NVIDIA 2013 Annual Report Download - page 171

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withholding taxes have not been provided on undistributed earnings for certain non-United States subsidiaries, because
such earnings are intended to be indefinitely reinvested in the operations of those subsidiaries. Throughout the period
of President Obama's administration, the White House has proposed various international tax measures, some of which, if
enacted into law, would substantially reduce our ability to defer United States taxes on such indefinitely reinvested non-
United States earnings, eliminate certain tax deductions until foreign earnings are repatriated to the United States and/or
otherwise cause the total tax cost of U.S. multinational corporations to increase. If these or similar proposals are constituted
into legislation in the current or future year(s), they could have a negative impact on our financial position and results of
operations.
Our operating results may be adversely affected if we are subject to unexpected tax liabilities.
We are subject to taxation by a number of taxing authorities both in the United States and throughout the world. Tax
rates vary among the jurisdictions in which we operate. Significant judgment is required in determining our provision for
our income taxes as there are many transactions and calculations where the ultimate tax determination is uncertain. Although
we believe our tax estimates are reasonable, any of the below could cause our effective tax rate to be materially different
than that which is reflected in historical income tax provisions and accruals:
• the jurisdictions in which profits are determined to be earned and taxed;
• adjustments to estimated taxes upon finalization of various tax returns;
• changes in available tax credits;
• changes in stock-based compensation expense;
• changes in tax laws, the interpretation of tax laws either in the United States or abroad or the issuance of new
interpretative accounting guidance related to transactions and calculations where the tax treatment was previously
uncertain; and
• the resolution of issues arising from tax audits with various tax authorities.
Should additional taxes be assessed as a result of any of the above, our operating results could be adversely affected.
In addition, our future effective tax rate could be adversely affected by changes in the mix of earnings in countries with
differing statutory tax rates, changes in tax laws or changes in the interpretation of tax laws.
We are subject to the risks of owning real property.
During fiscal year 2009, we purchased real property in Santa Clara, California that includes approximately 36 acres of
land and twelve commercial buildings and eventually expect to break ground on a new building for a corporate headquarters
campus in Santa Clara. We also own real property in India. We have limited experience in the ownership and management
of real property and are subject to the risks of owning real property, including:
• the possibility of environmental contamination and the costs associated with mitigating any environmental
problems;
• adverse changes in the value of these properties, due to interest rate changes, changes in the market in which the
property is located, or other factors;
• the risk of loss if we decide to sell and are not able to recover all capitalized costs;
• increased cash commitments for the planned construction of our Santa Clara campus;