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Segment Information | 9 Months Ended
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Oct. 27, 2019
Segment Reporting [Abstract] |
Segment Information | 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 operating decisions and assessing financial performance. Our operating segments are equivalent to our reportable segments. We report our business in two primary reportable segments - the GPU business and the Tegra Processor business - based on a single underlying architecture. Our GPU product brands are aimed at specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for artificial intelligence, data scientists and big data researchers; and GRID for cloud-based visual computing users. Our Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core CPUs to drive supercomputing for autonomous robots, drones, and cars, as well as for game consoles and mobile gaming and entertainment devices. Under the single unifying architecture for our GPU and Tegra Processors, we leverage our visual computing expertise by charging the operating expenses of certain core engineering functions to the GPU business, while charging the Tegra Processor business for the incremental cost of the teams working directly for that business. In instances where the operating expenses of certain functions benefit both reportable segments, our CODM assigns 100% of those expenses to the reportable segment that benefits the most. The “All Other” category presented below represents the expenses that our CODM does not assign to either the GPU business or the Tegra Processor business for purposes of making operating decisions or assessing financial performance. The expenses include stock-based compensation expense, corporate infrastructure and support costs, acquisition-related costs, legal settlement costs, contributions, restructuring and other charges, product warranty charge, 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. Reportable segments do not record intersegment revenue, and, accordingly, there is none to be reported. 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.
| GPU |  | Tegra Processor |  | All Other |  | Consolidated
| (In millions)
Three Months Ended October 27, 2019 |  |  |  |  |  |  |
Revenue | $ | 2,565 |  |  | $ | 449 |  |  | $ | — |  |  | $ | 3,014 |
Depreciation and amortization expense | $ | 78 |  |  | $ | 10 |  |  | $ | 4 |  |  | $ | 92 |
Operating income (loss) | $ | 1,135 |  |  | $ | 85 |  |  | $ | (293 | ) |  | $ | 927 |
Three Months Ended October 28, 2018 |  |  |  |  |  |  |  |  |  |  |
Revenue | $ | 2,774 |  |  | $ | 407 |  |  | $ | — |  |  | $ | 3,181 |
Depreciation and amortization expense | $ | 51 |  |  | $ | 13 |  |  | $ | 4 |  |  | $ | 68 |
Operating income (loss) | $ | 1,214 |  |  | $ | 72 |  |  | $ | (228 | ) |  | $ | 1,058 |
Nine Months Ended October 27, 2019 |  |  |  |  |  |  |
Revenue | $ | 6,691 |  |  | $ | 1,122 |  |  | $ | — |  |  | $ | 7,813 |
Depreciation and amortization expense | $ | 230 |  |  | $ | 34 |  |  | $ | 11 |  |  | $ | 275 |
Operating income (loss) | $ | 2,550 |  |  | $ | 163 |  |  | $ | (857 | ) |  | $ | 1,856 |
Nine Months Ended October 28, 2018 |  |  |  |  |  |  |
Revenue | $ | 8,195 |  |  | $ | 1,316 |  |  | $ | — |  |  | $ | 9,511 |
Depreciation and amortization expense | $ | 134 |  |  | $ | 35 |  |  | $ | 15 |  |  | $ | 184 |
Operating income (loss) | $ | 3,867 |  |  | $ | 266 |  |  | $ | (623 | ) |  | $ | 3,510 |
| Three Months Ended |  | Nine Months Ended
| October 27, 2019 |  | October 28, 2018 |  | October 27, 2019 |  | October 28, 2018
| (In millions)
Reconciling items included in "All Other" category: |  |  |  |  |  |  |
Stock-based compensation expense | $ | (223 | ) |  | $ | (140 | ) |  | $ | (624 | ) |  | $ | (400 | )
Unallocated cost of revenue and operating expenses | (63 | ) |  | (76 | ) |  | (198 | ) |  | (205 | )
Acquisition-related and other costs | (7 | ) |  | 3 |  |  | (22 | ) |  | (1 | )
Legal settlement costs | — |  |  | (15 | ) |  | (13 | ) |  | (17 | )
Total | $ | (293 | ) |  | $ | (228 | ) |  | $ | (857 | ) |  | $ | (623 | )
Revenue by geographic region is allocated to individual countries based on the location to which the products are initially billed even if our customers’ revenue is attributable to end customers that are located in a different location. The following table summarizes information pertaining to our revenue from customers based on the invoicing address by geographic regions:
| Three Months Ended |  | Nine Months Ended
| October 27, |  | October 28, |  | October 27, |  | October 28,
| 2019 |  | 2018 |  | 2019 |  | 2018
| (In millions)
Revenue: |  |  |  |  |  |  |
Taiwan | $ | 838 |  |  | $ | 929 |  |  | $ | 2,171 |  |  | $ | 2,739 |
Other Asia Pacific | 805 |  |  | 742 |  |  | 1,983 |  |  | 2,001 |
China (including Hong Kong) | 758 |  |  | 704 |  |  | 1,894 |  |  | 2,218 |
United States | 236 |  |  | 407 |  |  | 589 |  |  | 1,254 |
Europe | 216 |  |  | 230 |  |  | 753 |  |  | 699 |
Other countries | 161 |  |  | 169 |  |  | 423 |  |  | 600 |
Total revenue | $ | 3,014 |  |  | $ | 3,181 |  |  | $ | 7,813 |  |  | $ | 9,511 |
The following table summarizes information pertaining to our revenue by each of the specialized markets we serve:
| Three Months Ended |  | Nine Months Ended
| October 27, |  | October 28, |  | October 27, |  | October 28,
| 2019 |  | 2018 |  | 2019 |  | 2018
| (In millions)
Revenue: |  |  |  |  |  |  |
Gaming | $ | 1,659 |  |  | $ | 1,764 |  |  | $ | 4,027 |  |  | $ | 5,292 |
Professional Visualization | 324 |  |  | 305 |  |  | 881 |  |  | 837 |
Data Center | 726 |  |  | 792 |  |  | 2,015 |  |  | 2,253 |
Automotive | 162 |  |  | 172 |  |  | 537 |  |  | 478 |
OEM and Other | 143 |  |  | 148 |  |  | 353 |  |  | 651 |
Total revenue | $ | 3,014 |  |  | $ | 3,181 |  |  | $ | 7,813 |  |  | $ | 9,511 |
One customer represented approximately 10% of our total revenue for the third quarter and approximately 11% of our total revenue for the first nine months of fiscal year 2020, and was attributable primarily to the GPU business. No customer represented 10% or more of total revenue for the third quarter and first nine months of fiscal year 2019. One customer represented approximately 24% of our accounts receivable balance as of October 27, 2019, and one customer represented approximately 19% of our accounts receivable balance as of January 27, 2019.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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