What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-11-20 compared with 2024-08-28 · 159 added, 157 removed, 569 unchanged (36% of the section changed)

3 unchanged sentences

(In millions, except per share data)

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023

Three Months Ended Nine Months Ended

Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023

Revenue $ 35,082 $ 18,120 $ 91,166 $ 38,819

24 unchanged sentences

(In millions)

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023

Three Months Ended Nine Months Ended

Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023

Net income $ 19,309 $ 9,243 $ 50,789 $ 17,475

1 unchanged sentence

Available-for-sale securities:

Net change in unrealized gain (loss) 150 ( 11 ) 22 7

Cash flow hedges:

Net change in unrealized gain 49 — 71 7

Cash flow hedges:

Net change in unrealized gain (loss) — ( 23 ) 20 ( 14 )

Reclassification adjustments for net realized loss included in net income ( 2 ) ( 14 ) ( 15 ) ( 38 )

6 unchanged sentences

(In millions)

Jul 28, 2024 Jan 28, 2024

Oct 27, 2024 Jan 28, 2024

Current assets:

34 unchanged sentences

Condensed Consolidated Statements of Shareholders' Equity

For the Three Months Ended July 28, 2024 and July 30, 2023

For the Three Months Ended October 27, 2024 and October 29, 2023

Outstanding Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Shareholders' Equity

1 unchanged sentence

(In millions, except per share data)

Balances, Apr 28, 2024 24,598 $ 25 $ 12,628 $ ( 109 ) $ 36,598 $ 49,142

Balances, Jul 28, 2024

24,562 $ 25 $ 12,115 $ 56 $ 45,961 $ 58,157

Net income — — — — 19,309 19,309

6 unchanged sentences

Stock-based compensation — — 1,253 — — 1,253

Balances, Oct 27, 2024

24,508 $ 25 $ 11,821 $ 103 $ 53,950 $ 65,899

Balances, Jul 30, 2023

Balances, Apr 30, 2023 24,731 $ 25 $ 12,430 $ ( 50 ) $ 12,115 $ 24,520

24,692 $ 25 $ 12,606 $ ( 51 ) $ 14,921 $ 27,501

Net income — — — — 9,243 9,243

6 unchanged sentences

Stock-based compensation — — 983 — — 983

Balances, Jul 30, 2023 24,692 $ 25 $ 12,606 $ ( 51 ) $ 14,921 $ 27,501

Balances, Oct 29, 2023

24,662 $ 25 $ 12,968 $ ( 88 ) $ 20,360 $ 33,265

See accompanying Notes to Condensed Consolidated Financial Statements.

1 unchanged sentence

Condensed Consolidated Statements of Shareholders' Equity

For the Six Months Ended July 28, 2024 and July 30, 2023

For the Nine Months Ended October 27, 2024 and October 29, 2023

Outstanding Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Shareholders' Equity

2 unchanged sentences

Balances, Jan 28, 2024

24,643 $ 25 $ 13,109 $ 27 $ 29,817 $ 42,978

Net income — — — — 50,789 50,789

6 unchanged sentences

Stock-based compensation — — 3,432 — — 3,432

Balances, Jul 28, 2024 24,562 $ 25 $ 12,115 $ 56 $ 45,961 $ 58,157

Balances, Oct 27, 2024 24,508 $ 25 $ 11,821 $ 103 $ 53,950 $ 65,899

Balances, Jan 29, 2023

24,661 $ 25 $ 11,948 $ ( 43 ) $ 10,171 $ 22,101

Net income — — — — 17,475 17,475

6 unchanged sentences

Stock-based compensation — — 2,574 — — 2,574

Balances, Jul 30, 2023 24,692 $ 25 $ 12,606 $ ( 51 ) $ 14,921 $ 27,501

Balances, Oct 29, 2023 24,662 $ 25 $ 12,968 $ ( 88 ) $ 20,360 $ 33,265

See accompanying Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(In millions)

Six Months Ended

Jul 28, 2024 Jul 30, 2023

Nine Months Ended

Oct 27, 2024 Oct 29, 2023

Cash flows from operating activities:

3 unchanged sentences

Depreciation and amortization 1,321 1,121

Gains on investments in non-affiliated entities and publicly-held equity securities, net ( 264 ) ( 45 )

(Gains) losses on investments in non-affiliated entities and publicly-held equity securities, net ( 302 ) 24

Deferred income taxes ( 3,879 ) ( 2,411 )

11 unchanged sentences

Proceeds from sales of marketable securities 318 —

Proceeds from sales of investments in non-affiliated entities 171 —

Purchases of marketable securities ( 19,565 ) ( 10,688 )

