10-Q 1 nvda-20220501.htm 10-Q nvda-20220501
00010458101/292023Q1FALSE00010458102022-01-312022-05-0100010458102022-05-20xbrli:sharesiso4217:USD00010458102021-02-012021-05-02iso4217:USDxbrli:shares00010458102022-05-0100010458102022-01-300001045810us-gaap:CommonStockMember2022-01-300001045810us-gaap:AdditionalPaidInCapitalMember2022-01-300001045810us-gaap:TreasuryStockMember2022-01-300001045810us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-300001045810us-gaap:RetainedEarningsMember2022-01-300001045810us-gaap:RetainedEarningsMember2022-01-312022-05-010001045810us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-312022-05-010001045810us-gaap:CommonStockMember2022-01-312022-05-010001045810us-gaap:AdditionalPaidInCapitalMember2022-01-312022-05-010001045810us-gaap:CommonStockMember2022-05-010001045810us-gaap:AdditionalPaidInCapitalMember2022-05-010001045810us-gaap:TreasuryStockMember2022-05-010001045810us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-05-010001045810us-gaap:RetainedEarningsMember2022-05-010001045810us-gaap:CommonStockMember2021-01-310001045810us-gaap:AdditionalPaidInCapitalMember2021-01-310001045810us-gaap:TreasuryStockMember2021-01-310001045810us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-310001045810us-gaap:RetainedEarningsMember2021-01-3100010458102021-01-310001045810us-gaap:RetainedEarningsMember2021-02-012021-05-020001045810us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-02-012021-05-020001045810us-gaap:CommonStockMember2021-02-012021-05-020001045810us-gaap:AdditionalPaidInCapitalMember2021-02-012021-05-020001045810us-gaap:TreasuryStockMember2021-02-012021-05-020001045810us-gaap:CommonStockMember2021-05-020001045810us-gaap:AdditionalPaidInCapitalMember2021-05-020001045810us-gaap:TreasuryStockMember2021-05-020001045810us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-05-020001045810us-gaap:RetainedEarningsMember2021-05-0200010458102021-05-0200010458102021-07-192021-07-19xbrli:pure0001045810nvda:ArmLimitedMember2022-01-312022-05-010001045810srt:MinimumMember2022-05-010001045810srt:MaximumMember2022-05-010001045810us-gaap:CostOfSalesMember2022-01-312022-05-010001045810us-gaap:CostOfSalesMember2021-02-012021-05-020001045810us-gaap:ResearchAndDevelopmentExpenseMember2022-01-312022-05-010001045810us-gaap:ResearchAndDevelopmentExpenseMember2021-02-012021-05-020001045810us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-312022-05-010001045810us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-02-012021-05-020001045810nvda:RSUsPSUsandMarketbasedPSUsMember2022-01-312022-05-010001045810nvda:ShareBasedCompensationArrangementsByShareBasedPaymentAwardEmployeeStockPurchasePlanMember2022-01-312022-05-010001045810us-gaap:CorporateDebtSecuritiesMember2022-05-010001045810us-gaap:USTreasurySecuritiesMember2022-05-010001045810us-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-05-010001045810us-gaap:CertificatesOfDepositMember2022-05-010001045810us-gaap:MoneyMarketFundsMember2022-05-010001045810us-gaap:ForeignGovernmentDebtMember2022-05-010001045810us-gaap:CorporateDebtSecuritiesMember2022-01-300001045810us-gaap:USTreasurySecuritiesMember2022-01-300001045810us-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-01-300001045810us-gaap:CertificatesOfDepositMember2022-01-300001045810us-gaap:MoneyMarketFundsMember2022-01-300001045810us-gaap:ForeignGovernmentDebtMember2022-01-300001045810us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2022-05-010001045810us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2022-01-300001045810us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-05-010001045810us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-01-300001045810us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2022-01-300001045810us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-05-010001045810us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-01-300001045810us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel2Member2022-05-010001045810us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel2Member2022-01-300001045810us-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueInputsLevel2Member2022-05-010001045810us-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueInputsLevel2Member2022-01-300001045810us-gaap:FairValueInputsLevel1Membernvda:PubliclyHeldEquitySecuritiesMember2022-05-010001045810us-gaap:FairValueInputsLevel1Membernvda:PubliclyHeldEquitySecuritiesMember2022-01-300001045810us-gaap:FairValueInputsLevel3Membernvda:PrivatelyHeldEquitySecuritiesMember2022-05-010001045810us-gaap:FairValueInputsLevel3Membernvda:PrivatelyHeldEquitySecuritiesMember2022-01-300001045810nvda:A2023NotesMember2022-05-010001045810nvda:A2023NotesMemberus-gaap:FairValueInputsLevel2Member2022-05-010001045810nvda:A2023NotesMemberus-gaap:FairValueInputsLevel2Member2022-01-300001045810nvda:A2024NotesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