NVIDIA 2006 Annual Report Download - page 58

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As of January 29, 2006, we performed a sensitivity analysis on our floating and fixed rate financial investments. According to our
analysis, parallel shifts in the yield curve of both +/− 0.5% would result in changes in fair market values for these investments of
approximately $2.6 million.
Exchange Rate Risk
We consider our direct exposure to foreign exchange rate fluctuations to be minimal. Currently, sales and arrangements with
third−party manufacturers provide for pricing and payment in United States dollars, and, therefore, are not subject to exchange rate
fluctuations. Increases in the value of the United States' dollar relative to other currencies would make our products more expensive,
which could negatively impact our ability to compete. Conversely, decreases in the value of the United States' dollar relative to other
currencies could result in our suppliers raising their prices in order to continue doing business with us. To date, we have not engaged
in any currency hedging activities, although we may do so in the future. Fluctuations in currency exchange rates could harm our
business in the future.
ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The information required by this item is set forth in our Consolidated Financial Statements and Notes thereto included in this
Annual Report on Form 10−K.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
Not applicable.
ITEM 9A. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Based on their evaluation as of January 29, 2006, our management, including our Chief Executive Officer and Chief Financial
Officer, have concluded that our disclosure controls and procedures (as defined in Rule 13a−15(e) under the Securities Exchange Act
of 1934, or the Exchange Act) were effective to ensure that the material information required to be disclosed by us in this Annual
Report on Form 10−K was recorded, processed, summarized and reported within the time periods specified in the Securities and
Exchange Commission's rules and instructions for Form 10−K.
Management's Annual Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is
defined in Exchange Act Rule 13a−15(f). Under the supervision and with the participation of our management, including our Chief
Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial
reporting as of January 29, 2006 based on the criteria set forth in Internal Control − Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission. Based on our evaluation under the criteria set forth in Internal Control −−
Integrated Framework, our management concluded that our internal control over financial reporting was effective as of January 29,
2006.
Our management's assessment of the effectiveness of our internal control over financial reporting as of January 29, 2006 has been
audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which is included
herein.
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