NVIDIA CORP 10-K

Item 9A. Controls and Procedures Controls and Procedures Disclosure Controls and Procedures Based on their evaluation as of January 28, 2024, our management, including our Chief Executive Officer and Chief Financial Officer, has concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) were effective to provide reasonable assurance. Management’s Annual Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of January 28, 2024 based on the criteria set forth in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation under the criteria set forth in Internal Control — Integrated Framework , our management concluded that our internal control over financial reporting was effective as of January 28, 2024. The effectiveness of our internal control over financial reporting as of January 28, 2024 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in its report which is included herein. Changes in Internal Control Over Financial Reporting There have been no changes in our internal control over financial reporting during the quarter ended January 28, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. In fiscal year 2022, we began an upgrade of our enterprise resource planning, or ERP, system, which will update much of our 44 Table of Contents existing core financial systems. The ERP system is designed to accurately maintain our financial records used to report operating results. The upgrade will occur in phases. We will continue to evaluate each quarter whether there are changes that materially affect our internal control over financial reporting. Inherent Limitations on Effectiveness of Controls Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls, will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within NVIDIA have been detected. Item 9B. Other Information On December 18, 2023 , John O. Dabiri , a member of our Board of Director s, adopted a trading arrangement that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) for the sale through December 2, 2024 of an estimated 553 shares of our common stock, assuming our closing stock price as of January 26, 2024. The number of shares is based on an estimate because the plan specifies a formulaic dollar amount of shares to be sold. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not Applicable. Part III Certain information required by Part III is omitted from this report because we will file with the SEC a definitive proxy statement pursuant to Regulation 14A, or the 2024 Proxy Statement, no later than 120 days after the end of fiscal year 2024, and certain information included therein is incorporated herein by reference. Item 10. Directors, Executive Officers and Corporate Governance Identification of Directors Information regarding directors required by this item will be contained in our 2024 Proxy Statement under the caption “Proposal 1 - Election of Directors,” and is hereby incorporated by reference. Identification of Executive Officers Reference is made to the information regarding executive officers appearing under the heading “Information About Our Executive Officers” in Part I of this Annual Report on Form 10-K, which information is hereby incorporated by reference. Identification of Audit Committee and Financial Experts Information regarding our Audit Committee required by this item will be contained in our 2024 Proxy Statement under the captions “Report of the Audit Committee of the Board of Directors” and “Information About the Board of Directors and Corporate Governance,” and is hereby incorporated by reference. Material Changes to Procedures for Recommending Directors Information regarding procedures for recommending directors required by this item will be contained in our 2024 Proxy Statement under the caption “Information About the Board of Directors and Corporate Governance,” and is hereby incorporated by reference. Delinquent Section 16(a) Reports Information regarding compliance with Section 16(a) of the Exchange Act required by this item will be contained in our 2024 Proxy Statement under the caption “Delinquent Section 16(a) Reports,” and is hereby incorporated by reference. Code of Conduct Information regarding our Code of Conduct required by this item will be contained in our 2024 Proxy Statement under the caption “Information About the Board of Directors and Corporate Governance - Code of Conduct,” and is hereby incorporated by reference. The full text of our Code of Conduct and Financial Team Code of Conduct are published on the Investor Relations portion of our website, under Governance, at www.nvidia.com. If we make any amendments to either code, or grant any waiver from a provision of either code to any executive officer or director, we will promptly disclose the nature of the amendment or waiver on our website or in a report on Form 8-K. The contents of our website are not a part of this Annual Report on Form 10-K. 45 Table of Contents Item 11. Executive Compensation Information regarding our executive compensation required by this item will be contained in our 2024 Proxy Statement under the captions “Executive Compensation”, “Compensation Committee Interlocks and Insider Participation”, “Director Compensation” and “Compensation Committee Report,” and is hereby incorporated by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Ownership of NVIDIA Securities Information regarding ownership of NVIDIA securities required by this item will be contained in our 2024 Proxy Statement under the caption “Security Ownership of Certain Beneficial Owners and Management,” and is hereby incorporated by reference. Equity Compensation Plan Information Information regarding our equity compensation plans required by this item will be contained in our 2024 Proxy Statement under the caption "Equity Compensation Plan Information," and is hereby incorporated by reference. Item 13. Certain Relationships and Related Transactions, and Director Independence Information regarding related transactions and director independence required by this item will be contained in our 2024 Proxy Statement under the captions “Review of Transactions with Related Persons” and “Information About the Board of Directors and Corporate Governance - Independence of the Members of the Board of Directors,” and is hereby incorporated by reference. Item 14. Principal Accountant Fees and Services Information regarding accounting fees and services required by this item will be contained in our 2024 Proxy Statement under the caption “Fees Billed by the Independent Registered Public Accounting Firm,” and is hereby incorporated by reference. 46 Table of Contents Part IV Item 15. Exhibit and Financial Statement Schedules Page (a) 1. Financial Statements Report of Independent Registered Public Accounting Firm (PCAOB ID: 238 ) 48 Consolidated Statements of Income for the years ended January 28, 2024, January 29, 2023, and January 30, 2022 50 Consolidated Statements of Comprehensive Income for the years ended January 28, 2024, January 29, 2023, and January 30, 2022 51 Consolidated Balance Sheets as of January 28, 2024 and January 29, 2023 52 Consolidated Statements of Shareholders’ Equity for the years ended January 28, 2024, January 29, 2023, and January 30, 2022 53 Consolidated Statements of Cash Flows for the years ended January 28, 2024, January 29, 2023, and January 30, 2022 54 Notes to the Consolidated Financial Statements 55 2. Financial Statement Schedule Schedule II Valuation and Qualifying Accounts for the years ended January 28, 2024, January 29, 2023, and January 30, 2022 81 3. Exhibits The exhibits listed in the accompanying index to exhibits are filed or incorporated by reference as a part of this Annual Report on Form 10-K. 82 47 Table of Contents Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of NVIDIA Corporation Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of NVIDIA Corporation and its subsidiaries (the “Company”) as of January 28, 2024 and January 29, 2023, and the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended January 28, 2024, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of January 28, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of January 28, 2024 and January 29, 2023, and the results of its operations and its cash flows for each of the three years in the period ended January 28, 2024 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of January 28, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 48 Table of Contents Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Valuation of Inventories - Provisions for Excess or Obsolete Inventories and Excess Product Purchase Commitments As described in Notes 1, 10 and 13 to the consolidated financial statements, the Company charges cost of sales for inventory provisions to write-down inventory for excess or obsolete inventory and for excess product purchase commitments. Most of the Company’s inventory provisions relate to excess quantities of products, based on the Company’s inventory levels and future product purchase commitments compared to assumptions about future demand and market conditions. As of January 28, 2024, the Company’s consolidated inventories balance was $5.3 billion and the Company’s consolidated outstanding inventory purchase and long-term supply and capacity obligations balance was $16.1 billion, of which a significant portion relates to inventory purchase obligations. The principal considerations for our determination that performing procedures relating to the valuation of inventories, specifically the provisions for excess or obsolete inventories and excess product purchase commitments, is a critical audit matter are the significant judgment by management when developing provisions for excess or obsolete inventories and excess product purchase commitments, including developing assumptions related to future demand and market conditions. This in turn led to significant auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s assumptions related to future demand and market conditions. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s provisions for excess or obsolete inventories and excess product purchase commitments, including controls over management’s assumptions related to future demand and market conditions. These procedures also included, among others, testing management’s process for developing the provisions for excess or obsolete inventories and excess product purchase commitments; evaluating the appropriateness of management’s approach; testing the completeness and accuracy of underlying data used in the approach; and evaluating the reasonableness of management’s assumptions related to future demand and market conditions. Evaluating management’s assumptions related to future demand and market conditions involved evaluating whether the assumptions used by management were reasonable considering (i) current and past results, including historical product life cycle, (ii) the consistency with external market and industry data, and (iii) changes in technology. /s/ PricewaterhouseCoopers LLP San Jose, California February 21, 2024 We have served as the Company’s auditor since 2004. 49 Table of Contents NVIDIA Corporation and Subsidiaries Consolidated Statements of Income (In millions, except per share data) Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Revenue $ 60,922 $ 26,974 $ 26,914 Cost of revenue 16,621 11,618 9,439 Gross profit 44,301 15,356 17,475 Operating expenses Research and development 8,675 7,339 5,268 Sales, general and administrative 2,654 2,440 2,166 Acquisition termination cost — 1,353 — Total operating expenses 11,329 11,132 7,434 Operating income 32,972 4,224 10,041 Interest income 866 267 29 Interest expense ( 257 ) ( 262 ) ( 236 ) Other, net 237 ( 48 ) 107 Other income (expense), net 846 ( 43 ) ( 100 ) Income before income tax 33,818 4,181 9,941 Income tax expense (benefit) 4,058 ( 187 ) 189 Net income $ 29,760 $ 4,368 $ 9,752 Net income per share: Basic $ 12.05 $ 1.76 $ 3.91 Diluted $ 11.93 $ 1.74 $ 3.85 Weighted average shares used in per share computation: Basic 2,469 2,487 2,496 Diluted 2,494 2,507 2,535 See accompanying notes to the consolidated financial statements. 50 Table of Contents NVIDIA Corporation and Subsidiaries Consolidated Statements of Comprehensive Income (In millions) Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Net income $ 29,760 $ 4,368 $ 9,752 Other comprehensive income (loss), net of tax Available-for-sale securities: Net change in unrealized gain (loss) 80 ( 31 ) ( 16 ) Reclassification adjustments for net realized gain included in net income — 1 — Net change in unrealized gain (loss) 80 ( 30 ) ( 16 ) Cash flow hedges: Net change in unrealized gain (loss) 38 47 ( 43 ) Reclassification adjustments for net realized gain (loss) included in net income ( 48 ) ( 49 ) 29 Net change in unrealized loss ( 10 ) ( 2 ) ( 14 ) Other comprehensive income (loss), net of tax 70 ( 32 ) ( 30 ) Total comprehensive income $ 29,830 $ 4,336 $ 9,722 See accompanying notes to the consolidated financial statements. 