Gaming revenue 2024 15%. sell-in inventory demand.


2024 1%.


2024 21%. self-driving platforms.


margin increased 2024 Data Center growth lower inventory.


expenses 2024 compensation. 2023 $1. billion acquisition termination charge.


Data Center revenue 2024 $47. 5 billion up 217% 2023. launched AI inference platforms Ada Hopper processors. introduced NVIDIA Cloud AI Foundations language AI. video transformers cars automotive demand. 2024 40% revenue AI inference. cloud providers half revenue. NVIDIA Spectrum-X accelerated networking platform AI.


2024 $10. 4 billion 15% 2023. launched RTX 4060 4070 GPUs Ada Lovelace. Avatar Cloud Engine DLSS. Reconstruction. TensorRT-LLM RTX 40-Series SUPER GPUs. 500 AI RTX games.


Visualization 2024 $1. 6 billion 1% 2023. GPUs RTX Ada Lovelace Omniverse Cloud industrial metaverse.


Automotive revenue 2024 $1. 1 billion 21% 2023. partnership MediaTek automotive systems NVIDIA GPU AI. Foxconn-generation


NVIDIA DRIVE BYD GWM ZEEKR.


consolidated financial statements. GAAP. estimates judgments assets liabilities revenue expenses contingencies. Critical estimates uncertainty financial condition. inventories revenue recognition income taxes. Note 1 Consolidated Financial Statements Part IV Item 15 Annual Report Form 10-K accounting policies.


charge sales inventory provisions obsolete excess inventory product purchase commitments. inventory provisions excess quantities inventory levels future commitments demand management judgment.


excess inventory purchase commitments include business economic market decreases demand inventory obsolescence technology new introductions spikes failure estimate demand ordering lead-times government regulations demand competitive products. Cancellation deferral orders excess inventory.


margin inventory sales unfavorable 2. 7% 2024 7. 5% 2023. inventory capacity purchase commitments based future demand. account third-party manufacturers lead times. lead times twelve months. place inventory orders pay provide deposits supply capacity. adjust market factors transitions macroeconomic conditions impact demand.


Gross Profit Margin Management's Discussion.


subject to income taxes U. foreign jurisdictions. calculation deferred tax assets liabilities estimates judgments uncertainties complex tax laws. estimates change certainty changes accounting standards tax laws. recognize liabilities. foreign income tax contingencies additional taxes. payment unnecessary tax liability less recognize tax benefit additional expense financial statements.


fiscal years 2024 2023 valuation allowance $1. 6 billion $1. 5 billion capital loss carryforwards deferred tax assets projections future taxable income. income tax benefits.


recognize benefit tax position sustained audit merits. policy interest penalties unrecognized tax benefits expense.


products sold right return record reduction revenue sales return allowance estimated returns historical rates. returns exceed additional return allowances. Return rights distributors limited prior quarter shipments. shipments other customers allow returns approve returns credit refund.


account customer programs rebates marketing funds accrue claimed. programs distributor price incentives programs products classes judgement. Estimates accruals historical attainment claim rates adjusted factors.


Revenue License Development Arrangements recognized services performed. measure progress completion cost incurred estimated total cost. cost includes personnel time third-party costs.


contracts contain more performance obligation. Judgement. NVIDIA products services function standalone require integration. multiple obligations distinct not combined revenue recognition.


allocate transaction price performance obligation standalone selling price. establish standalone selling price observable prices products sold comparable. If not observable determine market data observable inputs.


February 2023 assessed lives property plant equipment. increased server storage network four five assembly test seven. 2024 $33 million $102 million revenue expenses operating income $135 million net income $114 million tax $0. 05 share.


discussion financial condition results 2024 2023. Item 7 Annual Report Form 10-K fiscal year January 29, 2023 filed SEC February 24, 2023 available website. investor relations website. nvidia.


table items Consolidated Statements Income percentage revenue. Ended 28, 29, 2023 Revenue. Cost revenue. Gross profit. Operating expenses Research development. Sales general administrative. Acquisition termination cost. Total operating expenses. Operating income. Interest income. expense Other. Income before income tax. Income tax expense. Net income.


Ended 28, 2024 29,$ Change$ millions Compute Networking#47,405,068,337 Graphics Total,922


Ended 28, 2024 29,$ Change Change$ millions Compute Networking,016,083 Graphics Other(4,890) Total,972,224#681


Compute Networking revenue Data Center revenue. Compute grew 266% NVIDIA Hopper GPU. Networking 133% InfiniBand.


Graphics revenue Gaming 15% higher sell-in channel inventory.


increase Compute Networking Graphics higher revenue.


operating loss $1. 4 billion offset $839 million stock compensation 2024.


Revenue geographic region billing location. Revenue outside United States 56% 69% revenue fiscal years 2024 2023.


customers cloud startups OEMs system integrators distributors.


customer 13% revenue 2024 Compute Networking segment.


indirect customer purchases integrators distributors 19% revenue 2024 Compute Networking.


estimated Compute Networking.


customers 10% 2023 2022.


profit revenue allowances cost. semiconductors fabrication assembly testing packaging board device manufacturing labor overhead test yield inventory warranty memory tariffs shipping. acquisition development IP stock-based compensation manufacturing.


gross margin 72. 7%. 9% 2023. Data Center 217% lower inventory provisions.


Provisions obligations $2. billion 2024 2023. Sales settlements release $540 million $137 million. gross margin unfavorable 2. 7% 7. 5%.


Ended 28, 29, 2023 millions Research development expenses,675 % net revenue. Sales administrative expenses,440 % net revenue. Acquisition termination cost,353 net revenue. operating expenses,329 % net revenue.


increase research development 2024 driven compensation benefits stock-based compensation growth.


recorded acquisition cost $1. billion 2023 prepayment.


Ended 28, 2024 29, 2023 Change millions Interest income Interest expense net income


cash equivalents securities. increase yields cash balances.


Interest coupon debt notes.


net gains losses non entities foreign currency rates. 2023 driven non-affiliated investments. Note 9 Financial Statements Part IV Item 15 Annual Form 10-K.


recognized tax expense $4. billion 2024 benefit $187 million 2023. expense. 0% benefit. 5%.


quarter 2024 2018 2019. recognized non-cash benefit $145 million settled positions. reduction tax benefits $236 million accrued interest $17 million offset cash carryforwards $108 million.


effective tax rate increased FDII deduction stock-based compensation. federal research tax credit. offset IRS audit resolution.


tax rates 2024 2023 lower. 21% FDII deduction stock-based compensation. research tax credit. benefited IRS resolution.


OECD Framework Base Erosion Profit Shifting Pillar Two Rules 15% tax corporations. jurisdictions European United Kingdom enacted Pillar Two 2025. OECD guidance Pillar Two impact financial. Pillar Two impact tax rate cash flows year. change.


Note 14 Statements Part IV 15 Annual 10-K.


28, 29, 2023 millions Cash equivalents,280,389 Marketable securities Cash marketable securities,296 Ended 2023 Net cash operating,090 investing,566,375 financing activities,633


investment policy income securities diversification types maturity limits.


Cash increased 2024 2023 revenue. receivable balance $557 million customer payments invoice.


investing decreased 2024 2023 maturities higher purchases.


financing 2024 2023 debt repayment tax offset share repurchases.


liquidity cash equivalents securities operations. 2024 $26. billion cash securities. liquidity operating requirements twelve months supply obligations $1. 3 billion debt repayment 2025 share purchases. evaluate liquidity capital resources capital.


marketable securities. government corporations institutions foreign entities certificates deposit institutions. dollars. Note 8 Consolidated Financial Statements Part IV Item 15 Form 10-K.


2025 cash equivalents securities capital $3. billion $4. billion property equipment.


$1. 4 billion cash equivalents securities outside. accrued foreign taxes. all cash equivalents securities. fiscal year 2024 available. without. federal income taxes.


2024 $395 million.


cash dividend program future dividends subject Board Directors' determination interests shareholders.


2023 repurchase $25. billion. 2024 repurchased 21 million shares $9. billion. January 28, 2024 authorized repurchase


$22. 5 billion. January February 16 repurchased. 8 million shares $1. 9 billion Rule 10b5-1. repurchase dilution. repurchases. continue.


. Inflation Reduction Act 2022 1% excise tax repurchases compensation 2024.


debt maturities January 28, 2024 millions,250 ten,750 ten,500 Unamortized debt discount issuance costs amount,709 short-term portion,250 long,459


$575 million commercial paper program. 2024 no paper.


Note 12 Statements Part IV 15 Annual 10-K.


long-term debt purchase 12 13, 3 Financial Statements Part IV 15 Annual Report 10-K.


unrecognized tax benefits $1. 3 billion interest penalties $140 million 2024. estimate tax liability interest penalties settlement. Note 14 Financial Statements Part IV Item 15 Annual Report 10-K.


no impact sustainability regulations costs renewable energy trends.


Note 1 Statements Part IV 15 Annual Report 10-K accounting pronouncements.


exposed interest rate risk fixed-rate portfolio debt. liquidity strategy capital growth.


fiscal year 2024 sensitivity analysis portfolio. shifts yield curve. 5% value $93 million.


2024 $9. 7 billion senior Notes. value unamortized discount Consolidated Balance Sheets.


. Note 12 Consolidated Statements Part IV 15 Annual Report 10-K.


exposure foreign exchange rate fluctuations minimal sales contracts. Gains losses currency remeasurement included income expenses. currency transaction net income significant 2024 2023.


Sales arrangements with-party manufacturers pricing payment in dollars not subject to exchange rate fluctuations. Increases dollar products expensive. decreases manufacturing costs.


U. dollar strengthened 10% January 28, 2024 29, 2023 foreign exchange contracts tax $116 million $112 million lower. foreign currency expenses.


adverse 10% foreign exchange rate change hedging contracts income taxes $60 million $36 million January 28, 2024 29, 2023. changes offset foreign currency assets liabilities contracts.


Note 11 Statements Part IV 15 Annual 10-K.


Consolidated Financial Statements Notes Annual Report 10-K.