Membernvda:A2024NotesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Membernvda:A2024NotesMember2022-01-300001045810nvda:A2026NotesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Membernvda:A2026NotesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Membernvda:A2026NotesMember2022-01-300001045810nvda:A2028NotesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Membernvda:A2028NotesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Membernvda:A2028NotesMember2022-01-300001045810nvda:A2030NotesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Membernvda:A2030NotesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Membernvda:A2030NotesMember2022-01-300001045810nvda:A2031NotesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Membernvda:A2031NotesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Membernvda:A2031NotesMember2022-01-300001045810nvda:A2040NotesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Membernvda:A2040NotesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Membernvda:A2040NotesMember2022-01-300001045810nvda:A2050NotesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Membernvda:A2050NotesMember2022-05-010001045810us-gaap:FairValueInputsLevel2Membernvda:A2050NotesMember2022-01-300001045810nvda:A2060NotesMember2022-05-010001045810nvda:A2060NotesMemberus-gaap:FairValueInputsLevel2Member2022-05-010001045810nvda:A2060NotesMemberus-gaap:FairValueInputsLevel2Member2022-01-300001045810nvda:IntangibleAssetsArisingFromBusinessCombinationMember2022-05-010001045810nvda:IntangibleAssetsArisingFromBusinessCombinationMember2022-01-300001045810nvda:PatentsAndLicensedTechnologyMember2022-05-010001045810nvda:PatentsAndLicensedTechnologyMember2022-01-300001045810us-gaap:InProcessResearchAndDevelopmentMembernvda:MellanoxTechnologiesLtdMember2022-05-010001045810nvda:ComputeAndNetworkingMember2022-01-312022-05-010001045810nvda:GraphicsMember2022-01-312022-05-0100010458102022-05-022022-05-010001045810us-gaap:ForeignExchangeForwardMember2022-01-312022-05-010001045810nvda:A2023NotesMember2022-01-312022-05-010001045810nvda:A2023NotesMember2022-01-300001045810nvda:A2024NotesMember2022-01-312022-05-010001045810nvda:A2024NotesMember2022-01-300001045810nvda:A2026NotesMember2022-01-312022-05-010001045810nvda:A2026NotesMember2022-01-300001045810nvda:A2028NotesMember2022-01-312022-05-010001045810nvda:A2028NotesMember2022-01-300001045810nvda:A2030NotesMember2022-01-312022-05-010001045810nvda:A2030NotesMember2022-01-300001045810nvda:A2031NotesMember2022-01-312022-05-010001045810nvda:A2031NotesMember2022-01-300001045810nvda:A2040NotesMember2022-01-312022-05-010001045810nvda:A2040NotesMember2022-01-300001045810nvda:A2050NotesMember2022-01-312022-05-010001045810nvda:A2050NotesMember2022-01-300001045810nvda:A2060NotesMember2022-01-312022-05-010001045810nvda:A2060NotesMember2022-01-300001045810us-gaap:CommercialPaperMember2022-05-010001045810nvda:AdministrativeOrderIssuedByTheSECMemberus-gaap:SubsequentEventMember2022-05-022022-05-270001045810us-gaap:SubsequentEventMember2022-05-23nvda:segment0001045810nvda:GraphicsMemberus-gaap:OperatingSegmentsMember2022-01-312022-05-010001045810nvda:ComputeAndNetworkingMemberus-gaap:OperatingSegmentsMember2022-01-312022-05-010001045810us-gaap:CorporateNonSegmentMember2022-01-312022-05-010001045810nvda:GraphicsMemberus-gaap:OperatingSegmentsMember2021-02-012021-05-020001045810nvda:ComputeAndNetworkingMemberus-gaap:OperatingSegmentsMember2021-02-012021-05-020001045810us-gaap:CorporateNonSegmentMember2021-02-012021-05-020001045810country:TW2022-01-312022-05-010001045810country:TW2021-02-012021-05-020001045810nvda:ChinaIncludingHongKongMember2022-01-312022-05-010001045810nvda:ChinaIncludingHongKongMember2021-02-012021-05-020001045810country:US2022-01-312022-05-010001045810country:US2021-02-012021-05-020001045810nvda:AllOtherCountriesNotSeparatelyDisclosedMember2022-01-312022-05-010001045810nvda:AllOtherCountriesNotSeparatelyDisclosedMember2021-02-012021-05-020001045810nvda:GamingMember2022-01-312022-05-010001045810nvda:GamingMember2021-02-012021-05-020001045810nvda:DataCenterMember2022-01-312022-05-010001045810nvda:DataCenterMember2021-02-012021-05-020001045810nvda:ProfessionalVisualizationMember2022-01-312022-05-010001045810nvda:ProfessionalVisualizationMember2021-02-012021-05-020001045810nvda:AutomotiveMember2022-01-312022-05-010001045810nvda:AutomotiveMember2021-02-012021-05-020001045810nvda:OEMAndOtherMember2022-01-312022-05-010001045810nvda:OEMAndOtherMember2021-02-012021-05-020001045810us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMembernvda:OneCustomerMember2022-01-312022-05-010001045810us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMembernvda:TwoCustomersMember2021-02-012022-01-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended May 1, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 0-23985
nvda-20220501_g1.jpg