51 Table of Contents NVIDIA Corporation and Subsidiaries Consolidated Balance Sheets (In millions, except par value) Jan 28, 2024 Jan 29, 2023 Assets Current assets: Cash and cash equivalents $ 7,280 $ 3,389 Marketable securities 18,704 9,907 Accounts receivable, net 9,999 3,827 Inventories 5,282 5,159 Prepaid expenses and other current assets 3,080 791 Total current assets 44,345 23,073 Property and equipment, net 3,914 3,807 Operating lease assets 1,346 1,038 Goodwill 4,430 4,372 Intangible assets, net 1,112 1,676 Deferred income tax assets 6,081 3,396 Other assets 4,500 3,820 Total assets $ 65,728 $ 41,182 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 2,699 $ 1,193 Accrued and other current liabilities 6,682 4,120 Short-term debt 1,250 1,250 Total current liabilities 10,631 6,563 Long-term debt 8,459 9,703 Long-term operating lease liabilities 1,119 902 Other long-term liabilities 2,541 1,913 Total liabilities 22,750 19,081 Commitments and contingencies - see Note 13 Shareholders’ equity: Preferred stock, $ 0.001 par value; 2 shares authorized; none issued — — Common stock, $ 0.001 par value; 8,000 shares authorized; 2,464 shares issued and outstanding as of January 28, 2024; 2,466 shares issued and outstanding as of January 29, 2023 2 2 Additional paid-in capital 13,132 11,971 Accumulated other comprehensive income (loss) 27 ( 43 ) Retained earnings 29,817 10,171 Total shareholders' equity 42,978 22,101 Total liabilities and shareholders' equity $ 65,728 $ 41,182 See accompanying notes to the consolidated financial statements. 52 Table of Contents NVIDIA Corporation and Subsidiaries Consolidated Statements of Shareholders' Equity Common Stock Outstanding Additional Paid-in Treasury Accumulated Other Comprehensive Retained Total Shareholders' Shares Amount Capital Stock Income (Loss) Earnings Equity (In millions, except per share data) Balances, Jan 31, 2021 2,479 $ 3 $ 8,719 $ ( 10,756 ) $ 19 $ 18,908 $ 16,893 Net income — — — — — 9,752 9,752 Other comprehensive loss — — — — ( 30 ) — ( 30 ) Issuance of common stock from stock plans 35 — 281 — — — 281 Tax withholding related to vesting of restricted stock units ( 8 ) — ( 614 ) ( 1,290 ) — — ( 1,904 ) Cash dividends declared and paid ($ 0.16 per common share) — — — — — ( 399 ) ( 399 ) Fair value of partially vested equity awards assumed in connection with acquisitions — — 18 — — — 18 Stock-based compensation — — 2,001 — — — 2,001 Retirement of Treasury Stock — — ( 20 ) 12,046 — ( 12,026 ) — Balances, Jan 30, 2022 2,506 3 10,385 — ( 11 ) 16,235 26,612 Net income — — — — — 4,368 4,368 Other comprehensive loss — — — — ( 32 ) — ( 32 ) Issuance of common stock from stock plans 31 — 355 — — — 355 Tax withholding related to vesting of restricted stock units ( 8 ) — ( 1,475 ) — — — ( 1,475 ) Shares repurchased ( 63 ) ( 1 ) ( 4 ) — — ( 10,034 ) ( 10,039 ) Cash dividends declared and paid ($ 0.16 per common share) — — — — — ( 398 ) ( 398 ) Stock-based compensation — — 2,710 — — — 2,710 Balances, Jan 29, 2023 2,466 2 11,971 — ( 43 ) 10,171 22,101 Net income — — — — — 29,760 29,760 Other comprehensive income — — — — 70 70 Issuance of common stock from stock plans 26 — 403 — — — 403 Tax withholding related to vesting of restricted stock units ( 7 ) — ( 2,783 ) — — — ( 2,783 ) Shares repurchased ( 21 ) — ( 27 ) — — ( 9,719 ) ( 9,746 ) Cash dividends declared and paid ($ 0.16 per common share) — — — — — ( 395 ) ( 395 ) Stock-based compensation — — 3,568 — — — 3,568 Balances, Jan 28, 2024 2,464 $ 2 $ 13,132 $ — $ 27 $ 29,817 $ 42,978 See accompanying notes to the consolidated financial statements. 53 Table of Contents NVIDIA Corporation and Subsidiaries Consolidated Statements of Cash Flows (In millions) Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Cash flows from operating activities: Net income $ 29,760 $ 4,368 $ 9,752 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation expense 3,549 2,709 2,004 Depreciation and amortization 1,508 1,544 1,174 Deferred income taxes ( 2,489 ) ( 2,164 ) ( 406 ) (Gains) losses on investments in non-affiliated entities, net ( 238 ) 45 ( 100 ) Acquisition termination cost — 1,353 — Other ( 278 ) ( 7 ) 47 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable ( 6,172 ) 822 ( 2,215 ) Inventories ( 98 ) ( 2,554 ) ( 774 ) Prepaid expenses and other assets ( 1,522 ) ( 1,517 ) ( 1,715 ) Accounts payable 1,531 ( 551 ) 568 Accrued and other current liabilities 2,025 1,341 581 Other long-term liabilities 514 252 192 Net cash provided by operating activities 28,090 5,641 9,108 Cash flows from investing activities: Proceeds from maturities of marketable securities 9,732 19,425 15,197 Proceeds from sales of marketable securities 50 1,806 1,023 Purchases of marketable securities ( 18,211 ) ( 11,897 ) ( 24,787 ) Purchases related to property and equipment and intangible assets ( 1,069 ) ( 1,833 ) ( 976 ) Acquisitions, net of cash acquired ( 83 ) ( 49 ) ( 263 ) Investments in non-affiliated entities and other, net ( 985 ) ( 77 ) ( 24 ) Net cash provided by (used in) investing activities ( 10,566 ) 7,375 ( 9,830 ) Cash flows from financing activities: Proceeds related to employee stock plans 403 355 281 Payments related to repurchases of common stock ( 9,533 ) ( 10,039 ) — Payments related to tax on restricted stock units ( 2,783 ) ( 1,475 ) ( 1,904 ) Repayment of debt ( 1,250 ) — ( 1,000 ) Dividends paid ( 395 ) ( 398 ) ( 399 ) Principal payments on property and equipment and intangible assets ( 74 ) ( 58 ) ( 83 ) Issuance of debt, net of issuance costs — — 4,977 Other ( 1 ) ( 2 ) ( 7 ) Net cash provided by (used in) financing activities ( 13,633 ) ( 11,617 ) 1,865 Change in cash and cash equivalents 3,891 1,399 1,143 Cash and cash equivalents at beginning of period 3,389 1,990 847 Cash and cash equivalents at end of period $ 7,280 $ 3,389 $ 1,990 Supplemental disclosures of cash flow information: Cash paid for income taxes, net $ 6,549 $ 1,404 $ 396 Cash paid for interest $ 252 $ 254 $ 246 See accompanying notes to the consolidated financial statements. 54 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements Note 1 - Organization and Summary of Significant Accounting Policies Our Company Headquartered in Santa Clara, California, NVIDIA was incorporated in California in April 1993 and reincorporated in Delaware in April 1998. All references to “NVIDIA,” “we,” “us,” “our” or the “Company” mean NVIDIA Corporation and its subsidiaries. Fiscal Year We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal years 2024, 2023 and 2022 were all 52-week years. Principles of Consolidation Our consolidated financial statements include the accounts of NVIDIA Corporation and our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from our estimates. On an on-going basis, we evaluate our estimates, including those related to revenue recognition, cash equivalents and marketable securities, accounts receivable, inventories and product purchase commitments, income taxes, goodwill, stock-based compensation, litigation, investigation and settlement costs, restructuring and other charges, property, plant, and equipment, and other contingencies. These estimates are based on historical facts and various other assumptions that we believe are reasonable. In February 2023, we assessed the useful lives of our property, plant, and equipment. Based on advances in technology and usage rate, we increased the estimated useful life of most of our server, storage, and network equipment from three to four or five years , and our assembly and test equipment from five to seven years . The effect of this change for the fiscal year ended January 28, 2024 was a benefit of $ 33 million and $ 102 million for cost of revenue and operating expenses, respectively, which resulted in an increase in operating income of $ 135 million and net income of $ 114 million after tax, or $ 0.05 per both basic and diluted share. Revenue Recognition We derive our revenue from product sales, including hardware and systems, license and development arrangements, software licensing, and cloud services. We determine revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract (where revenue is allocated on a relative standalone selling price basis by maximizing the use of observable inputs to determine the standalone selling price for each performance obligation); and (5) recognition of revenue when, or as, we satisfy a performance obligation. Product Sales Revenue Revenue from product sales is recognized upon transfer of control of products to customers in an amount that reflects the consideration we expect to receive in exchange for those products. Certain products are sold with support or an extended warranty for the incorporated system, hardware, and/or software. Support and extended warranty revenue are recognized ratably over the service period, or as services are performed. Revenue is recognized net of allowances for returns, customer programs and any taxes collected from customers. For products sold with a right of return, we record a reduction to revenue by establishing a sales return allowance for estimated product returns at the time revenue is recognized, based primarily on historical return rates. However, if product returns for a fiscal period are anticipated to exceed historical return rates, we may determine that additional sales return allowances are required to accurately reflect our estimated exposure for product returns. Our customer programs involve rebates, which are designed to serve as sales incentives to resellers of our products in various target markets, and marketing development funds, or MDFs, which represent monies paid to our partners that are earmarked for market segment development and are designed to support our partners’ activities while also promoting NVIDIA products. We account for customer programs as a reduction to revenue and accrue for such programs for potential rebates and MDFs based on the amount we expect to be claimed by customers. 55 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) License and Development Arrangements Our license and development arrangements with customers typically require significant customization of our IP components. As a result, we recognize the revenue from the license and the revenue from the development services as a single performance obligation over the period in which the development services are performed. We measure progress to completion based on actual cost incurred to date as a percentage of the estimated total cost required to complete each project. If a loss on an arrangement becomes probable during a period, we record a provision for such loss in that period. Software Licensing Our software licenses provide our customers with a right to use the software when it is made available to the customer. Customers may purchase either perpetual licenses or subscriptions to licenses, which differ mainly in the duration over which the customer benefits from the software. Software licenses are frequently sold along with the right to receive, on a when-and-if available basis, future unspecified software updates and upgrades. Revenue from software licenses is recognized up front when the software is made available to the customer. Software support revenue is recognized ratably over the service period, or as services are performed. Cloud Services Cloud services, which allow customers to use hosted software and hardware infrastructure without taking possession of the software or hardware, are provided on a subscription basis or a combination of subscription plus usage. Revenue related to subscription-based cloud services is recognized ratably over the contract period. Revenue related to cloud services based on usage is recognized as usage occurs. Cloud services are typically sold on a standalone basis, but certain offerings may be sold with hardware and/or software and related support. Contracts with Multiple Performance Obligations Our contracts may contain more than one of the products and services listed above, each of which is separately accounted for as a distinct performance obligation. We account for multiple agreements with a single customer as a single contract if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single contract. We allocate the total transaction price to each distinct performance obligation in a multiple performance obligations arrangement on a relative standalone selling price basis. The standalone selling price reflects the price we would charge for a specific product or service if it were sold separately in similar circumstances and to similar customers. When determining standalone selling price, we maximize the use of observable inputs. If a contract contains a single performance obligation, no allocation is