Purchases related to property and equipment and intangible assets ( 2,159 ) ( 815 )

Acquisitions, net of cash acquired ( 317 ) ( 83 )

Purchases of investments in non-affiliated entities ( 1,008 ) ( 897 )

Proceeds from sales of investments in non-affiliated entities 105 —

Acquisitions, net of cash acquired ( 465 ) ( 83 )

Net cash used in investing activities ( 13,223 ) ( 4,457 )

2 unchanged sentences

Payments related to repurchases of common stock ( 25,895 ) ( 6,874 )

Repayment of debt ( 1,250 ) ( 1,250 )

Payments related to tax on restricted stock units ( 5,068 ) ( 1,942 )

Repayment of debt ( 1,250 ) ( 1,250 )

Dividends paid ( 589 ) ( 296 )

Principal payments on property and equipment and intangible assets ( 97 ) ( 44 )

Other — ( 1 )

Net cash used in financing activities ( 32,410 ) ( 10,004 )

2 unchanged sentences

Cash, cash equivalents, and restricted cash at end of period $ 9,107 $ 5,519

Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Balance Sheet:

Cash and cash equivalents $ 8,563 $ 5,783

Restricted cash, included in prepaid expenses and other current assets 8 99

Total cash, cash equivalents, and restricted cash $ 8,571 $ 5,882

Supplemental disclosure of cash flow information:

19 unchanged sentences

Fiscal years 2025 and 2024 are both 52-week years.

The second quarters of fiscal years 2025 and 2024 were both 13-week quarters.

The third quarters of fiscal years 2025 and 2024 were both 13-week quarters.

Principles of Consolidation

10 unchanged sentences

In November 2023, the Financial Accounting Standards Board, or FASB, issued a new accounting standard requiring disclosures of significant expenses in operating segments.

We expect to adopt this standard in our annual reporting starting with fiscal year 2025.

We expect to adopt this standard in our fiscal year 2025 annual report.

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 includes new and updated income tax disclosures, including disaggregation of rate reconciliation and income taxes paid.

We expect to adopt this standard in our annual reporting starting with fiscal year 2026.

We expect to adopt this standard in our fiscal year 2026 annual report.

We are currently evaluating the impact of this standard on our Consolidated Financial Statements.

In November 2024, the FASB issued a new accounting standard requiring disclosures of certain additional expense information on an annual and interim basis, including, among other items, the amounts of purchases of inventory,

NVIDIA CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

employee compensation, depreciation and intangible asset amortization included within each income statement expense caption, as applicable.

We expect to adopt this standard in our fiscal year 2028 annual report.

We are currently evaluating the impact of this standard on our Consolidated Financial Statements.

Note 2 - 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 July 28, 2024 were as follows:

Our lease obligations primarily consist of operating leases for our headquarters' campus and domestic and international offices and data centers, with lease periods expiring between fiscal years 2025 and 2036.

Future minimum lease obligations under our non-cancelable lease agreements as of October 27, 2024 were as follows:

Operating Lease Obligations

(In millions)

2025 (excluding first half of fiscal year 2025)

2025 (excluding the first nine months of fiscal year 2025)

2030 and thereafter

3 unchanged sentences

Long-term operating lease liabilities $ 1,490

In addition, operating leases of $ 1.0 billion, primarily for our data centers, are expected to commence during fiscal year 2025 with lease terms of 2 to 10.5 years.

Operating lease expenses were $ 84 million and $ 67 million for the second quarter of fiscal years 2025 and 2024, respectively, and $ 164 million and $ 126 million for the first half of fiscal years 2025 and 2024, respectively.

Short-term and variable lease expenses for the second quarter and first half of fiscal years 2025 and 2024 were not significant.

Between the fourth quarter of fiscal year 2025 and fiscal year 2027, we expect to commence leases with future obligations of $ 4.2 billion primarily of data center and office operating leases, with lease terms of 1.5 to 15.5 years.

Operating lease expenses were $ 92 million and $ 69 million for the third quarter, and $ 258 million and $ 195 million for the first nine months, of fiscal years 2025 and 2024, respectively.

Short-term and variable lease expenses for the third quarter and first nine months of fiscal years 2025 and 2024 were not significant.

Other information related to leases was as follows:

Six Months Ended

Jul 28, 2024 Jul 30, 2023

Nine Months Ended

Oct 27, 2024 Oct 29, 2023

(In millions)

2 unchanged sentences

Operating lease assets obtained in exchange for lease obligations $ 679 $ 439

As of July 28, 2024, our operating leases had a weighted average remaining lease term of 6.4 years and a weighted average discount rate of 4.03 %.