Disagreements Financial Disclosure


January 28, 2024 concluded disclosure controls procedures Rule 13a-15 Exchange Act assurance.


management responsible internal control financial reporting Exchange Act Rule 13a-15(f). evaluation internal control January 28, 2024 Internal Control - Integrated Framework (2013) Committee Sponsoring Organizations Treadway Commission. concluded control effective January 28, 2024.


control financial reporting January 28, 2024 audited PricewaterhouseCoopers LLP.


no changes in control financial reporting quarter January 28, 2024. fiscal year 2022 upgrade enterprise resource planning system


financial systems. ERP financial records results. upgrade phases. evaluate quarter changes control financial reporting.


management including Chief Executive Financial Officer expect disclosure internal controls prevent error fraud. control system reasonable not assurance objectives met. design resource constraints benefits relative to costs. limitations no evaluation absolute assurance issues fraud NVIDIA detected.


December 18 2023 John. Dabiri adopted trading arrangement Rule 10b5-1 sale December 2 2024 shares common stock closing price January 26, 2024. estimate.


Part III omitted SEC proxy statement Regulation 14A 2024 Statement 120 days fiscal year 2024 incorporated.


directors 2024 Proxy Statement 1 Election Directors incorporated.


executive officers Part I Annual Report Form 10-K incorporated reference.


Audit Committee 2024 Proxy Statement Audit Committee Board Board Corporate Governance incorporated reference.


recommending directors 2024 Proxy Statement Board Directors Corporate Governance incorporated.


Section 16(a Exchange Act 2024 Proxy Statement Section 16(a Reports incorporated.


Code of Conduct 2024 Proxy Statement Board Directors Corporate Governance Code Conduct incorporated reference. full text Code Financial Team Code Investor Relations website www. nvidia. com. amendments waiver disclose website report Form 8-K. website not Annual Report Form 10-K.


executive compensation 2024 Proxy Statement Committee Interlocks Insider Committee Report incorporated reference.


Ownership Stockholder Matters


NVIDIA securities 2024 Proxy Statement Ownership Beneficial Owners Management incorporated.


equity compensation plans 2024 Proxy Statement Compensation Plan incorporated.


transactions director independence 2024 Proxy Statement “Review Transactions Related Board Directors Corporate Governance Independence incorporated reference.


accounting fees services 2024 Proxy Statement Independent Accounting Firm incorporated.


. Statements Independent Public Accounting Firm ID 238) Statements Income January 28, 2024 2023 30 2022 Comprehensive Income Balance Sheets January 28, 2024 29, 2023 Shareholders’ Equity January 28, 2024 2023 2022 Cash Flows Financial Statements. Statement Schedule II Valuation Qualifying Accounts January 28, 2024 2023 30 2022. filed incorporated Annual Report Form 10-K.


Statements Control Reporting


audited balance sheets NVIDIA Corporation subsidiaries January 28, 2024 2023 income shareholders equity cash flows three years 2024 notes financial statement schedule Item 15(a)(2) financial. audited control financial reporting 2024 Internal Control Integrated Framework Sponsoring.


consolidated financial statements present position January 28, 2024 2023 results operations cash flows three 2024 accounting principles. Company maintained internal control financial reporting 2024 Internal Control - Integrated Framework (2013) COSO.


Company management responsible consolidated financial statements internal control assessment Annual Report Internal Control Reporting Item 9A. opinions consolidated financial statements internal control audits. public accounting firm Oversight Board independent. federal securities laws Securities and Exchange Commission PCAOB.


conducted audits PCAOB. standards require plan assurance consolidated financial statements free misstatement error fraud internal control.


audits of consolidated financial statements included risks misstatement error or fraud. examining evidence amounts disclosures. accounting principles estimates management presentation. audit of internal control over financial reporting included understanding risk material weakness testing design effectiveness control risk. other procedures necessary. audits provide reasonable basis for opinions.


internal control over financial reporting assurance reliability financial reporting preparation financial statements for accounting principles. includes policies procedures maintenance of records transactions dispositions assets assurance transactions recorded necessary preparation financial statements receipts expenditures with authorizations management directors prevention of unauthorized acquisition use disposition assets financial statements.


limitations internal control financial reporting prevent misstatements. projections effectiveness future risk controls compliance policies deteriorate.


critical audit matter from current period audit of consolidated financial statements communicated to audit committee relates to accounts disclosures material challenging complex judgments. communication alter our opinion on consolidated financial statements not separate opinion.


Valuation Inventories Purchase Commitments


Notes 1 10 13 Company charges provisions write excess product purchase commitments. inventory provisions excess quantities commitments. January 28, 2024 consolidated balance $5. 3 billion $16. 1 billion portion inventory purchase obligations.


considerations valuation inventories provisions excess product purchase commitments critical audit judgment management provisions assumptions future demand market conditions. led to auditor judgment subjectivity effort assumptions.


matter involved evaluating audit evidence forming opinion on consolidated financial statements. procedures included controls provisions excess inventories product purchase commitments controls assumptions future demand market conditions. process developing provisions appropriateness approach data assumptions future demand market conditions. Evaluating assumptions current past results consistency market industry data changes technology.


served auditor.


Ended 28, 2024 29, 2023 30 2022 Revenue,922 Cost,439 Gross profit,301,356 Operating Research development,675,339,268 Sales administrative,440,166 Acquisition cost,353 operating expenses,329,132 income,972,224,041 Interest income expense income tax,818,181 tax expense,058 Net income,760,368,752 income share. average shares,469,487,496


consolidated statements.


Ended 28, 2024 29, 2023 30, 2022 Net income,760,368,752 income net-sale securities unrealized gain unrealized gain Cash flow hedges unrealized gain (loss change unrealized loss income net tax(32) Total income#29,830,336,722


28, 2024 2023 Cash,280,389 securities,704 Accounts receivable,827 Inventories,282 expenses,345 Property equipment,807 lease Goodwill,372 Intangible assets Deferred tax,396,500,820,182 Liabilities Equity Accounts payable,193 Accrued liabilities,120 Short-term debt,631 Long-term debt,459,703,750,081 Commitments contingencies Shareholders’ equity Preferred stock. 2 shares Common stock.shares 2,464 issued January 28, 2024 2,466 2023 capital,132,971 income earnings,171 equity,978,101 liabilities equity,182


Stock Paid Shareholders millions Balances Jan 31, 2021,479,756 Net income,752 comprehensive loss(30) Issuance common stock plans Tax withholding vesting restricted stock units(1,290)(1,904) Cash dividends.16 common share partially vested equity awards Stock-based compensation Retirement Treasury Stock,046 Balances Jan 30 2022,385,235 Net income,368 loss Issuance common stock Tax withholding vesting restricted stock units(1,475) Shares repurchased Cash dividends.16 common share Stock-based compensation,710 Balances Jan 29, 2023,971,171,101 Net income,760 income Issuance common stock Tax withholding restricted stock units,783 Shares repurchased,719) Cash dividends. 16 common share Stock-based compensation Jan 28, 2024,464,132,978


Ended 28, 2024 29, 2023 30 2022 Cash Net income,760,368,752 Adjustments Stock compensation expense,709 Depreciation amortization Deferred income taxes losses investments non entities Acquisition termination cost,353 assets liabilities Accounts receivable,172 Inventories Prepaid expenses Accounts payable liabilities long-term liabilities Net cash,090,108 flows Proceeds maturities securities,732,425,197 sales Purchases Purchases property equipment intangible assets Acquisitions cash Investments non entities(77)(24) cash investing activities,566),375(9,830) financing employee stock plans repurchases common stock(9,533) tax stock units,783(1,475)(1,904) Repayment debt,250 Dividends Principal payments property equipment intangible assets(74)(58)(83) Issuance debt costs Net cash financing activities(13,633) equivalents,891,399,143,389,990 end,280,389,990 income taxes interest


Santa Clara NVIDIA 1993 Delaware 1998.


references mean NVIDIA Corporation subsidiaries.


52 53-week January. 2024 2023 2022 52-week.


consolidated statements NVIDIA subsidiaries. balances eliminated.


financial statements. GAAP estimates assumptions assets liabilities revenue expenses. results differ estimates. evaluate estimates revenue cash securities accounts receivable inventories commitments income taxes goodwill stock compensation costs restructuring charges property plant equipment contingencies. estimates historical facts assumptions.


February 2023 assessed lives property equipment. increased server storage network assembly test equipment seven years. 2024 $33 million $102 million revenue expenses operating income $135 million net income $114 million tax $0. 05 share.


derive revenue from product sales hardware systems license development arrangements software cloud services. determine revenue contract performance obligations transaction price allocation price to performance obligations revenue standalone selling price recognition revenue performance obligation.


Revenue product sales recognized transfer control consideration. products sold support extended warranty system. Support warranty revenue recognized service period. Revenue net returns customer programs taxes.


products right return record reduction revenue sales return allowance estimated returns historical rates. returns exceed rates additional return allowances reflect exposure.


customer programs involve rebates sales incentives marketing development funds MDFs partners for market segment development NVIDIA products. account for programs revenue accrue rebates MDFs claimed.


license development arrangements require customization IP. recognize revenue license development services single performance obligation. measure progress to completion cost incurred cost. If loss record provision for loss.


software licenses provide customers right use software available. purchase perpetual or subscriptions duration. sold with right receive future software updates upgrades. Revenue recognized when available. support revenue recognized over service period.


Cloud services use hosted software hardware without provided subscription. Revenue subscription recognized over contract period. Revenue usage recognized as occurs. sold standalone hardware software support.


contracts contain more products services each separately accounted distinct. account multiple agreements single customer single contract closely related single contract.


allocate transaction price obligation standalone selling price. reflects product service sold separately similar circumstances customers. maximize observable inputs.


contract performance no allocation.


offer limited warranty one three years manufacturing defects hardware failures. estimated warranties calculated. extended warranty. accrue warranty indemnification issues loss probable estimated.


closing price common stock minus dividend yield discount fair value restricted stock performance stock units performance targets. Monte Carlo simulation performance stock units. compensation RSUs market PSUs straight-line attribution PSUs accelerated amortization. estimate value shares employee stock purchase plan Black-Scholes model March September. Stock-based compensation ESPP expensed accelerated amortization model. estimate forfeitures semi-annually revise differ. historical experience.


subject claims litigation actions regulatory proceedings patent intellectual property taxes labor employment competition antitrust commercial disputes goods services. uncertainties litigation


third-party claims resolved without litigation fines settlement payments judgments. If information loss in litigation probable loss record loss U. S. GAAP. actual liability estimates additional costs.


