorable terms or at all and may be dilutive to our then-current shareholders. We also
may require additional capital for other purposes not presently contemplated. If we are unable to obtain sufficient capital,
we could be required to curtail capital equipment purchases or research and development expenditures, which could harm
our business. Factors that could affect our cash used or generated from operations and, as a result, our need to seek additional
borrowings or capital include:
• decreased demand and market acceptance for our products and/or our customers’ products;
• inability to successfully develop and produce in volume production our next-generation products;
• competitive pressures resulting in lower than expected average selling prices; and
• new product announcements or product introductions by our competitors.
We expect to spend approximately $150.0 million to $200.0 million for capital expenditures during fiscal year 2016,
primarily for facilities, emulation equipment, computers and engineering workstations.