required. Product Warranties We offer a limited warranty to end-users ranging from one to three years for products to repair or replace products for manufacturing defects or hardware component failures. Cost of revenue includes the estimated cost of product warranties that are calculated at the point of revenue recognition. Under limited circumstances, we may offer an extended limited warranty to customers for certain products. We also accrue for known warranty and indemnification issues if a loss is probable and can be reasonably estimated. Stock-based Compensation We use the closing trading price of our common stock on the date of grant, minus a dividend yield discount, as the fair value of awards of restricted stock units, or RSUs, and performance stock units that are based on our corporate financial performance targets, or PSUs. We use a Monte Carlo simulation on the date of grant to estimate the fair value of performance stock units that are based on market conditions, or market-based PSUs. The compensation expense for RSUs and market-based PSUs is recognized using a straight-line attribution method over the requisite employee service period while compensation expense for PSUs is recognized using an accelerated amortization model. We estimate the fair value of shares to be issued under our employee stock purchase plan, or ESPP, using the Black-Scholes model at the commencement of an offering period in March and September of each year. Stock-based compensation for our ESPP is expensed using an accelerated amortization model. Additionally, for RSU, PSU, and market-based PSU awards, we estimate forfeitures semi-annually and revise the estimates of forfeiture in subsequent periods if actual forfeitures differ from those estimates. Forfeitures are estimated based on historical experience. Litigation, Investigation and Settlement Costs We currently, are, and will likely continue to be subject to claims, litigation, and other actions, including potential regulatory proceedings, involving patent and other intellectual property matters, taxes, labor and employment, competition and antitrust, commercial disputes, goods and services offered by us and by third parties, and other matters. There are many uncertainties associated with any litigation or investigation, and we cannot be certain that these actions 56 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) or other third-party claims against us will be resolved without litigation, fines and/or substantial settlement payments or judgments. If information becomes available that causes us to determine that a loss in any of our pending litigation, investigations or settlements is probable, and we can reasonably estimate the loss associated with such events, we will record the loss in accordance with U.S. GAAP. However, the actual liability in any such litigation or investigation may be materially different from our estimates, which could require us to record additional costs. Foreign Currency Remeasurement We use the U.S. dollar as our functional currency for our subsidiaries. Foreign currency monetary assets and liabilities are remeasured into United States dollars at end-of-period exchange rates. Non-monetary assets and liabilities such as property and equipment and equity are remeasured at historical exchange rates. Revenue and expenses are remeasured at exchange rates in effect during each period, except for those expenses related to non-monetary balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency remeasurement are included in earnings in our Consolidated Statements of Income and to date have not been significant. Income Taxes We recognize federal, state and foreign current tax liabilities or assets based on our estimate of taxes payable or refundable in the current fiscal year by tax jurisdiction. We recognize federal, state and foreign deferred tax assets or liabilities, as appropriate, for our estimate of future tax effects attributable to temporary differences and carryforwards; and we record a valuation allowance to reduce any deferred tax assets by the amount of any tax benefits that, based on available evidence and judgment, are not expected to be realized. Our calculation of deferred tax assets and liabilities is based on certain estimates and judgments and involves dealing with uncertainties in the application of complex tax laws. Our estimates of deferred tax assets and liabilities may change based, in part, on added certainty or finality to an anticipated outcome, changes in accounting standards or tax laws in the U.S., or foreign jurisdictions where we operate, or changes in other facts or circumstances. In addition, we recognize liabilities for potential U.S. and foreign income tax contingencies based on our estimate of whether, and the extent to which, additional taxes may be due. If we determine that payment of these amounts is unnecessary or if the recorded tax liability is less than our current assessment, we may be required to recognize an income tax benefit or additional income tax expense in our financial statements accordingly. As of January 28, 2024, we had a valuation allowance of $ 1.6 billion related to capital loss carryforwards, and certain state and other deferred tax assets that management determined are not likely to be realized due, in part, to jurisdictional projections of future taxable income, including capital gains. To the extent realization of the deferred tax assets becomes more-likely-than-not, we would recognize such deferred tax assets as income tax benefits during the period. We recognize the benefit from a tax position only if it is more-likely-than-not that the position would be sustained upon audit based solely on the technical merits of the tax position. Our policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. Net Income Per Share Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common and potentially dilutive shares outstanding during the period, using the treasury stock method. Any anti-dilutive effect of equity awards outstanding is not included in the computation of diluted net income per share. Cash and Cash Equivalents and Marketable Securities We consider all highly liquid investments that are readily convertible into cash and have an original maturity of three months or less at the time of purchase to be cash equivalents. Marketable securities consist of highly liquid debt investments with maturities of greater than three months when purchased. We currently classify our investments as current based on the nature of the investments and their availability for use in current operations. We classify our cash equivalents and marketable securities related to debt securities at the date of acquisition as available-for-sale. These available-for-sale debt securities are reported at fair value with the related unrealized gains and losses included in accumulated other comprehensive income or loss, a component of shareholders’ equity, net of tax. The fair value of interest-bearing debt securities includes accrued interest. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method and recorded in the other income (expense), net, section of our Consolidated Statements of Income. Available-for-sale debt investments are subject to a periodic impairment review. If the estimated fair value of available-for-sale debt securities is less than its amortized cost basis, we determine if the difference, if any, is caused by expected credit losses and write-down the amortized cost basis of the securities if it is more likely than not we will be required or 57 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) we intend to sell the securities before recovery of its amortized cost basis. Allowances for credit losses and write-downs are recognized in the other income (expense), net section of our Consolidated Statements of Income. Fair Value of Financial Instruments The carrying value of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to their relatively short maturities as of January 28, 2024 and January 29, 2023. Marketable securities are comprised of available-for-sale securities that are reported at fair value with the related unrealized gains or losses included in accumulated other comprehensive income or loss, a component of shareholders’ equity, net of tax. Fair value of the marketable securities is determined based on quoted market prices. Derivative instruments are recognized as either assets or liabilities and are measured at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For derivative instruments designated as fair value hedges, the gains or losses are recognized in earnings in the periods of change together with the offsetting losses or gains on the hedged items attributed to the risk being hedged. For derivative instruments designated as cash-flow hedges, the effective portion of the gains or losses on the derivatives is initially reported as a component of other comprehensive income or loss and is subsequently recognized in earnings when the hedged exposure is recognized in earnings. For derivative instruments not designated for hedge accounting, changes in fair value are recognized in earnings. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, marketable securities, and accounts receivable. Our investment policy requires the purchase of highly-rated fixed income securities, the diversification of investment type and credit exposures, and includes certain limits on our portfolio duration. We perform ongoing credit evaluations of our customers’ financial condition and maintain an allowance for potential credit losses. This allowance consists of an amount identified for specific customers and an amount based on overall estimated exposure. Our overall estimated exposure excludes amounts covered by credit insurance and letters of credit. Inventories Inventory cost is computed on an adjusted standard basis, which approximates actual cost on an average or first-in, first-out basis. Inventory costs consist primarily of the cost of semiconductors, including wafer fabrication, assembly, testing and packaging, manufacturing support costs, including labor and overhead associated with such purchases, final test yield fallout, and shipping costs, as well as the cost of purchased memory products and other component parts. We charge cost of sales for inventory provisions to write-down our inventory to the lower of cost or net realizable value or for obsolete or excess inventory, and for excess product purchase commitments. Most of our inventory provisions relate to excess quantities of products, based on our inventory levels and future product purchase commitments compared to assumptions about future demand and market conditions. Once inventory has been written-off or written-down, it creates a new cost basis for the inventory that is not subsequently written-up. We record a liability for noncancelable purchase commitments with suppliers for quantities in excess of our future demand forecasts consistent with our valuation of obsolete or excess inventory. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is computed using the straight-line method based on the estimated useful lives of the assets of three to seven years . Once an asset is identified for retirement or disposition, the related cost and accumulated depreciation or amortization are removed, and a gain or loss is recorded. The estimated useful lives of our buildings are up to thirty years . Depreciation expense includes the amortization of assets recorded under finance leases. Leasehold improvements and assets recorded under finance leases are amortized over the shorter of the expected lease term or the estimated useful life of the asset. Leases We determine if an arrangement is or contains a lease at inception. Operating leases with lease terms of more than 12 months are included in operating lease assets, accrued and other current liabilities, and long-term operating lease liabilities on our consolidated balance sheet. Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments over the lease term. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using our incremental borrowing rate. Operating lease assets also include initial direct costs incurred and prepaid lease payments, minus any lease incentives. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We combine the lease and non-lease components in determining the operating lease assets and liabilities. 