. dollar subsidiaries. Foreign currency assets liabilities remeasured dollars end-period. Non-monetary assets property equipment equity remeasured historical. Revenue expenses remeasured non. Gains losses foreign currency remeasurement included earnings Statements.


recognize federal foreign tax liabilities taxes current fiscal year. deferred tax assets future tax effects differences carryforwards record valuation allowance reduce deferred tax assets tax benefits.


calculation deferred tax assets liabilities estimates judgments uncertainties complex tax laws. estimates change certainty changes accounting standards tax laws. recognize liabilities for U. foreign income tax contingencies additional taxes. payment unnecessary tax liability less than assessment recognize tax benefit additional expense financial statements.


January 28, 2024 valuation allowance $1. 6 billion capital loss carryforwards deferred tax assets projections future taxable income. realization income tax benefits.


recognize benefit tax position sustained audit merits. policy interest penalties unrecognized tax benefits expense.


net income per share computed common shares. Diluted income computed dilutive shares treasury stock method. anti-dilutive equity awards.


liquid investments convertible cash original maturity three months cash equivalents. Marketable securities maturities three months. classify investments current availability operations.


classify cash equivalents securities available-for-sale. reported fair value unrealized gains losses income equity net tax. fair value includes accrued interest. gains losses determined recorded Consolidated Statements Income.


-sale debt investments subject impairment review. estimated value less than amortized cost determine credit losses write-down amortized cost


sell securities amortized cost. credit losses write-downs Consolidated Statements.


cash equivalents accounts receivable payable accrued liabilities approximate fair values short maturities January 28, 2024 29, 2023. Marketable securities reported fair value unrealized gains losses income equity tax. Fair value market prices. Derivative instruments assets liabilities measured at fair value. accounting depends use designation. fair value hedges gains losses recognized in earnings. cash-flow hedges gains income recognized earnings. not changes fair value recognized earnings.


instruments credit risk cash equivalents marketable securities accounts receivable. investment policy income securities diversification limits portfolio duration. credit evaluations allowance credit losses. estimated exposure. excludes credit insurance letters credit.


Inventory cost computed adjusted standard approximates cost. semiconductors fabrication assembly testing packaging manufacturing support labor overhead test yield fallout shipping memory products parts. charge sales inventory provisions obsolete excess inventory excess product purchase commitments. provisions relate excess quantities levels future commitments demand. inventory creates new cost basis. record liability noncancelable purchase commitments demand forecasts.


Property equipment cost less depreciation. Depreciation computed estimated lives three to seven years. asset retirement cost depreciation removed gain loss recorded. estimated lives buildings to thirty years. finance leases. amortized lease term life.


determine arrangement lease inception. leases 12 months assets liabilities long-term liabilities balance sheet. assets right use asset lease liabilities obligation payments.


lease assets liabilities recognized present payments discounted incremental borrowing rate. costs prepaid payments incentives. terms options extend terminate. expense recognized straight.


combine non-lease assets liabilities.


Goodwill annual impairment test fourth quarter fiscal. qualitative quantitative analysis reporting unit.


factors include industry financial performance events units.


quantitative impairment test income market value. income financial information growth rates residual values discount rates multiples traded companies assumptions estimates economic future profitability.


Intangible assets represent acquired technology customer relationships rights licenses patents IP. amortize assets finite lives one to twenty years economic benefits straight-line amortization method.


Long-lived assets property equipment intangible assets reviewed for impairment recoverable. recoverability measured carrying amount to future cash flows. If carrying exceeds cash flows impairment charge recognized fair value. Fair value determined discounted future cash flows. Assets liabilities separately presented in Consolidated Balance Sheet reported at lower carrying amount fair value less costs to sell no depreciated.


allocate fair value purchase price acquisition tangible assets liabilities intangible assets estimated. excess over recorded as goodwill. estimates assumptions uncertain subject refinement. intangible assets include future cash flows discount rate present value lives. uncertain results may differ. measurement period one year acquisition record adjustments assets acquired liabilities assumed offset goodwill. measurement conclusion final determination adjustments recorded Consolidated Statements of Income.


Acquisition expenses recognized expensed.


investment in non-affiliates marketable traded non-marketable privately. Marketable securities values changes recorded income. Non-marketable securities. measured at cost minus impairment adjusted for price changes. Fair value based inputs inactive market valuation requires judgment market prices lack liquidity. gains losses recognized in income Consolidated Statements of Income.


assess impairment loss investments non equity securities factors. impairment write down investment value record charge Consolidated Statements Income.


November 2023 Financial Accounting issued standard disclosures expenses. effective annual 2025 interim 2026. evaluating impact Consolidated Financial Statements.


2023 FASB accounting standard income tax disclosures disaggregation. amendments effective 15 2024. Early adoption permitted retrospective application. adopt 2026. evaluating impact Consolidated Financial Statements.


February 2022 NVIDIA SoftBank Share Purchase Agreement Arm. regulatory challenges. acquisition termination cost $1. 4 billion 2023 write-off prepayment.


lease obligations headquarters office facilities data center 2025 2035.


lease payments January 2024 Obligations 2025 2026 2027 2028 2029 2030 Total Less interest payments,347 short liabilities liabilities,119


operating leases data centers 2025 1 10 years. billion.


lease expenses 2024 2022 $269 $193 $168 million. Short-term variable.


leases Ended 28, 2024 2023 30 2022 millions cash flows cash flows leases#286#184 assets obligations#531


January 28, 2024 leases 6. years discount. 76%. January 2023 6. 8 years discount. 21%.


stock compensation expense RSUs units corporate targets market conditions ESPP.


Consolidated Statements Income stock compensation inventory 28, 2024 2023 30 2022 millions Cost revenue Research development Sales Total,710


Stock compensation 2024 2023.


summary equity awards plans Ended 28, 2024 29, 2023 30, 2022 millions RSUs PSUs Market-based Awards granted grant-date value,316 average value share. Shares purchased average price share. grant-date value share.


January 2024 $8. 6 billion stock compensation expense. 2. 5 years. 8 ESPP.


value shares ESPP estimated assumptions Ended 28, 2024 2023 30 2022 Black-Scholes model average life years. Risk-free interest rate. 5% Volatility Dividend yield.


ESPP shares expected term average offering purchase. risk-free interest rate rates Treasury bills. stock price volatility estimated historical volatility. dividend yield grant date. RSU market cash dividends discounted dividend yield.


RSU market awards estimate forfeitures semi-annually revise differ. historical experience.


grant stock options RSUs PSUs market purchase rights equity incentive plans. stock awards converted RSUs.


shareholders NVIDIA 2007 Equity Incentive Plan.


2007 Plan incentive non-statutory restricted stock RSUs appreciation rights performance cash employees directors consultants. employees options. January 2024 37 million shares stock. RSUs market-based PSUs 147 million shares future grants.


exceptions RSUs employees vest four-year period continued service 25% anniversary 6. 25% quarterly three-year service 40% vesting anniversary 7. 5% quarterly four-year period continued service 6. 25% vesting quarterly. PSUs vest four-year 25% anniversary 6. 25% quarterly. Market-based PSUs vest 100% three-year anniversary. number shares determined Compensation Committee criteria.


shareholders approved NVIDIA Employee Stock Purchase Plan.


Employees 2012 Plan 15% earnings withheld purchase common stock. Board. period 24 months four purchase periods six months. common stock equal 85% fair market value. January 28, 2024 227 million shares future issuance 2012.


summary equity transactions Market Value Balances Jan 29, 2023. Granted. 08 Vested. 56 Canceled forfeited. 35 Jan 28, 2024. 94 Vested Jan 28, 2024.


January 28, 2023 147 160 million common stock equity.


value PSUs 2022 $8. 2 billion $4. 3 billion $5. 6 billion.


reconciliation diluted net income share 28, 2024 29, 2023 30 2022 millions Net income,760,368,752 shares,469 Dilutive equity awards Diluted,494 Net income share Basic. Diluted. Equity awards excluded diluted income anti-dilutive


income divided shares.


income divided diluted.


January 28, 2024 $4. 4 billion Compute Networking Graphics $4. 1 billion $370 million. January 29, 2023 $4. 4 billion $4. $370 million. increased $59 million 2024 Compute Networking. 2024 2023 2022 goodwill not impaired.


amortizable assets 28, 2024 29, 2023 millions Acquisition-related intangible assets#2,642(1,720)(1,614) Patents licensed technology Total intangible assets#3,091(1,979),112(1,863)


quarter 2023 amortization $630 million research acquisition Mellanox.


Amortization 2022 $614 $699 $563 million.


table future amortization expense intangible assets January Amortization Expense 2025 2026 2027 2030,112


cash equivalents marketable securities-for-sale”.


summary cash equivalents marketable securities 28, 2024 Cost Gain Fair Securities millions Corporate debt securities,126,231 U. S. Treasury,209 U. government agencies,333,244 Money market funds Certificates deposit Foreign government bonds Total,684,020,704 29, 2023 Cost Gain Fair Securities millions Corporate debt securities#4,809,710 securities U. S.Treasury,185,142 Debt securities. government Money market funds,777 Certificates deposit Foreign government bonds Total,112,055,148


tables unrealized losses investment category continuous loss 28, 2024 than 12 Months Months or Greater Fair Loss millions Debt securities U. S. Treasury,343 Corporate debt securities Debt securities U. government agencies Total,319,015 29, 2023 than 12 Months or Greater Fair Unrealized Loss millions Debt securities U. S.Treasury,444(21),172(23),616 Corporate debt securities Debt securities. government agencies Total(30)(28)(58)


losses fixed income securities interest rates. gains losses.


amortized cost estimated value cash securities contractual maturity. 28, 29, 2023 millions Less year,336,738 1 - 5 years,684,112,055


fair values financial assets liabilities determined. review value hierarchy quarterly. Value Category 28, 29, 2023 millions Cash equivalents marketable securities Money market funds,777 Corporate debt securities,152. Treasury,142. government agencies,333 Certificates deposit Foreign government bonds Other assets Publicly-held equity securities Liabilities. 309% Notes Due 2023. 584% Notes Due 2024. 20% Due 2026. 55% 2028. 85% 2030,367,364. 2031.Notes 2040#851. Notes 2050. 70% Notes 2060#403


liabilities Consolidated Balance Sheets unamortized debt.


investments non include marketable non-marketable. securities values recorded long-term assets Consolidated Balance Sheets changes. securities totaled $225 million $11 million January 28, 2024 January 29, 2023. gains losses not significant 2024 2023 2022.


non equity securities Balance Sheets. $1. 3 billion $288 million January 28, 2024 2023. Gains losses recognized Statements.


