NVIDIA 2016 Annual Report Download - page 189

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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 $100 million to $150 million for capital expenditures during fiscal year 2017,
primarily for facilities, emulation equipment, computers and engineering workstations.
Contractual Obligations
The following table summarizes our contractual obligations as of January 31, 2016:
Payment Due By Period
Contractual Obligations Total
Less than
1 Year 1-3 Years 4-5 Years
More than
5 Years All Other
(In millions)
1.00% Convertible Senior Notes
due 2018 (1).................................. $ 1,545 $ 1,515 $ 30 $ — $ — $ —
Inventory purchase obligations..... 391391————
Operating leases (2) (3) ................ 265 75 123 46 21 —
Uncertain tax positions, interest
and penalties (4)............................ 78————78
Capital purchase obligations......... 3636————
Capital lease.................................. 17 5 12 — ——
Restructuring related obligation
(5).................................................. 2323————
Total contractual obligations
......... $ 2,355 $ 2,045 $ 165 $ 46 $ 21 $ 78
(1) Represents the aggregate principal amount of $1.50 billion and anticipated interest payments of $45 million of the
Notes. See Note 11 of the Notes to the Consolidated Financial Statements in Part IV, Item 15 of this Annual Report on
Form 10-K.
(2) Includes facilities leases as well as non-cancelable obligations under certain software licensing arrangements in the
operating lease category.
(3) Excludes operating lease payments that we expect to make under an operating lease financing arrangement following
construction of a new headquarters building in Santa Clara, California, which is currently targeted for completion in
the fourth quarter of fiscal year 2018. The amount of the operating lease payments will be determined after the completion
of construction. See the section below titled “Off-Balance Sheet Arrangements” for additional information.