NVIDIA 2015 Annual Report Download - page 166

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
86
A reconciliation of gross unrecognized tax benefits is as follows:
January 25,
2015 January 26, 2014 January 27, 2013
(In thousands)
Balance at beginning of period............................................................. $ 237,738 $ 220,543 $ 138,262
Increases in tax positions for prior years.............................................. — — 18,800
Decreases in tax positions for prior years............................................. (871)(714)(304)
Increases in tax positions for current year............................................ 22,865 22,787 67,764
Lapse in statute of limitations............................................................... (5,997)(4,878)(3,979)
Balance at end of period ....................................................................... $ 253,735 $ 237,738 $ 220,543
We classify an unrecognized tax benefit as a current liability, or as a reduction of the deferred tax assets or amount
refundable, to the extent that we anticipate payment or receipt of cash for income taxes within one year. Likewise, the
amount is classified as a long-term liability, reduction of long-term deferred tax assets or amount refundable, if we anticipate
payment or receipt of cash for income taxes during a period beyond a year.
Our policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense.
As of January 25, 2015, January 26, 2014, and January 27, 2013, we had accrued $14.4 million, $12.9 million and $11.3
million, respectively, for the payment of interest and penalties related to unrecognized tax benefits, which is not included
as a component of our unrecognized tax benefits. As of January 25, 2015, non-current income taxes payable of $121.0
million consisted of unrecognized tax benefits of $106.6 million and the related interest and penalties of $14.4 million.
While we believe that we have adequately provided for all tax positions, amounts asserted by tax authorities could be
greater or less than our accrued position. Accordingly, our provisions on federal, state and foreign tax-related matters to be
recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved.
As of January 25, 2015, we do not believe that our estimates, as otherwise provided for, on such tax positions will significantly
increase or decrease within the next twelve months.
We are subject to taxation by a number of taxing authorities both in the United States and throughout the world. As of
January 25, 2015, the material tax jurisdictions that may be subject to examination include the United States, Taiwan,
Canada, China, Germany, Hong Kong, France, Japan, and India for fiscal years 2003 through 2014. As of January 25, 2015,
the material tax jurisdictions for which we are currently under examination include the state of California for fiscal years
2011 through 2012, and India, France and Germany for fiscal years 2003 through 2014.
Note 14 - Shareholders’ Equity
Share Repurchase Program
Beginning August 2004, our Board of Directors authorized us, subject to certain specifications, to repurchase shares
of our common stock. Most recently, in November 2013, the Board extended the previously authorized repurchase program
through January 2016 and authorized an additional $1.00 billion for an aggregate of $3.70 billion under the repurchase
program.
During fiscal year 2015, we repurchased a total of 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.