Adjustments non-marketable securities 28, 2024 Jan 29, 2023 Adjustments Net additions gains Impairments losses Carrying amount Jan,321


fourth quarter 2024 equity raise gain $178 million.


unrealized gains January 28, 2024 non-marketable investments $174 million. equity 2023 2022.


table summarizes gains losses non-marketable equity securities 28, 2024 millions gains losses impairments


24% 11% January 28, 2024. 14% 11% January 2023.


balance sheet 28, 29, 2023 Inventories Raw materials,430 Finished goods inventories,282


2024 2023 inventory $774 million. billion cost.


28, 29, 2023 Life millions years Property Equipment Buildings leasehold improvements furniture Equipment hardware software,303 Construction property equipment depreciation amortization net,807


non-depreciable.


estimated lives thirty years. improvements leases amortized life lease term.


represents assets not available balance sheet.


Depreciation $894 $844 $611 million.


amortization leases $400 $327 million January 2023.


Property intangible assets 2024 2023 2022 $170 $374 million $258 million. 2023 Prepaid agreements Investments non Prepaid royalties assets,500,820


January 28, 2024 29, 2023 $2. billion $458 million agreements.


28, 29, 2023 Liabilities accruals,196 Excess inventory Deferred revenue payroll expenses warranty Taxes leases Unsettled share repurchases Licenses royalties liabilities,120


2024 2023 expense $1. 4 billion. billion inventory obligations demand charges penalties underutilization.


revenue customer advances deferrals hardware software license cloud services. $233 million $35 million 2024 2023. 29, 2023-Term Liabilities Income tax Deferred tax Deferred revenue Licenses liabilities


tax long-term one-time unrecognized benefits interest penalties.


revenue includes hardware software.


table shows deferred revenue 2024 2023. 28, 29, 2023 millions Balance Deferred revenue additions Revenue end,337


2024 deferred January 2023 $338 million. January 30 2022 $282 million.


Revenue obligations license development hardware software. deferred revenue


. Revenue obligations deferred $1. 1 billion January 28, 2024. 40% revenue next twelve months remainder. excludes contracts one year less.


enter foreign currency contracts impact exchange rate operating expenses. cash flow hedges. Gains losses recorded income reclassified expense recognized earnings.


enter foreign currency contracts mitigate impact assets liabilities U. S. dollar. contracts not for hedge accounting. change fair value recorded offsets hedged currency assets liabilities.


table foreign currency contracts 28, 29, 2023 cash flow hedges Non-designated


unrealized gains losses currency contracts January 2023.


January 28, 2024 foreign currency contracts mature 18 months. gains losses deferred.


years 2024 2023 impact instruments hedge accounting income instruments effective.


value notes interest rates Remaining Term Interest Rate 28, 29, 2023. 309% 2023. 41%. 584% 2024. 66%. 2026. 31%. 55% 2028. 64%. 85% 2030. 93%. 50% 2040. 54%. 2050. 54%. 70% 2060. 73% Unamortized debt discount issuance costs Net carrying amount,953 short-term long-term,459,703


2024. 309% 2023.


unsecured senior obligations. liabilities subsidiaries. pay interest semi-annually. redeem maturity make-whole premium.


January 28, 2024 covenants non-financial notes.


$575 million paper program. January 2024 paper.


purchase obligations components supply agreements software licenses goods services assets.


January 28, 2024 inventory-term supply obligations $16. 1 billion. agreements contract manufacturers criteria cancel reschedule adjust costs. non-inventory obligations $4. 6 billion $3. 5 billion multi-year cloud service agreements research development.


commitments January 2024 2025,316 2026,143 2027 2028 2029,707


product warranty liabilities $306 million $82 million January 28, 29, 2023. returns warranty activity Ended 28, 2024 29, 2023 30 2022 Balance Additions


2024 2023 warranty Compute Networking.


provided indemnities tax product employee liabilities. included intellectual property technology agreements. payments liability. liability Consolidated Financial Statements.


plaintiffs lawsuit 4:18-cv-07669-HSG filed December 21, 2018 Northern California NVIDIA Corporation Securities Litigation amended complaint May 13, 2020. NVIDIA executives violated Securities Exchange Act 1934 SEC Rule 10b-5 false statements channel inventory cryptocurrency mining GPU demand May 10 2017 November 14 2018. NVIDIA executives violated 20(a Exchange Act. sought class certification damages costs expenses relief. March 2, 2021 district court granted judgment closed case. March 30, 2021 appeal Ninth Circuit 21-15604. August 25, 2023 Ninth Circuit affirmed reversed dismissal third. November 15, 2023 Ninth Circuit denied petition rehearing. November 21, 2023 stay mandate writ certiorari


. December 5 2023 Ninth Circuit mandate. deadline March 4 2024.


lawsuit Northern District California 4:19-cv-00341-HSG filed January 18 2019 NVIDIA Corporation stayed. February 22, 2022 court closed. Ninth denial petition November 15, 2023 parties next steps. lawsuit claims officers directors breach fiduciary duty unjust enrichment waste assets violations Sections 14 10 20(a Exchange Act false misleading statements cryptocurrency mining GPU demand. damages relief reforms corporate governance procedures.


actions filed 2019 Delaware Lipchitz. Huang. Nelson. stayed NVIDIA Securities. Ninth denial November 15 2023 parties. lawsuits officers directors breach fiduciary duty unjust enrichment insider trading misappropriation corporate waste violations 14 10 20 Exchange Act false misleading statements cryptocurrency mining GPU demand. plaintiffs seek damages relief profits NVIDIA stock corporate governance measures.


filed October 30 2023 Delaware Horanic. Huang. 2023-1096. claims officers directors breach fiduciary duty insider trading false statements cryptocurrency mining GPU. plaintiffs seek damages profits NVIDIA stock corporate governance. stayed resolution NVIDIA Securities Litigation.


January 28, 2024 recorded accrual contingent liabilities legal proceedings not probable. except loss estimated. engaged legal actions not ordinary business no assurance outcomes believe ultimate outcome operating results liquidity financial position.


income tax expense Ended 28, 2024 2023 30 2022 Current taxes Federal State Foreign Deferred taxes Federal,499),165 State Foreign deferred,489,164 Income tax expense#4,058


tax Ended 28, 2024 2023 30 2022 millions.,495,446 Foreign,323 before tax,818,181


income tax expense differs U. S. federal statutory rate 21% before taxes Ended 28, 2024 29, 2023 30, 2022 millions Tax expense federal statutory rate,102. Expense from State income taxes net federal tax effect. Foreign-derived intangible income(1,408). Stock compensation. Foreign tax rate differential. federal research development tax credit. Acquisition termination cost. IP domestication. Other.Income tax expense (benefit,058.#189.


tax effect deferred tax assets liabilities 28, 29, 2023 Deferred tax assets research development reserves deductible Research tax credit lease liabilities Stock compensation Property equipment intangible assets deferred tax deferred tax,154 valuation allowance liabilities Unremitted earnings foreign subsidiaries Operating lease Acquired intangibles tax liabilities deferred tax,148


deferred tax $6. $3. 4 billion $462 million $247 million 2024 2023. Balance Sheets.


January 28, 2024 reinvest $1. 1 billion $250 million earnings subsidiaries Israel United Kingdom. deferred tax liabilities.


January 28, 2024 2023 valuation allowance $1. 6 billion $1. 5 billion capital loss carryforwards deferred tax assets projections future taxable income. income tax benefits.


January 28, 2024. federal state foreign loss carryforwards $315 $342 $361 million. 2026 2025. foreign $361 million indefinitely. federal tax credit carryforwards $31 million 2025. state research tax credit carryforwards $1. 6 billion. $1. 5 billion California $75 million 2025. federal capital loss $1. 4 billion 2025.


tax attributes audit adjusted for laws interpretations facts circumstances. Utilization ownership changes Internal Revenue Code tax provisions. expire denied before utilization.


reconciliation tax benefits 28, 2024 29, 2023 30, 2022 millions Balance#1,238 current prior years Settlements Lapse statute limitations Balance end period#1,670#1,238#1,013


unrecognized tax January 28, 2024 $1. billion rate.


unrecognized tax benefit current liability refundable anticipate payment receipt cash taxes year. long-term liability refundable anticipate payment.


interest penalties tax benefits tax expense. recognized interest penalties $42 million $33 million $14 million 2024 2023. January 28, 2024 2023 accrued $140 million $95 million interest penalties not.


believe provided tax positions asserted authorities accrued. provisions federal tax matters change revised estimates matters. January 28, 2024 identified positions unrecognized tax benefits increase next twelve months.


subject States. January 2024 tax jurisdictions United States 2020 China Germany Hong Kong India Israel Taiwan Kingdom 2005 2023. 2024 Germany India Israel Taiwan 2005 2023.


2023 repurchase $25. billion. 2024 repurchased 21 million shares $9. 7 billion. January 28, 2024 repurchase $22. 5 billion. February 16 2024 repurchased 2. 8 million shares $1. 9 billion Rule 10b5-1. dilution.


fiscal years 2024 2023 2022 paid $395 million $398 $399 million cash dividends shareholders. future subject Board Directors determination.


2022 retired 349 million treasury shares. authorized unissued. repurchase price allocated earnings capital $20 million earnings $12. billion. future shares authorized.


provide tax contribution plans. countries. 2024 2023 $255 $227 $168 million.


Chief Executive Officer decision maker reviews financial information assessing performance.


Compute Networking Data Center networking automotive autonomous driving electric Jetson robotics NVIDIA AI DGX Cloud.


Graphics GeForce GPUs NOW Quadro RTX GPUs virtual GPU software automotive platforms infotainment Omniverse Enterprise software 3D.