As of October 27, 2024, our operating leases have a weighted average remaining lease term of 6.5 years and a weighted average discount rate of 4.15 %.

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 %.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

Note 3 - Stock-Based Compensation

Stock-based compensation expense is associated with restricted stock units, or RSUs, performance stock units that are based on our corporate financial performance targets, or PSUs, performance stock units that are based on market conditions, or market-based PSUs, and employee stock purchase plan, or ESPP.

Stock-based compensation expense is associated with restricted stock units, or RSUs, performance stock units, or PSUs, that are based on our corporate financial performance targets, market-based PSUs that are performance stock units based on our performance compared to market performance, and the employee stock purchase plan, or ESPP.

Condensed Consolidated Statements of Income include stock-based compensation expense, net of amounts capitalized into inventory and subsequently recognized to cost of revenue, as follows:

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

Three Months Ended Nine Months Ended

Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023

(In millions)

8 unchanged sentences

(In millions, except per share data)

Balances, Jan 28, 2024 367 $ 24.59

Balance as of Jan 28, 2024

Granted 84 $ 84.70

1 unchanged sentence

Canceled and forfeited ( 8 ) $ 31.23

Balances, Jul 28, 2024 348 $ 39.16

As of July 28, 2024, aggregate unearned stock-based compensation expense was $ 12.8 billion, which 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.

Balance as of Oct 27, 2024

As of October 27, 2024, aggregate unearned stock-based compensation expense was $ 12.4 billion, which is expected to be recognized over a weighted average period of 2.3 years for RSUs, PSUs, and market-based PSUs, and one year for ESPP.

Note 4 - 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:

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023

Three Months Ended Nine Months Ended

Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023

(In millions, except per share data)

6 unchanged sentences

Diluted (2) $ 0.78 $ 0.37 $ 2.04 $ 0.70

Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive 5 104 68 136

(1) Calculated as net income divided by basic weighted average shares.

(2) Calculated as net income divided by diluted weighted average shares.

Anti-dilutive equity awards excluded from diluted net income per share 9 10 72 140

(1) Net income divided by basic weighted average shares.

(2) Net income divided by diluted weighted average shares.

Diluted net income per share was computed using the weighted average number of common and potentially dilutive shares outstanding during the period, using the treasury stock method.

Note 5 - Income Taxes

Income tax expense was $ 3.0 billion and $ 1.3 billion for the third quarter, and $ 8.0 billion and $ 2.2 billion for the first nine months, of fiscal years 2025 and 2024, respectively.

The income tax expense as a percentage of income before income

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

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.

The anti-dilutive effect of equity awards outstanding is not included in the computation of diluted net income per share.

Note 5 - Income Taxes

Income tax expense was $ 2.6 billion and $ 5.0 billion for the second quarter and first half of fiscal year 2025, respectively, and $ 793 million and $ 958 million for the second quarter and first half of fiscal year 2024, respectively.

The income tax expense as a percentage of income before income tax for the second quarter and first half of fiscal year 2025 was 13.6 % and 13.7 %, respectively, and 11.4 % and 10.4 % for the second quarter and first half of fiscal year 2024, respectively.

The effective tax rate increased primarily due to a lower percentage of tax benefits from the foreign-derived intangible income deduction relative to the increase in income before income tax.

Effective tax rates for the first half of fiscal years 2025 and 2024 were lower than the U.S.

federal statutory rate of 21% due to tax benefits from stock-based compensation, the foreign-derived intangible income deduction, income earned in jurisdictions that are subject to taxes lower than the U.S.

federal statutory tax rate, and the U.S.

federal research tax credit.

Given our current and anticipated future earnings, we believe that we may release the valuation allowance associated with certain state deferred tax assets in the near term, which would decrease our income tax expense for the period the release is recorded.

The timing and amount of the valuation allowance release could vary based on our assessment of all available evidence.

tax was 13.5 % and 12.2 % for the third quarter, and 13.6 % and 11.3 % for the first nine months, of fiscal years 2025 and 2024, respectively.

The effective tax rate increased primarily due to a lower percentage of tax benefits from the foreign-derived intangible income deduction relative to the increase in income before income tax and a discrete benefit in fiscal year 2024 due to an IRS audit resolution.

Effective tax rates for the first nine months of fiscal years 2025 and 2024 were lower than the U.S.

federal statutory rate of 21% due to tax benefits from the foreign-derived intangible income deduction, stock-based compensation, the U.S.

federal research tax credit, and income earned in jurisdictions that are subject to taxes lower than the U.S.

federal statutory tax rate.

Given our current and possible future earnings, we believe that we may release the valuation allowance associated with certain state deferred tax assets in the near term, which would decrease our income tax expense for the period the release is recorded.

