NVIDIA 2016 Annual Report Download - page 221

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
75
Note 8 - Balance Sheet Components
Certain balance sheet components are as follows:
January 31,
2016
January 25,
2015
(In millions)
Inventories:
Raw materials................................................................................................................... $ 105 $ 157
Work in-process................................................................................................................ 103 92
Finished goods.................................................................................................................. 210 234
Total inventories .......................................................................................................... $ 418 $ 483
As of January 31, 2016, we had outstanding inventory purchase obligations totaling $391 million.
January 31,
2016
January 25,
2015
Estimated
Useful Life
(In millions) (In years)
Property and Equipment:
Land ...................................................................................................... $ 218 $ 218 (A)
Building ................................................................................................ 13 19 25
Test equipment...................................................................................... 354 397 3-5
Software and licenses ........................................................................... 98 113 3-5
Leasehold improvements ...................................................................... 174 174 (B)
Computer equipment ............................................................................ 155 153 3-5
Office furniture and equipment............................................................. 48 49 5
Capital leases ........................................................................................ 28 28 (B)
Construction in process......................................................................... 12 28 (C)
Total property and equipment, gross .................................................... 1,100 1,179
Accumulated depreciation and amortization ........................................ (634)(622)
Total property and equipment, net ................................................... $ 466 $ 557
(A) Land is a non-depreciable asset.
(B) Leasehold improvements and capital leases are amortized based on the lesser of either the asset’s estimated useful life
or the remaining expected lease term.
(C) Construction in process represents assets that are not in service as of the balance sheet date.
Depreciation expense for fiscal years 2016, 2015 and 2014 was $124 million, $143 million and $164 million,
respectively.
Accumulated amortization of leasehold improvements and capital leases was $155 million and $140 million as of
January 31, 2016 and January 25, 2015, respectively. Amortization of leasehold improvements and capital leases is included
in depreciation and amortization expense.