Operating results segment attributable leveraged unified architecture allocated between segments.


category expenses CODM Compute Networking Graphics financial performance. expenses include stock compensation infrastructure acquisition intellectual property IP acquisition termination non charges benefits.


CODM total assets. Depreciation amortization included results. evaluate presented. no intersegment revenue. accounting policies same consolidated financial statements. table segments category. Networking millions Ended Jan 28, 2024 Revenue#47,405#13,517,922 Operating income (loss,016 Ended Jan 29, 2023 Revenue,068,906 Operating income (loss,083 Ended Jan 30, 2022 Revenue,046,868 Operating income (loss)#4,598,492,041


Ended 28, 2024 2023 30 2022 millions Reconciling items Stock compensation expense revenue expenses Acquisition IP legal settlement Restructuring Acquisition termination cost,353(4,890),411)(3,049)


Revenue areas billing. Revenue 28, 2024 29, 2023 30 2022 Revenue millions United States,966,292,349 Taiwan China Hong Kong,111 Other countries,245 Total revenue,922


outside 56% 69% 84% revenue 2024 2023 2022. increase 2024 due higher. Compute Networking demand.


customer 13% revenue 2024 Compute Networking. No 10% 2023 2022.


table summarizes revenue 28, 2024 2023 30 2022 Revenue millions Data Center,005 Gaming Professional Visualization Automotive OEM Other,162 revenue,922


table long-lived assets country. property equipment exclude goodwill intangible. 28, 29, 2023 United States Taiwan Israel Other countries,807


Beginning End millions Fiscal year 2024 Allowance doubtful accounts Sales return allowance#213 Deferred tax valuation allowance Fiscal year 2023 Allowance doubtful accounts#4 Sales return allowance#104 Deferred tax valuation allowance#907 Fiscal year 2022 Allowance doubtful accounts#4 Sales return allowance Deferred tax valuation allowance#728#179


balances deductions write-offs.


returns reduction revenue balance.


valuation deferred tax. Additions capital carryforwards deferred. Deductions. Note 14 Consolidated Financial Statements Part IV Item 15 Annual Form 10-K.


returns.


Reference Exhibit. Description. Plan Merger March 10 2019 NVIDIA International Holdings. Mellanox Technologies. Teal Barvaz. Purchase Agreement September 13, 2020 NVIDIA Holdings SoftBank Vision Fund. Certificate Incorporation. Certificate. NVIDIA Amended Restated March 2 2023. Exhibits 3. Stock Certificate. September 16 2016, Company Computershare Trust Company. successor Wells Fargo Bank Trustee. Certificate September 16 2016. 2026 B-1 Exhibit 4. Securities. Certificate March 31, 2020. 2030 Exhibit. B-1 Exhibit.2050 C-1 Exhibit 4. 2060 D-1 Exhibit 4.' Certificate June 16 2021. 2023 A-1 Exhibit 4. 2024 B-1 Exhibit 4. 2028 C-1 Exhibit 4. 2031 D-1 Exhibit 4. Indemnity Agreement NVIDIA Corporation directors officers. 2007 Equity Incentive Plan. Non-Employee Director Deferred Restricted Stock Unit Grant Notice Agreement. Stock Unit Grant. Global Performance-Based Restricted Stock Unit Grant Agreement. Equity Incentive Plan Global Restricted Stock Unit Grant Agreement.Restated 2007 Equity Incentive Plan Global Restricted Stock Unit Agreement (2021). Restated 2007 Plan (2022). Restated 2007 Plan Agreement (2023). Restated 2012 Employee Stock Purchase Plan. Compensation Plan Fiscal Year 2023. Compensation Plan Fiscal Year 2024. Commercial Paper Dealer Agreement NVIDIA Corporation Dealer. Registrant. PricewaterhouseCoopers LLP. Attorney signature. Chief Executive Officer Rule 13a-14 Securities Exchange Act 1934. Financial Officer. Executive Officer Rule 13a-14. Recovery Policy amended restated November 30 2023. Instance Document.Taxonomy Extension Schema 101. CAL Calculation 101. DEF Definition 101. LAB Labels 101. Presentation Page Interactive Data File appear XBRL tags Inline XBRL


Filed.


Management contract compensatory plan. Regulation S SEC Release. 33-8238 34-47986 Reports Control Financial Reporting Certification Disclosure Exchange Act certifications Exhibits 32. 2 Annual Report Form 10-K not Section 18 Exchange Act. Securities Act Exchange Act.


exhibits schedules omitted Regulation.


exhibits available shareholder request


2788 Tomas Santa Clara


Securities Exchange Act 1934 Registrant report undersigned February 21, 2024. Corporation Jen-Hsun Huang Chief Executive Officer


KNOW ALL PERSONS PRESENTS each person signature below Jen-Hsun Huang Colette M. Kress his true lawful attorney-in-fact agent full power substitution resubstitution name sign amendments report file exhibits documents Securities Exchange Commission granting attorneys-in agents full power authority perform act requisite necessary ratifying confirming attorneys-in-fact agents substitutes lawfully do.


Securities Exchange Act 1934 report signed registrant capacities dates. Signature-HSUN HUANG Chief Executive Officer Director 21, 2024 COLETTE M. KRESS Vice President Chief Financial Officer. DONALD ROBERTSON President Chief Accounting Officer ROBERT BURGESS TENCH COXE JOHN O. DABIRI. PERSIS DRELL DAWN HUDSON HARVEY C. JONES. MELISSA B. LORA. MICHAEL MCCAFFERY STEPHEN C. NEAL. L. PERRY. A. BROOKE SEAWELL 21,.Brooke Seawell AARTI SHAH 21, STEVENS


Oracle provides products services enterprise needs. applications infrastructure delivered worldwide flexible deployment models. include on-premise cloud-based hybrid deployments Oracle Exadata Cloud@Customer Dedicated Region multicloud options. offer choice flexibility product service deployment combinations. customers include businesses government agencies educational institutions resellers Oracle Partner Network. customers build deploy run manage support products services business operations artificial company Oracle Cloud Infrastructure technology company financial institution Exadata Cloud@Customer consumer Oracle Fusion Cloud accounting risk management supply chain financial planning.


Oracle SaaS OCI Cloud Services provide applications infrastructure business needs. integrate IT components software hardware services cloud-based environment deploys manages supports upgrades devices.


Oracle Cloud Services rapidly deployable innovation intuitive maintainable upgrade testing work connectable interoperability workloads cost-effective investments usage-based costs secure standards-based reliable.


Oracle cloud on-premise license include Applications Database Middleware Cloud-premise. customers purchase license support contracts Oracle license.


products Engineered Systems servers storage industry-specific. Customers contracts.


offers services customers maximize investments products.


choice flexibility Oracle customers applications important strategy. broad comprehensive flexible interoperable deployment models growth strategy addresses needs competitors fewer restrictive models less flexibility transition cloud.


investments Oracle products services corporate strategy. 2024 2023 2022 invested $8. 9 billion $8. 6 billion $7. 2 billion research development new technologies services. infrastructure


OCI Oracle Cloud SaaS applications internal business processes. focus improving performance security reliability operation integration cost-effectiveness deploy manage incorporating AI business processes automation innovation. Oracle Autonomous Database transformational infrastructure OCI machine learning manual functions.


purchase Oracle products customers benefit IT expertise Oracle support license hardware deployments product enhancements renewing Oracle Cloud Services contracts.


selective acquisition program corporate strategy. acquisitions enhance products services expand base innovation grow revenues earnings increase stockholder value. invested billions companies products services technologies offerings. expect continue strategy.


three businesses cloud license hardware services. single segment. Item 7 Financial Condition Results Operations Note 14 Financial Statements information.


incorporated 2005 Delaware successor 1977.


Oracle’s portfolio IT needs business process infrastructure development. technologies industry standards enterprise-grade reliable scalable secure. database enterprise virtualization clustering large-scale systems management infrastructure Cloud Services environments. marketed sold cloud license hardware businesses delivered Cloud deployment models-based hybrid on.


Oracle Cloud Services expand cloud license business. customers recognize Oracle cloud applications infrastructure lower cost rapidly deployable flexible interoperable services model. market sell Oracle Cloud Services help customers migrate-premise cloud applications Oracle Cloud early stages migration Oracle customer base Cloud. market Oracle Cloud Services small medium-sized businesses non-IT purchasers developers partners intuitive design access low touch low cost Cloud.


customer demand applications infrastructure Oracle Cloud increased. enable choice


programs applications infrastructure Oracle Cloud deployments workloads. cloud services revenues increased represented 37% 32% 25% revenues 2024 2023 2022. expect trends continue.


Oracle applications technologies marketed sold delivered supported cloud license business. services revenues represented 46% 47% 42% 2024 2023 2022. include Cloud SaaS license license support. reduce risk cost complexity IT flexible deployment models performance agility compatibility extendibility. standard business functions innovate. business automation requirements industries. industry-specific applications automotive communications construction energy financial services food beverage government education healthcare high technology hospitality industrial manufacturing life sciences media entertainment oil gas professional services public safety retail travel transportation wholesale distribution.


Oracle’s Cloud SaaS offerings software applications cloud-based IT environment deploy manage upgrade support subscription agreement. access web browsers devices. built open standards SQL Java HTML5 for accessibility integration development. business innovation platform OCI include modular next-generation cloud software applications functions •Oracle Fusion Cloud ERP solution decision making workforce productivity back-office operations single data security model interface Enterprise Performance Management financial performance plans financial account reconciliation reporting requirements Supply Chain Manufacturing Management digitize supply chains Human Capital Management develop retain talent collaboration insights business process efficiency HCM applications from devices Fusion Sales, Service Marketing personalized customer experiences


Applications Suite small medium-sized organizations unified cloud-based financials ERP customer human resources professional services commerce Cerner healthcare applications better healthcare.


cloud solutions communications construction education government healthcare hospitality manufacturing retail.


Customers partners subscribe Oracle infrastructure training online cloud Oracle University. unlimited access content subscription.