The timing and amount of the valuation allowance release could vary based on our assessment of all available information.

While we believe that we have adequately provided for all uncertain tax positions, or tax positions where we believe it is not more-likely-than-not that the position will be sustained upon review, 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 with the respective tax authorities.

As of July 28, 2024, we do not believe that our estimates, as otherwise provided for, on such tax positions will significantly increase or decrease within the next 12 months.

As of October 27, 2024, we do not believe that our estimates, as otherwise provided for, on such tax positions will significantly increase or decrease within the next 12 months.

Note 6 - Cash Equivalents and Marketable Securities

13 unchanged sentences

Certificates of deposit 142 — — 142 42 100

Total marketable securities with fair value adjustments recorded in other comprehensive income $ 33,899 $ 86 $ ( 19 ) $ 33,966 $ 8,148 $ 25,818

Total debt securities with fair value adjustments recorded in other comprehensive income 37,681 157 ( 33 ) 37,805 8,897 28,908

Publicly-held equity securities (1) 472 — 472

1 unchanged sentence

(1) Fair value adjustments on publicly-held equity securities are recorded in net income.

In the second quarter of fiscal year 2025, publicly-held equity securities from investments in non-affiliated entities were classified in marketable securities on our Condensed Consolidated Balance Sheets.

For the second quarter and first half of fiscal year 2025, net unrealized gains on investments in publicly-held equity securities were $ 132 million and $ 181 million, respectively.

For the second quarter and first half of fiscal year 2024, net unrealized gains on investments in publicly-held equity securities were not significant.

Beginning in the second quarter of fiscal year 2025, publicly-held equity securities from investments in non-affiliated entities were classified in marketable securities on our Condensed Consolidated Balance Sheets.

Net unrealized gains on investments in publicly-held equity securities were not significant and $ 195 million for the third quarter and first nine months of fiscal year 2025, respectively.

Net unrealized gains on investments in publicly-held equity securities were not significant for the third quarter and first nine months of fiscal year 2024.

NVIDIA Corporation and Subsidiaries

14 unchanged sentences

Foreign government bonds 174 — — 174 60 114

Total marketable securities with fair value changes recorded in other comprehensive income $ 25,684 $ 56 $ ( 16 ) $ 25,724 $ 7,020 $ 18,704

Total debt securities with fair value changes recorded in other comprehensive income $ 25,684 $ 56 $ ( 16 ) $ 25,724 $ 7,020 $ 18,704

The following tables provide the breakdown of unrealized losses, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position:

2 unchanged sentences

(In millions)

Debt securities issued by U.S.

government agencies $ 4,031 $ ( 8 ) $ 857 $ ( 2 ) $ 4,888 $ ( 10 )

Corporate debt securities $ 2,967 $ ( 17 ) $ 105 $ — $ 3,072 $ ( 17 )

1 unchanged sentence

Treasury 2,562 ( 12 ) 532 — 3,094 ( 12 )

Debt securities issued by U.S.

government agencies 1,134 ( 4 ) 21 — 1,155 ( 4 )

Total $ 6,663 $ ( 33 ) $ 658 $ — $ 7,321 $ ( 33 )

12 unchanged sentences

The amortized cost and estimated fair value of debt securities included in cash equivalents and marketable securities are shown below by contractual maturity.

Jul 28, 2024 Jan 28, 2024

Oct 27, 2024 Jan 28, 2024

Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value

7 unchanged sentences

Pricing Category Fair Value at

Jul 28, 2024 Jan 28, 2024

Oct 27, 2024 Jan 28, 2024

(In millions)

28 unchanged sentences

Level 2 $ 388 $ 403

(1) These liabilities are carried on our Condensed Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs.

(1) Liabilities are carried on our Condensed 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 non-marketable equity securities, which are primarily investments in privately held companies.

Our non-marketable equity securities are recorded in long-term other assets on our Condensed Consolidated Balance Sheets and valued under the measurement alternative.

2 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Continued)

Adjustments to the carrying value of our non-marketable equity securities during the second quarter and first half of fiscal years 2025 and 2024 were as follows:

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023

Adjustments to the carrying value of our non-marketable equity securities during the third quarter and first nine months of fiscal years 2025 and 2024 were as follows:

Three Months Ended Nine Months Ended

Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023

(In millions)

5 unchanged sentences

Balance at end of period $ 2,237 $ 1,019 $ 2,237 $ 1,019

Non-marketable equity securities had cumulative gross unrealized gains of $ 362 million and cumulative gross losses and impairments of $ 60 million as of July 28, 2024.