NVIDIA CORPORATION
(Exact name of registrant as specified in its charter)
Delaware94-3177549
(State or Other Jurisdiction of(I.R.S. Employer
Incorporation or Organization)Identification No.)
2788 San Tomas Expressway
Santa Clara, California 95051
(408) 486-2000
(Address, including zip code, and telephone number,
including area code, of principal executive offices)
N/A
(Former name, former address and former fiscal year if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par value per shareNVDAThe Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
The number of shares of common stock, $0.001 par value, outstanding as of May 20, 2022, was 2.50 billion.



NVIDIA CORPORATION
FORM 10-Q
FOR THE QUARTER ENDED May 1, 2022
TABLE OF CONTENTS
  Page
  
Financial Statements (Unaudited) 
 a) Condensed Consolidated Statements of Income for the three months ended May 1, 2022 and May 2, 2021
b) Condensed Consolidated Statements of Comprehensive Income for the three months ended May 1, 2022 and May 2, 2021
 c) Condensed Consolidated Balance Sheets as of May 1, 2022 and January 30, 2022
d) Condensed Consolidated Statements of Shareholders' Equity for the three months ended May 1, 2022 and May 2, 2021
 e) Condensed Consolidated Statements of Cash Flows for the three months ended May 1, 2022 and May 2, 2021
 f) Notes to Condensed Consolidated Financial Statements
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Quantitative and Qualitative Disclosures About Market Risk
Controls and Procedures
  
Legal Proceedings
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Exhibits
 
WHERE YOU CAN FIND MORE INFORMATION
Investors and others should note that we announce material financial information to our investors using our investor relations website, press releases, SEC filings and public conference calls and webcasts. We also use the following social media channels as a means of disclosing information about the company, our products, our planned financial and other announcements and attendance at upcoming investor and industry conferences, and other matters, and for complying with our disclosure obligations under Regulation FD: 
NVIDIA Twitter Account (https://twitter.com/nvidia)
NVIDIA Company Blog (http://blogs.nvidia.com)
NVIDIA Facebook Page (https://www.facebook.com/nvidia)
NVIDIA LinkedIn Page (http://www.linkedin.com/company/nvidia)
NVIDIA Instagram Page (https://www.instagram.com/nvidia)
In addition, investors and others can view NVIDIA videos on YouTube (https://www.YouTube.com/nvidia).
The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these accounts and the blog, in addition to following our press releases, SEC filings and public conference calls and webcasts. This list may be updated from time to time. The information we post through these channels is not a part of this Quarterly Report on Form 10-Q. These channels may be updated from time to time on NVIDIA's investor relations website.
2