SaaS offerings differentiate us competitors. support connected business processes cloud centered intuitive user experience responsive flexible business core common data model. Oracle Fusion Cloud ERP foundational business value Oracle data model. SaaS offerings remove business boundaries front- back-office. secure data isolation flexible upgrades self-service access controls Service-Oriented Architecture social mobile business insight capabilities high performance availability infrastructure OCI. simplify IT environments reduce time upgrade agility risk intuitive experience focus resources business growth. incorporate technologies AI Internet-of-Things machine learning blockchain digital assistants productivity.


Customers license Oracle E-Business Suite PeopleSoft Edwards Siebel Cloud-premise environments. business functions HCM ERP EPM SCM Customer Experience industry-specific.


Oracle license support offerings cloud license business. option purchase license support contracts Oracle Applications licenses. customers contracts Oracle applications infrastructure licenses Cloud. protect enhance investments Oracle applications infrastructure provide proactive personalized support services Lifetime Support license enhancements upgrades support period. customers renew contracts expiration technical support updates enhancements. contracts


priced percentage net fees license one year billed annually.


Oracle technologies sold cloud hardware. flexible cost standards-based secure highly-performant development deployment cloud on-premise hybrid.


cloud license infrastructure technologies include Oracle MySQL Database popular Java middleware development tools. available subscription OCI purchase license support Oracle Cloud. OCI offerings include cloud-based compute storage networking application development cloud native services AI Infrastructure emerging technologies generative AI blockchain.


hardware products software Oracle Engineered Systems servers storage solutions hardware virtualization operating systems management support services. customers use Oracle-premise deliver products.


design infrastructure technologies on-premise IT environments Oracle non-Oracle hardware software. flexible approach provides choice Cloud on-premise data centers hybrid Exadata Cloud. focus operation integration Oracle infrastructure technologies improve computing performance. Oracle Exadata Database Machine integrates Oracle technology components improved performance availability scalability security operational efficiency.


Oracle infrastructure technologies marketed sold cloud license. revenues 54% 2024 2023 2022.


OCI Next-Generation Cloud Infrastructure infrastructure technologies compute storage networking services. Oracle Autonomous Database runs manages upgrades supports. prepaid fee services consumed. leverage Oracle Cloud enterprise-grade high performance scalable cost secure infrastructure technologies rapidly deployable real-time elasticity time resources. OCI cloud computers compute nodes. OCI applications low-code AI cloud


run workloads move Cloud data centers. invest OCI improve features performance expand cloud infrastructure tools services increase capacity geographic footprint simplify migrating run workloads environments Oracle Cloud third-party clouds hybrid multicloud models.


Oracle customers OCI Database Java Middleware open source data management Database MySQL applications development integration content management IT governance security machine learning. OCI AI applications predictive use cases servicing machine parts fault detection assembly stocking shelves credit fraud detection financial modeling.


Oracle utilize OCI scalable secure compute storage networking. virtual machines servers high I/O performance. storage block file object archive. networking connectivity edge data centers clouds distributed multicloud architectures.


OCI offerings Oracle public cloud regions multicloud partnerships flexibility OCI services within data center •Oracle Exadata Cloud@Customer Oracle Autonomous Database Oracle Database securely data centers managed Oracle Dedicated Region self OCI OCI Oracle Cloud SaaS offerings Sovereign Cloud OCI services latency restrictions regulated industries. sovereign AI regulatory environments Alloy control commercial customer experience needs cloud services Roving Edge Infrastructure access cloud computing storage services edge networks disconnected locations deployment cloud data.


Oracle Autonomous Database performance scale enterprise workloads automated operations machine learning optimization Oracle technologies OCI Exadata machine learning. self-driving administration maintenance tuning patching security backup. labor costs error machine learning diagnostics automatic threat detection remediation. on automatic scaling consumption-based pricing costs resources. integration Cloud services Java Cloud APEX open interfaces integrations platform cloud applications.


Oracle Autonomous Database easy analytics tools machine learning accelerated infrastructure Analytics Cloud third-party analytics tools. developer capabilities automation deploy cloud data lake houses.


capabilities organizations customer behavior anticipate demand align workforce deployment accelerate operations. Oracle Autonomous Database high-performance transactions. dynamic workloads real analysis administration costs. available OCI on-premise Oracle Exadata Cloud@Customer OCI Dedicated Region.


Oracle OCI Autonomous specialized databases including MySQL popular open source HeatWave-premise. HeatWave combines transactions real-time machine learning generative AI service.


Oracle Database popular enterprise reliable secure storage retrieval manipulation data. licensed businesses organizations for purposes Cloud cloud custom applications transaction processing data warehousing business. deployed in environments Oracle Cloud Exadata Cloud@Customer OCI Dedicated Region cloud on-premise data centers. Enterprise Edition available optional add-on products. customers purchase license support. Database cloud service Exadata Base Database.


license Oracle Middleware application infrastructure software Oracle Cloud on-premise data centers environments. design integrate non-Oracle applications processes scale security compliance lifecycles business intelligence. Java custom packaged composite applications time-to-deployment. IT investments Oracle non-Oracle databases middleware open architecture industry standards. supports multiple development languages tools deploy globally websites portals cloud.


Oracle WebLogic Server Java Oracle Identity Manager user identity provisioning identities resources. purchase license support Oracle Middleware licenses. offer middleware capabilities OCI offerings.


Java popular programming language cloud microservices analytics data management blockchain security integration platforms websites enterprise applications devices large-scale systems. software single independent operating hardware architecture. adopted software vendors enterprise organizations. Oracle steward Java platform ecosystem. Customers purchase Java subscriptions licenses support. deployments security updates technology innovations.


Oracle technologies marketed sold delivered hardware business cloud-premise environments.


Oracle Engineered Systems core cloud on-premise data center infrastructure. pre-built Oracle components storage operating networking hardware. improved performance scalability availability security operational efficiency maintenance security single solution patching. Exadata Database Machine higher performance scalability availability lower cost Database storage operating system server storage networking hardware. flexible deployment options on-premise cloud hybrid cloud.


offer Oracle server products mission-critical enterprise environments key Engineered Systems Cloud. two families Oracle SPARC microprocessor reliability security scalability UNIX environments x86 microprocessors. server sizes microprocessors customers choose IT.


storage products cloud on-premise hybrid archive data. flash disk tape server technologies software integrations Oracle Database performance lower cost. Oracle Cloud Services backup archiving.


offer hardware industries point-of-sale terminals food beverage hospitality retail healthcare communications networks signaling routing policy control data management 5G.


operating systems Oracle Linux Solaris virtualization hardware. management technologies Oracle Enterprise Manager Cloud Observability Management platform IT environments.


Oracle hardware support software updates essential operating systems firmware. repairs maintenance technical support. support processes identify solve quality issues. contracts priced fees.


offer services maximize Oracle applications infrastructure technologies. differentiated expertise Oracle experience intellectual property best practices. include services architect deploy cloud license offerings IT strategy alignment enterprise architecture planning implementation integration application development security assessments software enhancements upgrades. global blended delivery model consultants local industry global customer services increased performance availability.


Oracle Cloud Operations deliver Services secure reliable scalable enterprise infrastructure managed by employees global data Oracle Cloud. enables secure isolated instances devices. automated software tools rapid delivery latest cloud technology. invested in expansion increasing data center capacity adding new locations demand. expect trend.


rely third-party partners hardware products Oracle Cloud Services distribute from facilities. manufacturing processes standardization components centralization assembly distribution centers. materials supplies subassemblies full assemblies from suppliers. alternative sources. rely sole sources certain components. monitor risks disruption supply chain. Risk Factors Item 1A Annual Report challenges sources availability risks.


market sell cloud license hardware support government agencies educational institutions. indirect channels.


United States. sales services employees based throughout. international subsidiaries sell support service local foreign countries. geographic coverage expertise global stability economic trends new markets. international operations subject risks described Risk Factors Item 1A Annual Report. summary domestic international revenues assets Note 14 Consolidated Financial Statements.


market product worldwide indirect channels. companies members Oracle Partner Network. manages relationships companies cloud hardware suppliers system integrators resellers innovative solutions services. access product educational information technical services marketing sales support extends market reach resources solutions.


develop products services internally global workforce. extended products intellectual property acquisitions. purchase license intellectual property rights. Internal development control design


products. U. S. foreign patents applications products technology. patents business dependent on single patent. Rapid advances cloud software hardware standards changing customer needs product introductions characterize markets. plan dedicate resources research development improve products services.


Oracle success driven quality people best brightest. strive attract retain support success-being foster culture innovation. Board of Directors oversees Compensation Committee human capital management talent acquisition retention.


May 31, 2024 employed 159,000 full-time 58,000. 101,000 internationally. 28,000 services license 32,000 marketing development administrative


average tenure eight 29% Oracle ten years.


employees. represented labor unions foreign subsidiaries labor unions.


C&I powers innovation. promoting inclusive culture acceptance opportunities workforce help solve problems. focus C&I organization. Chief Executive Officer woman forty percent Board of Directors women diverse background. hire employees diverse backgrounds experiences perspectives abilities Oracle’s leaders role models inclusive culture. enable employees careers build networks foster skills Employee Resource Groups. build inclusive hiring strategies progress accountable diverse representation. programs supported Oracle leaders sponsorship Inclusive Leadership Council actions five C&I Imperatives Talent Analytics •Multi-Generation investment


increasing belonging acceptance talent retention growth mindset inclusive perspectives voices Hiring expanding practices equitable representation.


Oracle Human Resources partners leaders C&I plans strategies. Employee satisfaction C&I diverse perspectives high engagement surveys.


progress commitment C&I. Best Companies Women Forbes Best Diversity Best Place Work Disability Equality Index Best Place LGBTQ+ Equality 5-Star Employer VETS Top 50 Workplaces Indigenous STEM Professionals 2023 Top Supporter Black College Engineering Schools Career Communications.


Oracle employee experience work career opportunities well talent. well-being economic health lifestyle compensation benefits learning.


join Oracle careers. programs resources explore achieve career goals. promote career conversations. separate performance feedback grow careers. Talent Review process Oracle Fusion Cloud. 32% non-entry level positions filled fiscal 2024 growth retaining knowledge talent.


employees learn skills. support resources. Oracle Learning experience consumption. employees received five million hours training 2024 accessed online two million views month. instructor-led classes virtual library online resources sales business products market leadership technical skills compliance well-being personal development.


success listening feedback. share annual employee engagement survey leaders priorities. results discussed Board Directors committees. fiscal 2024 81% employees participated survey. Leaders listen evaluate feedback prioritize actions business success.