58 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Goodwill Goodwill is subject to our annual impairment test during the fourth quarter of our fiscal year, or earlier if indicators of potential impairment exist. In completing our impairment test, we perform either a qualitative or a quantitative analysis on a reporting unit basis. Qualitative factors include industry and market considerations, overall financial performance, and other relevant events and factors affecting the reporting units. The quantitative impairment test considers both the income approach and the market approach to estimate a reporting unit’s fair value. The income and market valuation approaches consider factors that include, but are not limited to, prospective financial information, growth rates, residual values, discount rates and comparable multiples from publicly traded companies in our industry and require us to make certain assumptions and estimates regarding industry economic factors and the future profitability of our business. Intangible Assets and Other Long-Lived Assets Intangible assets primarily represent acquired intangible assets including developed technology and customer relationships, as well as rights acquired under technology licenses, patents, and acquired IP. We currently amortize our intangible assets with finite lives over periods ranging from one to twenty years using a method that reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up or, if that pattern cannot be reliably determined, using a straight-line amortization method. Long-lived assets, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. The recoverability of assets or asset groups to be held and used is measured by a comparison of the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset or asset group exceeds the estimated fair value of the asset or asset group. Fair value is determined based on the estimated discounted future cash flows expected to be generated by the asset or asset group. Assets and liabilities to be disposed of would be separately presented in the Consolidated Balance Sheet and the assets would be reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. Business Combination We allocate the fair value of the purchase price of an acquisition to the tangible assets acquired, liabilities assumed, and intangible assets acquired, based on their estimated fair values. The excess of the fair value of the purchase price over the fair values of these net tangible and intangible assets acquired is recorded as goodwill. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but our estimates and assumptions are inherently uncertain and subject to refinement. The estimates and assumptions used in valuing intangible assets include, but are not limited to, the amount and timing of projected future cash flows, discount rate used to determine the present value of these cash flows and asset lives. These estimates are inherently uncertain and, therefore, actual results may differ from the estimates made. As a result, during the measurement period of up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the measurement period's conclusion or final determination of the fair value of the purchase price of an acquisition, whichever comes first, any subsequent adjustments are recorded to our Consolidated Statements of Income. Acquisition-related expenses are recognized separately from the business combination and expensed as incurred. Investments in Non-Affiliated Entities Our investment in non-affiliates consists of marketable equity securities, which are publicly traded, and non-marketable equity securities, which are investments in privately held companies. Marketable equity securities have readily determinable fair values with changes in fair value recorded in other income (expense), net. Non-marketable equity securities include investments that do not have a readily determinable fair value. The investments that do not have readily determinable fair value are measured at cost minus impairment, if any, and are adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer, or the measurement alternative. Fair value is based upon observable inputs in an inactive market and the valuation requires our judgment due to the absence of market prices and inherent lack of liquidity. All gains and losses on these investments, realized and unrealized, are recognized in other income (expense), net on our Consolidated Statements of Income. We assess whether an impairment loss has occurred on our investments in non-marketable equity securities, accounted for under the measurement alternative based on quantitative and qualitative factors. If any impairment is identified for non-marketable equity securities, we write down the investment to its fair value and record the corresponding charge through other income (expense), net on our Consolidated Statements of Income. 59 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Recently Issued Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board, or FASB, issued a new accounting standard to provide for additional disclosures about significant expenses in operating segments. The standard is effective for our annual reporting for fiscal year 2025 and for interim period reporting starting in fiscal year 2026 retrospectively. We are currently evaluating the impact of this standard on our Consolidated Financial Statements. In December 2023, the FASB issued a new accounting standard which provides for new and changes to income tax disclosures including disaggregation of the rate reconciliation and income taxes paid disclosures. The amendments in the standard are effective for annual periods beginning after December 15, 2024. Early adoption is permitted and should be applied prospectively, with retrospective application permitted. We expect to adopt this standard in our annual period beginning fiscal year 2026. We are currently evaluating the impact of this standard on our Consolidated Financial Statements. Note 2 - Business Combination Termination of the Arm Share Purchase Agreement In February 2022, NVIDIA and SoftBank Group Corp, or SoftBank, announced the termination of the Share Purchase Agreement whereby NVIDIA would have acquired Arm from SoftBank. The parties agreed to terminate it due to significant regulatory challenges preventing the completion of the transaction. We recorded an acquisition termination cost of $ 1.4 billion in fiscal year 2023 reflecting the write-off of the prepayment provided at signing. Note 3 - Leases Our lease obligations primarily consist of operating leases for our headquarters complex, domestic and international office facilities, and data center space, with lease periods expiring between fiscal years 2025 and 2035. Future minimum lease payments under our non-cancelable operating leases as of January 28, 2024, are as follows: Operating Lease Obligations (In millions) Fiscal Year: 2025 $ 290 2026 270 2027 253 2028 236 2029 202 2030 and thereafter 288 Total 1,539 Less imputed interest 192 Present value of net future minimum lease payments 1,347 Less short-term operating lease liabilities 228 Long-term operating lease liabilities $ 1,119 In addition, we have operating leases, primarily for our data centers, that are expected to commence within fiscal year 2025 with lease terms of 1 to 10 years for $ 1.1 billion. Operating lease expenses for fiscal years 2024, 2023, and 2022 were $ 269 million, $ 193 million, $ 168 million, respectively. Short-term and variable lease expenses for fiscal years 2024, 2023, and 2022 were not significant. 60 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Other information related to leases was as follows: Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 (In millions) Supplemental cash flows information Operating cash flows used for operating leases $ 286 $ 184 $ 154 Operating lease assets obtained in exchange for lease obligations $ 531 $ 358 $ 266 As of January 28, 2024, our operating leases had a weighted average remaining lease term of 6.1 years and a weighted average discount rate of 3.76 %. As of January 29, 2023, our operating leases had a weighted average remaining lease term of 6.8 years and a weighted average discount rate of 3.21 %. Note 4 - Stock-Based Compensation Our stock-based compensation expense is associated with RSUs, performance stock units based on our corporate financial performance targets, or PSUs, performance stock units based on market conditions, or market-based PSUs, and our ESPP. Our Consolidated Statements of Income include stock-based compensation expense, net of amounts allocated to inventory, as follows: Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 (In millions) Cost of revenue $ 141 $ 138 $ 141 Research and development 2,532 1,892 1,298 Sales, general and administrative 876 680 565 Total $ 3,549 $ 2,710 $ 2,004 Stock-based compensation capitalized in inventories was not significant during fiscal years 2024, 2023, and 2022. The following is a summary of equity awards granted under our equity incentive plans: Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 (In millions, except per share data) RSUs, PSUs and Market-based PSUs Awards granted 14 25 18 Estimated total grant-date fair value $ 5,316 $ 4,505 $ 3,492 Weighted average grant-date fair value per share $ 374.08 $ 183.72 $ 190.69 ESPP Shares purchased 3 3 5 Weighted average price per share $ 158.07 $ 122.54 $ 56.36 Weighted average grant-date fair value per share $ 69.90 $ 51.87 $ 23.24 As of January 28, 2024, there was $ 8.6 billion of aggregate unearned stock-based compensation expense. This amount is expected to be recognized over a weighted average period of 2.5 years for RSUs, PSUs, and market-based PSUs, and 0.8 years for ESPP. 61 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) The fair value of shares issued under our ESPP have been estimated with the following assumptions: Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 (Using the Black-Scholes model) ESPP Weighted average expected life (in years) 0.1 - 2.0 0.1 - 2.0 0.1 - 2.0 Risk-free interest rate 3.9 %- 5.5 % — %- 4.6 % — %- 0.5 % Volatility 31 %- 67 % 43 %- 72 % 20 %- 58 % Dividend yield 0.1 % 0.1 % 0.1 % For ESPP shares, the expected term represents the average term from the first day of the offering period to the purchase date. The risk-free interest rate assumption used to value ESPP shares is based upon observed interest rates on Treasury bills appropriate for the expected term. Our expected stock price volatility assumption for ESPP is estimated using historical volatility. For awards granted, we use the dividend yield at grant date. Our RSU, PSU, and market-based PSU awards are not eligible for cash dividends prior to vesting; therefore, the fair values of RSUs, PSUs, and market-based PSUs are discounted for the dividend yield. Additionally, for RSU, PSU, and market-based PSU awards, we estimate forfeitures semi-annually and revise the estimates of forfeiture in subsequent periods if actual forfeitures differ from those estimates. Forfeitures are estimated based on historical experience. Equity Incentive Program We grant or have granted stock options, RSUs, PSUs, market-based PSUs, and stock purchase rights under the following equity incentive plans. In addition, in connection with our acquisitions of various companies, we have assumed certain stock-based awards granted under their stock incentive plans and converted them into our RSUs. Amended and Restated 2007 Equity Incentive Plan In 2007, our shareholders approved the NVIDIA Corporation 2007 Equity Incentive Plan, or as most recently amended and restated, the 2007 Plan. The 2007 Plan authorizes the issuance of incentive stock options, non-statutory stock options, restricted stock, RSUs, stock appreciation rights, performance stock awards, performance cash awards, and other stock-based awards to employees, directors and consultants. Only our employees may receive incentive stock options. As of January 28, 2024, up to 37 million shares of our common stock could be issued pursuant to stock awards granted under the 2007 Plan. Currently, we grant RSUs, PSUs and market-based PSUs under the 2007 Plan, under which, as of January 28, 2024, there were 147 million shares available for future grants. Subject to certain exceptions, RSUs granted to employees vest (A) over a four-year period, subject to continued service, with 25 % vesting on a pre-determined date that is close to the anniversary of the date of grant and 6.25 % vesting quarterly thereafter, (B) over a three-year period, subject to continued service, with 40 % vesting on a pre-determined date that is close to the anniversary of the date of grant and 7.5 % vesting quarterly thereafter, or (C) over a four-year period, subject to continued service, with 6.25 % vesting quarterly. PSUs vest over a four-year period, subject to continued service, with 25 % vesting on a pre-determined date that is close to the anniversary of the date of grant and 6.25 % vesting quarterly thereafter. Market-based PSUs vest 100 % on about the three-year anniversary of the date of grant. However, the number of shares subject to both PSUs and market-based PSUs that are eligible to vest is determined by the Compensation Committee based on achievement of pre-determined criteria. Amended and Restated 2012 Employee Stock