NVIDIA Corp. (NVDA)

Inventory cost is computed on an adjusted standard basis, which approximates actual cost on an average or first-in, first-out basis. Inventory costs consist primarily of the cost of semiconductors purchased from subcontractors, including wafer fabrication, assembly, testing and packaging, manufacturing support costs, including labor and overhead associated with such purchases, final test yield fallout, and shipping costs, as well as the cost of purchased memory products and other component parts. NVIDIA charges cost of sales for inventory provisions to write down the inventory to the lower of cost or net realizable value or to completely write off obsolete or excess inventory. Most of NVIDIA’s inventory provisions relate to the write-off of excess quantities of products, based on the inventory levels and future product purchase commitments compared to assumptions about future demand and market conditions. Once inventory has been written-off or written-down, it creates a new cost basis for the inventory that is not subsequently written-up.

Source: 10-K (filing date: 2019-02-21).

NVIDIA Corp., balance sheet: inventory

US$ in millions

		Jan 27, 2019		Jan 28, 2018		Jan 29, 2017		Jan 31, 2016		Jan 25, 2015		Jan 26, 2014
	Raw materials
	Work in-process
	Finished goods
	Inventories

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12), 10-K (filing date: 2014-03-13).