Non-marketable equity securities had cumulative gross unrealized gains of $ 374 million and cumulative gross losses and impairments of $ 74 million as of October 27, 2024.

Note 8 - Amortizable Intangible Assets and Goodwill

The components of our amortizable intangible assets are as follows:

Jul 28, 2024 Jan 28, 2024

Oct 27, 2024 Jan 28, 2024

Amount Accumulated

6 unchanged sentences

Total intangible assets $ 3,229 $ ( 2,391 ) $ 838 $ 3,091 $ ( 1,979 ) $ 1,112

For the second quarter and first half of fiscal year 2025, amortization expense associated with intangible assets was $ 146 million and $ 289 million, respectively.

For the second quarter and first half of fiscal year 2024, amortization expense was $ 146 million and $ 327 million, respectively.

The following table outlines the estimated amortization expense related to the net carrying amount of intangible assets as of July 28, 2024:

Amortization expense associated with intangible assets was $ 149 million and $ 144 million for the third quarter, and $ 438 million and $ 471 million for the first nine months, of fiscal years 2025 and 2024, respectively.

The following table outlines the estimated amortization expense related to the net carrying amount of intangible assets as of October 27, 2024:

Future Amortization Expense

(In millions)

2025 (excluding first half of fiscal year 2025)

2025 (excluding the first nine months of fiscal year 2025)

2030 and thereafter 101

In the first half of fiscal year 2025, goodwill increased by $ 192 million from business combinations assigned to our Compute & Networking reporting unit.

In the first nine months of fiscal year 2025, goodwill increased by $ 294 million from business combinations assigned to our Compute & Networking reporting unit.

NVIDIA Corporation and Subsidiaries

1 unchanged sentence

Note 9 - Balance Sheet Components

Three customers accounted for 23 %, 15 %, and 11 % of our accounts receivable balance as of July 28, 2024.

Two customers accounted for 24 % and 11 % of our accounts receivable balance as of January 28, 2024.

We refer to customers who purchase products directly from NVIDIA as direct customers, such as add-in board manufacturers, distributors, original device manufacturers, or ODMs, original equipment manufacturers, or OEMs, and system integrators.

Four direct customers accounted for 18 %, 13 %, 11 % and 11 % of our accounts receivable balance as of October 27, 2024.

Two direct customers accounted for 24 % and 11 % of our accounts receivable balance as of January 28, 2024.

Certain balance sheet components are as follows:

Jul 28, 2024 Jan 28, 2024

Oct 27, 2024 Jan 28, 2024

(In millions)

3 unchanged sentences

Total inventories (1) $ 7,654 $ 5,282

(1) During the second quarter of fiscal years 2025 and 2024, we recorded an inventory provision of $ 345 million and $ 343 million, respectively and during the first half of fiscal years 2025 and 2024, we recorded an inventory provision of $ 555 million and $ 448 million, respectively, in cost of revenue.

Jul 28, 2024 Jan 28, 2024

(1) We recorded an inventory provision of $ 322 million and $ 208 million for the third quarter, and $ 876 million and $ 657 million for the first nine months, of fiscal years 2025 and 2024, respectively, in cost of revenue.

Oct 27, 2024 Jan 28, 2024

Other Assets (Long Term):

2 unchanged sentences

Prepaid supply and capacity agreements (1) 2,041 2,458

Income tax receivable 568 —

Prepaid royalties 346 364

Prepaid tax 331 2

Other 245 132

Total other assets $ 5,437 $ 4,500

(1) As of July 28, 2024 and January 28, 2024, there were $ 3.3 billion and $ 2.5 billion of short-term prepaid supply and capacity agreements included in short term Prepaid expenses and other current assets, respectively.

Jul 28, 2024 Jan 28, 2024

(1) Prepaid supply and capacity agreements of $ 3.2 billion and $ 2.5 billion were included in Prepaid expenses and other current assets as of October 27, 2024 and January 28, 2024, respectively.

Oct 27, 2024 Jan 28, 2024

Accrued and Other Current Liabilities:

3 unchanged sentences

Taxes payable 1,356 296

Product warranty and return provisions 1,107 415

Deferred revenue (2) 752 764

Accrued payroll and related expenses 677 675

Product warranty and return provisions 868 415

Operating leases 273 228

Licenses and royalties 154 182

Unsettled share repurchases 180 187

Licenses and royalties 148 182

Other 165 199

Total accrued and other current liabilities $ 11,126 $ 6,682

(1) During the second quarter of fiscal years 2025 and 2024, we recorded $ 563 million and $ 232 million, respectively and during the first half of fiscal years 2025 and 2024, we recorded $ 746 million and $ 261 million, respectively, in cost of revenue.