PART I. FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS (UNAUDITED)
NVIDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
 Three Months Ended
 May 1,May 2,
20222021
Revenue$8,288 $5,661 
Cost of revenue2,857 2,032 
Gross profit5,431 3,629 
Operating expenses  
Research and development1,618 1,153 
Sales, general and administrative592 520 
Acquisition termination cost
1,353  
Total operating expenses3,563 1,673 
Income from operations1,868 1,956 
Interest income18 6 
Interest expense(68)(53)
Other, net(13)135 
Other income (expense), net
(63)88 
Income before income tax1,805 2,044 
Income tax expense187 132 
Net income$1,618 $1,912 
Net income per share:
Basic$0.65 $0.77 
Diluted$0.64 $0.76 
Weighted average shares used in per share computation:
Basic2,506 2,484 
Diluted2,537 2,528 
See accompanying Notes to Condensed Consolidated Financial Statements.

3


NVIDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
(Unaudited)
 Three Months Ended
 May 1,May 2,
20222021
 
Net income$1,618 $1,912 
Other comprehensive loss, net of tax
Available-for-sale securities:
Net change in unrealized loss(22) 
Cash flow hedges:
Net unrealized loss(29)(14)
Reclassification adjustments for net realized gain (loss) included in net income(2)9 
Net change in unrealized loss(31)(5)
Other comprehensive loss, net of tax(53)(5)
Total comprehensive income$1,565 $1,907 
See accompanying Notes to Condensed Consolidated Financial Statements.

4


NVIDIA CORPORATION AND SUBSIDIARIES 
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
May 1,January 30,
 20222022
ASSETS
Current assets:  
Cash and cash equivalents$3,887 $1,990 
Marketable securities16,451 19,218 
Accounts receivable, net5,438 4,650 
Inventories3,163 2,605 
Prepaid expenses and other current assets636 366 
Total current assets29,575 28,829 
Property and equipment, net2,916 2,778 
Operating lease assets856 829 
Goodwill4,365 4,349 
Intangible assets, net2,211 2,339 
Deferred income tax assets1,784 1,222 
Other assets3,505 3,841 
Total assets$45,212 $44,187 
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Current liabilities:  
Accounts payable$1,999 $1,783 
Accrued and other current liabilities3,563 2,552 
Total current liabilities5,562 4,335 
Long-term debt10,947 10,946 
Long-term operating lease liabilities752 741 
Other long-term liabilities1,631 1,553 
Total liabilities18,892 17,575 
Commitments and contingencies - see Note 13
Shareholders’ equity:  
Preferred stock  
Common stock3 3 
Additional paid-in capital10,623 10,385 
Accumulated other comprehensive loss(64)(11)
Retained earnings15,758 16,235 
Total shareholders' equity26,320 26,612 
Total liabilities and shareholders' equity$45,212 $44,187 
See accompanying Notes to Condensed Consolidated Financial Statements.

5


NVIDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
FOR THE THREE MONTHS ENDED MAY 1, 2022 AND MAY 2, 2021
(Unaudited)
Common Stock
Outstanding
Additional Paid-in CapitalTreasury StockAccumulated Other Comprehensive Income (Loss)Retained EarningsTotal Shareholders' Equity
(In millions, except per share data)SharesAmount
Balances, January 30, 20222,506 $3 $10,385 $ $(11)$16,235 $26,612 
Net income— — — — — 1,618 1,618 
Other comprehensive loss— — — — (53)— (53)
Issuance of common stock from stock plans 9 — 204 — — — 204 
Tax withholding related to vesting of restricted stock units(2)— (538)— — — (538)
Share repurchase(9)— (1)— — (1,995)(1,996)
Cash dividends declared and paid ($0.04 per common share)
— — — — — (100)(100)
Stock-based compensation— — 573 — — — 573 
Balances, May 1, 20222,504 $3 $10,623 $ $(64)$15,758 $26,320 
Balances, January 31, 20212,479 $3 $8,719 $(10,756)$19 $18,908 $16,893 
Net income— — — — — 1,912 1,912 
Other comprehensive loss— — — — (5)— (5)
Issuance of common stock from stock plans 15 — 126 — — — 126 
Tax withholding related to vesting of restricted stock units(3)— — (486)— — (486)
Cash dividends declared and paid ($0.04 per common share)
— — — — — (99)(99)
Stock-based compensation— — 433 — — — 433 
Balances, May 2, 20212,491 $3 $9,278 $(11,242)$14 $20,721 $18,774 
See accompanying Notes to Condensed Consolidated Financial Statements.
6