Oracle employees donate thousands hours millions dollars Oracle causes. Oracle employees rise crisis.


2024 Oracle donated education communities health. $1 million grant National Museum African American History Culture. technology consulting services $350,000 Military Family Advisory Network.


Oracle social impact education environment community health. Academy Education Foundation technology leaders. hosts Design Tech High School Redwood Shores. Health Foundation pediatric grants wellness programs healthier communities.


quarterly revenues affected seasonal factors sales force compensation plans IT industry. revenues margins highest fourth lowest first. License Item 7 Report seasonality cyclicality revenues expenses margins largest.


intense competition. IT industry landscape evolving firms expand technology customer demands pressures change.


customers less complexity lower cost implementation integration maintenance IT environments. enterprise cloud license hardware compete with largest companies Adobe Alphabet. Amazon. Cisco. Intel International Business Machines Microsoft Salesforce. SAP Hewlett-Packard Enterprise Workday. low barriers entry new technologies competitors challenge. competitors range IT solutions point solutions specific functionality product industry. expand segments face increased competition. acquisition Cerner Corporation competition from healthcare IT providers Allscripts Healthcare Solutions. Arcadia Solutions athenahealth. Epic Systems InterSystems. strategic acquisitions partnerships joint ventures repositioning competition.


competitive factors segments include cost ownership performance scalability reliability security functionality efficiency ease use speed production technical support. products sales strength competitors affected by Financial Statements adoption of cloud-based IT ease deployment maintenance between Oracle products public cloud adoption of commodity servers microprocessors competition between Java. NET Microsoft system competition Oracle Solaris Linux Windows Server UNIX adoption open source alternatives developed by IT staff customized by consultants integrators third parties business processing outsourcers.


competitive risks Item 1A Annual Report.


operate globally subject. federal state foreign laws regulations. Item 1A Risk Factors Annual Report.


Annual Reports 10-K Quarterly 10-Q Current Reports 8-K amendments Sections 13(a 15(d Exchange Act available SEC website. Investor Relations website. oracle./investor. Investor Relations website non-public information. investors monitor press releases SEC filings conference calls webcasts. environmental policy global sustainability initiatives./social-impact. information not Annual Report. references inactive textual.


executive officers Lawrence. Ellison Technology Safra. Catz Jeffrey. Henley Edward Screven Stuart Levey Maria Smith Accounting Officer


. Ellison 79 Chairman Chief Technology Officer September 2014. Chief 1977 2014.


Director 1977. Chairman May 1995 2004.


. Catz Chief Executive Officer 2014. President January 2004 Chief Financial Officer 2011 2014 Director 2001. 2005 2008 Interim Chief 2005 2005. positions 1999. director Walt Disney Company.


. Henley Vice Chairman 2014. Chairman June 1995. Executive Vice President Chief Financial Officer March 1991 July 2004.


. Screven 59 Executive Vice President 2015. Senior Vice President 2006 2015 2003 2006. positions Oracle 1986.


. Levey Executive Vice President Legal Officer 2022. Diem Association 2022 Legal HSBC 2012 2020.


. Smith 58 Executive Vice President Accounting Officer 2022. Senior Vice President Assistant Global Controllers Mergers Acquisitions November 2012 2017. positions Oracle 1999.


operate changing economic technological environments risks driven. Item 7 Analysis Financial Condition Results Operations highlights risks. not exhaustive consider before investing securities.


unsuccessful developing new integrating acquired enhancing existing. industry characterized rapid technological advances intense competition changing delivery models evolving standards communications sophisticated customer needs product introductions enhancements. continued cloud unable develop new differentiated price meet demand customers purchase subscribe renew. Renewals important future success. assurance standards new products compete emerging areas.


business affected if develop new products services within time frames •infrastructure costs longer increase data center capacity establish new demand fail meet contractual service level commitments delay transitioning to product lines services •sanctions export controls barriers prevent restrict jurisdictions changes in IT trends anticipate optimize complementary product lines services fail to integrate support enhance acquired product lines services.


profitability revenues impacted if lose key customers factors discussed. loss limit reduce growth future.


AI products may operate affect reputation revenues profitability. Machine learning AI generative driving innovations competitive evolving. invested resources AI products if fail meet needs acceptance may recoup investments business reputation. AI technologies evolving legal ethical issues bias discrimination lack transparency unpredictable behaviors improper use copyrighted material expose reputational legal risk inhibit. Regulatory uncertainty lack legislation emerging regulatory initiatives compliance challenges


uncertainties. failure adapt changes legal reputational consequences limit product use AI AI laws regulations.


execute Oracle Cloud strategy Cloud Services revenues profitability decline. provide cloud offerings worldwide deployment models cloud SaaS OCI offerings. business models evolve compete generate revenues maintain profitability. increasing cloud models impact pricing. execute cloud strategy needs reputation revenues profitability decline.


demand cloud increases volatility revenues results due to differences revenue recognition cloud on-premise license hardware product arrangements. Customers purchase cloud subscription revenues recognized ratably consumed. deterioration sales activity not observable in consolidated statement operations. contrast to revenues license hardware product arrangements recognized time delivery. anticipate transitions backfill reduced demand increase affect revenues profitability.


secure data center capacity plan infrastructure profitability may decline. Oracle Cloud strategy plan investment based future revenues growth. cloud services license support expenses grown meet demand increase capacity new locations. entered expect long-term lease commitments with third-party data center providers contract termination fees impact profitability cash flows. Data centers may unavailable terms. control operation third-party centers suffer interruptions control government power loss break-ins misconduct. rely on third-party suppliers equipment components. delays loss sales revenue increase costs affect margins. depreciate assets over useful lives strategies profitability.


products services may not function if coding manufacturing configuration errors in cloud hardware. Despite testing cloud hardware contain errors impact function performance security negative consequences. detection correction of errors can time consuming costly. Errors in third software services could affect function in service interruptions delays outages create security vulnerabilities delay development new products affect market acceptance. If errors delays sales could revenues could decline. we run Oracle’s business operations cloud services. flaws could affect our customers’


conduct business ensure financial processes reporting costs interruptions. customers rely cloud license hardware errors product liability performance warranty claims brand reputation future sales.


unable compete results prospects business. face intense competition. IT industry competitive landscape evolving firms expand technology evolves delivery models change. enterprise cloud license hardware compete with largest companies. low barriers entry new technologies competitors challenge. vendors spend Oracle develop applications infrastructure technologies databases middleware collaboration compute storage networking Oracle.


competitors’ technologies influence purchasing decision Oracle products. offer multicloud services cost functionality performance. work with competitors’ products Microsoft Azure Amazon Web Services Google Cloud Platform. strategy could limit purchases Oracle products affect revenues profitability.


competitors adopt competing products services convince. lose customers if introduce new products functionality reduce prices sales marketing strategies flexible practices provide debt equity financing form alliances. Mergers consolidations increased competition.


competitors offer discounts lower prices introduce pricing models offer terms less favorable. changes reduce revenues margins affect operating results. increasing cloud delivery models impact pricing hardware incur increased cloud delivery expenses infrastructure reduce revenues profitability. license hardware support fees priced percentage net license hardware. competitors offer lower pricing discount. adapt pricing models use demand increased competition revenues decrease.


failure offer high-quality technical support affect relationships financial results. customers depend on support issues. respond increases inefficient. Increased demand increase costs affect operating results. failure to maintain high-quality technical support perception affect reputation ability sell renew business operating results financial position.


receive revenues research development years. Developing product offerings expensive investment


long return investment cycle. corporate strategy resources research development product service internal investments acquisition intellectual property. Accelerated product introductions short lifecycles high expenditures affect operating results revenue. resources research competitive position. expect significant revenues years.


cloud hardware complex if results businesses suffer. depend on suppliers develop deliver technologies components for hardware products cloud infrastructure some technologies purchased from single vendor to price quality technology availability business constraints. supply chain operations affected by industry consolidation component constraints natural disasters political unrest public health crises trade laws port stoppages shipping interruptions transportation disruptions factors. If disruption cloud hardware results affected.


Supply chain shortages resulted costs production hardware products pass customers. responded higher purchases balances of hardware products cloud infrastructure historical positions. manufacturing capacity increased excess obsolescence risk could impact profitability cash flows. expect factors impact future.


outsource manufacturing assembly delivery technology designs hardware companies outside U. S. partners experience production delays demand. delays loss sales delayed revenue expenses affect margins cloud hardware. challenges manufacturing strategies suppliers locations.


periodic workforce restructurings reorganizations disruptive. management product performance strategies acquisitions considerations. increased costs reduced productivity adjust. lead shortage skilled employees. not achieve expected growth resource redeployment cost savings not timeframe. effects recur future acquisitions restructurings revenues results negatively affected.


lose hire. rely hiring senior management Chairman Chief Technology Officer founder Chief Executive Officer team employees. technology industry competition skilled business technical personnel AI field. Hiring freezes slowdowns decreased productivity shortage skilled.


increased compensation costs not offset productivity sales. recruiting retaining.


long-term employment non-competition agreements employees. senior management left Oracle future departures operations.


focus cost structure hiring expertise lower costs. incur expenses efficient structure. experiencing increased competition globalization affected employee retention increased expenses competitive compensation. changes immigration labor law impact access technical professional talent.


compensation program includes restricted stock units performance-based equity attracting retaining employees. stock price affect retain. evaluate compensation practices consider changes stock-based compensation expense. changes compensation affect retain motivate recruit.


risks cloud license hardware sales channels affect future results. networks resellers system integrators/implementers consultants education providers internet service providers network integrators ISVs. relationships important marketing sales. financial results affected if contracts relationships deteriorate competitors acquire financial condition operations weaken demand.


no assurance maintaining developing relationships channel participants. lose sales customers revenues. control channel participants some high compliance policies fail prevent violations anti-corruption laws.


Acquisitions present risks achieve financial strategic goals transaction. review consider strategic acquisitions. selective active acquisition program expect acquisitions important corporate strategy. Risks include business disrupted attention diverted by acquisition transition integration difficulties managing technologies lines business entering new markets competitors stronger retaining key personnel acquisition not further business strategy integrate technology impose business practices alter strategies overpay not realize expected return investments affect business operating results assets intangible assets goodwill operating results financial condition impacted by claims liabilities from related pre-existing contractual relationships termination


modification costly disruptive to business unfavorable revenue recognition accounting treatment acquired practices fail identify assess liabilities shortcomings circumstances prior acquiring realize anticipated increase revenues from acquisition customers decline renew terminate contracts unable to sell products customers purchase differing business practices contract models revenues current accounting practices difficulty integrating acquired technologies products services with existing business multiple product lines services priced differently confusion delays incur higher costs support develop deliver products services administrative functions new comply with regulations unable obtain approvals limitations restrictions penalties sanctions worker councils employment laws acquisition obtain approvals from under foreign direct investment subsidy competition antitrust laws need divest dispose assets businesses obtain approvals cash for acquisitions limit uses incur additional debt delay proceed ifcomplete acquisition favorable terms.


risks business results financial condition cash flows particularly larger concurrent acquisitions.


security measures compromised IT systems accessed modified vulnerable brand reputation damaged IT services disrupted stop reduce revenue expenses legal claims regulatory actions. products Oracle Cloud Services store retrieve process manage third-party data our data. Oracle target for hackers cyber threats actors stores processes large data sensitive health sciences financial services retail hospitality telecommunications government data. third-party vendors subject to attempts third parties hackers vulnerabilities security measures unauthorized access to software hardware cloud networks systems. attempts lead personal information confidential information data Oracle. Attempts involve IT-related viruses worms malicious software programs attack networks systems security vulnerabilities create disruptions shutdowns denials. Third parties induce sensitive information access IT systems. products


Oracle Cloud accessed improperly contractor error malfeasance.


cyber-attack incident unauthorized access customers’ suppliers’ IT systems services disrupted security vulnerabilities expenses damage brand reputation. customers lose confidence in security products services reduce terminate spend.-attacks lead remediation costs loss information interruption inappropriate use data lawsuits indemnity obligations regulatory investigations financial penalties legal liability contractual costs notification fraud monitoring. remediation efforts.


techniques unauthorized access IT systems change complex recognized launched against target. IT systems evolve early adopters new technologies. business policies security controls threats. discover security breach loss information after breach.


products on third-party products services. security vulnerability exploit increased costs liability claims customer dissatisfaction reduced revenue harm reputation. active acquisition program acquired companies products services technologies. IT security issues inherit risks Oracle.


business practices data operational interruption liabilities reputational harm regulation legal requirements industry standards privacy. regulatory focus privacy laws regulations risks data collection intensify. federal state foreign governments legislation impact customers partners data providers collect augment analyze use transfer share personal information services. subject to data privacy regulations healthcare industry patient information electronic health data transmissions processing fraud sharing.


European Data Protection Regulation global privacy laws increased jurisdictions regulatory inquiries audits enforcement fines. U. S. states enacted privacy laws. Congress privacy bills government cybersecurity initiatives state legislatures considering privacy laws. Regulators monetary fines privacy violations. GDPR penalties €20 million 4% worldwide revenue financial year. penalties. U. S. technology company fined €1. 2 billion GDPR violations 2023. Federal Trade Commission unfair deceptive data protection practices fines increase. enhanced protection data increase fines business


prevent services jurisdictions. implemented contracts diligence programs policies procedures compliance no assurance employees contractors partners suppliers data providers agents violate laws. public perception standards privacy shift affect reputation influence regulators products services. jurisdictions EU considering data privacy compliance requirements adjust limit product offerings.


statements use disclosure information privacy policy website press statements. comply statements. federal foreign laws regulations privacy data security consumer protection obligations lost business proceedings actions fines affect business harm reputation.


parties claimed infringement intellectual property rights breach license agreement provisions. receive notices lawsuits third parties claiming infringement breach agreements. include design manufacture distribute products acquire intellectual property monetization. expect claims companies products competitors grows third-party code open source issued patents-practicing entities assert property infringement.


claim could time consuming costly time attention business pay damages royalty licensing agreements stop selling redesign products release source code open source satisfy indemnification obligations affect business financial condition cash flows.


intellectual property rights. rely on copyright trademark patent secret laws confidentiality procedures contractual commitments. protections limited. Unauthorized third parties copy products. patents invalidated circumvented. patent applications issued scope. laws some countries property protection U. S. copying competitive.


litigation affect business. subject legal proceedings. lengthy expensive disruptive attention business. results. favorable judgment


subject appeals litigation costs. adverse decision damages relief business results financial condition. Additional information Note 16 Consolidated Financial Statements Annual Report.


subjected increased taxes changes U. S. international tax laws adverse resolutions tax audits. multinational corporation incur income non-income U. S. foreign jurisdictions. uncertainties application taxes businesses judgments tax liabilities provision. audit tax authorities. disagreements intercompany transfer prices applicability withholding taxes cross-border transactions. unfavorable resolution tax liabilities increase income taxes tax rate. tax estimates no final determination historical income tax provisions accruals.


consider changes tax accounting laws treaties regulations interpretations. legislative proposals enacted raise. income taxes profits. unfavorable tax proposals. political landscape volatility taxes future tax provisions rate.


countries tax laws taxes international revenue operations cross-border transactions digital technology businesses withholding tax rules.) Group Twenty 140 countries developed framework 15% tax multinational corporate groups adopted taxing rights jurisdictions. changes increase income tax international profits.


future income tax provisions rate increase tax changes tax laws U. S. other countries. taxes by income losses tax rates stock price compensation expense valuation deferred tax assets other factors.


international sales operations global customer base risks operating results. derive revenues operations outside U. S. serve customers jurisdictions. Compliance with international U. S. laws regulations increases cost. include data privacy labor relations tax foreign currency competition/antitrust anti payments officials. Act market access tariffs import export trade regulations economic sanctions embargos. Violations fines penalties enforcement actions prohibitions disgorgement loss trade privileges remedial measures. violations products services delay damage reputation brand international expansion business operating results.


Changes sanctions export regulations U. S. jurisdictions require suspension termination business financial transactions countries customers. monitor relations between U. S. Russian Federation Republic of Belarus People’s Republic of China. difficult to anticipate effect international relations. Compliance with economic sanctions export controls regulatory restrictions. could prevent customers restrict jurisdictions operations. April 2024 U. S. President bill unlawful provide internet hosting services to TikTok. if steps not taken. unable provide services revenues profits impacted. Compliance laws may increase expenses resources.


success depends on risks manage difficulties. monitor operations investigate improprieties transactions. provide information report findings to authorities conduct investigations respond. No assurance action taken compliance program effective.


subject to risks challenges managing organization globally economic conditions unrest terrorism war Russia-Ukraine war economic impact potential business adverse consequences geographic proximity Europe potential hostilities destabilization Middle East tensions China Taiwan health social infrastructure stability currency exchange rates impacts customer demand operating results •difficulties accessing transferring funds converting currencies devaluation assets cash •regulatory changes austerity measures impair bank deposits cash assets additional taxes local business behaviors with ethics practices payment cycles difficulties collecting accounts receivable •overlapping tax regimes •reduced protection intellectual property.


risks challenges supply chain operations sales products affected countries.


majority shareholder Oracle Financial Services Software India Oracle Corporation Japan face risks local securities regulations full control.


healthcare industry regulated subject to laws regulations initiatives non-compliance affect business. operations customers regulated by U. S. federal state local foreign entities. impact direct indirect government program requirements health IT. products services. significant evolving regulations within outside U. S. healthcare fraud information sharing e-prescribing claims processing healthcare devices security privacy data interoperability applicable to operations business practices. risks include U. S. other countries regulations medical devices apply to products services. If subject to requirements-marketing-market notification clearance. federal state non-government agencies requirements for certified electronic health record technology federal healthcare programs reimbursement Medicare Medicaid beneficiaries. expect regulations certification interoperability CEHRT interoperability consumer engagement patient safety health information privacy security.


Complying regulations expensive delays. fail comply impact develop distribute deliver healthcare products suffer fines penalties.


sales to expose business volatility risks shutdowns procurement regulations policy shifts early termination audits investigations sanctions penalties. foreign subject procurement laws.


Governmental entities policies products. Changes procurement policy regulations technology initiatives requirements impact growth. U. S. government cybersecurity requirements FedRAMP authorization Department of Defense) Cybersecurity Maturity Model Certification. impact business. Compliance complex costly failure security controls limit products DoD entities.


subject to early termination contracts. entities terminate contracts without cause. U. S federal government terminate convenience performance. foreign contracts subject to government funding. lack government funds.


increased pressure governments reduce spending deficit reduction. impact spending programs. extended federal government shutdown. delays approvals impact.


Government contracts risks subject audits investigations. violations penalties sanctions termination refund forfeiture profits suspension fines debarment business.


Environmental laws risks liabilities costs. cloud hardware operations laws environment handling disposal health safety chemical substances labor practices testing labeling. Regulatory market carbon tax greenhouse emissions energy mix grow.


half hardware revenues international sales. Environmental legislation EU Waste Electrical Electronic Equipment Directive regulation Pollution EU carbon border adjustment mechanism increase cost impact hardware revenues EU China. Compliance laws increase product design development procurement manufacturing delivery cloud operations insurance administration costs excess inventory change sales activities impact financial results. violation liability fines penalties prohibition sales financial.


Nomination Governance Committee programs sustainability. Environmental Steering Committee Chief Sustainability Officer sustainability strategy climate risk mitigation. evaluates climate environmental risks business functions service product development supply chain facility operations employee recruitment brand reputation. failure reputation business financial performance growth.


publish annual Social Impact Report ESG matters goals. disclosures failure harm reputation brand. electing corporate ESG standards business scrutiny.


new laws regulations policies international accords ESG sustainability climate change human capital diversity requirements developed jurisdictions. Standards ESG metrics complex evolving compliance costs. disclosure requirements revisions challenges regulatory expectations liability harm reputation prospects.


operations difficult predict quarterly results fluctuate. revenues cloud on-premise hardware difficult. portion cloud hardware contracts completed latter quarter. cost structure fixed short term sales revenue shortfalls negative profitability. large transactions each quarter