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(1)	Includes $75.9 million in cash equivalents and $1.88 billion in marketable securities on the Condensed Consolidated Balance Sheets.

(2)	Included in marketable securities on the Condensed Consolidated Balance Sheets.

(3)	Included in cash equivalents on the Condensed Consolidated Balance Sheets.

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•	In gaming, GPUs enhance the gaming experience on PCs by improving the visual quality of graphics, increasing the frame rate for smoother gameplay and improving realism by replicating the behavior of light and physical objects.

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•	For designers, GPUs improve productivity and introduce new capabilities. For example, an architect designing a new building in a CAD package can interact with the model in real time, the model can be more detailed, and photo realistic renderings can be generated for the client.

•	Researchers can use GPUs to run their simulations faster while consuming less power, increasing the accuracy of weather forecasts, or pricing financial derivatives more quickly.

•	GRID uses GPUs to deliver graphics performance remotely, from the cloud. Uses include gaming, professional applications provided as a service (SaaS) and improving Citrix and VMware installations.

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•	continue to keep pace with technological developments;

•	develop and introduce new products, services, technologies and enhancements on a timely basis;

•	transition our semiconductor architecture to increasingly smaller line width geometries;

•	obtain sufficient foundry capacity and packaging materials; and

•	succeed in significant foreign markets, such as China and India.

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•	effectively identify and capitalize upon opportunities in new markets;

•	timely complete and introduce new products and technologies;

•	transition our semiconductor products to increasingly smaller line width geometries; and

•	obtain sufficient foundry capacity and packaging materials.

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•	anticipate the features and functionality that customers and consumers will demand;

•	incorporate those features and functionalities into products that meet the exacting design requirements of our customers;

•	price our products competitively; and

•	introduce products to the market within our customers' limited design cycles.

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•	substantially all of our sales are made on a purchase order basis, which permits our customers to cancel, change or delay product purchase commitments with little or no notice to us and without penalty;

•	our customers may develop their own solutions;

•	our customers may purchase products from our competitors; or

•	our customers may discontinue sales or lose market share in the markets for which they purchase our products.

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•	the mix of our products sold;

•	average selling prices;

•	introduction of new products;

•	product transitions;

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•	sales discounts;

•	unexpected pricing actions by our competitors;

•	the cost of product components; and

•	the yield of wafers produced by the foundries that manufacture our products.

•	changes in business and economic conditions, including downturns in the semiconductor industry and/or overall economy;

•	changes in consumer confidence caused by changes in market conditions, including changes in the credit market, expectations for inflation, and energy prices;

•	if there were a sudden and significant decrease in demand for our products;

•	if there were a higher incidence of inventory obsolescence because of rapidly changing technology and customer requirements;

•	if we fail to estimate customer demand properly for our older products as our newer products are introduced; or

•	if our competition were to take unexpected competitive pricing actions.

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•	difficulty in combining the technology, products, operations or workforce of the acquired business with our business;

•	difficulty in operating in a new or multiple new locations;

•	disruption of our ongoing businesses or the ongoing business of the company we invest in or acquire;

•	difficulty in realizing the potential financial or strategic benefits of the transaction;

•	difficulty in maintaining uniform standards, controls, procedures and policies;

•	difficulty integrating the target's accounting, management information, human resources and other administrative systems;

•	diversion of capital and other resources;

•	assumption of liabilities;

•	incurring acquisition-related costs or amortization costs for acquired intangible assets that could impact our operating results;

•	incurring impairment charges related to goodwill and other purchased intangible assets acquired in connection with acquisitions or investments;

•	purchase accounting adjustments, including the write-down of deferred revenue and restructuring charges;

•	diversion of resources and unanticipated expenses resulting from litigation arising from potential or actual business acquisitions or investments;

•	potential failure of the due diligence processes to identify significant issues with product quality, architecture and development, or legal and financial contingencies, among other things;

•	difficulties in entering into new markets in which we have limited or no experience and where competitors in such markets have stronger positions;

•	potential inability to obtain, or obtain in a timely manner, approvals from governmental authorities, which could delay or prevent such acquisitions or investments; and

•	impairment of relationships with employees, vendors and customers, or the loss of any of our key employees, vendors or customers or our target's key employees, vendors or customers, as a result of our acquisition or investment.

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•	international economic and political conditions, such as political tensions between countries in which we do business;

•	unexpected changes in, or impositions of, legislative or regulatory requirements;

•	complying with a variety of foreign laws;

•	differing legal standards with respect to protection of intellectual property and employment practices;

•	local business and cultural factors that differ from our normal standards and practices, including business practices that we are prohibited from engaging in by the Foreign Corrupt Practices Act and other anticorruption laws and regulations;

•	inadequate local infrastructure that could result in business disruptions;

•	exporting or importing issues related to export or import restrictions, tariffs, quotas and other trade barriers and restrictions;

•	financial risks such as longer payment cycles, difficulty in collecting accounts receivable and fluctuations in currency exchange rates;

•	imposition of additional taxes and penalties;

•	increased costs due to imposition of climate change regulations, such as carbon taxes, fuel or energy taxes, and pollution limits; and

•	other factors beyond our control such as terrorism, cyber attack, civil unrest, war and diseases.

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•	the commercial significance of our operations and our competitors' operations in particular countries and regions;

•	the location in which our products are manufactured;

•	our strategic technology or product directions in different countries; and

•	the degree to which intellectual property laws exist and are meaningfully enforced in different jurisdictions.

•	assert claims of infringement of our intellectual property;

•	enforce our patents;

•	protect our trade secrets or know-how; or

•	determine the enforceability, scope and validity of the propriety rights of others.

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•	the jurisdictions in which profits are determined to be earned and taxed;

•	adjustments to estimated taxes upon finalization of various tax returns;

•	changes in available tax credits;

•	changes in stock-based compensation expense;

•	changes in tax laws, the interpretation of tax laws either in the United States or abroad or the issuance of  new interpretative accounting guidance related to transactions and calculations where the tax  treatment was previously uncertain; and

•	the resolution of issues arising from tax audits with various tax authorities.

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•	the possibility of environmental contamination and the costs associated with mitigating any environmental problems;

•	adverse changes in the value of these properties, due to interest rate changes, changes in the market in which the property is located, or other factors;

•	the risk of loss if we decide to sell and are not able to recover all capitalized costs;

•	increased cash commitments for the planned construction of our Santa Clara campus;

•	the possible need for structural improvements in order to comply with zoning, seismic and other legal or regulatory requirements;

•	increased operating expenses for the buildings or the property or both;

•	possible disputes with third parties, such as neighboring owners or others, related to the buildings or the  property or both; and

•	the risk of financial loss in excess of amounts covered by insurance, or uninsured risks, such as the loss caused by damage to the buildings as a result of earthquakes, floods and or other natural disasters.

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•	limit our ability to use our cash flow or borrow additional funds for working capital, capital expenditures, acquisitions and general corporate and other purposes;

•	make it difficult for us to satisfy our financial obligations;

•	place us at a competitive disadvantage compared to our less leveraged competitors; and

•	increase our vulnerability to the impact of adverse economic and industry conditions.

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•	the ability of our Board of Directors to create and issue preferred stock without prior stockholder approval;

•	the prohibition of stockholder action by written consent;

•	advance notice requirements for director nominations and stockholder proposals;

•	the ability of our Board of Directors to increase or decrease the number of directors without stockholder approval;

•	a super-majority voting requirement to amend some provisions in our certificate of incorporation and bylaws;

•	the elimination of the ability of our shareholders to call special meetings of shareholders; and

•	the ability of our Board of Directors to make, amend or repeal our bylaws.

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