Purchase Plan In 2012, our shareholders approved the NVIDIA Corporation 2012 Employee Stock Purchase Plan, or as most recently amended and restated, the 2012 Plan. Employees who participate in the 2012 Plan may have up to 15 % of their earnings withheld to purchase shares of common stock. The Board may decrease this percentage at its discretion. Each offering period is about 24 months, divided into four purchase periods of six months . The price of common stock purchased under our 2012 Plan will be equal to 85 % of the lower of the fair market value of the common stock on the commencement date of each offering period or the fair market value of the common stock on each purchase date within the offering. As of January 28, 2024, we had 227 million shares reserved for future issuance under the 2012 Plan. 62 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Equity Award Activity The following is a summary of our equity award transactions under our equity incentive plans: RSUs, PSUs and Market-based PSUs Outstanding Number of Shares Weighted Average Grant-Date Fair Value (In millions, except per share data) Balances, Jan 29, 2023 45 $ 158.45 Granted 14 $ 374.08 Vested restricted stock ( 21 ) $ 148.56 Canceled and forfeited ( 1 ) $ 206.35 Balances, Jan 28, 2024 37 $ 245.94 Vested and expected to vest after Jan 28, 2024 37 $ 245.49 As of January 28, 2024 and January 29, 2023, there were 147 million and 160 million shares, respectively, of common stock available for future grants under our equity incentive plans. The total fair value of RSUs and PSUs, as of their respective vesting dates, during the years ended January 28, 2024, January 29, 2023, and January 30, 2022, was $ 8.2 billion, $ 4.3 billion, and $ 5.6 billion, respectively. Note 5 - Net Income Per Share The following is a reconciliation of the denominator of the basic and diluted net income per share computations for the periods presented: Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 (In millions, except per share data) Numerator: Net income $ 29,760 $ 4,368 $ 9,752 Denominator: Basic weighted average shares 2,469 2,487 2,496 Dilutive impact of outstanding equity awards 25 20 39 Diluted weighted average shares 2,494 2,507 2,535 Net income per share: Basic (1) $ 12.05 $ 1.76 $ 3.91 Diluted (2) $ 11.93 $ 1.74 $ 3.85 Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive 15 40 21 (1) Calculated as net income divided by basic weighted average shares. (2) Calculated as net income divided by diluted weighted average shares. Note 6 - Goodwill As of January 28, 2024, the total carrying amount of goodwill was $ 4.4 billion, consisting of goodwill balances allocated to our Compute & Networking and Graphics reporting units of $ 4.1 billion and $ 370 million, respectively. As of January 29, 2023, the total carrying amount of goodwill was $ 4.4 billion, consisting of goodwill balances allocated to our Compute & Networking and Graphics reporting units of $ 4.0 billion and $ 370 million, respectively. Goodwill increased by $ 59 million in fiscal year 2024 from an immaterial acquisition and was allocated to our Compute & Networking reporting unit. During the fourth quarters of fiscal years 2024, 2023, and 2022, we completed our annual qualitative impairment tests and concluded that goodwill was no t impaired. 63 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Note 7 - Amortizable Intangible Assets The components of our amortizable intangible assets are as follows: Jan 28, 2024 Jan 29, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Acquisition-related intangible assets (1) $ 2,642 $ ( 1,720 ) $ 922 $ 3,093 $ ( 1,614 ) $ 1,479 Patents and licensed technology 449 ( 259 ) 190 446 ( 249 ) 197 Total intangible assets $ 3,091 $ ( 1,979 ) $ 1,112 $ 3,539 $ ( 1,863 ) $ 1,676 (1) During the first quarter of fiscal year 2023, we commenced amortization of a $ 630 million in-process research and development intangible asset related to our acquisition of Mellanox. Amortization expense associated with intangible assets for fiscal years 2024, 2023, and 2022 was $ 614 million, $ 699 million, and $ 563 million, respectively. The following table outlines the estimated future amortization expense related to the net carrying amount of intangible assets as of January 28, 2024: Future Amortization Expense (In millions) Fiscal Year: 2025 $ 555 2026 261 2027 150 2028 37 2029 9 2030 and thereafter 100 Total $ 1,112 64 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Note 8 - Cash Equivalents and Marketable Securities Our cash equivalents and marketable securities related to debt securities are classified as “available-for-sale” debt securities. The following is a summary of cash equivalents and marketable securities: Jan 28, 2024 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Reported as Cash Equivalents Marketable Securities (In millions) Corporate debt securities $ 10,126 $ 31 $ ( 5 ) $ 10,152 $ 2,231 $ 7,921 Debt securities issued by the U.S. Treasury 9,517 17 ( 10 ) 9,524 1,315 8,209 Debt securities issued by U.S. government agencies 2,326 8 ( 1 ) 2,333 89 2,244 Money market funds 3,031 — — 3,031 3,031 — Certificates of deposit 510 — — 510 294 216 Foreign government bonds 174 — — 174 60 114 Total $ 25,684 $ 56 $ ( 16 ) $ 25,724 $ 7,020 $ 18,704 Jan 29, 2023 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Reported as Cash Equivalents Marketable Securities (In millions) Corporate debt securities $ 4,809 $ — $ ( 12 ) $ 4,797 $ 1,087 $ 3,710 Debt securities issued by the U.S. Treasury 4,185 1 ( 44 ) 4,142 — 4,142 Debt securities issued by U.S. government agencies 1,836 — ( 2 ) 1,834 50 1,784 Money market funds 1,777 — — 1,777 1,777 — Certificates of deposit 365 — — 365 134 231 Foreign government bonds 140 — — 140 100 40 Total $ 13,112 $ 1 $ ( 58 ) $ 13,055 $ 3,148 $ 9,907 65 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) The following tables provide the breakdown of unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position: Jan 28, 2024 Less than 12 Months 12 Months or Greater Total Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss (In millions) Debt securities issued by the U.S. Treasury $ 3,343 $ ( 5 ) $ 1,078 $ ( 5 ) $ 4,421 $ ( 10 ) Corporate debt securities 1,306 ( 3 ) 618 ( 2 ) 1,924 ( 5 ) Debt securities issued by U.S. government agencies 670 ( 1 ) — — 670 ( 1 ) Total $ 5,319 $ ( 9 ) $ 1,696 $ ( 7 ) $ 7,015 $ ( 16 ) Jan 29, 2023 Less than 12 Months 12 Months or Greater Total Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss (In millions) Debt securities issued by the U.S. Treasury $ 2,444 $ ( 21 ) $ 1,172 $ ( 23 ) $ 3,616 $ ( 44 ) Corporate debt securities 1,188 ( 7 ) 696 ( 5 ) 1,884 ( 12 ) Debt securities issued by U.S. government agencies 1,307 ( 2 ) — — 1,307 ( 2 ) Total $ 4,939 $ ( 30 ) $ 1,868 $ ( 28 ) $ 6,807 $ ( 58 ) The gross unrealized losses are related to fixed income securities, driven primarily by changes in interest rates. Net realized gains and losses were not significant for all periods presented. The amortized cost and estimated fair value of cash equivalents and marketable securities are shown below by contractual maturity. Jan 28, 2024 Jan 29, 2023 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (In millions) Less than one year $ 16,336 $ 16,329 $ 9,738 $ 9,708 Due in 1 - 5 years 9,348 9,395 3,374 3,347 Total $ 25,684 $ 25,724 $ 13,112 $ 13,055 66 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Note 9 - Fair Value of Financial Assets and Liabilities and Investments in Non-Affiliated Entities The fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assets from active markets. We review fair value hierarchy classification on a quarterly basis. Fair Value at Pricing Category Jan 28, 2024 Jan 29, 2023 (In millions) Assets Cash equivalents and marketable securities: Money market funds Level 1 $ 3,031 $ 1,777 Corporate debt securities Level 2 $ 10,152 $ 4,797 Debt securities issued by the U.S. Treasury Level 2 $ 9,524 $ 4,142 Debt securities issued by U.S. government agencies Level 2 $ 2,333 $ 1,834 Certificates of deposit Level 2 $ 510 $ 365 Foreign government bonds Level 2 $ 174 $ 140 Other assets (Investment in non-affiliated entities): Publicly-held equity securities Level 1 $ 225 $ 11 Liabilities (1) 0.309 % Notes Due 2023 Level 2 $ — $ 1,230 0.584 % Notes Due 2024 Level 2 $ 1,228 $ 1,185 3.20 % Notes Due 2026 Level 2 $ 970 $ 966 1.55 % Notes Due 2028 Level 2 $ 1,115 $ 1,099 2.85 % Notes Due 2030 Level 2 $ 1,367 $ 1,364 2.00 % Notes Due 2031 Level 2 $ 1,057 $ 1,044 3.50 % Notes Due 2040 Level 2 $ 851 $ 870 3.50 % Notes Due 2050 Level 2 $ 1,604 $ 1,637 3.70 % Notes Due 2060 Level 2 $ 403 $ 410 (1) These liabilities are carried on our Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs. Investments in Non-Affiliated Entities Our investments in non-affiliated entities include marketable equity securities, which are publicly traded, and non-marketable equity securities, which are primarily investments in privately held companies. Our marketable equity securities have readily determinable fair values and are recorded as long-term other assets on our Consolidated Balance Sheets at fair value with changes in fair value recorded in Other income and expense, net on our Consolidated Statements of Income. Marketable equity securities totaled $ 225 million and $ 11 million as of January 28, 2024 and January 29, 2023, respectively. The net unrealized and realized gains and losses of investments in marketable securities net were not significant for fiscal years 2024, 2023 and 2022. Our non-marketable equity securities are recorded in long-term other assets on our Consolidated Balance Sheets. The carrying value of our non-marketable equity securities totaled $ 1.3 billion and $ 288 million as of January 28, 2024 and January 29, 2023, respectively. Gains and losses on these investments, realized and unrealized, are recognized in Other income and expense, net on our Consolidated Statements of Income. 67 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Adjustments to the carrying value of our non-marketable equity securities accounted for under the measurement alternative were as follows: Year Ended Jan 28, 2024 (In millions) Carrying amount as of Jan 29, 2023 $ 288 Adjustments related to non-marketable equity securities: Net additions 859 Unrealized gains 194 Impairments and unrealized losses ( 20 ) Carrying amount as of Jan 28, 2024 $ 1,321 In the fourth quarter of fiscal year 2024, one of our private company investments completed a secondary equity raise that resulted in an unrealized gain of $ 178 million. Net unrealized gains recognized for the year ended January 28, 2024 for non-marketable investments in non-affiliated entities still held as of January 28, 2024 were $ 174 million. Net unrealized and realized gains related to non-marketable equity securities were not significant for fiscal years 2023 and 2022. The following table summarizes the cumulative gross unrealized gains and cumulative gross unrealized losses and impairments related to non-marketable equity securities accounted for under the measurement alternative: Jan 28, 2024 (In millions) Cumulative gross unrealized gains $ 270 Cumulative gross unrealized losses and impairments ( 45 ) Note 10 - Balance Sheet Components Two customers accounted for 24 % and 11 % of our accounts receivable balance as of January 28, 2024. Two customers accounted for 14 % and 11 % of our accounts receivable balance as of January 29, 2023. Certain balance sheet components are as follows: Jan 28, 2024 Jan 29, 2023 (In millions) Inventories (1) : Raw materials $ 1,719 $ 2,430 Work in-process 1,505 466 Finished goods 2,058 2,263 Total inventories $ 5,282 $ 5,159 (1) In fiscal years 2024 and 2023, we recorded an inventory provision of $ 774 million and $ 1.0 billion, respectively, in cost of revenue. 68 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Jan 28, 2024 Jan 29, 2023 Estimated Useful Life (In millions) (In years) Property and Equipment: Land $ 218 $ 218 (A) Buildings, leasehold improvements, and furniture 1,816 1,598 (B) Equipment, compute hardware, and software 5,200 4,303 3 - 7 Construction in process 189 382 (C) Total property and equipment, gross 7,423 6,501 Accumulated depreciation and amortization ( 3,509 ) ( 2,694 ) Total property and equipment, net $ 3,914 $ 3,807 (A) Land is a non-depreciable asset. (B) The estimated useful lives of our buildings are up to thirty years . Leasehold improvements and finance leases are amortized based on the lesser of either the asset’s estimated useful life or the expected remaining lease term. (C) Construction in process represents assets that are not available for their intended use as of the balance sheet date. Depreciation expense for fiscal years 2024, 2023, and 2022 was $ 894 million, $ 844 million, and $ 611 million, respectively. Accumulated amortization of leasehold improvements and finance leases was $ 400 million and $ 327 million as of January 28, 2024 and January 29, 2023, respectively. Property, equipment and intangible assets acquired by assuming related liabilities during fiscal years 2024, 2023, and 2022 were $ 170 million, $ 374 million, and $ 258 million, respectively. Jan 28, 2024 Jan 29, 2023 Other assets: (In millions) Prepaid supply and capacity agreements (1) $ 2,458 $ 2,989 Investments in non-affiliated entities 1,546 299 Prepaid royalties 364 387 Other 132 145 Total other assets $ 4,500 $ 3,820 (1) As of January 28, 2024 and January 29, 2023, there was an additional $ 2.5 billion and $ 458 million of short-term prepaid supply and capacity agreements included in Prepaid expenses and other current assets, respectively. 69 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Jan 28, 2024 Jan 29, 2023 (In millions) Accrued and Other Current Liabilities: Customer program accruals $ 2,081 $ 1,196 Excess inventory purchase obligations (1) 1,655 954 Deferred revenue (2) 764 354 Accrued payroll and related expenses 675 530 Product warranty and return provisions 415 108 Taxes payable 296 467 Operating leases 228 176 Unsettled share repurchases 187 117 Licenses and royalties 182 149 Other 199 69 Total accrued and other current liabilities $ 6,682 $ 4,120 (1) In fiscal years 2024 and 2023, we recorded an expense of approximately $ 1.4 billion and $ 1.1 billion, respectively, in cost of revenue for inventory purchase obligations in excess of our current demand projections, supplier charges and for penalties related to cancellations and underutilization. (2) Deferred revenue primarily includes customer advances and deferrals related to support for hardware and software, license and development arrangements, and cloud services. $ 233 million and $ 35 million of the balance in fiscal 2024 and 2023 respectively, related to customer advances. Jan 28, 2024 Jan 29, 2023 (In millions) Other Long-Term Liabilities: Income tax payable (1) $ 1,361 $ 1,204 Deferred income tax 462 247 Deferred revenue (2) 573 218 Licenses payable 80 181 Other 65 63 Total other long-term liabilities $ 2,541 $ 1,913 (1) Income tax payable is comprised of the long-term portion of the one-time transition tax payable, unrecognized tax benefits, and related interest and penalties. (2) Deferred revenue primarily includes deferrals related to support for hardware and software. Deferred Revenue The following table shows the changes in deferred revenue during fiscal years 2024 and 2023. Jan 28, 2024 Jan 29, 2023 (In millions) Balance at beginning of period $ 572 $ 502 Deferred revenue additions during the period 2,038 830 Revenue recognized during the period ( 1,273 ) ( 760 ) Balance at end of period $ 1,337 $ 572 Revenue recognized during fiscal year 2024 that was included in deferred revenue as of January 29, 2023 was $ 338 million. Revenue recognized during fiscal year 2023 that was included in deferred revenue as of January 30, 2022 was $ 282 million. Revenue related to remaining performance obligations represents the contracted license and development arrangements and support for hardware and software. This includes deferred revenue currently recorded and amounts that will be 70 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) invoiced in future periods. Revenue allocated to remaining performance obligations, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods, was $ 1.1 billion as of January 28, 2024. We expect to recognize approximately 40 % of this revenue over the next twelve months and the remainder thereafter. This excludes revenue related to performance obligations for contracts with a length of one year or less. Note 11 - Derivative Financial Instruments We enter into foreign currency forward contracts to mitigate the impact of foreign currency exchange rate movements on our operating expenses. These contracts are designated as cash flow hedges for hedge accounting treatment. Gains or losses on the contracts are recorded in accumulated other comprehensive income or loss and reclassified to operating expense when the related operating expenses are recognized in earnings or ineffectiveness should occur. We also enter into foreign currency forward contracts to mitigate the impact of foreign currency movements on monetary assets and liabilities that are denominated in currencies other than the U.S. dollar. These forward contracts were not designated for hedge accounting treatment. Therefore, the change in fair value of these contracts is recorded in other income or expense and offsets the change in fair value of the hedged foreign currency denominated monetary assets and liabilities, which is also recorded in other income or expense. The table below presents the notional value of our foreign currency forward contracts outstanding: Jan 28, 2024 Jan 29, 2023 (In millions) Designated as cash flow hedges $ 1,168 $ 1,128 Non-designated hedges $ 597 $ 366 The unrealized gains and losses or fair value of our foreign currency forward contracts was not significant as of January 28, 2024 and January 29, 2023. As of January 28, 2024, all designated foreign currency forward contracts mature within 18 months. The expected realized gains and losses deferred into accumulated other comprehensive income or loss related to foreign currency forward contracts within the next twelve months was not significant. During fiscal years 2024 and 2023, the impact of derivative financial instruments designated for hedge accounting treatment on other comprehensive income or loss was not significant and all such instruments were determined to be highly effective. 71 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Note 12 - Debt Long-Term Debt The carrying value of our outstanding notes, the calendar year of maturity, and the associated interest rates were as follows: Expected Remaining Term (years) Effective Interest Rate Jan 28, 2024 Jan 29, 2023 (In millions) 0.309 % Notes Due 2023 (1) — 0.41 % $ — $ 1,250 0.584 % Notes Due 2024 0.4 0.66 % 1,250 1,250 3.20 % Notes Due 2026 2.6 3.31 % 1,000 1,000 1.55 % Notes Due 2028 4.4 1.64 % 1,250 1,250 2.85 % Notes Due 2030 6.2 2.93 % 1,500 1,500 2.00 % Notes Due 2031 7.4 2.09 % 1,250 1,250 3.50 % Notes Due 2040 16.2 3.54 % 1,000 1,000 3.50 % Notes Due 2050 26.2 3.54 % 2,000 2,000 3.70 % Notes Due 2060 36.2 3.73 % 500 500 Unamortized debt discount and issuance costs ( 41 ) ( 47 ) Net carrying amount 9,709 10,953 Less short-term portion ( 1,250 ) ( 1,250 ) Total long-term portion $ 8,459 $ 9,703 (1) In fiscal year 2024, we repaid the 0.309 % Notes Due 2023. All our notes are unsecured senior obligations. All existing and future liabilities of our subsidiaries will be effectively senior to the notes. Our notes pay interest semi-annually. We may redeem each of our notes prior to maturity, subject to a make-whole premium as defined in the applicable form of note. As of January 28, 2024, we were in compliance with the required covenants, which are non-financial in nature, under the outstanding notes. Commercial Paper We have a $ 575 million commercial paper program to support general corporate purposes. As of January 28, 2024, we had no commercial paper outstanding. Note 13 - Commitments and Contingencies Purchase Obligations Our purchase obligations reflect our commitments to purchase components used to manufacture our products, including long-term supply and capacity agreements, certain software and technology licenses, other goods and services and long-lived assets. As of January 28, 2024, we had outstanding inventory purchase and long-term supply and capacity obligations totaling $ 16.1 billion. We enter into agreements with contract manufacturers that allow them to procure inventory based upon criteria as defined by us, and in certain instances, these agreements allow us the option to cancel, reschedule, and adjust our requirements based on our business needs prior to firm orders being placed, but these changes may result in the payment of costs incurred through the date of cancellation. Other non-inventory purchase obligations were $ 4.6 billion, which includes $ 3.5 billion of multi-year cloud service agreements, primarily to support our research and development efforts. 72 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Total future purchase commitments as of January 28, 2024 are as follows: Commitments (In millions) Fiscal Year: 2025 $ 17,316 2026 1,143 2027 1,060 2028 770 2029 and thereafter 418 Total $ 20,707 Accrual for Product Warranty Liabilities The estimated amount of product warranty liabilities was $ 306 million and $ 82 million as of January 28, 2024 and January 29, 2023, respectively. The estimated product returns and estimated product warranty activity consisted of the following: Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 (In millions) Balance at beginning of period $ 82 $ 46 $ 22 Additions 278 145 40 Utilization ( 54 ) ( 109 ) ( 16 ) Balance at end of period $ 306 $ 82 $ 46 In fiscal years 2024 and 2023, the additions in product warranty liabilities primarily related to Compute & Networking segment. We have provided indemnities for matters such as tax, product, and employee liabilities. We have included intellectual property indemnification provisions in our technology-related agreements with third parties. Maximum potential future payments cannot be estimated because many of these agreements do not have a maximum stated liability. We have not recorded any liability in our Consolidated Financial Statements for such indemnifications. Litigation Securities Class Action and Derivative Lawsuits The plaintiffs in the putative securities class action lawsuit, captioned 4:18-cv-07669-HSG, initially filed on December 21, 2018 in the United States District Court for the Northern District of California, and titled In Re NVIDIA Corporation Securities Litigation, filed an amended complaint on May 13, 2020. The amended complaint asserted that NVIDIA and certain NVIDIA executives violated Section 10(b) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and SEC Rule 10b-5, by making materially false or misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand between May 10, 2017 and November 14, 2018. Plaintiffs also alleged that the NVIDIA executives who they named as defendants violated Section 20(a) of the Exchange Act. Plaintiffs sought class certification, an award of unspecified compensatory damages, an award of reasonable costs and expenses, including attorneys’ fees and expert fees, and further relief as the Court may deem just and proper. On March 2, 2021, the district court granted NVIDIA’s motion to dismiss the complaint without leave to amend, entered judgment in favor of NVIDIA and closed the case. On March 30, 2021, plaintiffs filed an appeal from judgment in the United States Court of Appeals for the Ninth Circuit, case number 21-15604. On August 25, 2023, a majority of a three-judge Ninth Circuit panel affirmed in part and reversed in part the district court’s dismissal of the case, with a third judge dissenting on the basis that the district court did not err in dismissing the case. On November 15, 2023, the Ninth Circuit denied NVIDIA’s petition for rehearing en banc of the Ninth Circuit panel’s majority decision to reverse in part the dismissal of the case, which NVIDIA had filed on October 10, 2023. On November 21, 2023, NVIDIA filed a motion with the Ninth Circuit for a stay of the mandate pending NVIDIA’s petition for a writ of certiorari in the Supreme Court of the United States and the Supreme Court’s 73 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) resolution of the matter. On December 5, 2023, the Ninth Circuit granted NVIDIA’s motion to stay the mandate. NVIDIA’s deadline to file a petition for a writ of certiorari is March 4, 2024. The putative derivative lawsuit pending in the United States District Court for the Northern District of California, captioned 4:19-cv-00341-HSG, initially filed January 18, 2019 and titled In re NVIDIA Corporation Consolidated Derivative Litigation, was stayed pending resolution of the plaintiffs’ appeal in the In Re NVIDIA Corporation Securities Litigation action. On February 22, 2022, the court administratively closed the case, but stated that it would reopen the case once the appeal in the In Re NVIDIA Corporation Securities Litigation action is resolved. Following the Ninth Circuit’s denial of NVIDIA’s petition for rehearing on November 15, 2023, the parties are conferring regarding the next steps in this derivative matter. The lawsuit asserts claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty, unjust enrichment, waste of corporate assets, and violations of Sections 14(a), 10(b), and 20(a) of the Exchange Act based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs are seeking unspecified damages and other relief, including reforms and improvements to NVIDIA’s corporate governance and internal procedures. The putative derivative actions initially filed September 24, 2019 and pending in the United States District Court for the District of Delaware, Lipchitz v. Huang, et al. (Case No. 1:19-cv-01795-UNA) and Nelson v. Huang, et. al. (Case No. 1:19-cv-01798- UNA), remain stayed pending resolution of the plaintiffs’ appeal in the In Re NVIDIA Corporation Securities Litigation action. Following the Ninth Circuit’s denial of NVIDIA’s petition for rehearing on November 15, 2023, the parties are conferring regarding the next steps in these derivative matters. The lawsuits assert claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty, unjust enrichment, insider trading, misappropriation of information, corporate waste and violations of Sections 14(a), 10(b), and 20(a) of the Exchange Act based on the dissemination of allegedly false, and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs seek unspecified damages and other relief, including disgorgement of profits from the sale of NVIDIA stock and unspecified corporate governance measures. Another putative derivative action was filed on October 30, 2023 in the Court of Chancery of the State of Delaware, captioned Horanic v. Huang, et al. (Case No. 2023-1096-KSJM). This lawsuit asserts claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty and insider trading based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs seek unspecified damages and other relief, including disgorgement of profits from the sale of NVIDIA stock and reform of unspecified corporate governance measures. This derivative matter is stayed pending the final resolution of In Re NVIDIA Corporation Securities Litigation action. Accounting for Loss Contingencies As of January 28, 2024, we have not recorded any accrual for contingent liabilities associated with the legal proceedings described above based on our belief that liabilities, while possible, are not probable. Further, except as specifically described above, any possible loss or range of loss in these matters cannot be reasonably estimated at this time. We are engaged in legal actions not described above arising in the ordinary course of business and, while there can be no assurance of favorable outcomes, we believe that the ultimate outcome of these actions will not have a material adverse effect on our operating results, liquidity or financial position. 74 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Note 14 - Income Taxes The income tax expense (benefit) applicable to income before income taxes consists of the following: Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 (In millions) Current income taxes: Federal $ 5,710 $ 1,703 $ 482 State 335 46 42 Foreign 502 228 71 Total current 6,547 1,977 595 Deferred income taxes: Federal ( 2,499 ) ( 2,165 ) ( 420 ) State ( 206 ) — — Foreign 216 1 14 Total deferred ( 2,489 ) ( 2,164 ) ( 406 ) Income tax expense (benefit) $ 4,058 $ ( 187 ) $ 189 Income before income tax consists of the following: Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 (In millions) U.S. $ 29,495 $ 3,477 $ 8,446 Foreign 4,323 704 1,495 Income before income tax $ 33,818 $ 4,181 $ 9,941 The income tax expense (benefit) differs from the amount computed by applying the U.S. federal statutory rate of 21% to income before income taxes as follows: Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 (In millions, except percentages) Tax expense computed at federal statutory rate $ 7,102 21.0 % $ 878 21.0 % $ 2,088 21.0 % Expense (benefit) resulting from: State income taxes, net of federal tax effect 120 0.4 % 50 1.2 % 42 0.4 % Foreign-derived intangible income ( 1,408 ) ( 4.2 ) % ( 739 ) ( 17.7 ) % ( 520 ) ( 5.2 ) % Stock-based compensation ( 741 ) ( 2.2 ) % ( 309 ) ( 7.4 ) % ( 337 ) ( 3.4 ) % Foreign tax rate differential ( 467 ) ( 1.4 ) % ( 83 ) ( 2.0 ) % ( 497 ) ( 5.0 ) % U.S. federal research and development tax credit ( 431 ) ( 1.3 ) % ( 278 ) ( 6.6 ) % ( 289 ) ( 2.9 ) % Acquisition termination cost — — % 261 6.2 % — — % IP domestication — — % — — % ( 244 ) ( 2.5 ) % Other ( 117 ) ( 0.3 ) % 33 0.8 % ( 54 ) ( 0.5 ) % Income tax expense (benefit) $ 4,058 12.0 % $ ( 187 ) ( 4.5 ) % $ 189 1.9 % 75 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) The tax effect of temporary differences that gives rise to significant portions of the deferred tax assets and liabilities are presented below: Jan 28, 2024 Jan 29, 2023 (In millions) Deferred tax assets: Capitalized research and development expenditure $ 3,376 $ 1,859 GILTI deferred tax assets 1,576 800 Accruals and reserves, not currently deductible for tax purposes 1,121 686 Research and other tax credit carryforwards 936 951 Net operating loss and capital loss carryforwards 439 409 Operating lease liabilities 263 193 Stock-based compensation 106 99 Property, equipment and intangible assets 4 66 Other deferred tax assets 179 91 Gross deferred tax assets 8,000 5,154 Less valuation allowance ( 1,552 ) ( 1,484 ) Total deferred tax assets 6,448 3,670 Deferred tax liabilities: Unremitted earnings of foreign subsidiaries ( 502 ) ( 228 ) Operating lease assets ( 255 ) ( 179 ) Acquired intangibles ( 74 ) ( 115 ) Gross deferred tax liabilities ( 831 ) ( 522 ) Net deferred tax asset (1) $ 5,617 $ 3,148 (1) Net deferred tax asset includes long-term deferred tax assets of $ 6.1 billion and $ 3.4 billion and long-term deferred tax liabilities of $ 462 million and $ 247 million for fiscal years 2024 and 2023, respectively. Long-term deferred tax liabilities are included in other long-term liabilities on our Consolidated Balance Sheets. As of January 28, 2024, we intend to indefinitely reinvest approximately $ 1.1 billion and $ 250 million of cumulative undistributed earnings held by certain subsidiaries in Israel and the United Kingdom, respectively. We have not provided the amount of unrecognized deferred tax liabilities for temporary differences related to these investments as the determination of such amount is not practicable. As of January 28, 2024 and January 29, 2023, we had a valuation allowance of $ 1.6 billion and $ 1.5 billion, respectively, related to capital loss carryforwards, and certain state and other deferred tax assets that management determined are not likely to be realized due, in part, to jurisdictional projections of future taxable income, including capital gains. To the extent realization of the deferred tax assets becomes more-likely-than-not, we would recognize such deferred tax assets as income tax benefits during the period. As of January 28, 2024, we had U.S. federal, state and foreign net operating loss carryforwards of $ 315 million, $ 342 million and $ 361 million, respectively. The federal and state carryforwards will begin to expire in fiscal years 2026 and 2025, respectively. The foreign net operating loss carryforwards of $ 361 million may be carried forward indefinitely. As of January 28, 2024, we had federal research tax credit carryforwards of $ 31 million, before the impact of uncertain tax positions, that will begin to expire in fiscal year 2025. We have state research tax credit carryforwards of $ 1.6 billion, before the impact of uncertain tax positions. $ 1.5 billion is attributable to the State of California and may be carried over indefinitely and $ 75 million is attributable to various other states and will begin to expire in fiscal year 2025. As of January 28, 2024, we had federal capital loss carryforwards of $ 1.4 billion that will begin to expire in fiscal year 2025. Our tax attributes remain subject to audit and may be adjusted for changes or modification in tax laws, other authoritative interpretations thereof, or other facts and circumstances. Utilization of tax attributes may also be subject to limitations due to ownership changes and other limitations provided by the Internal Revenue Code and similar state and foreign tax provisions. If any such limitations apply, the tax attributes may expire or be denied before utilization. 76 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) A reconciliation of gross unrecognized tax benefits is as follows: Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 (In millions) Balance at beginning of period $ 1,238 $ 1,013 $ 776 Increases in tax positions for current year 616 268 246 Increases in tax positions for prior years 87 1 14 Decreases in tax positions for prior years ( 148 ) ( 15 ) ( 4 ) Settlements ( 104 ) ( 9 ) ( 8 ) Lapse in statute of limitations ( 19 ) ( 20 ) ( 11 ) Balance at end of period $ 1,670 $ 1,238 $ 1,013 Included in the balance of unrecognized tax benefits as of January 28, 2024 are $ 1.0 billion of tax benefits that would affect our effective tax rate if recognized. 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 amount refundable, if we anticipate payment or receipt of cash for income taxes during a period beyond a year. We include interest and penalties related to unrecognized tax benefits as a component of income tax expense. We recognized net interest and penalties related to unrecognized tax benefits in the income tax expense line of our consolidated statements of income of $ 42 million, $ 33 million, and $ 14 million during fiscal years 2024, 2023 and 2022, respectively. As of January 28, 2024 and January 29, 2023, we have accrued $ 140 million and $ 95 million, respectively, for the payment of interest and penalties related to unrecognized tax benefits, which is not included as a component of our gross unrecognized tax benefits. 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 28, 2024, we have not identified any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months. We are subject to taxation by taxing authorities both in the United States and other countries. As of January 28, 2024, the significant tax jurisdictions that may be subject to examination include the United States for fiscal years after 2020, as well as China, Germany, Hong Kong, India, Israel, Taiwan, and the United Kingdom for fiscal years 2005 through 2023. As of January 28, 2024, the significant tax jurisdictions for which we are currently under examination include Germany, India, Israel, and Taiwan for fiscal years 2005 through 2023. Note 15 - Shareholders’ Equity Capital Return Program In August 2023, our Board of Directors approved an increase to our share repurchase program of an additional $ 25.0 billion, without expiration. During fiscal year 2024, we repurchased 21 million shares of our common stock for $ 9.7 billion. As of January 28, 2024, we were authorized, subject to certain specifications, to repurchase additional shares of our common stock up to $ 22.5 billion. From January 29, 2024 through February 16, 2024, we repurchased 2.8 million shares for $ 1.9 billion pursuant to a Rule 10b5-1 trading plan. Our share repurchase program aims to offset dilution from shares issued to employees. We may pursue additional share repurchases as we weigh market factors and other investment opportunities. During fiscal years 2024, 2023, and 2022, we paid $ 395 million, $ 398 million, and $ 399 million in cash dividends to our shareholders, respectively. Our cash dividend program and the payment of future cash dividends under that program are subject to our Board of Directors' continuing determination that the dividend program and the declaration of dividends thereunder are in the best interests of our shareholders. In fiscal year 2022, we retired our existing 349 million treasury shares. These shares assumed the status of authorized and unissued shares upon retirement. The excess of repurchase price over par value was allocated between additional paid-in capital and retained earnings, resulting in a reduction in additional paid-in capital by $ 20 million and retained earnings by $ 12.0 billion. Any future repurchased shares will assume the status of authorized and unissued shares. 77 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Note 16 - Employee Retirement Plans We provide tax-qualified defined contribution plans to eligible employees in the U.S. and certain other countries. Our contribution expense for fiscal years 2024, 2023, and 2022 was $ 255 million, $ 227 million, and $ 168 million, respectively. Note 17 - Segment Information Our Chief Executive Officer, who is considered to be our chief operating decision maker, or CODM, reviews financial information presented on an operating segment basis for purposes of making decisions and assessing financial performance. The Compute & Networking segment includes our Data Center accelerated computing platform; networking; automotive artificial intelligence, or AI, Cockpit, autonomous driving development agreements, and autonomous vehicle solutions; electric vehicle computing platforms; Jetson for robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse Enterprise software for building and operating 3D internet applications. Operating results by segment include costs or expenses that are directly attributable to each segment, and costs or expenses that are leveraged across our unified architecture and therefore allocated between our two segments. The “All Other” category includes the expenses that our CODM does not assign to either Compute & Networking or Graphics for purposes of making operating decisions or assessing financial performance. The expenses include stock-based compensation expense, corporate infrastructure and support costs, acquisition-related and other costs, intellectual property related, or IP-related costs, acquisition termination cost, and other non-recurring charges and benefits that our CODM deems to be enterprise in nature. Our CODM does not review any information regarding total assets on a reportable segment basis. Depreciation and amortization expense directly attributable to each reportable segment is included in operating results for each segment. However, our CODM does not evaluate depreciation and amortization expense by operating segment and, therefore, it is not separately presented. There is no intersegment revenue. The accounting policies for segment reporting are the same as for our consolidated financial statements. The table below presents details of our reportable segments and the “All Other” category. Compute & Networking Graphics All Other Consolidated (In millions) Year Ended Jan 28, 2024: Revenue $ 47,405 $ 13,517 $ — $ 60,922 Operating income (loss) $ 32,016 $ 5,846 $ ( 4,890 ) $ 32,972 Year Ended Jan 29, 2023: Revenue $ 15,068 $ 11,906 $ — $ 26,974 Operating income (loss) $ 5,083 $ 4,552 $ ( 5,411 ) $ 4,224 Year Ended Jan 30, 2022: Revenue $ 11,046 $ 15,868 $ — $ 26,914 Operating income (loss) $ 4,598 $ 8,492 $ ( 3,049 ) $ 10,041 78 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 (In millions) Reconciling items included in "All Other" category: Stock-based compensation expense $ ( 3,549 ) $ ( 2,710 ) $ ( 2,004 ) Unallocated cost of revenue and operating expenses ( 728 ) ( 595 ) ( 399 ) Acquisition-related and other costs ( 583 ) ( 674 ) ( 636 ) IP-related and legal settlement costs ( 40 ) ( 23 ) ( 10 ) Restructuring costs and other — ( 54 ) — Acquisition termination cost — ( 1,353 ) — Other 10 ( 2 ) — Total $ ( 4,890 ) $ ( 5,411 ) $ ( 3,049 ) Revenue by geographic areas is designated based upon the billing location of the customer. End customer location may be different than our customer’s billing location. Revenue by geographic areas was as follows : Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Revenue: (In millions) United States $ 26,966 $ 8,292 $ 4,349 Taiwan 13,405 6,986 8,544 China (including Hong Kong) 10,306 5,785 7,111 Other countries 10,245 5,911 6,910 Total revenue $ 60,922 $ 26,974 $ 26,914 Revenue from sales to customers outside of the United States accounted for 56 %, 69 %, and 84 % of total revenue for fiscal years 2024, 2023, and 2022, respectively. The increase in revenue to the United States for fiscal year 2024 was primarily due to higher U.S.-based Compute & Networking segment demand. Sales to one customer represented 13 % of total revenue for fiscal year 2024, which was attributable to the Compute & Networking segment. No customer represented 10% or more of total revenue for fiscal years 2023 and 2022. The following table summarizes information pertaining to our revenue by each of the specialized markets we serve: Year Ended Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Revenue: (In millions) Data Center $ 47,525 $ 15,005 $ 10,613 Gaming 10,447 9,067 12,462 Professional Visualization 1,553 1,544 2,111 Automotive 1,091 903 566 OEM and Other 306 455 1,162 Total revenue $ 60,922 $ 26,974 $ 26,914 79 Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued) The following table presents summarized information for long-lived assets by country. Long-lived assets consist of property and equipment and exclude other assets, operating lease assets, goodwill, and intangible assets. Jan 28, 2024 Jan 29, 2023 Long-lived assets: (In millions) United States $ 2,595 $ 2,587 Taiwan 773 702 Israel 325 283 Other countries 221 235 Total long-lived assets $ 3,914 $ 3,807 80 NVIDIA Corporation and Subsidiaries Schedule II – Valuation and Qualifying Accounts Description Balance at Beginning of Period Additions Deductions Balance at End of Period (In millions) Fiscal year 2024 Allowance for doubtful accounts $ 4 $ — (1) $ — (1) $ 4 Sales return allowance $ 26 $ 213 (2) $ ( 130 ) (4) $ 109 Deferred tax valuation allowance $ 1,484 $ 162 (3) $ ( 94 ) (3) $ 1,552 Fiscal year 2023 Allowance for doubtful accounts $ 4 $ — (1) $ — (1) $ 4 Sales return allowance $ 13 $ 104 (2) $ ( 91 ) (4) $ 26 Deferred tax valuation allowance $ 907 $ 577 (3) $ — $ 1,484 Fiscal year 2022 Allowance for doubtful accounts $ 4 $ — (1) $ — (1) $ 4 Sales return allowance $ 17 $ 19 (2) $ ( 23 ) (4) $ 13 Deferred tax valuation allowance $ 728 $ 179 (3) $ — $ 907 (1) Additions represent either expense or acquired balances and deductions represent write-offs. (2) Additions represent estimated product returns charged as a reduction to revenue or an acquired balance. (3) Additional valuation allowance on deferred tax assets not likely to be realized. Additions represent additional valuation allowance on capital loss carryforwards, and certain state and other deferred tax assets. Deductions represent the release of valuation allowance on certain state deferred tax assets. Refer to Note 14 of the Notes to the Consolidated Financial Statements in Part IV, Item 15 of this Annual Report on Form 10-K for additional information. (4) Represents sales returns. 81 Exhibit Index Incorporated by Reference Exhibit No. Exhibit Description Schedule/Form Exhibit Filing Date 2.1 Agreement and Plan of Merger, dated March 10, 2019, by and among NVIDIA Corporation, NVIDIA International Holdings Inc., Mellanox Technologies Ltd. and Teal Barvaz Ltd. 8-K 2.1 3/11/2019 2.2^ Share Purchase Agreement, dated September 13, 2020, by and among NVIDIA, NVIDIA Holdings, Arm, SoftBank, and Vision Fund 8-K 2.1 9/14/2020 3.1 Restated Certificate of Incorporation 10-K 3.1 3/18/2022 3.2 Amendment to Restated Certificate of Incorporation of NVIDIA Corporation 8-K 3.1 6/6/2022 3.3 Bylaws of NVIDIA Corporation, Amended and Restated as of March 2, 2023 8-K 3.1 3/8/2023 4.1 Reference is made to Exhibits 3.1, 3.2 and 3.3 4.2 Specimen Stock Certificate S-1/A 4.2 4/24/1998 4.3 Indenture, dated as of September 16, 2016, by and between the Company and Computershare Trust Company, N.A., as successor to Wells Fargo Bank, National Association, as Trustee 8-K 4.1 9/16/2016 4.4 Officers’ Certificate, dated as of September 16, 2016 8-K 4.2 9/16/2016 4.5 Form of 2026 Note 8-K Annex B-1 to Exhibit 4.2 9/16/2016 4.6 Description of Securities 10-K 4.6 2/24/2023 4.7 Officers’ Certificate, dated as of March 31, 2020 8-K 4.2 3/31/2020 4.8 Form of 2030 Note 8-K Annex A-1 to Exhibit 4.2 3/31/2020 4.9 Form of 2040 Note 8-K Annex B-1 to Exhibit 4.2 3/31/2020 4.10 Form of 2050 Note 8-K Annex C-1 to Exhibit 4.2 3/31/2020 4.11 Form of 2060 Note 8-K Annex D-1 to Exhibit 4.2 3/31/2020 4.12 Officers' Certificate, dated as of June 16, 2021 8-K 4.2 6/16/2021 4.13 Form of 2023 Note 8-K Annex A-1 to Exhibit 4.2 6/16/2021 4.14 Form of 2024 Note 8-K Annex B-1 to Exhibit 4.2 6/16/2021 4.15 Form of 2028 Note 8-K Annex C-1 to Exhibit 4.2 6/16/2021 4.16 Form of 2031 Note 8-K Annex D-1 to Exhibit 4.2 6/16/2021 10.1 Form of Indemnity Agreement between NVIDIA Corporation and each of its directors and officers 8-K 10.1 3/7/2006 10.2+ Amended and Restated 2007 Equity Incentive Plan 10-K 10.2 2/24/2023 10.3+ Amended and Restated 2007 Equity Incentive Plan - Non-Employee Director Deferred Restricted Stock Unit Grant Notice and Deferred Restricted Stock Unit Agreement (2016) 10-K 10.26 3/12/2015 10.4+ Amended and Restated 2007 Equity Incentive Plan - Non-Employee Director Restricted Stock Unit Grant Notice and Restricted Stock Unit Agreement (2016) 10-K 10.27 3/12/2015 10.5+ Amended and Restated 2007 Equity Incentive Plan - Global Performance-Based Restricted Stock Unit Grant Notice and Performance-Based Restricted Stock Unit Agreement (2019) 8-K 10.1 3/11/2019 10.6+ Amended and Restated 2007 Equity Incentive Plan – Global Restricted Stock Unit Grant Notice and Global Restricted Stock Unit Agreement (2020) 10-Q 10.2 5/21/2020 82 10.7+ Amended and Restated 2007 Equity Incentive Plan – Global Restricted Stock Unit Grant Notice and Global Restricted Stock Unit Agreement (2021) 10-Q 10.2 5/26/2021 10.8+ Amended and Restated 2007 Equity Incentive Plan – Global Restricted Stock Unit Grant Notice and Global Restricted Stock Unit Agreement (2022) 10-K 10.16 3/18/2022 10.9+ Amended and Restated 2007 Equity Incentive Plan – Global Restricted Stock Unit Grant Notice and Global Restricted Stock Unit Agreement (2023) 10-K 10.14 2/24/2023 10.10+ Amended and Restated 2012 Employee Stock Purchase Plan 10-Q 10.2 8/20/2021 10.11+ Variable Compensation Plan - Fiscal Year 2023 8-K 10.1 3/9/2022 10.12+ Variable Compensation Plan - Fiscal Year 2024 8-K 10.1 3/8/2023 10.13 Form of Commercial Paper Dealer Agreement between NVIDIA Corporation, as Issuer, and the Dealer party thereto 8-K 10.1 12/15/2017 21.1* Subsidiaries of Registrant 23.1* Consent of PricewaterhouseCoopers LLP 24.1* Power of Attorney (included in signature page) 31.1* Certification of Chief Executive Officer as required by Rule 13a-14(a) of the Securities Exchange Act of 1934 31.2* Certification of Chief Financial Officer as required by Rule 13a-14(a) of the Securities Exchange Act of 1934 32.1#* Certification of Chief Executive Officer as required by Rule 13a-14(b) of the Securities Exchange Act of 1934 32.2#* Certification of Chief Financial Officer as required by Rule 13a-14(b) of the Securities Exchange Act of 1934 97.1+* Compensation Recovery Policy, as amended and restated November 30, 2023 101.INS* XBRL Instance Document 101.SCH* XBRL Taxonomy Extension Schema Document 101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF* XBRL Taxonomy Extension Definition Linkbase Document 101.LAB* XBRL Taxonomy Extension Labels Linkbase Document 101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document 104 Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document * Filed herewith. + Management contract or compensatory plan or arrangement. # In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release Nos. 33-8238 and 34-47986, Final Rule: Management's Reports on Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports, the certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Annual Report on Form 10-K and will not be deemed “filed” for purpose of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. ^ Certain exhibits and schedules have been omitted in accordance with Regulation S-K Item 601(a)(5). Copies of above exhibits not contained herein are available to any shareholder upon written request to: Investor Relations: NVIDIA Corporation, 2788 San Tomas Expressway, Santa Clara, CA 95051 Item 16. Form 10-K Summary Not Applicable. 83 Signatures Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on February 21, 2024. NVIDIA Corporation By: /s/ Jen-Hsun Huang Jen-Hsun Huang President and Chief Executive Officer Power of Attorney KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Jen-Hsun Huang and Colette M. Kress, and each or any one of them, his true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments to this report, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-facts and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitutes or substitutes, may lawfully do or cause to be done by virtue hereof. 84 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date /s/ JEN-HSUN HUANG President, Chief Executive Officer and Director (Principal Executive Officer) February 21, 2024 Jen-Hsun Huang /s/ COLETTE M. KRESS Executive Vice President and Chief Financial Officer (Principal Financial Officer) February 21, 2024 Colette M. Kress /s/ DONALD ROBERTSON Vice President and Chief Accounting Officer (Principal Accounting Officer) February 21, 2024 Donald Robertson /s/ ROBERT BURGESS Director February 21, 2024 Robert Burgess /s/ TENCH COXE Director February 21, 2024 Tench Coxe /s/ JOHN O. DABIRI Director February 21, 2024 John O. Dabiri /s/ PERSIS DRELL Director February 21, 2024 Persis Drell /s/ DAWN HUDSON Director February 21, 2024 Dawn Hudson /s/ HARVEY C. JONES Director February 21, 2024 Harvey C. Jones /s/ MELISSA B. LORA Director February 21, 2024 Melissa B. Lora /s/ MICHAEL MCCAFFERY Director February 21, 2024 Michael McCaffery /s/ STEPHEN C. NEAL Director February 21, 2024 Stephen C. Neal /s/ MARK L. PERRY Director February 21, 2024 Mark L. Perry /s/ A. BROOKE SEAWELL Director February 21, 2024 A. Brooke Seawell /s/ AARTI SHAH Director February 21, 2024 Aarti Shah /s/ MARK STEVENS Director February 21, 2024 Mark Stevens 85