(2) Deferred revenue includes customer advances and unearned revenue related to hardware support, software support, cloud services, and license and development arrangements.

The balance as of July 28, 2024 and January 28, 2024 included $ 340 million and $ 233 million of customer advances, respectively.

(1) We recorded $ 543 million and $ 473 million for the third quarter, and $ 1.3 billion and $ 734 million for the first nine months, of fiscal years 2025 and 2024, respectively, in cost of revenue.

(2) Includes customer advances and unearned revenue related to hardware support, software support, cloud services, and license and development arrangements.

The balance as of October 27, 2024 and January 28, 2024 included $ 101 million and $ 233 million of customer advances, respectively.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

Jul 28, 2024 Jan 28, 2024

Oct 27, 2024 Jan 28, 2024

Other Long-Term Liabilities:

6 unchanged sentences

(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 includes unearned revenue related to hardware support and software support.

(2) Includes unearned revenue related to hardware support, software support and cloud services.

Deferred Revenue

The following table shows the changes in short and long term deferred revenue during the first half of fiscal years 2025 and 2024:

Six Months Ended

Jul 28, 2024 Jul 30, 2023

The following table shows the changes in short- and long-term deferred revenue during the first nine months of fiscal years 2025 and 2024:

Nine Months Ended

Oct 27, 2024 Oct 29, 2023

(In millions)

3 unchanged sentences

Balance at end of period $ 1,585 $ 938

We recognized revenue of $ 323 million and $ 199 million for the first half of fiscal years 2025 and 2024 respectively, that were included in the prior year end deferred revenue balances.

For revenue contracts with a length greater than one year, $ 1.3 billion is included in deferred revenue and $ 123 million has not yet been billed nor recognized as revenue as of July 28, 2024.

Approximately 37 % of this combined amount will be recognized as revenue over the next twelve months .

We recognized revenue of $ 585 million and $ 256 million in the first nine months of fiscal years 2025 and 2024, respectively, that were included in the prior year end deferred revenue balances.

As of October 27, 2024, revenue related to remaining performance obligations from contracts greater than one year in length was $ 1.6 billion, which includes $ 1.4 billion from deferred revenue and $ 187 million which has not yet been billed nor recognized as revenue.

Approximately 37 % of revenue from contracts greater than one year in length will be recognized over the next twelve months .

Note 10 - Derivative Financial Instruments

We entered into foreign currency forward contracts mitigating the impact of foreign currency exchange rate movements on our operating expenses.

These contracts are designated as cash flow hedges.

We utilize foreign currency forward contracts to mitigate the impact of foreign currency exchange rate movements on our operating expenses.

The foreign currency forward contracts for operating expenses are designated as cash flow hedges.

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 entered into foreign currency forward contracts mitigating the impact of foreign currency movements on monetary assets and liabilities.

The change in fair value of these non-designated contracts was recorded in other income or expense and offsets the change in fair value of the hedged foreign currency denominated monetary assets and liabilities, which was also recorded in other income or expense.

For our foreign currency contracts for assets and liabilities, the change in fair value of these non-designated contracts was recorded in other income or expense and offsets the change in fair value of the hedged foreign currency denominated monetary assets and liabilities, which was also recorded in other income or expense.

The table below presents the notional value of our foreign currency contracts outstanding:

Jul 28, 2024 Jan 28, 2024

Oct 27, 2024 Jan 28, 2024

(In millions)

1 unchanged sentence

Non-designated hedges $ 728 $ 597

The unrealized gains and losses or fair value of our foreign currency contracts were not significant as of July 28, 2024 and January 28, 2024.

As of July 28, 2024, all designated foreign currency contracts mature within 18 months and the expected realized gains and losses were not significant.

During the first half of fiscal years 2025 and 2024, the impact of derivative financial instruments designated for cash flow hedges was not significant and the instruments were determined to be highly effective.

The unrealized gains and losses or fair value of our foreign currency contracts were not significant as of October 27, 2024 and January 28, 2024.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

As of October 27, 2024, all designated foreign currency contracts mature within 18 months and any unrealized gains and losses were not significant.

During the first nine months of fiscal years 2025 and 2024, the impact of derivative financial instruments designated for cash flow hedges was not significant and the instruments were determined to be highly effective.

Note 11 - Debt

2 unchanged sentences

Interest Rate Carrying Value at

Jul 28, 2024 Jan 28, 2024

Oct 27, 2024 Jan 28, 2024

(In millions)

24 unchanged sentences

We may redeem each of our notes prior to maturity, as defined in the applicable form of note.

The maturity of the notes are calendar year.

As of July 28, 2024, we complied with the required covenants, which are non-financial in nature, under the outstanding notes.