NVIDIA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
 Three Months Ended
May 1,May 2,
 20222021
Cash flows from operating activities:  
Net income$1,618 $1,912 
Adjustments to reconcile net income to net cash provided by operating activities:
Acquisition termination cost
1,353  
Stock-based compensation expense578 429 
Depreciation and amortization334 281 
Losses (gains) on investments in non-affiliates, net17 (133)
Deferred income taxes(542)24 
Other23 (3)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable(788)(595)
Inventories(560)(159)
Prepaid expenses and other assets(1,261)2 
Accounts payable255 36 
Accrued and other current liabilities634 33 
Other long-term liabilities70 47 
Net cash provided by operating activities1,731 1,874 
Cash flows from investing activities:  
Proceeds from maturities of marketable securities5,947 3,140 
Proceeds from sales of marketable securities1,029 358 
Purchases of marketable securities(3,932)(4,470)
Purchases related to property and equipment and intangible assets(361)(298)
Acquisitions, net of cash acquired(36) 
Investments and other, net(35)(2)
Net cash provided by (used in) investing activities2,612 (1,272)
Cash flows from financing activities:  
Proceeds related to employee stock plans204 126 
Payments related to repurchases of common stock (1,996) 
Payments related to tax on restricted stock units(532)(477)
Dividends paid(100)(99)
Principal payments on property and equipment and intangible asset(22)(19)
Other (2)
Net cash used in financing activities(2,446)(471)
Change in cash and cash equivalents1,897 131 
Cash and cash equivalents at beginning of period1,990 847 
Cash and cash equivalents at end of period$3,887 $978 
See accompanying Notes to Condensed Consolidated Financial Statements.
7

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


Note 1 - Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission, or SEC, Regulation S-X. The January 30, 2022 consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2022, as filed with the SEC, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of results of operations and financial position, have been included. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2022. 
On July 19, 2021, we executed a four-for-one stock split of our common stock. All share, equity award, and per share amounts and related shareholders' equity balances presented herein have been retroactively adjusted to reflect the stock split.
Significant Accounting Policies
There have been no material changes to our significant accounting policies disclosed in Note 1 - Organization and Summary of Significant Accounting Policies, of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2022.
Fiscal Year
We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal years 2023 and 2022 are both 52-week years. The first quarters of fiscal years 2023 and 2022 were both 13-week quarters.
Reclassifications
Certain prior fiscal year balances have been reclassified to conform to the current fiscal year presentation.
Principles of Consolidation
Our condensed consolidated financial statements include the accounts of NVIDIA Corporation and our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

8

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)


Note 2 - Business Combination
Termination of the Arm Share Purchase Agreement
On February 8, 2022, NVIDIA and SoftBank Group Corp, or SoftBank, announced the termination of the Share Purchase Agreement whereby NVIDIA would have acquired Arm Limited from SoftBank. The parties agreed to terminate because of significant regulatory challenges preventing the completion of the transaction. We recorded an acquisition termination cost of $1.35 billion in the first quarter of fiscal year 2023 reflecting the write-off of the prepayment provided at signing in September 2020.
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 2023 and 2035.
Future minimum lease payments under our non-cancelable operating leases as of May 1, 2022 are as follows:
Operating Lease Obligations
 (In millions)
Fiscal Year: 
2023 (excluding first quarter of fiscal year 2023)
$121 
2024167 
2025144 
2026130 
2027119 
2028 and thereafter
318 
Total999 
Less imputed interest100 
Present value of net future minimum lease payments899 
Less short-term operating lease liabilities147 
Long-term operating lease liabilities$752 
In addition to our existing operating lease obligations, we have operating leases that are expected to commence between the second quarter of fiscal year 2023 and fiscal year 2024 with lease terms of 3 to 8 years for $755 million, consisting primarily of data center space.
Operating lease expenses were $44 million and $39 million for the first quarter of fiscal years 2023 and 2022, respectively. Short-term and variable lease expenses for the first quarter of fiscal years 2023 and 2022 were not significant.
Other information related to leases was as follows:
Three Months Ended
May 1, 2022May 2, 2021
 (In millions)
Supplemental cash flows information 
Operating cash flows used for operating leases$45 $39 
Operating lease assets obtained in exchange for lease obligations$62 $54 
9

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)


