NVIDIA 2016 Annual Report Download - page 233

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
87
A reconciliation of gross unrecognized tax benefits is as follows:
January 31,
2016
January 25,
2015
January 26,
2014
(In millions)
Balance at beginning of period ............................................................. $ 254 $ 238 $ 221
Increases in tax positions for prior years .............................................. ———
Decreases in tax positions for prior years............................................. (1)(1)(1)
Increases in tax positions for current year ............................................ 28 23 23
Lapse in statute of limitations............................................................... (51)(6)(5)
Balance at end of period ....................................................................... $ 230 $ 254 $ 238
We classify an unrecognized tax benefit as a current liability, or amount refundable, to the extent that we anticipate
payment or receipt of cash for income taxes within one year. The amount is classified as a long-term liability, or 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 31, 2016, January 25, 2015, and January 26, 2014, we had accrued $11 million, $14 million, and $13 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 31, 2016, non-current income taxes payable of $78 million
consisted of unrecognized tax benefits of $67 million and the related interest and penalties of $11 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 31, 2016, 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 31, 2016, 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 2015. As of January 31, 2016,
the material tax jurisdictions for which we are currently under examination include the state of California for fiscal years
2011 through 2012, and India, Taiwan, France and Germany for fiscal years 2003 through 2015.
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. In May 2015, the Board extended the previously authorized repurchase program through December
2018 and authorized an additional $1.62 billion under the repurchase program.
During fiscal year 2016, we repurchased a total of 25 million shares for $587 million and paid $213 million in cash
dividends to our shareholders, equivalent to $0.085 per share for the three months ended April 26, 2015, $0.0975 per share
for the six months ended October 25, 2015, and $0.115 per share for the three months ended January 31, 2016. As a result,
we returned $800 million to shareholders during fiscal year 2016 in the form of share repurchases and dividend payments.
Through January 31, 2016, we have repurchased an aggregate of 231 million shares under our share repurchase program
for a total of $3.85 billion. All shares delivered from these repurchases have been placed into treasury stock. As of January