NVIDIA 2013 Annual Report Download - page 225

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
81
The total intrinsic value of options exercised was $14.4 million, $21.1 million and $105.3 million for fiscal years 2014,
2013 and 2012, respectively. Upon exercise of an option, we issue new shares of stock. The total fair value of options vested
was $34.6 million, $40.3 million and $49.5 million for fiscal years 2014, 2013 and 2012, respectively.
Note 3 - Net Income Per Share
The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share
computations for the periods presented:
Year Ended
January 26,
2014 January 27, 2013 January 29, 2012
(In thousands, except per share data)
Numerator:
Net income............................................................................................ $ 439,990 $ 562,536 $ 581,090
Denominator:
Denominator for basic net income per share, weighted average shares 587,893 619,324 603,646
Effect of dilutive securities:
Stock awards outstanding ..................................................................... 6,624 5,633 12,725
Denominator for diluted net income per share, weighted average shares 594,517 624,957 616,371
Net income per share:
Basic net income per share ................................................................... $ 0.75 $ 0.91 $ 0.96
Diluted net income per share................................................................ $ 0.74 $ 0.90 $ 0.94
Potentially dilutive securities excluded from income per diluted share
because their effect would have been anti-dilutive............................... 25,630 26,784 22,617
The denominator for diluted net income per share for fiscal year 2014 does not include any effect from the Notes. In
accordance with ASC 260, Earnings per Share, commencing after the fiscal quarter ending on April 27, 2014, the Notes
will not impact the denominator for diluted net income per share unless the average price of our common stock, as calculated
under the terms of the Notes, exceeds the conversion price of $20.16 per share. Likewise, the denominator for diluted net
income per share will not include any effect from the warrants unless the average price of our common stock, as calculated
under the terms of the warrants, exceeds $27.14 per share.
The denominator for diluted net income per share for fiscal year 2014 also does not include any effect from the note
hedges. In future periods, the denominator for diluted net income per share will exclude any effect of the note hedges, as
their effect would be anti-dilutive. In the event an actual conversion of any or all of the Notes occurs, the shares that would
be delivered to the Company under the note hedges are designed to neutralize the dilutive effect of the shares that the
Company would issue under the Notes. Please refer to Note 11 of these Notes to the Consolidated Financial Statements for
discussion regarding the Notes.
Note 4 - 3dfx
During fiscal year 2002, we completed the purchase of certain assets from 3dfx Interactive, Inc., or 3dfx, for an aggregate
purchase price of approximately $74.2 million. On December 15, 2000, NVIDIA Corporation and one of our indirect
subsidiaries entered into an Asset Purchase Agreement, or the APA, which closed on April 18, 2001, to purchase certain
graphics chip assets from 3dfx.
In October 2002, 3dfx filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Northern
District of California. In March 2003, the Trustee appointed by the Bankruptcy Court to represent 3dfx’s bankruptcy estate