As of May 1, 2022, our operating leases had a weighted average remaining lease term of 7.2 years and a weighted average discount rate of 2.51%. As of January 30, 2022, our operating leases had a weighted average remaining lease term of 7.1 years and a weighted average discount rate of 2.51%.
Note 4 - Stock-Based Compensation
Our 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 our employee stock purchase plan, or ESPP.
Our Condensed Consolidated Statements of Income include stock-based compensation expense, net of amounts allocated to inventory, as follows:
 Three Months Ended
 May 1,
2022
May 2,
2021
(In millions)
Cost of revenue$38 $25 
Research and development384 276 
Sales, general and administrative156 128 
Total$578 $429 
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 SharesWeighted Average Grant-Date Fair Value Per Share
(In millions, except per share data)
Balances, January 30, 202246 $114.19 
Granted3 $216.00 
Vested restricted stock(7)$83.70 
Balances, May 1, 202242 $125.32 
As of May 1, 2022, there was $4.95 billion of aggregate unearned stock-based compensation expense. This amount is expected to be recognized over a weighted average period of 2.3 years for RSUs, PSUs, and market-based PSUs, and 1.1 years for ESPP.

10

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)


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:
 Three Months Ended
May 1,May 2,
20222021
 (In millions, except per share data)
Numerator:  
Net income
$1,618 $1,912 
Denominator:
Basic weighted average shares
2,506 2,484 
Dilutive impact of outstanding equity awards
31 44 
Diluted weighted average shares
2,537 2,528 
Net income per share:
Basic (1)
$0.65 $0.77 
Diluted (2)
$0.64 $0.76 
Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive3 4 
(1)    Calculated as net income divided by basic weighted average shares.
(2)    Calculated as net income divided by diluted weighted average shares.
Note 6 – Income Taxes
We recognized an income tax expense of $187 million and $132 million for the first quarter of fiscal years 2023 and 2022, respectively. The income tax expense as a percentage of income before income tax was 10.3% and 6.5% for the first quarter of fiscal years 2023 and 2022, respectively.
The increase in our effective tax rate was primarily due to an increase in the amount of earnings subject to U.S. tax, the Arm acquisition termination cost recorded in the first quarter of fiscal year 2023 which did not result in any material tax benefit, and a decreased impact of tax benefit from the U.S. federal research tax credit, partially offset by the increased benefits from the foreign-derived intangible income deduction and stock-based compensation.
Our effective tax rate for the first quarter of fiscal year 2023 was lower than the U.S. federal statutory rate of 21% due to tax benefits from the foreign-derived intangible income deduction, stock-based compensation and the U.S. federal research tax credit.
Our effective tax rate for the first quarter of fiscal year 2022 was lower than the U.S. federal statutory rate of 21% due to income earned in jurisdictions that are subject to taxes lower than the U.S. federal statutory tax rate and tax benefits related to stock-based compensation and the U.S. federal research tax credit.
For the first quarter of fiscal year 2023, there have been no material changes to our tax years that remain subject to examination by major tax jurisdictions. We are currently under examination by the Internal Revenue Service for our fiscal years 2018 and 2019. Additionally, there have been no material changes to our unrecognized tax benefits and any related interest or penalties since the fiscal year ended January 30, 2022.
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 May 1, 2022, 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.
11

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)


Note 7 - 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 as of May 1, 2022 and January 30, 2022:
 May 1, 2022
Amortized
Cost
Unrealized
Gain
Unrealized
Loss
Estimated
Fair Value
Reported as
 Cash EquivalentsMarketable Securities
 (In millions)
Corporate debt securities$9,827 $ $(9)$9,818 $1,232 $8,586 
Debt securities issued by the United States Treasury6,157 3 (38)6,122 1,324 4,798 
Debt securities issued by United States government agencies2,116   2,116 460 1,656 
Certificates of deposit1,302   1,302 41 1,261 
Money market funds419   419 419  
Foreign government bonds185   185 35 150 
Total$20,006 $3 $(47)$19,962 $3,511 $16,451 
 January 30, 2022
Amortized
Cost
Unrealized
Gain
Unrealized
Loss
Estimated
Fair Value
Reported as
 Cash EquivalentsMarketable Securities
 (In millions)
Corporate debt securities$9,977 $ $(3)$9,974 $1,102 $8,872 
Debt securities issued by the United States Treasury7,314  (14)7,300  7,300 
Debt securities issued by United States government agencies1,612   1,612 256 1,356 
Certificates of deposit1,561   1,561 21 1,540 
Money market funds316   316 316  
Foreign government bonds150   150  150 
Total$20,930 $ $(17)$20,913 $1,695 $19,218 
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:
May 1, 2022
 Less than 12 Months12 Months or GreaterTotal
 Estimated Fair ValueGross Unrealized LossEstimated Fair ValueGross Unrealized LossEstimated Fair ValueGross Unrealized Loss
 (In millions)
Debt securities issued by the United States Treasury$2,955 $(38)$ $ $2,955 $(38)
Corporate debt securities2,594 (9)19  2,613 (9)
Total$5,549 $(47)$19 $ $5,568 $(47)
January 30, 2022
 Less than 12 Months12 Months or GreaterTotal
 Estimated Fair ValueGross Unrealized LossEstimated Fair ValueGross Unrealized LossEstimated Fair ValueGross Unrealized Loss
 (In millions)
Debt securities issued by the United States Treasury$5,292 $(14)$ $ $5,292 $(14)
Corporate debt securities2,445 (3)19  2,464 (3)
Total$7,737 $(17)$19 $ $7,756 $(17)
The gross unrealized losses are related to fixed income securities, driven primarily by changes in interest rates. Net realized gains and unrealized gains and losses were not significant for all periods presented.
The amortized cost and estimated fair value of cash equivalents and marketable securities as of May 1, 2022 and January 30, 2022 are shown below by contractual maturity.
May 1, 2022January 30, 2022
Amortized CostEstimated Fair ValueAmortized CostEstimated Fair Value
(In millions)
Less than one year$15,196 $15,185 $16,346 $16,343 
Due in 1 - 5 years4,810 4,777 4,584 4,570 
Total$20,006 $19,962 $20,930 $20,913 
Note 8 – Fair Value of Financial Assets and Liabilities
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.
12

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)


Fair Value at
Pricing CategoryMay 1, 2022January 30, 2022
(In millions)
Assets
Cash equivalents and marketable securities:
Money market fundsLevel 1$419 $316 
Corporate debt securitiesLevel 2$9,818 $9,974 
Debt securities issued by the United States TreasuryLevel 2$6,122 $7,300 
Debt securities issued by United States government agenciesLevel 2$2,116 $1,612 
Certificates of depositLevel 2$1,302 $1,561 
Foreign government bondsLevel 2$185 $150 
Other assets (Investment in non-affiliated entities):
Publicly-held equity securities (1)Level 1$48 $58 
Privately-held equity securitiesLevel 3$238 $208 
Liabilities (2)
0.309% Notes Due 2023
Level 2$1,221 $1,236 
0.584% Notes Due 2024
Level 2$1,191 $1,224 
3.20% Notes Due 2026
Level 2$995 $1,055 
1.55% Notes Due 2028
Level 2$1,100 $1,200 
2.85% Notes Due 2030
Level 2$1,393 $1,542 
2.00% Notes Due 2031
Level 2$1,071 $1,200 
3.50% Notes Due 2040
Level 2$903 $1,066 
3.50% Notes Due 2050
Level 2$1,756 $2,147 
3.70% Notes Due 2060
Level 2$433 $551 
(1)    Unrealized losses of $24 million and an unrealized gain of $124 million from investments in publicly-traded equity securities were recorded in other income (expense), net, in the first quarter of fiscal years 2023 and 2022, respectively.
(2)    These liabilities are carried on our Condensed Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs.
Note 9 - Amortizable Intangible Assets and Goodwill
The components of our amortizable intangible assets are as follows:
 May 1, 2022January 30, 2022
 Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
 (In millions)
Acquisition-related intangible assets (1)$3,253 $(1,260)$1,993 $3,418 $(1,304)$2,114 
Patents and licensed technology719 (501)218 717 (492)225 
Total intangible assets$3,972 $(1,761)$2,211 $4,135 $(1,796)$2,339 
(1)    During the first quarter of fiscal year 2023, we commenced amortization of the $630 million in-process research and development intangible asset related to our acquisition of Mellanox.
13

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)