The maturity of the notes is calendar year.

As of October 27, 2024, we complied 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 July 28, 2024, we had no commercial paper outstanding.

As of October 27, 2024, we had no commercial paper outstanding.

Note 12 - Commitments and Contingencies

1 unchanged sentence

Our purchase obligations reflect our commitment 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 July 28, 2024, we had outstanding inventory purchases and long-term supply and capacity obligations totaling $ 27.8 billion, an increase from the prior year due to commitments for Hopper and Blackwell capacity and components.

We enter into agreements with contract manufacturers that allow them to procure inventory based upon our defined criteria, and in certain instances, these agreements are cancellable, able to be rescheduled, and adjustable for our business needs prior to placing firm orders.

As of October 27, 2024, we had outstanding inventory purchase and long-term supply and capacity obligations totaling $ 28.9 billion, an increase from the prior year primarily due to commitments for Blackwell capacity and components.

We enter into agreements with contract manufacturers that allow them to procure inventory based upon our defined criteria, and in certain instances, these agreements are cancellable, able to be rescheduled, or adjustable for our business needs prior to placing firm orders.

Though, changes to these agreements may result in additional costs.

Other non-inventory purchase obligations were $ 13.2 billion, including $ 11.3 billion of multi-year cloud service agreements.

We expect our cloud service agreements to be used to support our research and development efforts and our DGX Cloud offerings.

We expect our cloud service agreements to primarily be used to support our research and development efforts, as well as our DGX Cloud offerings.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

Total future purchase commitments as of July 28, 2024 are as follows:

Total future purchase commitments as of October 27, 2024 are as follows:

(In millions)

2025 (excluding first half of fiscal year 2025)

2025 (excluding the first nine months of fiscal year 2025)

2030 and thereafter

1 unchanged sentence

Accrual for Product Warranty Liabilities

The estimated amount of product warranty liabilities was $ 741 million and $ 306 million as of July 28, 2024 and January 28, 2024, respectively.

The estimated amount of product warranty liabilities was $ 1.0 billion and $ 306 million as of October 27, 2024 and January 28, 2024, respectively.

The estimated product returns and product warranty activity consisted of the following:

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023

Three Months Ended Nine Months Ended

Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023

(In millions)

20 unchanged sentences

On June 17, 2024, the Supreme Court of the United States granted NVIDIA’s petition for a writ of certiorari.

Four amicus briefs were filed in support of NVIDIA's petition.

Oral arguments are scheduled for November 13, 2024.

Briefing concluded on October 25, 2024 and the Supreme Court heard oral arguments on November 13, 2024.

NVIDIA Corporation and Subsidiaries

18 unchanged sentences

Accounting for Loss Contingencies

As of July 28, 2024, there are no accrued contingent liabilities associated with the legal proceedings described above based on our belief that liabilities, while possible, are not probable.

As of October 27, 2024, there are no accrued contingent liabilities associated with the legal proceedings described above based on our belief that liabilities, while possible, are not probable.

Further, except as described above, any possible loss or range of loss in these matters cannot be reasonably estimated at this time.

2 unchanged sentences

Capital Return Program

During the second quarter and first half of fiscal year 2025, we repurchased 62.8 million and 162.1 million shares of our common stock for $ 7.0 billion and $ 15.1 billion, respectively.

During the second quarter and first half of fiscal year 2024, we repurchased 75.5 million shares of our common stock for $ 3.3 billion.

As of July 28, 2024, we were authorized, subject to certain specifications, to repurchase up to $ 7.5 billion of our common stock.

We repurchased 92 million and 83 million shares of our common stock for $ 11.1 billion and $ 3.7 billion during the third quarter, and 254 million and 159 million shares of our common stock for $ 26.2 billion and $ 7 billion during the first nine months, of fiscal years 2025 and 2024, respectively.

On August 26, 2024, our Board of Directors approved an additional $ 50 billion to our share repurchase authorization, without expiration.

As of August 26, 2024, a total of $ 53.9 billion was available for repurchase.

As of October 27, 2024, we were authorized, subject to certain specifications, to repurchase up to $ 46.4 billion of our common stock.

Our share repurchase program aims to offset dilution from shares issued to employees while maintaining adequate liquidity to meet our operating requirements.

We may pursue additional share repurchases as we weigh market factors and other investment opportunities.

From July 29, 2024 through August 26, 2024, we repurchased 31.5 million shares for $ 3.6 billion pursuant to a Rule 10b5-1 trading plan.

On June 7, 2024, we increased our quarterly cash dividend to $ 0.01 per share on a post-Stock Split basis to all shareholders of record on June 11, 2024.