Amortization expense associated with intangible assets was $155 million and $137 million for the first quarter of fiscal years 2023 and 2022, respectively. Future amortization expense related to the net carrying amount of intangible assets as of May 1, 2022 is estimated to be $541 million for the remainder of fiscal year 2023, $597 million in fiscal year 2024, $536 million in fiscal year 2025, $248 million in fiscal year 2026, $143 million in fiscal year 2027, and $146 million in fiscal year 2028 and thereafter.
In the first quarter of fiscal year 2023, goodwill increased by $16 million and intangible assets increased by $25 million from acquisitions. We assigned $14 million of the increase in goodwill to our Compute & Networking segment and $2 million of the increase to our Graphics segment.
Note 10 - Balance Sheet Components 
Certain balance sheet components are as follows:
May 1,January 30,
 20222022
Inventories:(In millions)
Raw materials$1,119 $791 
Work in-process672 692 
Finished goods1,372 1,122 
Total inventories$3,163 $2,605 
May 1,January 30,
 20222022
Other assets:(In millions)
Prepaid supply agreements$2,752 $1,747 
Prepaid royalties405 409 
Investment in non-affiliated entities285 266 
Advanced consideration for acquisition (1) 1,353 
Other63 66 
Total other assets$3,505 $3,841 
(1)    Refer to Note 2 - Business Combination for further details on the Arm acquisition.

May 1,January 30,
 20222022
Accrued and Other Current Liabilities:(In millions)
Customer program accruals$1,088 $1,000 
Taxes payable736 132 
Deferred revenue (1)334 300 
Accrued payroll and related expenses327 409 
Payables to brokers for unsettled investment trades325  
Excess inventory purchase obligations258 196 
Other495 515 
Total accrued and other current liabilities$3,563 $2,552 
(1)    Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements, support for hardware and software, and cloud services.
14

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)


May 1,January 30,
 20222022
Other Long-Term Liabilities:(In millions)
Income tax payable (1)$1,051 $980 
Deferred income tax257 245 
Deferred revenue (2)203 202 
Other120 126 
Total other long-term liabilities$1,631 $1,553 
(1)    As of May 1, 2022, income tax payable represents the long-term portion of the one-time transition tax payable of $251 million, unrecognized tax benefits of $733 million, and related interest and penalties of $67 million. As of January 30, 2022, income tax payable represents the long-term portion of the one-time transition tax payable of $251 million, unrecognized tax benefits of $670 million, and related interest and penalties of $59 million.
(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 the first quarter of fiscal years 2023 and 2022:
May 1,May 2,
 20222021
(In millions)
Balance at beginning of period$502 $451 
Deferred revenue additions during the period212 178 
Revenue recognized during the period(177)(123)
Balance at end of period$537 $506 
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 invoiced in future periods. As of May 1, 2022, $652 million of revenue related to performance obligations had not been recognized, of which we expect to recognize approximately 47% 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. The fair value of the contracts was not significant as of May 1, 2022 and January 30, 2022.
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.


15

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)


The table below presents the notional value of our foreign currency forward contracts outstanding as of May 1, 2022 and January 30, 2022:
 May 1,
2022
January 30,
2022
(In millions)
Designated as cash flow hedges$1,070 $1,023 
Not designated for hedge accounting$382 $408 
As of May 1, 2022, all designated foreign currency forward contracts mature within eighteen 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 the first quarter of fiscal years 2023 and 2022, the impact of derivative financial instruments designated for hedge accounting treatment on other comprehensive income or loss was not significant.
Note 12 - Debt
Long-Term Debt
The carrying values of our outstanding notes and their associated interest rates were as follows:
Carrying Value at
Expected
Remaining Term (years)
Effective
Interest Rate
May 1, 2022January 30, 2022
(In millions)
0.309% Notes Due 2023
1.10.41%$1,250 $1,250 
0.584% Notes Due 2024
2.10.66%1,250 1,250 
3.20% Notes Due 2026
4.43.31%1,000 1,000 
1.55% Notes Due 2028
6.11.64%1,250 1,250 
2.85% Notes Due 2030
7.92.93%1,500 1,500 
2.00% Notes Due 2031
9.12.09%1,250 1,250 
3.50% Notes Due 2040
17.93.54%1,000 1,000 
3.50% Notes Due 2050
27.93.54%2,000 2,000 
3.70% Notes Due 2060
37.93.73%500 500 
Unamortized debt discount and issuance costs(53)(54)
Net carrying amount$