Our quarterly cash dividend was paid on June 28, 2024.

During the second quarter and first half of fiscal year 2025, we paid $ 246 million and $ 344 million in cash dividends, respectively.

During the second quarter and first half of fiscal year 2024, we paid $ 99 million and $ 199 million in cash dividends to our shareholders, respectively.

From October 28, 2024 through November 15, 2024, we repurchased 19 million shares for $ 2.7 billion pursuant to a pre-established trading plan.

We paid cash dividends to our shareholders of $ 245 million and $ 99 million during the third quarter, and $ 589 million and $ 296 million during the first nine months, of fiscal years 2025 and 2024, 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.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

Note 14 - Segment Information

Our Chief Executive Officer is our chief operating decision maker, or CODM, and reviews financial information presented on an operating segment basis for purposes of making decisions and assessing financial performance.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

The Compute & Networking segment includes our Data Center accelerated computing platforms and artificial intelligence, or AI, solutions and software;

12 unchanged sentences

Depreciation and amortization expenses directly attributable to each reportable segment are 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.

However, our CODM does not review depreciation and amortization expense by operating segment and, therefore, it is not separately presented.

The accounting policies for segment reporting are the same as for our consolidated financial statements.

2 unchanged sentences

(In millions)

Three Months Ended Jul 28, 2024

Three Months Ended Oct 27, 2024

Revenue $ 31,036 $ 4,046 $ — $ 35,082

Operating income (loss) $ 22,081 $ 1,502 $ ( 1,714 ) $ 21,869

Three Months Ended Jul 30, 2023

Three Months Ended Oct 29, 2023

Revenue $ 14,645 $ 3,475 $ — $ 18,120

Operating income (loss) $ 10,262 $ 1,493 $ ( 1,338 ) $ 10,417

Six Months Ended Jul 28, 2024

Nine Months Ended Oct 27, 2024

Revenue $ 80,157 $ 11,009 $ — $ 91,166

Operating income (loss) $ 57,977 $ 4,111 $ ( 4,669 ) $ 57,419

Six Months Ended Jul 30, 2023

Nine Months Ended Oct 29, 2023

Revenue $ 29,507 $ 9,312 $ — $ 38,819

Operating income (loss) $ 19,149 $ 3,751 $ ( 3,542 ) $ 19,358

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023

Three Months Ended Nine Months Ended

Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023

(In millions)

5 unchanged sentences

Total $ ( 1,714 ) $ ( 1,338 ) $ ( 4,669 ) $ ( 3,542 )

Revenue by geographic areas is based upon the billing location of the customer.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

Revenue by geographic area is based upon the billing location of the customer.

The end customer and shipping location may be different from our customer’s billing location.

For example, most shipments associated with Singapore revenue were to locations other than Singapore and shipments to Singapore were insignificant.

Revenue by geographic areas was as follows:

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023

Revenue by geographic area was as follows:

Three Months Ended Nine Months Ended

Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023

(In millions)

United States $ 14,800 $ 6,302 $ 41,318 $ 14,730

Taiwan 5,740 2,839 10,113 4,635

Singapore 7,697 2,702 17,356 4,506

China (including Hong Kong) 5,416 4,030 11,574 8,360

Taiwan 5,153 4,333 15,266 8,968

Other countries 2,016 753 5,652 2,255

Total revenue $ 35,082 $ 18,120 $ 91,166 $ 38,819

We refer to customers who purchase products directly from NVIDIA as direct customers, such as add-in board manufacturers, distributors, ODMs, OEMs, and system integrators.

We have certain customers that may purchase products directly from NVIDIA and may use either internal resources or third-party system integrators to complete their build.

2 unchanged sentences

Sales to direct customers which represented 10% or more of total revenue, all of which were primarily attributable to the Compute & Networking segment, are presented in the following table:

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 28, 2024

Three Months Ended Nine Months Ended

Oct 27, 2024 Oct 27, 2024

Customer A 12 % *

3 unchanged sentences

* Less than 10% of total revenue

One customer represented approximately 17 % and 13 % of total revenue for the second quarter and first half of fiscal year 2024, respectively, and was attributable to the Compute & Networking segment.

The customer references of A-D above may represent different customers than those reported in a previous period.

Sales to one direct customer represented 12 % of total revenue for the third quarter of fiscal year 2024, and sales to a second direct customer represented 11 % of total revenue for the first nine months of fiscal year 2024, both of which were attributable to the Compute & Networking segment.

NVIDIA Corporation and Subsidiaries

1 unchanged sentence

The following table summarizes revenue by specialized markets:

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023

Three Months Ended Nine Months Ended

Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023

(In millions)

8 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements