Cover
Cover - shares | 3 Months Ended | |
Dec. 27, 2019 | Jan. 24, 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 27, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-32431 | |
Entity Registrant Name | DOLBY LABORATORIES, INC. | |
Entity Central Index Key | 0001308547 | |
Current Fiscal Year End Date | --09-25 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-0199783 | |
Entity Address, Address Line One | 1275 Market Street | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94103-1410 | |
City Area Code | 415 | |
Local Phone Number | 558-0200 | |
Title of 12(b) Security | Class A common stock, $0.001 par value | |
Trading Symbol | DLB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 64,744,160 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 36,224,820 |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 27, 2019 | Sep. 27, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 741,429 | $ 797,210 |
Restricted cash | 11,726 | 8,383 |
Short-term investments | 170,234 | 119,146 |
Accounts receivable, net of allowance for doubtful accounts of $8,898 and $9,775 | 191,001 | 189,115 |
Contract assets | 204,963 | 195,651 |
Inventories, net | 29,104 | 32,331 |
Prepaid expenses and other current assets | 52,551 | 39,704 |
Total current assets | 1,401,008 | 1,381,540 |
Long-term investments | 141,720 | 179,587 |
Property, plant, and equipment, net | 549,495 | 537,432 |
Operating lease right-of-use assets | 71,071 | |
Intangible assets, net | 175,981 | 180,891 |
Goodwill | 335,443 | 334,829 |
Deferred taxes | 123,284 | 114,075 |
Other non-current assets | 95,282 | 93,395 |
Total assets | 2,893,284 | 2,821,749 |
Current liabilities: | ||
Accounts payable | 13,700 | 15,212 |
Accrued liabilities | 242,052 | 268,144 |
Income taxes payable | 2,318 | 3,506 |
Contract liabilities | 19,785 | 19,991 |
Operating lease liabilities | 15,604 | |
Total current liabilities | 293,459 | 306,853 |
Non-current contract liabilities | 23,917 | 24,404 |
Non-current operating lease liabilities | 57,985 | |
Other non-current liabilities | 179,222 | 177,462 |
Total liabilities | 554,583 | 508,719 |
Stockholders’ equity: | ||
Retained earnings | 2,351,251 | 2,327,877 |
Accumulated other comprehensive (loss) | (18,060) | (20,625) |
Total stockholders’ equity – Dolby Laboratories, Inc. | 2,333,290 | 2,307,351 |
Controlling interest | 5,411 | 5,679 |
Total stockholders’ equity | 2,338,701 | 2,313,030 |
Total liabilities and stockholders’ equity | 2,893,284 | 2,821,749 |
Class A, $0.001 par value, one vote per share, 500,000,000 shares authorized: 64,649,011 shares issued and outstanding at December 27, 2019 and 63,911,270 at September 27, 2019 | ||
Stockholders’ equity: | ||
Common stock | 58 | 58 |
Class B, $0.001 par value, ten votes per share, 500,000,000 shares authorized: 36,229,820 shares issued and outstanding at December 27, 2019 and 36,229,820 at September 27, 2019 | ||
Stockholders’ equity: | ||
Common stock | $ 41 | $ 41 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parenthetical) $ in Thousands | Dec. 27, 2019USD ($)vote / shares$ / sharesshares | Sep. 27, 2019USD ($)vote / shares$ / sharesshares |
Allowance for doubtful accounts | $ | $ (8,898) | $ (9,775) |
Class A Common Stock [Member] | ||
Common stock, par value (usd per share) | $ / shares | $ 0.001 | $ 0.001 |
Common stock voting right per share (votes per share) | vote / shares | 1 | 1 |
Common stock, shares authorized (shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (shares) | 64,649,011 | 63,911,270 |
Common stock, shares outstanding (shares) | 64,649,011 | 63,911,270 |
Class B Common Stock [Member] | ||
Common stock, par value (usd per share) | $ / shares | $ 0.001 | $ 0.001 |
Common stock voting right per share (votes per share) | vote / shares | 10 | 10 |
Common stock, shares authorized (shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (shares) | 36,229,820 | 36,229,820 |
Common stock, shares outstanding (shares) | 36,229,820 | 36,229,820 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Revenue: | ||
Revenue | $ 291,877 | $ 302,376 |
Total revenue | 291,877 | 302,376 |
Cost of revenue: | ||
Total cost of revenue | 37,315 | 38,629 |
Gross margin | 254,562 | 263,747 |
Operating expenses: | ||
Research and development | 57,650 | 58,647 |
Sales and marketing | 95,118 | 85,602 |
General and administrative | 52,529 | 50,813 |
Restructuring charges | 675 | 14 |
Total operating expenses | 205,972 | 195,076 |
Operating income | 48,590 | 68,671 |
Other income/expense: | ||
Interest income | 4,932 | 5,185 |
Interest expense | (72) | (45) |
Other income, net | 1,004 | 443 |
Total other income | 5,864 | 5,583 |
Income before income taxes | 54,454 | 74,254 |
(Provision for)/benefit from income taxes | (5,863) | 24,104 |
Net income including controlling interest | 48,591 | 98,358 |
Less: net loss/(income) attributable to controlling interest | 162 | (139) |
Net income attributable to Dolby Laboratories, Inc. | $ 48,753 | $ 98,219 |
Net income per share: | ||
Basic (in usd per share) | $ 0.49 | $ 0.96 |
Diluted (in usd per share) | $ 0.47 | $ 0.93 |
Weighted-average shares outstanding: | ||
Basic (in shares) | 100,336 | 102,677 |
Diluted (in shares) | 103,078 | 106,130 |
Related party rent expense: | ||
Included in operating expenses | $ 70 | $ 880 |
Included in net income attributable to controlling interest | $ (106) | $ 176 |
Common stock, dividends declared (in dollars per share) | $ 0.22 | $ 0.19 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.22 | $ 0.19 |
Licensing | ||
Revenue: | ||
Revenue | $ 257,683 | $ 260,279 |
Cost of revenue: | ||
Cost of revenue | 12,342 | 11,397 |
Products and services | ||
Revenue: | ||
Revenue | 34,194 | 42,097 |
Cost of revenue: | ||
Cost of revenue | $ 24,973 | $ 27,232 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income including controlling interest | $ 48,591 | $ 98,358 |
Other comprehensive income: | ||
Currency translation adjustments, net of tax of $40 and $0 | 3,620 | (3,728) |
Unrealized gain/(loss) on investments, net of tax of ($261) and $40 | (1,162) | 770 |
Unrealized gain on cash flow hedges, net of tax of ($37) and $0 | 284 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 2,742 | (2,958) |
Comprehensive income | 51,333 | 95,400 |
Less: comprehensive (income) attributable to controlling interest | (15) | 12 |
Comprehensive income attributable to Dolby Laboratories, Inc. | $ 51,318 | $ 95,412 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Currency translation adjustment, tax | $ 40 | $ 0 |
Unrealized gain (loss) on investments, tax | (261) | 40 |
Unrealized gains on cash flow hedges, tax | $ (37) | $ 0 |
Interim Condensed Consolidate_6
Interim Condensed Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Total Dolby Laboratories, Inc. | Controlling Interest | Class A Common Stock [Member]Common Stock | Class A Common Stock [Member]Additional Paid-In Capital |
Beginning balance (in shares) at Sep. 28, 2018 | 102,000 | ||||||||
Beginning balance at Sep. 28, 2018 | $ 2,370,503 | $ 66,127 | $ 2,313,539 | $ (15,832) | $ 2,363,936 | $ 6,567 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 98,358 | 98,219 | 98,219 | 139 | |||||
Other comprehensive income, net of tax | (2,958) | (2,807) | (2,807) | (151) | |||||
Distributions to controlling interest | (906) | 906 | |||||||
Stock-based compensation expense | 21,482 | 21,482 | 21,482 | ||||||
Repurchase of common stock | (112,545) | (82,203) | (30,342) | (112,545) | |||||
Cash dividends declared and paid on common stock | (19,573) | (19,573) | (19,573) | ||||||
Common stock issued under employee stock plans (in shares) | 0 | ||||||||
Common stock issued under employee stock plans | 14,272 | 14,272 | 14,272 | ||||||
Tax withholdings on vesting of restricted stock (in shares) | (1,000) | ||||||||
Tax withholdings on vesting of restricted stock | (19,679) | (19,679) | 0 | $ (19,678) | |||||
Ending balance (in shares) at Dec. 28, 2018 | 101,000 | ||||||||
Ending balance at Dec. 28, 2018 | 2,348,954 | 0 | 2,361,843 | (18,639) | 2,343,305 | 5,649 | |||
Beginning balance (in shares) at Sep. 27, 2019 | 99,000 | ||||||||
Beginning balance at Sep. 27, 2019 | 2,313,030 | 0 | 2,327,877 | (20,625) | 2,307,351 | 5,679 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 48,591 | 48,753 | 48,753 | (162) | |||||
Other comprehensive income, net of tax | 2,742 | 2,565 | 2,565 | 177 | |||||
Distributions to controlling interest | (283) | (283) | |||||||
Stock-based compensation expense | $ 22,614 | 22,614 | 22,614 | ||||||
Shares repurchased (in shares) | (432,042) | 0 | |||||||
Repurchase of common stock | $ (30,003) | (26,705) | (3,298) | (30,003) | |||||
Cash dividends declared and paid on common stock | (22,081) | (22,081) | (22,081) | ||||||
Common stock issued under employee stock plans | 24,373 | 24,373 | 24,373 | ||||||
Tax withholdings on vesting of restricted stock | (20,282) | 0 | (20,282) | 0 | $ (20,282) | ||||
Ending balance (in shares) at Dec. 27, 2019 | 99,000 | ||||||||
Ending balance at Dec. 27, 2019 | $ 2,338,701 | $ 0 | $ 2,351,251 | $ (18,060) | $ 2,333,290 | $ 5,411 |
Interim Condensed Consolidate_7
Interim Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Operating activities: | ||
Net income including controlling interest | $ 48,591 | $ 98,358 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 20,239 | 20,029 |
Stock-based compensation | 22,614 | 21,482 |
Amortization of premium on investments | 160 | 309 |
Provision for doubtful accounts | 575 | 1,605 |
Deferred income taxes | (9,174) | (32,571) |
Restructuring charge for exit of leased facility | 486 | 0 |
Other non-cash items affecting net income | (10) | 3,393 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,331) | 17,736 |
Inventories | 767 | (2,709) |
Operating lease right-of-use assets | (8,644) | |
Contract assets | (9,310) | (33,519) |
Prepaid expenses and other assets | (13,245) | (13,157) |
Accounts payable and other liabilities | (30,785) | (26,332) |
Income taxes, net | 945 | 1,546 |
Contract liabilities | (724) | (678) |
Operating lease liabilities | 8,664 | |
Other non-current liabilities | 2,341 | 1,460 |
Net cash provided by operating activities | 31,159 | 56,952 |
Investing activities: | ||
Purchase of investments | (129,325) | (63,329) |
Proceeds from sales of investment securities | 97,717 | 32,582 |
Proceeds from maturities of investment securities | 17,876 | 19,785 |
Purchases of property, plant and equipment | (23,385) | (18,539) |
Purchases of intangible assets | (290) | (12,065) |
Net cash provided by/(used in) investing activities | (37,407) | (41,566) |
Financing activities: | ||
Proceeds from issuance of common stock | 24,373 | 14,272 |
Repurchase of common stock | (30,003) | (112,545) |
Payment of cash dividend | (22,081) | (19,573) |
Distribution to controlling interest | (283) | (906) |
Shares repurchased for tax withholdings on vesting of restricted stock | (20,282) | (19,679) |
Net cash used in financing activities | (48,276) | (138,431) |
Effect of foreign exchange rate changes on cash and cash equivalents | 2,086 | (2,419) |
Net increase/(decrease) in cash and cash equivalents | (52,438) | (125,464) |
Cash, cash equivalents, and restricted cash at beginning of period | 805,593 | 925,250 |
Cash, cash equivalents, and restricted cash at end of period | 753,155 | 799,786 |
Supplemental disclosure: | ||
Cash paid for income taxes, net of refunds received | 17,999 | 10,722 |
Non-cash investing activities: | ||
Property, plant, and equipment purchased and unpaid at period-end | (582) | 6,642 |
Purchase consideration payable for intangibles | $ 2,610 | $ 0 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Dec. 27, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Unaudited Interim Condensed Consolidated Financial Statements We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with U.S. GAAP, and with SEC rules and regulations, which allow for certain information and footnote disclosures that are normally included in annual financial statements prepared in accordance with U.S. GAAP to be condensed or omitted. In our opinion, these unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements for the fiscal year ended September 27, 2019 and include all adjustments necessary for fair presentation. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with our consolidated financial statements for the fiscal year ended September 27, 2019 , which are included in our Annual Report on Form 10-K filed with the SEC. The results for the fiscal quarter ended December 27, 2019 are not necessarily indicative of the results to be expected for any subsequent quarterly or annual financial period, including the fiscal year ending September 25, 2020 . Principles of Consolidation The unaudited interim condensed consolidated financial statements include the accounts of Dolby Laboratories, Inc. and our wholly owned subsidiaries. In addition, we have consolidated the financial results of jointly owned affiliated companies in which our principal stockholder has a controlling interest. We report these controlling interests as a separate line in our consolidated statements of operations as net income attributable to controlling interest and in our consolidated balance sheets as a controlling interest. We eliminate all intercompany accounts and transactions upon consolidation. Operating Segments Since we operate as a single reporting segment, all required financial segment information is included in our unaudited interim condensed consolidated financial statements. This reflects the fact that our CODM, our Chief Executive Officer, evaluates our financial information and resources, and assesses the performance of these resources on a consolidated basis. Use of Estimates The preparation of our financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported and disclosed in our unaudited interim condensed consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include estimated shipments by our licensees for which we are owed a sales–based royalty, estimated selling prices for performance obligations within revenue arrangements; valuation allowances for accounts receivable; carrying values of inventories and certain property, plant, and equipment, goodwill and intangible assets; fair values of investments; accrued liabilities including liabilities for unrecognized tax benefits, deferred income tax assets and liabilities, and stock-based compensation. Actual results could differ from our estimates. Fiscal Year Our fiscal year is a 52 or 53 week period ending on the last Friday in September. The fiscal periods presented herein include the 13 week periods ended December 27, 2019 and December 28, 2018 . Our fiscal year ending September 25, 2020 (fiscal 2020 ) and our fiscal year ended September 27, 2019 (fiscal 2019 ) both consist of 52 weeks. Reclassifications We have reclassified certain prior period amounts within our consolidated financial statements and accompanying notes to conform to our current period presentation. These reclassifications did not affect total revenue, operating income, or net income. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 3 Months Ended |
Dec. 27, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Recently Issued Accounting Standards Adopted Standards At the beginning of fiscal 2020, we adopted the following standards: Leases. In the first quarter of fiscal 2020, we adopted ASU 2016-02, Leases (ASC 842 ) along with all subsequent applicable ASU clarifications and improvements , which requires lessees to recognize leases on balance sheet and disclose key information about leasing arrangements. We adopted ASC 842 using the modified retrospective transition method and used the effective date as the date of initial application. Consequently, financial information is not updated and the disclosures required under ASC 842 are not provided for dates and periods prior to implementation. ASC 842 provides a number of optional practical expedients in transition. We elected the “package of practical expedients,” which permits us not to reassess under ASC 842 our prior conclusions about lease identification, lease classification and initial direct costs. In addition, we account for lease and non-lease components as a single lease component. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current and non-current operating lease liabilities, and non-current operating lease liabilities on our interim condensed consolidated balance sheets. As a lessee, the adoption of ASC 842 resulted in the recording of Operating lease right-of-use ("ROU") assets and Operating lease liabilities of $62.1 million and $64.6 million , respectively, as of September 28, 2019. The difference between the operating lease assets and liabilities was recorded as an adjustment to Other non-current liabilities, primarily related to deferred rent and other lease incentives. As a lessor, the adoption of ASC 842 did not have a material impact. The adoption of ASC 842 did not impact Retained Earnings. Income Taxes: Comprehensive Income. During the first quarter of fiscal 2020, we adopted ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. We elected to not reclassify the stranded tax effects to retained earnings as they were not material to Dolby's consolidated financial statements. Standards Not Yet Effective Collaborative Arrangements. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 , which clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, ASU 2018-18 precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. This standard will be effective for Dolby beginning September 26, 2020, and we do not currently plan to early adopt. We do not believe that this standard will have a material impact on our consolidated financial statements. Financial Instruments. In June 2016, the FASB issued ASU 2016-13, Financial Instruments (Topic 326): Measurement of Credit Losses on Financial Instruments , which modifies the measurement of expected credit losses of certain financial instruments, including trade receivables, contract assets, and lease receivables. This standard will be effective for Dolby beginning September 26, 2020, and we do not currently plan to early adopt. We do not believe that this standard will have a material impact on our consolidated financial statements. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition | 3 Months Ended |
Dec. 27, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition We enter into revenue arrangements with our customers to license technologies, trademarks and patents for sound, imaging and voice solutions, and to sell products and services. We recognize revenue when we satisfy a performance obligation by transferring control over the use of a license, product , or service to a customer. A. Identification of the Contract or Contracts with Customers We generally determine that a contract with a customer exists upon the execution of an agreement and after consideration of collectability, which could include an evaluation of the customer's payment history, the existence of a standby letter-of-credit between the customer’s financial institution and our financial institution, public financial information, and other factors. At contract inception, we also evaluate whether two or more non-standard agreements with a customer should be combined and accounted for as a single contract. B. Identification of Performance Obligations in a Contract We generate revenues principally from the following sources, which represent performance obligations in our contracts with customers: • Licensing. We license our technologies , including patents , to a range of customers who incorporate them into their products for enhanced audio, imaging and voice functionality across broadcast, mobile, CE, PC, gaming, and other markets. • Product Sales. We design and provide audio and imaging products for the cinema, television, broadcast, communications, and entertainment industries. • Services. We provide various services to support theatrical and television production for cinema exhibition, broadcast, and home entertainment, including equipment training , mixing room alignment, equalization, as well as audio, color and light image calibration. • PCS. We provide PCS for products sold and for the equipment leased, and we support the implementation of our licensing technologies in our licensees’ products. • Equipment Leases. We collaborate with established cinema exhibitors to offer Dolby Cinema, a branded premium cinema offering for movie audiences by leasing equipment and licensing our intellectual property. We also lease hardware that facilitates the Dolby conferencing experience, including the Dolby Conference Phone, and the Dolby Voice Room solution. • Licensing Administration Fees. We generate service fees for managing patent pools on behalf of third party patent owners through our wholly-owned subsidiary, Via Licensing Corporation. Some of our revenue arrangements include multiple performance obligations, such as hardware, software, support and maintenance, and extended warranty services. We evaluate whether promised products and services are distinct performance obligations. The majority of our arrangements with multiple performance obligations pertain to our digital cinema server and processor sales that include the following distinct performance obligations to which we allocate portions of the transaction price based on their stand-alone selling price: • Digital cinema server hardware and embedded software, which is highly dependent on and highly interrelated with the hardware. Accordingly, the hardware and embedded software represent a single performance obligation. • The right to support and maintenance, which is included with the purchase of the digital cinema server hardware, is a distinct performance obligation. • The right to receive commissioning services is a distinct performance obligation within the sale of the Dolby Atmos Cinema Processor. These services consist of the review of venue designs specifying proposed speaker placement as well as calibration services performed for installed speakers to ensure optimal playback. C. Determination of Transaction Price for Performance Obligations in a Contract After identifying the distinct performance obligations, we determine the transaction price in accordance with the terms of the underlying executed contract which may include variable consideration such as discounts, rebates, refunds, rights of returns, and incentives. We assess and update, if necessary, the amount of variable consideration to which we are entitled for each reporting period. At the end of each reporting period, we estimate and accrue a liability for returns and adjustments as a reduction to revenue based on several factors, including past returns history. With the exception of our sales-based royalties, we evaluate whether a significant financing component exists when we recognize revenue in advance of customer payments that occur over time. For example, some of our licensing arrangements include payment terms greater than one year from when we transfer control of our IP to a licensee and the receipt of the final payment for that IP. If a significant financing component exists, we classify a portion of the transaction price as interest income, instead of recognizing all the transaction price as revenue. We do not adjust the transaction price for the effects of financing if, at contract inception , the period between the transfer of control to a customer and final payment is expected to be one year or less . D. Allocation of Transaction Price to Distinct Performance Obligations in a Contract For our sales-based royalties where the license is the predominant item to which the royalties relate, we present all revenues as licensing. For revenue arrangements that include multiple performance obligations, we determine the stand-alone selling price for each distinct performance obligation based on the actual selling prices made to customers. If the performance obligation is not sold separately, we estimate the stand-alone selling price. We do so by considering market conditions such as competitor pricing strategies, customer specific information and industry technology lifecycles, internal conditions such as cost and pricing practices, or applying the residual approach method when the selling price of the good, most commonly a license, is highly variable or uncertain. Once the transaction price - including any variable consideration - has been determined, we allocate the transaction price to the performance obligations identified in the contract, and recognize revenue as or when control is transferred for each distinct performance obligation. E. Revenue Recognition as Control is Transferred to a Customer We generate our licensing revenue by licensing our technologies and patents to various types of licensees, such as chip manufacturers ("implementation licensees"), consumer product manufacturers, software vendors, and communications service providers. Our revenue recognition policies for each of these arrangements are summarized below. Initial fees from implementation licensees. Implementation licensees incorporate our technologies into their chipsets that, once approved by Dolby, are available for purchase by OEMs for use in end-user products. Implementation licensees only pay us a nominal initial fee on contract execution as consideration for the ongoing services that we provide to assist in their implementation process. Revenues from these initial fees are recognized ratably over the contractual term as a component of licensing revenue. Sales-based licensing fees. In our royalty bearing licensing agreements with OEMs, control is transferred upon the later of contract execution or the contract’s effective date. We apply the royalty exception, which requires that we recognize sales-based royalties when the sales occur based on our estimates. These estimates involve the use of historical data and judgment for several key attributes including industry estimates of expected shipments, the percentage of markets using our technologies, and average sale prices. Generally, our estimates represent the current period’s shipments to which we expect our licensees to submit royalty statements in the following quarter. Upon receipt of royalty statements from the licensees with the actual reporting of sales-based royalties that we estimated previously, we record a favorable or unfavorable adjustment based on the difference, if any, between estimated and actual sales. In the first quarter of fiscal 2020 , we recorded a favorable adjustment of approximately $9 million , which was primarily related to July through September shipments and largely based on actual royalty statements received from licensees. Fixed and guaranteed licensing fees. In certain cases, our arrangements require the licensee to pay fixed, non-refundable fees independent of the actual number of units they may distribute in the future. In these cases, control is transferred and fees are recognized upon the later of contract execution or the effective date. Additionally and separate from initial fees from implementation licensees, our sales- and usage-based licensing agreements include a nominal fee, which is also recognized at a point in time in which control of the IP has been transferred. Revenues from these arrangements are included as a component of licensing revenue. Recoveries. Through our contract compliance efforts, we identify under-reported or misreported licensee royalties related to non-current periods. We may record a favorable or unfavorable revenue adjustment in connection with the findings from these compliance efforts generally upon resolution with the licensee through agreement of the findings, or upon receipt of the licensee’s correction statement. Revenues from these arrangements are included as a component of licensing revenue. We also undertake activities aimed at identifying potential unauthorized uses of our technologies by third parties with whom we don't have a licensing agreement for such use, which when successful result in the recognition of r evenue. These back royalties stem from third parties who agree to remit payments to us based on past use of our technology. In these scenarios, a legally binding contract did not exist at time of use of our technology, and therefore, we recognize revenue recoveries upon execution of the agreement as that is the point in time to which a contract exists and control is transferred. These revenues are classified as licensing revenue. In general, we classify legal costs associated with activities aimed at identifying potential unauthorized uses of our technologies, auditing existing licensees, and on occasion, pursuing litigation as S&M in our consolidated statements of operations. We recognize licensing revenue gross of withholding taxes, which our licensees remit directly to their local tax authorities, and for which we receive a partial foreign tax credit in our income tax provision. In addition to our licensing arrangements, we also enter into arrangements to deliver products and services. Product Sales. Revenue from the sale of products is recognized when the customer obtains control of the promised good or service, which is generally upon shipment. Services. We provide various services, such as engineering services related to movie soundtrack print mastering, equipment training and maintenance, mixing room alignment, equalization, and image calibration, which we bill on a fixed fee and time and materials basis. Most of these services are of a short duration and are recognized as control of the performance obligations are transferred which is when the related services are performed. Collaborative Arrangements. We collaborate with established cinema exhibitors to offer Dolby Cinema, a branded premium cinema offering for movie audiences. Under such collaborations, Dolby and the exhibitor are both active participants, and share the risks and rewards associated with the business. Accordingly, these collaborations are governed by revenue sharing arrangements under which Dolby receives revenue based on monthly box office reports from exhibitors in exchange for the use of our imaging and sound technologies, our proprietary designs and trademark as well as for the use of our equipment at the exhibitor’s venue. The use of our equipment meets the definition of a lease, and for the related portion of Dolby's share of revenue, we apply ASC 842, Leases , and recognize revenue based on monthly box office reports from exhibitors. Our revenue share is recognized as licensing revenue in our consolidated statements of operations. In addition, we also enter into hybrid agreements where a portion involves guaranteed payments, which in some cases result in classifying the payments as a sales-type lease. In such arrangements, we consider control to transfer at the point in time to which we have installed and tested the equipment, at which point we record such guaranteed payments as product revenue. Via Administration Fee. We generate service fees for managing patent pools on behalf of third party patent owners through our wholly-owned subsidiary, Via Licensing Corporation. As an agent to licensors in the patent pool, Via receives a share of the sales-based royalty that the patent pool licensors earn from licensees. As such, we apply the sales-based royalty exception as the service provided is directly related to the patent pool licensors’ provision of IP, which results in recognition based on estimates of the licensee’s quarter shipments that use the pool’s patents. In addition to sales-based royalties, Via also has contracts where the fees are fixed. The revenue share Via receives from licensors on fixed fee contracts is recognized over the term in which we are providing services associated with the fixed fee contract. We recognize our administrative fees net of the consideration paid to the patent licensors in the pool as licensing revenue. Deferred revenue, which is a component of contract liabilities, represents amounts that are ultimately expected to be recognized as revenue, but for which we have yet to satisfy the performance obligation. On December 27, 2019 , we had $ 41.5 million of remaining performance obligations, 36% of which we expect to recognize as revenue in fiscal 2020, 24% in fiscal 2021, and the balance of 40% in fiscal years beyond 2021. F. Disaggregation of revenue The following table presents a summary of the composition of our revenue for all periods presented: Fiscal Quarter Ended Revenue December 27, 2019 December 28, 2018 Licensing $ 257,683 88 % $ 260,279 86 % Products and services 34,194 12 % 42,097 14 % Total revenue $ 291,877 100 % $ 302,376 100 % The following table presents the composition of our licensing revenue for all periods presented: Fiscal Quarter Ended Market December 27, 2019 December 28, 2018 Broadcast $ 102,133 40 % $ 100,138 38 % Mobile 34,481 13 % 34,173 13 % CE 48,845 19 % 43,750 17 % PC 31,843 12 % 23,157 9 % Other 40,381 16 % 59,061 23 % Total licensing revenue $ 257,683 100 % $ 260,279 100 % We license our technologies in approximately 60 countries, and our licensees distribute products that incorporate our technologies throughout the world. As shown in the table below, we generate the majority of our revenue from outside the United States. Geographic data for our licensing revenue is based on the location of our licensees’ headquarters, products revenue is based on the destination to which we ship our products, and services revenue is based on the location where services are performed. Fiscal Quarter Ended Revenue By Geographic Location December 27, 2019 December 28, 2018 United States $ 107,627 37 % $ 119,799 40 % International 184,250 63 % 182,577 60 % Total revenue $ 291,877 100 % $ 302,376 100 % G. Contract assets and liabilities Our contract assets represent rights to consideration from licensees for the use of our IP that we have estimated in a given quarter in the absence of receiving actual royalty statements from licensees. These estimates reflect our best judgment at that time, and are developed using a number of inputs, including historical experience, anticipated performance, and third-party data . In the event that our estimates differ from actual amounts reported, we record an appropriate adjustment in the quarter in which the report is received which is typically the quarter following our estimate. Actual amounts reported are typically paid within sixty days. The main drivers for change in the contract assets account are variances in quarterly estimates, and to lesser degree, timing of receipt of actual royalty statements. Our contract liabilities consist of advance payments and billings in excess of amounts earned and deferred interest where we have significant financing. The non-current portion of contract liabilities is separately disclosed in our consolidated balance sheets. We present the net contract asset or liability when we have both contract assets and contract liabilities for a single contract. In the first quarter of fiscal 2020, we recognized $6.8 million from prior period deferred revenue and deferred interest from arrangements which include a significant financing component. The following table presents a summary of the balances to which contract assets and liabilities related to revenue are recorded for all periods presented: December 27, 2019 September 27, 2019 Change ($) Change (%) Accounts receivable, net $ 191,001 $ 189,115 $ 1,886 1 % Contract assets 204,963 195,651 9,312 5 % Contract liabilities - current 19,785 19,991 (206 ) (1 )% Contract liabilities - non-current 23,917 24,404 (487 ) (2 )% |
Composition Of Certain Financia
Composition Of Certain Financial Statement Captions | 3 Months Ended |
Dec. 27, 2019 | |
Composition Of Certain Financial Statement Captions [Abstract] | |
Composition Of Certain Financial Statement Captions | 4 . Composition of Certain Financial Statement Captions The following tables present detailed information from our consolidated balance sheets as of December 27, 2019 and September 27, 2019 (amounts displayed in thousands, except as otherwise noted). Accounts Receivable December 27, September 27, Trade accounts receivable $ 148,625 $ 151,996 Accounts receivable from patent administration program licensees 51,274 46,894 Accounts receivable, gross 199,899 198,890 Less: allowance for doubtful accounts (8,898 ) (9,775 ) Total $ 191,001 $ 189,115 Accounts receivable, gross includes unbilled accounts receivable balances of $84.4 million as of December 27, 2019 related to amounts that are contractually owed. The unbilled balance represents our unconditional right to consideration related to fixed fee contracts which we are entitled to as a result of satisfying, or partially satisfying, performance obligations, as well as Via's unconditional right to consideration related to their patent administration programs. Inventories December 27, September 27, Raw materials $ 6,933 $ 8,031 Work in process 4,432 4,872 Finished goods 17,739 19,428 Total $ 29,104 $ 32,331 Inventories are stated at the lower of cost and net realizable value. Inventory with a consumption period expected to exceed twelve months is recorded within other non-current assets in our consolidated balance sheets. We have included $3.3 million and $3.0 million of raw materials inventory within other non-current assets in our consolidated balance sheets as of December 27, 2019 and September 27, 2019 , respectively. Based on anticipated inventory consumption rates, and aside from existing write-downs due to excess inventory, we do not believe that material risk of obsolescence exists prior to ultimate sale. Prepaid Expenses And Other Current Assets December 27, September 27, Prepaid expenses $ 28,774 $ 17,997 Other current assets 23,105 20,924 Income tax receivable 672 783 Total $ 52,551 $ 39,704 As of December 27, 2019, other current assets include the carrying value of $2.2 million of land and building that are currently held for sale. Management has committed to a plan to sell the property. Based on current estimated selling prices in the market, we have determined that no indicators of potential impairment exist. Accrued Liabilities December 27, September 27, Accrued royalties $ 3,107 $ 2,957 Amounts payable to patent administration program partners 58,015 58,899 Accrued compensation and benefits 60,698 78,716 Accrued professional fees 16,165 19,216 Unpaid PP&E additions 14,350 15,332 Accrued customer refunds 18,222 24,299 Other accrued liabilities 71,495 68,725 Total $ 242,052 $ 268,144 Other Non-Current Liabilities December 27, September 27, Supplemental retirement plan obligations $ 3,649 $ 3,466 Non-current tax liabilities (1) 138,305 136,323 Other liabilities 37,268 37,673 Total $ 179,222 $ 177,462 (1) Refer to Note 12 “ Income Taxes ” for additional information related to tax liabilities. |
Investments & Fair Value Measur
Investments & Fair Value Measurements | 3 Months Ended |
Dec. 27, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Investments & Fair Value Measurements | . Investments & Fair Value Measurements We use cash holdings to purchase investment grade securities diversified among security types, industries, and issuers. All of our investment securities are measured at fair value, and are recorded within cash equivalents and both short-term and long-term investments in our consolidated balance sheets. With the exception of our mutual fund investments held in our SERP and classified as trading securities, all of our investments are classified as AFS securities. Derivative contracts are used to hedge currency risk, these are carried at fair value and classified as other assets and other liabilities. Our investment securities primarily consist of government bonds, certificates of deposit, municipal debt securities, corporate bonds, U.S. agency securities, and commercial paper. In addition, our cash and cash equivalents also consist of highly-liquid money market funds. Consistent with our investment policy, none of our municipal debt investments are supported by letters of credit or standby purchase agreements. Our cash and investment portfolio consisted of the following (in thousands): December 27, 2019 Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 719,126 $ — $ — $ 719,126 $ 719,126 $ — $ — Cash equivalents: Money market funds 22,303 — — 22,303 22,303 — — Cash and cash equivalents 741,429 — — 741,429 741,429 — — Short-term investments: Certificate of deposit 4,730 — (2 ) 4,728 — 4,728 — U.S. agency securities 6,396 4 (1 ) 6,399 — 6,399 — Government bonds 44,911 15 — 44,926 41,658 3,268 — Commercial paper 15,884 4 (8 ) 15,880 — 15,880 — Corporate bonds 83,679 153 (22 ) 83,810 — 83,810 — Municipal debt securities 14,470 22 (1 ) 14,491 — 14,491 — Short-term investments 170,070 198 (34 ) 170,234 41,658 128,576 — Long-term investments: U.S. agency securities 8,704 132 (1 ) 8,835 — 8,835 — Government bonds 26,219 78 (20 ) 26,277 22,865 3,412 — Corporate bonds 91,812 759 (88 ) 92,483 — 92,483 — Municipal debt securities 12,532 99 (1 ) 12,630 — 12,630 — Other long-term investments (1) 1,495 — — 1,495 — — — Long-term investments 140,762 1,068 (110 ) 141,720 22,865 117,360 — Total cash, cash equivalents, and investments $ 1,052,261 $ 1,266 $ (144 ) $ 1,053,383 $ 805,952 $ 245,936 $ — Investments held in supplemental retirement plan: Assets 3,746 — — 3,746 3,746 — — Included in prepaid expenses and other current assets & other non-current assets Liabilities 3,746 — — 3,746 3,746 — — Included in accrued liabilities & other non-current liabilities Currency derivatives as hedge instruments: Assets — 426 — 426 — 426 — Included in other current assets Liabilities — — (62 ) (62 ) — (62 ) — Included in other accrued expenses (1) Other long-term investments as of December 27, 2019 include investments that are not carried at fair value including an equity method investment of $1.5 million . September 27, 2019 Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 680,287 $ — $ — $ 680,287 $ 680,287 $ — $ — Cash equivalents: Corporate bonds 1,000 — — 1,000 — 1,000 — Money market funds 115,270 — — 115,270 115,270 — — Government bonds 653 — — 653 653 — — Cash and cash equivalents 797,210 — — 797,210 796,210 1,000 — Short-term investments: Certificate of deposit 1,265 1 — 1,266 — 1,266 — U.S. agency securities 10,973 8 (9 ) 10,972 — 10,972 — Government bonds 8,381 11 (1 ) 8,391 5,784 2,607 — Commercial paper 6,347 9 — 6,356 — 6,356 — Corporate bonds 76,802 172 (34 ) 76,940 — 76,940 — Municipal debt securities 15,210 18 (7 ) 15,221 — 15,221 — Short-term investments 118,978 219 (51 ) 119,146 5,784 113,362 — Long-term investments: Asset backed securities 400 2 — 402 — 402 — U.S. agency securities 7,102 146 — 7,248 — 7,248 — Government bonds 23,563 187 — 23,750 19,670 4,080 — Corporate bonds 134,360 1,700 — 136,060 — 136,060 — Municipal debt securities 10,315 87 (6 ) 10,396 — 10,396 — Other long-term investments (1) 1,731 — — 1,731 — — — Long-term investments 177,471 2,122 (6 ) 179,587 19,670 158,186 — Total cash, cash equivalents, and investments $ 1,093,659 $ 2,341 $ (57 ) $ 1,095,943 $ 821,664 $ 272,548 $ — Investments held in supplemental retirement plan: Assets 3,564 — — 3,564 3,564 — — Included in prepaid expenses and other current assets & other non-current assets Liabilities 3,564 — — 3,564 3,564 — — Included in accrued liabilities & other non-current liabilities Currency derivatives as hedge instruments: Assets — — — — — — — Included in other current assets Liabilities — — (242 ) (242 ) — (242 ) — Included in other accrued expenses (1) Other long-term investments as of September 27, 2019 include an investment that is not carried at fair value including an equity method investment of $1.7 million . Fair Value Hierarchy. Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. We minimize the use of unobservable inputs and use observable market data, if available, when determining fair value. We classify our inputs to measure fair value using the following three-level hierarchy: Level 1: Quoted prices in active markets at the measurement date for identical assets and liabilities. We base the fair value of our Level 1 financial instruments, which are traded in active markets, using quoted market prices for identical instruments. Level 2: Prices may be based upon quoted prices in active markets or inputs not quoted on active markets but are corroborated by market data. We obtain the fair value of our Level 2 investments from a professional pricing service, which may use quoted market prices for identical or comparable instruments, or model driven valuations using observable market data or inputs corroborated by observable market data. To validate the fair value determination provided by our primary pricing service, we perform quality controls over values received which include comparing our pricing service provider’s assessment of the fair values of our investment securities against the fair values of our investment securities obtained from another independent source, reviewing the pricing movement in the context of overall market trends, and reviewing trading information from our investment managers. In addition, we assess the inputs and methods used in determining the fair value in order to determine the classification of securities in the fair value hierarchy. The fair value of the currency derivatives are calculated from market spot rates, forward rates, interest rates, and credit ratings at the end of the period. Level 3: Unobservable inputs are used when little or no market data is available and reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Securities In Gross Unrealized Loss Position. We periodically evaluate our investments for other-than- temporary declines in fair value. The unrealized losses on our AFS securities were primarily the result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. The following table presents the gross unrealized losses and fair value for those AFS securities that were in an unrealized loss position for less than twelve months and for twelve months or greater as of December 27, 2019 and September 27, 2019 (in thousands): December 27, 2019 September 27, 2019 Less Than 12 Months 12 Months Or Greater Less Than 12 Months 12 Months Or Greater Investment Type Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Certificate of deposit $ 4,298 $ (2 ) $ — $ — $ 300 $ — $ — $ — U.S. agency securities 333 — 4,797 (1 ) — — 4,787 (9 ) Government bonds 38,385 (21 ) — — 1,426 — — — Commercial paper 11,787 (9 ) — — — — — — Corporate bonds 36,756 (100 ) 11,374 (10 ) 7,647 (3 ) 27,078 (32 ) Municipal debt securities 3,968 (2 ) — — 9,552 (13 ) 900 — Total $ 95,527 $ (134 ) $ 16,171 $ (11 ) $ 18,925 $ (16 ) $ 32,765 $ (41 ) Although we had certain securities that were in an unrealized loss position as of December 27, 2019 , we expect to recover the full carrying value of these securities. As a result, we do not consider any portion of the unrealized losses at either December 27, 2019 or September 27, 2019 to represent an other–than–temporary impairment, nor do we consider any of the unrealized losses to be credit losses. Investment Maturities. The following table summarizes the amortized cost and estimated fair value of the AFS securities within our investment portfolio based on stated maturities as of December 27, 2019 and September 27, 2019 , which are recorded within cash equivalents and both short and long-term investments in our consolidated balance sheets (in thousands): December 27, 2019 September 27, 2019 Range of maturity Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ 192,373 $ 192,537 $ 238,186 $ 238,354 Due in 1 to 2 years 57,931 58,481 93,948 94,899 Due in 2 to 3 years 81,337 81,744 81,793 82,957 Total $ 331,641 $ 332,762 $ 413,927 $ 416,210 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Dec. 27, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | . Property, Plant, & Equipment Property, plant, and equipment are recorded at cost, with depreciation expense included in cost of licensing, cost of products and services, R&D, S&M, and G&A expenses in our consolidated statements of operations. PP&E consist of the following (in thousands): December 27, September 27, Land $ 41,980 $ 41,918 Buildings and building improvements 283,462 282,924 Leasehold improvements 67,253 66,730 Machinery and equipment 127,183 128,525 Computer equipment and software 219,773 219,455 Furniture and fixtures 31,571 34,191 Equipment provided under operating leases 174,155 161,372 Construction-in-progress 32,251 19,616 Property, plant, and equipment, gross 977,628 954,731 Less: accumulated depreciation (428,133 ) (417,299 ) Property, plant, & equipment, net $ 549,495 $ 537,432 |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Dec. 27, 2019 | |
Leases [Abstract] | |
Leases | Leases As Lessee As a lessee, we enter into contracts to access and utilize office space, including those payable to our principal stockholder and portions attributable to the controlling interests in our wholly owned subsidiaries. We determine if a contract contains a lease based on whether we have the right to obtain substantially all of the economic benefits from the use of an identified asset and whether we have the right to direct the use of an identified asset in exchange for consideration, which relates to an asset which we do not own. Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets are recognized as the lease liability, adjusted for lease incentives received. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our Incremental Borrowing Rate ("IBR"), because the interest rate implicit in most of our leases is not readily determinable. The IBR is a hypothetical rate based on our understanding of what our credit rating would be to borrow and resulting interest we would pay to borrow an amount equal to the lease payments in a similar economic environment over the lease term on a collateralized basis. Lease payments may be fixed or variable, however, only fixed payments are included in our lease liability calculation. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred. The lease term of operating leases vary from less than a year to 11 years . We have leases that include one or more options to extend the lease term for up to 8 years as well as options to terminate the lease within one year . Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. The components of lease expense were as follows (in thousands): Fiscal Quarter Ended December 27, 2019 Lease cost Operating lease cost 5,356 Variable lease cost 394 Total lease cost 5,750 Supplemental cash flow information related to leases was as follows (in thousands): Fiscal Quarter Ended December 27, 2019 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 5,241 Right-of-use assets obtained in exchange for lease obligations: Operating lease liabilities 12,816 Supplemental balance sheet information related to leases was as follows: December 27, 2019 Weighted-average remaining lease term Operating leases 7.3 years Weighted-average discount rate Operating leases 3.4 % The following table presents the maturity analysis of lease liabilities (in thousands): December 27, 2019 September 27, 2019 Operating Leases Operating Leases Remainder of Fiscal 2020 15,386 17,231 Fiscal 2021 13,643 9,329 Fiscal 2022 11,336 7,191 Fiscal 2023 9,375 6,218 Fiscal 2024 6,703 4,499 Thereafter 29,320 12,355 Total undiscounted lease payments 85,763 56,823 Less: imputed interest (12,174 ) Total lease liabilities 73,589 As Lessor As a lessor, we lease our Dolby Cinema product solution to exhibitors, Dolby Voice equipment to cloud conferencing service providers, and a real estate property. The terms of these leases vary from 4 to 10 years . Lease components consist of fixed payments and/or variable lease payments based on contracted percentages of revenue. Generally, leases do not grant any right to the lessee to purchase the underlying asset at the end of the lease term, with the exception of certain leases of Dolby Voice equipment for which the customer has the option to purchase the equipment at fair value. Dolby Cinema lease arrangements have options to extend the lease term at expiration by increments ranging from 1 to 5 years . Assets provided under an operating lease are carried at cost within property, plant and equipment and depreciated over the lease term using the straight-line method. Fixed operating lease payments are recognized on a straight-line basis over the lease term to other income for our real estate property and to revenue for all other leases. Variable lease payments received under our Dolby Cinema operating leases are computed as shares of lessees' box office revenues and recognized to revenue in the period that box office sales occur. Lease incentive payments we make to lessees are amortized as a reduction in revenue over the lease term. For the quarter ended December 27, 2019 , variable operating lease income was $7.3 million and fixed operating lease income was $0.7 million . If a lease is classified as a sales-type lease, the carrying amount of the asset is derecognized from property, plant and equipment and a net investment in the lease is recorded. The net investment in the lease is measured at commencement date as the sum of the lease receivable and the estimated residual value of the equipment. The unguaranteed residual value of the equipment was determined as the estimated carrying value of the asset at the end of the lease term had the asset been depreciated on a straight-line basis. At December 27, 2019 , the unguaranteed residual value of sales-type leases was $0.7 million . Selling profit or loss arising from a sales-type lease is recorded at lease commencement and presented on a gross basis. Over the term of the lease, we recognize interest income on the net investment in the lease and any variable lease payments, which is not material and not included in the net investment in the lease. The following table presents the maturity analysis of lease payments due to Dolby (in thousands): December 27, 2019 Operating Leases Sales-Type Leases Remainder of Fiscal 2020 1,669 4,059 Fiscal 2021 2,227 1,595 Fiscal 2022 2,227 1,595 Fiscal 2023 2,153 1,595 Fiscal 2024 1,107 795 Thereafter — 790 Total undiscounted cash flows 9,383 10,429 Less: present value of lease payments (recognized as lease receivables) (8,095 ) Difference 2,334 |
Leases | Leases As Lessee As a lessee, we enter into contracts to access and utilize office space, including those payable to our principal stockholder and portions attributable to the controlling interests in our wholly owned subsidiaries. We determine if a contract contains a lease based on whether we have the right to obtain substantially all of the economic benefits from the use of an identified asset and whether we have the right to direct the use of an identified asset in exchange for consideration, which relates to an asset which we do not own. Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets are recognized as the lease liability, adjusted for lease incentives received. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our Incremental Borrowing Rate ("IBR"), because the interest rate implicit in most of our leases is not readily determinable. The IBR is a hypothetical rate based on our understanding of what our credit rating would be to borrow and resulting interest we would pay to borrow an amount equal to the lease payments in a similar economic environment over the lease term on a collateralized basis. Lease payments may be fixed or variable, however, only fixed payments are included in our lease liability calculation. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred. The lease term of operating leases vary from less than a year to 11 years . We have leases that include one or more options to extend the lease term for up to 8 years as well as options to terminate the lease within one year . Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. The components of lease expense were as follows (in thousands): Fiscal Quarter Ended December 27, 2019 Lease cost Operating lease cost 5,356 Variable lease cost 394 Total lease cost 5,750 Supplemental cash flow information related to leases was as follows (in thousands): Fiscal Quarter Ended December 27, 2019 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 5,241 Right-of-use assets obtained in exchange for lease obligations: Operating lease liabilities 12,816 Supplemental balance sheet information related to leases was as follows: December 27, 2019 Weighted-average remaining lease term Operating leases 7.3 years Weighted-average discount rate Operating leases 3.4 % The following table presents the maturity analysis of lease liabilities (in thousands): December 27, 2019 September 27, 2019 Operating Leases Operating Leases Remainder of Fiscal 2020 15,386 17,231 Fiscal 2021 13,643 9,329 Fiscal 2022 11,336 7,191 Fiscal 2023 9,375 6,218 Fiscal 2024 6,703 4,499 Thereafter 29,320 12,355 Total undiscounted lease payments 85,763 56,823 Less: imputed interest (12,174 ) Total lease liabilities 73,589 As Lessor As a lessor, we lease our Dolby Cinema product solution to exhibitors, Dolby Voice equipment to cloud conferencing service providers, and a real estate property. The terms of these leases vary from 4 to 10 years . Lease components consist of fixed payments and/or variable lease payments based on contracted percentages of revenue. Generally, leases do not grant any right to the lessee to purchase the underlying asset at the end of the lease term, with the exception of certain leases of Dolby Voice equipment for which the customer has the option to purchase the equipment at fair value. Dolby Cinema lease arrangements have options to extend the lease term at expiration by increments ranging from 1 to 5 years . Assets provided under an operating lease are carried at cost within property, plant and equipment and depreciated over the lease term using the straight-line method. Fixed operating lease payments are recognized on a straight-line basis over the lease term to other income for our real estate property and to revenue for all other leases. Variable lease payments received under our Dolby Cinema operating leases are computed as shares of lessees' box office revenues and recognized to revenue in the period that box office sales occur. Lease incentive payments we make to lessees are amortized as a reduction in revenue over the lease term. For the quarter ended December 27, 2019 , variable operating lease income was $7.3 million and fixed operating lease income was $0.7 million . If a lease is classified as a sales-type lease, the carrying amount of the asset is derecognized from property, plant and equipment and a net investment in the lease is recorded. The net investment in the lease is measured at commencement date as the sum of the lease receivable and the estimated residual value of the equipment. The unguaranteed residual value of the equipment was determined as the estimated carrying value of the asset at the end of the lease term had the asset been depreciated on a straight-line basis. At December 27, 2019 , the unguaranteed residual value of sales-type leases was $0.7 million . Selling profit or loss arising from a sales-type lease is recorded at lease commencement and presented on a gross basis. Over the term of the lease, we recognize interest income on the net investment in the lease and any variable lease payments, which is not material and not included in the net investment in the lease. The following table presents the maturity analysis of lease payments due to Dolby (in thousands): December 27, 2019 Operating Leases Sales-Type Leases Remainder of Fiscal 2020 1,669 4,059 Fiscal 2021 2,227 1,595 Fiscal 2022 2,227 1,595 Fiscal 2023 2,153 1,595 Fiscal 2024 1,107 795 Thereafter — 790 Total undiscounted cash flows 9,383 10,429 Less: present value of lease payments (recognized as lease receivables) (8,095 ) Difference 2,334 |
Leases | Leases As Lessee As a lessee, we enter into contracts to access and utilize office space, including those payable to our principal stockholder and portions attributable to the controlling interests in our wholly owned subsidiaries. We determine if a contract contains a lease based on whether we have the right to obtain substantially all of the economic benefits from the use of an identified asset and whether we have the right to direct the use of an identified asset in exchange for consideration, which relates to an asset which we do not own. Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets are recognized as the lease liability, adjusted for lease incentives received. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our Incremental Borrowing Rate ("IBR"), because the interest rate implicit in most of our leases is not readily determinable. The IBR is a hypothetical rate based on our understanding of what our credit rating would be to borrow and resulting interest we would pay to borrow an amount equal to the lease payments in a similar economic environment over the lease term on a collateralized basis. Lease payments may be fixed or variable, however, only fixed payments are included in our lease liability calculation. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred. The lease term of operating leases vary from less than a year to 11 years . We have leases that include one or more options to extend the lease term for up to 8 years as well as options to terminate the lease within one year . Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. The components of lease expense were as follows (in thousands): Fiscal Quarter Ended December 27, 2019 Lease cost Operating lease cost 5,356 Variable lease cost 394 Total lease cost 5,750 Supplemental cash flow information related to leases was as follows (in thousands): Fiscal Quarter Ended December 27, 2019 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 5,241 Right-of-use assets obtained in exchange for lease obligations: Operating lease liabilities 12,816 Supplemental balance sheet information related to leases was as follows: December 27, 2019 Weighted-average remaining lease term Operating leases 7.3 years Weighted-average discount rate Operating leases 3.4 % The following table presents the maturity analysis of lease liabilities (in thousands): December 27, 2019 September 27, 2019 Operating Leases Operating Leases Remainder of Fiscal 2020 15,386 17,231 Fiscal 2021 13,643 9,329 Fiscal 2022 11,336 7,191 Fiscal 2023 9,375 6,218 Fiscal 2024 6,703 4,499 Thereafter 29,320 12,355 Total undiscounted lease payments 85,763 56,823 Less: imputed interest (12,174 ) Total lease liabilities 73,589 As Lessor As a lessor, we lease our Dolby Cinema product solution to exhibitors, Dolby Voice equipment to cloud conferencing service providers, and a real estate property. The terms of these leases vary from 4 to 10 years . Lease components consist of fixed payments and/or variable lease payments based on contracted percentages of revenue. Generally, leases do not grant any right to the lessee to purchase the underlying asset at the end of the lease term, with the exception of certain leases of Dolby Voice equipment for which the customer has the option to purchase the equipment at fair value. Dolby Cinema lease arrangements have options to extend the lease term at expiration by increments ranging from 1 to 5 years . Assets provided under an operating lease are carried at cost within property, plant and equipment and depreciated over the lease term using the straight-line method. Fixed operating lease payments are recognized on a straight-line basis over the lease term to other income for our real estate property and to revenue for all other leases. Variable lease payments received under our Dolby Cinema operating leases are computed as shares of lessees' box office revenues and recognized to revenue in the period that box office sales occur. Lease incentive payments we make to lessees are amortized as a reduction in revenue over the lease term. For the quarter ended December 27, 2019 , variable operating lease income was $7.3 million and fixed operating lease income was $0.7 million . If a lease is classified as a sales-type lease, the carrying amount of the asset is derecognized from property, plant and equipment and a net investment in the lease is recorded. The net investment in the lease is measured at commencement date as the sum of the lease receivable and the estimated residual value of the equipment. The unguaranteed residual value of the equipment was determined as the estimated carrying value of the asset at the end of the lease term had the asset been depreciated on a straight-line basis. At December 27, 2019 , the unguaranteed residual value of sales-type leases was $0.7 million . Selling profit or loss arising from a sales-type lease is recorded at lease commencement and presented on a gross basis. Over the term of the lease, we recognize interest income on the net investment in the lease and any variable lease payments, which is not material and not included in the net investment in the lease. The following table presents the maturity analysis of lease payments due to Dolby (in thousands): December 27, 2019 Operating Leases Sales-Type Leases Remainder of Fiscal 2020 1,669 4,059 Fiscal 2021 2,227 1,595 Fiscal 2022 2,227 1,595 Fiscal 2023 2,153 1,595 Fiscal 2024 1,107 795 Thereafter — 790 Total undiscounted cash flows 9,383 10,429 Less: present value of lease payments (recognized as lease receivables) (8,095 ) Difference 2,334 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Dec. 27, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | . Goodwill & Intangible Assets Goodwill The following table outlines changes to the carrying amount of goodwill (in thousands): Goodwill Balance at September 27, 2019 $ 334,829 Acquired goodwill — Translation adjustments 614 Balance at December 27, 2019 $ 335,443 Intangible Assets Our intangible assets are stated at their original cost less accumulated amortization, and principally consist of acquired technology, patents, trademarks, customer relationships and contracts. Intangible assets subject to amortization consist of the following (in thousands): December 27, 2019 September 27, 2019 Intangible Assets Cost Accumulated Amortization Net Cost Accumulated Amortization Net Acquired patents and technology $ 340,519 $ (183,283 ) $ 157,236 $ 338,075 $ (176,867 ) $ 161,208 Customer relationships 64,718 (46,417 ) 18,301 64,728 (45,510 ) 19,218 Other intangibles 22,942 (22,498 ) 444 22,902 (22,437 ) 465 Total $ 428,179 $ (252,198 ) $ 175,981 $ 425,705 $ (244,814 ) $ 180,891 We purchase various patents and developed technologies that enable us to further develop our audio, imaging, and potential product offerings. With regard to our purchase of intangible assets during the periods presented, the following table summarizes the consideration paid, the weighted-average useful lives over which the acquired assets will be amortized using the greater of either the straight-line basis or a ratio-to-revenue method, and the classification of their amortized expense in our consolidated statements of operations: Fiscal Period Total Purchase Consideration (1) Weighted-Average Useful Life (in millions) (in years) Fiscal 2019 Q1 - Quarter ended December 28, 2018 $12.1 11.6 Fiscal 2020 Q1 - Quarter ended December 27, 2019 $2.9 14.0 (1) Amortization expense on the intangible assets from patent portfolio and business acquisitions is included within cost of revenue, R&D, and G&A in our consolidated statements of operations. Amortization expense for our intangible assets is included in cost of licensing, cost of products, R&D, S&M, and G&A expenses in our consolidated statements of operations. Amortization expense was $7.2 million and $6.6 million in the first quarter of fiscal 2020 and 2019 , respectively. As of December 27, 2019 , estimated amortization expense in future fiscal periods was as follows (in thousands): Fiscal Year Amortization Expense (in thousands) Remainder of 2020 $ 22,346 2021 29,585 2022 27,580 2023 23,898 2024 22,273 Thereafter 50,299 Total $ 175,981 |
Stockholders' Equity And Stock-
Stockholders' Equity And Stock-Based Compensation | 3 Months Ended |
Dec. 27, 2019 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |
Stockholders' Equity And Stock-Based Compensation | . Stockholders' Equity & Stock-Based Compensation We provide stock-based awards as a form of compensation for employees, officers, and directors. We have issued stock-based awards in the form of stock options and restricted stock units ("RSUs") under our equity incentive plans, as well as shares under our ESPP. Common Stock - Class A and Class B Our Board of Directors has authorized two classes of common stock, Class A and Class B. At December 27, 2019 , we had authorized 500,000,000 Class A shares and 500,000,000 Class B shares. At December 27, 2019 , we had 64,649,011 shares of Class A common stock and 36,229,820 shares of Class B common stock issued and outstanding. Holders of our Class A and Class B common stock have identical rights, except that holders of our Class A common stock are entitled to one vote per share and holders of our Class B common stock are entitled to ten votes per share. Shares of Class B common stock can be converted to shares of Class A common stock at any time at the option of the stockholder and automatically convert upon sale or transfer, except for certain transfers specified in our amended and restated certificate of incorporation. Stock Incentive Plans 2005 Stock Plan. In January 2005, our stockholders approved our 2005 Stock Plan, which our Board of Directors adopted in November 2004. The 2005 Stock Plan became effective on February 16, 2005, the day prior to the completion of our initial public offering. Our 2005 Stock Plan, as amended and restated, provides for the ability to grant incentive stock options, non-qualified stock options, restricted stock, RSUs, stock appreciation rights, deferred stock units, performance units, performance bonus awards, and performance shares. A total of 46.0 million shares of our Class A common stock is authorized for issuance under the 2005 Stock Plan. For awards granted prior to February 2011, any shares subject to an award with a per share price less than the fair market value of our Class A common stock on the date of grant and any shares subject to an outstanding RSU award will be counted against the authorized share reserve as two shares for every one share subject to the award, and if returned to the 2005 Stock Plan, such shares will be counted as two shares for every one share returned. For those awards granted from February 2011 onward, any shares subject to an award with a per share price less than the fair market value of our Class A common stock on the date of grant and any shares subject to an outstanding RSU award will be counted against the authorized share reserve as 1.6 shares for every one share subject to the award, and if returned to the 2005 Stock Plan, such shares will be counted as 1.6 shares for every one share returned. Stock Options. Stock options are granted at fair market value on the date of grant. Options granted to employees and officers prior to June 2008 generally vested over four years , with equal annual cliff-vesting and expire on the earlier of ten years after the date of grant or three months after termination of service. Options granted to employees and officers from June 2008 onward generally vest over four years, with 25% of the shares subject to the option becoming exercisable on the one-year anniversary of the date of grant and the balance of the shares vesting in equal monthly installments over the following 36 months . These options expire on the earlier of ten years after the date of grant or three months after termination of service. All options granted vest over the requisite service period and upon the exercise of stock options, we issue new shares of Class A common stock under the 2005 Stock Plan. Our 2005 Stock Plan also allows us to grant stock awards which vest based on the satisfaction of specific performance criteria. Performance-Based Stock Options (PSOs). In fiscal 2016, we began granting PSOs to our executive officers with shares of our Class A common stock underlying such options. The contractual term for the PSOs is seven years , with vesting contingent upon market-based performance conditions, representing the achievement of specified Dolby annualized TSR targets at the end of a three -year measurement period following the date of grant. If the minimum conditions are met, the PSOs earned will cliff vest on the third anniversary of the grant date, upon certification of achievement of the performance conditions by our Compensation Committee. Anywhere from 0% to 125% of the shares subject to a PSO may vest based on achievement of the performance conditions at the end of the three-year performance period. In valuing the PSOs which will be recognized as compensation cost, we used a Monte Carlo valuation model. Aside from the use of an expected term for the PSOs commensurate with their shorter contractual term, the nature of the valuation inputs used in the Monte Carlo valuation model were consistent with those used to value our non-performance based options granted under the 2005 Stock Plan. Compensation cost is being amortized on a straight-line basis over the requisite service period. On December 15, 2018, we granted PSOs to our executive officers exercisable for an aggregate of 241,100 shares at the target award amount, which would be exercisable up to an aggregate of 301,375 shares at 125% of the target award amount. On December 15, 2017, we granted PSOs to our executive officers exercisable for an aggregate of 264,000 shares at the target award amount, which would be exercisable up to an aggregate of 330,000 shares at 125% of the target award amount. On December 15, 2016, we granted PSOs to our executive officers exercisable for an aggregate of 276,199 shares at the target award amount, which vested in December 2019 at 95% of the target award amount, for an aggregate of 240,539 . On December 15, 2015, we granted PSOs to our executive officers, which vested in December 2018 at 125% of the target award amount, for an aggregate of 334,623 shares. As of December 27, 2019 , PSOs which would be exercisable for an aggregate of 745,639 shares at the target award amount ( 1,169,120 at 125% of the target award amount) were outstanding. Performance-Based Restricted Stock Units (PSUs). In the first quarter of fiscal 2020, we began granting PSUs to our executive officers with shares of our Class A common stock underlying such awards. The terms of the PSU Agreement adopted in the first quarter fiscal 2020 provide for the grant of performance-based restricted stock units to our executive officers contingent on Dolby's achievement of annualized TSR targets measured against a comparator index over a three-year performance period following the date of grant. Anywhere from 0% to 200% of eligible restricted stock units may vest based on achievement of the performance conditions at the end of the three-year performance period. As of December 27, 2019 , PSUs which would vest for an aggregate of 62,000 shares at the target amount ( 124,000 at 200% of the target award amount) were outstanding. In valuing the PSUs which will be recognized as compensation cost, we used a Monte Carlo valuation model. Compensation cost is being amortized on a straight-line basis over the requisite service period. The following table summarizes information about all stock options issued under our 2005 Stock Plan: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (1) (in thousands) (in years) (in thousands) Options outstanding at September 27, 2019 7,201 $ 48.03 Grants 1,058 68.41 Exercises (441 ) 38.92 Forfeitures and cancellations (23 ) 60.18 Options outstanding at December 27, 2019 7,795 51.28 6.60 $ 132,844 Options vested and expected to vest at December 27, 2019 7,369 50.45 6.48 131,897 Options exercisable at December 27, 2019 4,633 $ 43.13 5.43 116,784 (1) Aggregate intrinsic value is based on the closing price of our Class A common stock on December 27, 2019 of $68.34 and excludes the impact of options that were not in-the-money. Restricted Stock Units. Beginning in fiscal 2008, we began granting RSUs to certain directors, officers, and employees under our 2005 Stock Plan. Awards granted to employees and officers generally vest over four years, with equal annual cliff-vesting. Awards granted to directors prior to November 2010 generally vested over three years, with equal annual cliff-vesting. Awards granted after November 2010 and prior to fiscal 2014 to new directors vested over approximately two years, with 50% vesting per year, while awards granted from November 2010 onward to ongoing directors generally vest over approximately one year. Awards granted to new directors from fiscal 2014 onward vest on the earlier of the first anniversary of the award’s date of grant, or the day immediately preceding the date of the next annual meeting of stockholders that occurs after the award’s date of grant. Our 2005 Stock Plan also allows us to grant RSUs that vest based on the satisfaction of specific performance criteria, although no such awards had been granted as of December 27, 2019 . At each vesting date, the holder of the award is issued shares of our Class A common stock. Compensation expense from these awards is equal to the fair market value of our Class A common stock on the date of grant and is recognized on a straight-line basis over the requisite service period. The following table summarizes information about RSUs issued under our 2005 Stock Plan: Shares Weighted-Average Grant Date Fair Value (in thousands) Non-vested at September 27, 2019 2,805 $ 58.84 Granted 1,214 66.28 Vested (897 ) 51.77 Forfeitures (43 ) 59.23 Non-vested at December 27, 2019 3,079 $ 62.39 Employee Stock Purchase Plan . Our plan allows eligible employees to have up to 10 percent of their eligible compensation withheld and used to purchase Class A common stock, subject to a maximum of $25,000 worth of stock purchased in a calendar year or no more than 1,000 shares in an offering period, whichever is less. An offering period consists of successive six -month purchase periods, with a look back feature to our stock price at the commencement of a one -year offering period. The plan provides for a discount equal to 15 percent of the lower of the closing price of our Class A common stock on the New York Stock Exchange on the first and last day of the offering periods. The plan also includes an automatic reset feature that provides for an offering period to be reset and recommenced to a new lower-priced offering if the offering price of a new offering period is less than that of the immediately preceding offering period. Stock Option Valuation Assumptions We use the Black-Scholes option pricing model to determine the estimated fair value of employee stock options at the date of the grant. The Black-Scholes model includes inputs that require us to make certain estimates and assumptions regarding the expected term of the award, as well as the future risk-free interest rate, and the volatility of our stock price over the expected term of the award. Expected Term. The expected term of an award represents the estimated period of time that options granted will remain outstanding, and is measured from the grant date to the date at which the option is either exercised or canceled. Our determination of the expected term involves an evaluation of historical terms and other factors such as the exercise and termination patterns of our employees who hold options to acquire our Class A common stock, and is based on certain assumptions made regarding the future exercise and termination behavior. Risk-Free Interest Rate. The risk-free interest rate is based on the yield curve of United States Treasury instruments in effect on the date of grant. In determining an estimate for the risk-free interest rate, we use average interest rates based on these instruments’ constant maturities with a term that approximates and corresponds with the expected term of our awards. Expected Stock Price Volatility. The expected volatility represents the estimated volatility in the price of our Class A common stock over a time period that approximates the expected term of the awards, and is determined using a blended combination of historical and implied volatility. Historical volatility is representative of the historical trends in our stock price for periods preceding the measurement date for a period that is commensurate with the expected term. Implied volatility is based upon externally traded option contracts of our Class A common stock. Dividend Yield. The dividend yield is based on our anticipated dividend payout over the expected term of our option awards. Dividend declarations and the establishment of future record and payment dates are subject to the Board of Directors’ continuing determination that the dividend policy is in the best interests of our stockholders. The dividend policy may be changed or canceled at the discretion of the Board of Directors at any time. The weighted-average assumptions used in the determination of the fair value of our stock options were as follows: Fiscal Quarter Ended December 27, December 28, Expected life (in years) 4.91 4.90 Risk-free interest rate 1.7 % 2.7 % Expected stock price volatility 23.9 % 22.9 % Dividend yield 1.3 % 1.1 % Stock-Based Compensation Expense Stock-based compensation expense for equity awards granted to employees is determined by estimating their fair value on the date of grant, and recognizing that value as an expense on a straight-line basis over the requisite service period in which our employees earn the awards. Compensation expense related to these equity awards is recognized net of estimated forfeitures, which reduce the expense recorded in the consolidated statements of operations. The selection of applicable estimated forfeiture rates is based on an evaluation of trends in our historical forfeiture data with consideration for other potential driving factors. If in subsequent periods actual forfeitures significantly differ from our initial estimates, we will revise such estimates accordingly. The following two tables separately present stock-based compensation expense both by award type and classification in our consolidated statements of operations (in thousands): Expense - By Award Type Fiscal Quarter Ended December 27, December 28, Compensation expense - by type Stock options $ 4,546 $ 5,022 Restricted stock units 16,967 15,375 Employee stock purchase plan 1,101 1,085 Total stock-based compensation 22,614 21,482 Benefit from income taxes (3,594 ) (3,760 ) Total stock-based compensation, net of tax $ 19,020 $ 17,722 Expense - By Income Statement Line Item Classification Fiscal Quarter Ended December 27, December 28, Compensation expense - by classification Cost of products and services $ 543 $ 488 Research and development 6,987 6,241 Sales and marketing 8,174 8,217 General and administrative 6,910 6,536 Total stock-based compensation expense 22,614 21,482 Benefit from income taxes (3,594 ) (3,760 ) Total stock-based compensation, net of tax $ 19,020 $ 17,722 The tax benefit that we recognize from shares issued under our ESPP is excluded from the tables above. This benefit was as follows (in thousands): Fiscal Quarter Ended December 27, December 28, Tax benefit - shares issued under ESPP $ 202 $ 142 Unrecognized Compensation Expense. At December 27, 2019 , total unrecorded compensation expense associated with employee stock options expected to vest was approximately $33.2 million , which is expected to be recognized over a weighted-average period of 2.7 years. At December 27, 2019 , total unrecorded compensation expense associated with RSUs expected to vest was approximately $156.8 million , which is expected to be recognized over a weighted-average period of 3.0 years. Common Stock Repurchase Program In November 2009, we announced a stock repurchase program ("program"), providing for the repurchase of up to $250.0 million of our Class A common stock. The following table summarizes the initial amount of authorized repurchases as well as additional repurchases approved by our Board of Directors as of December 27, 2019 (in thousands): Authorization Period Authorization Amount Fiscal 2010: November 2009 $ 250,000 Fiscal 2010: July 2010 300,000 Fiscal 2011: July 2011 250,000 Fiscal 2012: February 2012 100,000 Fiscal 2015: October 2014 200,000 Fiscal 2017: January 2017 200,000 Fiscal 2018: July 2018 350,000 Fiscal 2019: July 2019 350,000 Total $ 2,000,000 Stock repurchases under the program may be made through open market transactions, negotiated purchases, or otherwise, at times and in amounts that we consider appropriate. The timing of repurchases and the number of shares repurchased depend upon a variety of factors, including price, regulatory requirements, the rate of dilution from our equity compensation plans, and other market conditions. The program does not have a specified expiration date, and can be limited, suspended or terminated at our discretion at any time without prior notice. Shares repurchased under the program will be returned to the status of authorized but unissued shares of Class A common stock. As of December 27, 2019 , the remaining authorization to purchase additional shares is approximately $331 million . The following table provides information regarding share repurchase activity under the program during fiscal 2020 : Quarterly Repurchase Activity Shares Repurchased Cost in thousands (1) Average Price Paid Per Share (2) Q1 - Quarter ended December 27, 2019 432,042 $ 30,003 $ 69.44 Total 432,042 $ 30,003 (1) Cost of share repurchases includes the price paid per share and applicable commissions. (2) Average price paid per share excludes commission costs. Dividend Program The following table summarizes dividends declared under the program in relation to fiscal 2020 : Fiscal Period Announcement Date Record Date Payment Date Cash Dividend Per Common Share Dividend Payment Fiscal 2020 Q1 - Quarter ended December 27, 2019 January 29, 2020 February 10, 2020 February 20, 2020 $ 0.22 $22.2 million (1) (1) The amount of the dividend payment is estimated based on the number of shares of our Class A and Class B common stock that we estimate will be outstanding as of the Record Date. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Dec. 27, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Other comprehensive income consists of three components: unrealized gains or losses on our AFS marketable investment securities, gains and losses on derivatives in cash flow hedge relationships not yet recognized in earnings, and the gains and losses from the translation of assets and liabilities denominated in non-U.S. dollar functional currencies. Until realized and reported as a component of net income, these comprehensive income items accumulate and are included within accumulated other comprehensive income, a subsection within stockholders’ equity in our consolidated balance sheets. Unrealized gains and losses on our investment securities are reclassified from AOCI into earnings when realized upon sale and are determined based on specific identification of securities sold. Unrealized gains and losses on our cash flow hedges are reclassified from AOCI into earnings when the hedged operating expenses are recognized. The following table summarizes the changes in the accumulated balances during the period, and includes information regarding the manner in which the reclassifications out of AOCI into earnings affect our consolidated statements of operations (in thousands): Fiscal Quarter Ended Investment Securities Cash Flow Hedges Currency Translation Adjustments Total Beginning Balance $ 2,198 $ — $ (22,823 ) $ (20,625 ) Other comprehensive income before reclassifications: Unrealized gains/(losses) (2,209 ) 315 — (1,894 ) Foreign currency translation gains/(losses) (1) — — 3,403 3,403 Income tax effect - benefit/(expense) — (37 ) 40 3 Net of tax (2,209 ) 278 3,443 1,512 Amounts reclassified from AOCI into earnings: Realized gains/(losses) (1) 1,308 6 — 1,314 Income tax effect - benefit/(expense) (2) (261 ) — — (261 ) Net of tax 1,047 6 — 1,053 Net current-period other comprehensive income/(loss) (1,162 ) 284 3,443 2,565 Ending Balance $ 1,036 $ 284 $ (19,380 ) $ (18,060 ) Fiscal Quarter Ended Investment Securities Cash Flow Hedges Currency Translation Adjustments Total Beginning Balance $ (2,948 ) $ — $ (12,884 ) $ (15,832 ) Other comprehensive income before reclassifications: Unrealized gains/(losses) 931 — — 931 Foreign currency translation gains/(losses) (1) — — (3,577 ) (3,577 ) Income tax effect - benefit/(expense) — — — — Net of tax 931 — (3,577 ) (2,646 ) Amounts reclassified from AOCI into earnings: Realized gains/(losses) (1) (201 ) — — (201 ) Income tax effect - benefit/(expense) (2) 40 — — 40 Net of tax (161 ) — — (161 ) Net current-period other comprehensive income/(loss) 770 — (3,577 ) (2,807 ) Ending Balance $ (2,178 ) $ — $ (16,461 ) $ (18,639 ) (1) Realized gains or losses, if any, from the sale of our AFS investment securities or from foreign currency translation adjustments are included within other income/expense, net in our consolidated statements of operations. Realized gains or losses on cash flow hedges are included in operating expenses together with the hedged item. (2) The income tax benefit or expense is included within provision for income taxes in our consolidated statements of operations. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 28, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | . Earnings Per Share Basic EPS is computed by dividing net income attributable to Dolby Laboratories, Inc. by the number of weighted-average shares of Class A and Class B common stock outstanding during the period. Through application of the treasury stock method, diluted EPS is computed in the same manner, except that the number of weighted-average shares outstanding is increased by the number of potentially dilutive shares from employee incentive plans during the period. Basic and diluted EPS are computed independently for each fiscal quarter and year-to-date period, which involves the use of different weighted-average share count figures relating to quarterly and annual periods. As a result, and after factoring the effect of rounding to the nearest cent per share, the sum of all four quarter-to-date EPS figures may not equal year-to-date EPS. Potentially dilutive shares represent the hypothetical number of incremental shares issuable under the assumed exercise of outstanding stock options (both vested and non-vested) and vesting of outstanding RSUs. The calculation of dilutive shares outstanding excludes out-of-the-money stock options. The following table sets forth the computation of basic and diluted EPS attributable to Dolby Laboratories, Inc. (in thousands, except per share amounts): Fiscal Quarter Ended December 27, December 28, Numerator: Net income attributable to Dolby Laboratories, Inc. $ 48,753 $ 98,219 Denominator: Weighted-average shares outstanding—basic 100,336 102,677 Potential common shares from options to purchase common stock 1,711 2,251 Potential common shares from restricted stock units 1,020 1,202 Potential common shares from ESPP 11 — Weighted-average shares outstanding—diluted 103,078 106,130 Net income per share attributable to Dolby Laboratories, Inc.: Basic $ 0.49 $ 0.96 Diluted $ 0.47 $ 0.93 Antidilutive awards excluded from calculation: Stock options 2,623 1,583 Restricted stock units 8 10 ESPP 3 — |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | . Income Taxes Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management's best assessment of estimated current and future taxes to be paid. We are subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax expense. Unrecognized Tax Benefit As of December 27, 2019 , the total amount of gross unrecognized tax benefits was $110.2 million , of which $74.5 million , if recognized, would reduce our effective tax rate. As of September 27, 2019 , the total amount of gross unrecognized tax benefits was $108.5 million , of which $72.8 million , if recognized, would reduce our effective tax rate. Our net liability for unrecognized tax benefits is classified within other non-current liabilities in our consolidated balance sheets. Effective Tax Rate Each period, a combination of different factors can impact our effective tax rate. These factors include both recurring items such as tax rates and the relative amount of income earned in foreign jurisdictions, as well as discrete items such as changes to our uncertain tax positions, that may occur in, but are not necessarily consistent between periods. Our effective tax rate in the first quarter of fiscal 2020 was 10.8% or a tax expense of $5.9 million , compared to our Federal statutory rate of 21% . The decrease from the Federal statutory rate was primarily due to tax benefits relating to stock-based compensation. Compared to our effective tax rate in the first quarter of fiscal 2019 of (32.5)% or a tax benefit of $24.1 million , the increase in our tax expense was primarily due to a benefit in fiscal 2019 related to a reduction to our provisional Tax Act amount which did not recur in fiscal 2020. |
Restructuring
Restructuring | 3 Months Ended |
Dec. 27, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring | Restructuring Restructuring charges recorded in our statements of operations represent costs associated with separate individual restructuring plans implemented in various fiscal periods. Costs arising from these actions, including fluctuations in related balances between fiscal periods, are based on the nature of activities under the various plans. Fiscal 2019 Restructuring Events. In fiscal 2019, we recorded charges as a result of our early exit of a leased facility. In addition, we recorded charges associated with a strategic reorganization of our marketing function that resulted in severance and other related benefits provided to the affected employees. As a result of these events, we recorded a total of $36.6 million in restructuring costs in fiscal 2019 and they are reflected as such in the accompanying consolidated statement of operations. The table presented below summarizes changes in restructuring accruals under these plans (in thousands): Severance Leased facility exit costs Fixed assets write-off Other associated costs Total Balance at September 28, 2018 $ — $ — $ — $ 124 $ 124 Restructuring charges/(credits) 3,134 18,261 15,216 (53 ) 36,558 Cash payments (3,006 ) (4,577 ) — (130 ) (7,713 ) Non-cash and other adjustments — 2,039 (15,216 ) 59 (13,118 ) Balance at September 27, 2019 $ 128 $ 15,723 $ — $ — $ 15,851 Restructuring charges — 675 — — 675 Cash payments (72 ) (8,502 ) — — (8,574 ) Non-cash and other adjustments 158 24 — — 182 Balance at December 27, 2019 $ 214 $ 7,920 $ — $ — $ 8,134 Accruals for restructuring charges incurred for the restructuring plans described above are included within accrued liabilities in our consolidated balance sheets while restructuring charges/(credits) are included within restructuring charges/(credits) in our condensed consolidated statements of operations. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Dec. 27, 2019 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Legal Proceedings | . Legal Matters We are involved in various legal proceedings that occasionally arise in the normal course of business. These can include claims of alleged infringement of IP rights, commercial, employment, and other matters. In our opinion, resolution of these proceedings is not expected to have a material adverse impact on our operating results or financial condition. Given the unpredictable nature of legal proceedings, it is possible that an unfavorable resolution of one or more such proceedings could materially affect our future operating results or financial condition in a particular period, including as a result of required changes to our licensing terms, monetary penalties, and other potential consequences. However, based on the information known by us as of the date of this filing, any such amounts are either immaterial, or it is not feasible to provide an estimate of any such potential loss. and the rules and regulations applicable to the preparation of our consolidated financial statements, any such amounts are either immaterial, or it is not possible to provide an estimate of any such potential losses. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Dec. 27, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | . Commitments & Contingencies In the ordinary course of business, we enter into contractual agreements with third parties that include non-cancelable payment obligations, for which we are liable in future periods. These arrangements can include terms binding us to minimum payments and/or penalties if we terminate the agreement for any reason other than an event of default as described by the agreement. The following table presents a summary of our contractual obligations and commitments as of December 27, 2019 (in thousands): Payments Due By Fiscal Period Remainder of Fiscal 2020 Fiscal Fiscal Fiscal Fiscal Thereafter Total Naming rights $ 3,954 $ 8,008 $ 8,108 $ 8,209 $ 8,312 $ 70,344 $ 106,935 Purchase obligations 23,161 4,615 2,176 — — — 29,952 Donation commitments 4,077 141 141 141 141 1,059 5,700 Total $ 31,192 $ 12,764 $ 10,425 $ 8,350 $ 8,453 $ 71,403 $ 142,587 Naming Rights. We are party to an agreement for naming rights and related benefits with respect to the Dolby Theatre in Hollywood, California, the location of the Academy Awards®. The term of the agreement is 20 years, over which we will make payments on a semi-annual basis until fiscal 2032. Our payment obligations are conditioned in part on the Academy Awards being held and broadcast from the Dolby Theatre. Purchase Obligations. Purchase obligations primarily consist of our commitments made under agreements to purchase goods and services related to Dolby Cinema and for purposes that include IT and telecommunications, marketing and professional services, and manufacturing and other R&D activities. Donation Commitments. Our donation commitments relate to non-cancelable obligations to the Museum of the Academy of Motion Picture Arts and Sciences in Los Angeles, California, and the Smithsonian Institution in Washington, DC. Our commitment to the Museum of the Academy of Motion Picture Arts and Sciences is for 15 years from its expected opening date in fiscal 2020 , and the Smithsonian Institution is for the next 5 years. Both donation commitments consist of the installation of imaging and audio products in its theaters and providing maintenance services in exchange for various marketing, branding, and publicity benefits. Indemnification Clauses. On a limited basis, our contractual agreements contain a clause under which we agree to provide indemnification to the counterparty, most commonly to licensees in connection with licensing arrangements that include our IP. We have also entered into indemnification agreements with our officers, directors, and certain employees, and our certificate of incorporation and bylaws contain similar indemnification obligations. Additionally, and although not a contractual requirement, we have at times elected to defend our licensees from third party IP infringement claims. Since the terms and conditions of our contractual indemnification clauses do not explicitly specify our obligations, we are unable to reasonably estimate the maximum potential exposure for which we could be liable. Furthermore, we have not historically made any payments in connection with any such obligation and believe there to be a remote likelihood that any potential exposure in future periods would be of a material amount. As a result, no amounts have been accrued in our consolidated financial statements with respect to the contingent aspect of these indemnities. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 27, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;"> </font><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Subsequent Events</font><font style="font-family:Arial;font-size:10pt;font-weight:bold;"> </font></div></div> |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 3 Months Ended |
Dec. 27, 2019 | |
Accounting Policies [Abstract] | |
Principles Of Consolidation | Principles of Consolidation The unaudited interim condensed consolidated financial statements include the accounts of Dolby Laboratories, Inc. and our wholly owned subsidiaries. In addition, we have consolidated the financial results of jointly owned affiliated companies in which our principal stockholder has a controlling interest. We report these controlling interests as a separate line in our consolidated statements of operations as net income attributable to controlling interest and in our consolidated balance sheets as a controlling interest. We eliminate all intercompany accounts and transactions upon consolidation. |
Operating Segments | Operating Segments Since we operate as a single reporting segment, all required financial segment information is included in our unaudited interim condensed consolidated financial statements. This reflects the fact that our CODM, our Chief Executive Officer, evaluates our financial information and resources, and assesses the performance of these resources on a consolidated basis. |
Use of Estimates | Use of Estimates The preparation of our financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported and disclosed in our unaudited interim condensed consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include estimated shipments by our licensees for which we are owed a sales–based royalty, estimated selling prices for performance obligations within revenue arrangements; valuation allowances for accounts receivable; carrying values of inventories and certain property, plant, and equipment, goodwill and intangible assets; fair values of investments; accrued liabilities including liabilities for unrecognized tax benefits, deferred income tax assets and liabilities, and stock-based compensation. Actual results could differ from our estimates. |
Fiscal Year | Fiscal Year Our fiscal year is a 52 or 53 week period ending on the last Friday in September. The fiscal periods presented herein include the 13 week periods ended December 27, 2019 and December 28, 2018 . Our fiscal year ending September 25, 2020 (fiscal 2020 ) and our fiscal year ended September 27, 2019 (fiscal 2019 ) both consist of 52 weeks. |
Reclassifications | . Reclassifications We have reclassified certain prior period amounts within our consolidated financial statements and accompanying notes to conform to our current period presentation. These reclassifications did not affect total revenue, operating income, or net income. |
Recently Issued Accounting Policies | Recently Issued Accounting Standards Adopted Standards At the beginning of fiscal 2020, we adopted the following standards: Leases. In the first quarter of fiscal 2020, we adopted ASU 2016-02, Leases (ASC 842 ) along with all subsequent applicable ASU clarifications and improvements , which requires lessees to recognize leases on balance sheet and disclose key information about leasing arrangements. We adopted ASC 842 using the modified retrospective transition method and used the effective date as the date of initial application. Consequently, financial information is not updated and the disclosures required under ASC 842 are not provided for dates and periods prior to implementation. ASC 842 provides a number of optional practical expedients in transition. We elected the “package of practical expedients,” which permits us not to reassess under ASC 842 our prior conclusions about lease identification, lease classification and initial direct costs. In addition, we account for lease and non-lease components as a single lease component. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current and non-current operating lease liabilities, and non-current operating lease liabilities on our interim condensed consolidated balance sheets. As a lessee, the adoption of ASC 842 resulted in the recording of Operating lease right-of-use ("ROU") assets and Operating lease liabilities of $62.1 million and $64.6 million , respectively, as of September 28, 2019. The difference between the operating lease assets and liabilities was recorded as an adjustment to Other non-current liabilities, primarily related to deferred rent and other lease incentives. As a lessor, the adoption of ASC 842 did not have a material impact. The adoption of ASC 842 did not impact Retained Earnings. Income Taxes: Comprehensive Income. During the first quarter of fiscal 2020, we adopted ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. We elected to not reclassify the stranded tax effects to retained earnings as they were not material to Dolby's consolidated financial statements. Standards Not Yet Effective Collaborative Arrangements. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 , which clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, ASU 2018-18 precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. This standard will be effective for Dolby beginning September 26, 2020, and we do not currently plan to early adopt. We do not believe that this standard will have a material impact on our consolidated financial statements. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Dec. 27, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | . |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Dec. 27, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents a summary of the composition of our revenue for all periods presented: Fiscal Quarter Ended Revenue December 27, 2019 December 28, 2018 Licensing $ 257,683 88 % $ 260,279 86 % Products and services 34,194 12 % 42,097 14 % Total revenue $ 291,877 100 % $ 302,376 100 % The following table presents the composition of our licensing revenue for all periods presented: Fiscal Quarter Ended Market December 27, 2019 December 28, 2018 Broadcast $ 102,133 40 % $ 100,138 38 % Mobile 34,481 13 % 34,173 13 % CE 48,845 19 % 43,750 17 % PC 31,843 12 % 23,157 9 % Other 40,381 16 % 59,061 23 % Total licensing revenue $ 257,683 100 % $ 260,279 100 % We license our technologies in approximately 60 countries, and our licensees distribute products that incorporate our technologies throughout the world. As shown in the table below, we generate the majority of our revenue from outside the United States. Geographic data for our licensing revenue is based on the location of our licensees’ headquarters, products revenue is based on the destination to which we ship our products, and services revenue is based on the location where services are performed. Fiscal Quarter Ended Revenue By Geographic Location December 27, 2019 December 28, 2018 United States $ 107,627 37 % $ 119,799 40 % International 184,250 63 % 182,577 60 % Total revenue $ 291,877 100 % $ 302,376 100 % |
Contract with Customer, Asset and Liability | The following table presents a summary of the balances to which contract assets and liabilities related to revenue are recorded for all periods presented: December 27, 2019 September 27, 2019 Change ($) Change (%) Accounts receivable, net $ 191,001 $ 189,115 $ 1,886 1 % Contract assets 204,963 195,651 9,312 5 % Contract liabilities - current 19,785 19,991 (206 ) (1 )% Contract liabilities - non-current 23,917 24,404 (487 ) (2 )% |
Composition Of Certain Financ_2
Composition Of Certain Financial Statement Captions (Tables) | 3 Months Ended |
Dec. 27, 2019 | |
Composition Of Certain Financial Statement Captions [Abstract] | |
Schedule Of Accounts Receivable | Accounts Receivable December 27, September 27, Trade accounts receivable $ 148,625 $ 151,996 Accounts receivable from patent administration program licensees 51,274 46,894 Accounts receivable, gross 199,899 198,890 Less: allowance for doubtful accounts (8,898 ) (9,775 ) Total $ 191,001 $ 189,115 |
Schedule Of Inventories | Inventories December 27, September 27, Raw materials $ 6,933 $ 8,031 Work in process 4,432 4,872 Finished goods 17,739 19,428 Total $ 29,104 $ 32,331 |
Schedule Of Prepaid Expenses And Other Current Assets | Prepaid Expenses And Other Current Assets December 27, September 27, Prepaid expenses $ 28,774 $ 17,997 Other current assets 23,105 20,924 Income tax receivable 672 783 Total $ 52,551 $ 39,704 |
Schedule Of Accrued Liabilities | Accrued Liabilities December 27, September 27, Accrued royalties $ 3,107 $ 2,957 Amounts payable to patent administration program partners 58,015 58,899 Accrued compensation and benefits 60,698 78,716 Accrued professional fees 16,165 19,216 Unpaid PP&E additions 14,350 15,332 Accrued customer refunds 18,222 24,299 Other accrued liabilities 71,495 68,725 Total $ 242,052 $ 268,144 |
Schedule Of Other Non-Current Liabilities | Other Non-Current Liabilities December 27, September 27, Supplemental retirement plan obligations $ 3,649 $ 3,466 Non-current tax liabilities (1) 138,305 136,323 Other liabilities 37,268 37,673 Total $ 179,222 $ 177,462 |
Investments & Fair Value Meas_2
Investments & Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 27, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Schedule Of Financial Assets and Liabilities Carried At Fair Value | Our cash and investment portfolio consisted of the following (in thousands): December 27, 2019 Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 719,126 $ — $ — $ 719,126 $ 719,126 $ — $ — Cash equivalents: Money market funds 22,303 — — 22,303 22,303 — — Cash and cash equivalents 741,429 — — 741,429 741,429 — — Short-term investments: Certificate of deposit 4,730 — (2 ) 4,728 — 4,728 — U.S. agency securities 6,396 4 (1 ) 6,399 — 6,399 — Government bonds 44,911 15 — 44,926 41,658 3,268 — Commercial paper 15,884 4 (8 ) 15,880 — 15,880 — Corporate bonds 83,679 153 (22 ) 83,810 — 83,810 — Municipal debt securities 14,470 22 (1 ) 14,491 — 14,491 — Short-term investments 170,070 198 (34 ) 170,234 41,658 128,576 — Long-term investments: U.S. agency securities 8,704 132 (1 ) 8,835 — 8,835 — Government bonds 26,219 78 (20 ) 26,277 22,865 3,412 — Corporate bonds 91,812 759 (88 ) 92,483 — 92,483 — Municipal debt securities 12,532 99 (1 ) 12,630 — 12,630 — Other long-term investments (1) 1,495 — — 1,495 — — — Long-term investments 140,762 1,068 (110 ) 141,720 22,865 117,360 — Total cash, cash equivalents, and investments $ 1,052,261 $ 1,266 $ (144 ) $ 1,053,383 $ 805,952 $ 245,936 $ — Investments held in supplemental retirement plan: Assets 3,746 — — 3,746 3,746 — — Included in prepaid expenses and other current assets & other non-current assets Liabilities 3,746 — — 3,746 3,746 — — Included in accrued liabilities & other non-current liabilities Currency derivatives as hedge instruments: Assets — 426 — 426 — 426 — Included in other current assets Liabilities — — (62 ) (62 ) — (62 ) — Included in other accrued expenses (1) Other long-term investments as of December 27, 2019 include investments that are not carried at fair value including an equity method investment of $1.5 million September 27, 2019 Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 680,287 $ — $ — $ 680,287 $ 680,287 $ — $ — Cash equivalents: Corporate bonds 1,000 — — 1,000 — 1,000 — Money market funds 115,270 — — 115,270 115,270 — — Government bonds 653 — — 653 653 — — Cash and cash equivalents 797,210 — — 797,210 796,210 1,000 — Short-term investments: Certificate of deposit 1,265 1 — 1,266 — 1,266 — U.S. agency securities 10,973 8 (9 ) 10,972 — 10,972 — Government bonds 8,381 11 (1 ) 8,391 5,784 2,607 — Commercial paper 6,347 9 — 6,356 — 6,356 — Corporate bonds 76,802 172 (34 ) 76,940 — 76,940 — Municipal debt securities 15,210 18 (7 ) 15,221 — 15,221 — Short-term investments 118,978 219 (51 ) 119,146 5,784 113,362 — Long-term investments: Asset backed securities 400 2 — 402 — 402 — U.S. agency securities 7,102 146 — 7,248 — 7,248 — Government bonds 23,563 187 — 23,750 19,670 4,080 — Corporate bonds 134,360 1,700 — 136,060 — 136,060 — Municipal debt securities 10,315 87 (6 ) 10,396 — 10,396 — Other long-term investments (1) 1,731 — — 1,731 — — — Long-term investments 177,471 2,122 (6 ) 179,587 19,670 158,186 — Total cash, cash equivalents, and investments $ 1,093,659 $ 2,341 $ (57 ) $ 1,095,943 $ 821,664 $ 272,548 $ — Investments held in supplemental retirement plan: Assets 3,564 — — 3,564 3,564 — — Included in prepaid expenses and other current assets & other non-current assets Liabilities 3,564 — — 3,564 3,564 — — Included in accrued liabilities & other non-current liabilities Currency derivatives as hedge instruments: Assets — — — — — — — Included in other current assets Liabilities — — (242 ) (242 ) — (242 ) — Included in other accrued expenses (1) Other long-term investments as of September 27, 2019 include an investment that is not carried at fair value including an equity method investment of $1.7 million . |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table presents the gross unrealized losses and fair value for those AFS securities that were in an unrealized loss position for less than twelve months and for twelve months or greater as of December 27, 2019 and September 27, 2019 (in thousands): December 27, 2019 September 27, 2019 Less Than 12 Months 12 Months Or Greater Less Than 12 Months 12 Months Or Greater Investment Type Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Certificate of deposit $ 4,298 $ (2 ) $ — $ — $ 300 $ — $ — $ — U.S. agency securities 333 — 4,797 (1 ) — — 4,787 (9 ) Government bonds 38,385 (21 ) — — 1,426 — — — Commercial paper 11,787 (9 ) — — — — — — Corporate bonds 36,756 (100 ) 11,374 (10 ) 7,647 (3 ) 27,078 (32 ) Municipal debt securities 3,968 (2 ) — — 9,552 (13 ) 900 — Total $ 95,527 $ (134 ) $ 16,171 $ (11 ) $ 18,925 $ (16 ) $ 32,765 $ (41 ) |
Available-for-sale Securities | The following table summarizes the amortized cost and estimated fair value of the AFS securities within our investment portfolio based on stated maturities as of December 27, 2019 and September 27, 2019 , which are recorded within cash equivalents and both short and long-term investments in our consolidated balance sheets (in thousands): December 27, 2019 September 27, 2019 Range of maturity Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ 192,373 $ 192,537 $ 238,186 $ 238,354 Due in 1 to 2 years 57,931 58,481 93,948 94,899 Due in 2 to 3 years 81,337 81,744 81,793 82,957 Total $ 331,641 $ 332,762 $ 413,927 $ 416,210 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Dec. 27, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant, and equipment are recorded at cost, with depreciation expense included in cost of licensing, cost of products and services, R&D, S&M, and G&A expenses in our consolidated statements of operations. PP&E consist of the following (in thousands): December 27, September 27, Land $ 41,980 $ 41,918 Buildings and building improvements 283,462 282,924 Leasehold improvements 67,253 66,730 Machinery and equipment 127,183 128,525 Computer equipment and software 219,773 219,455 Furniture and fixtures 31,571 34,191 Equipment provided under operating leases 174,155 161,372 Construction-in-progress 32,251 19,616 Property, plant, and equipment, gross 977,628 954,731 Less: accumulated depreciation (428,133 ) (417,299 ) Property, plant, & equipment, net $ 549,495 $ 537,432 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 27, 2019 | |
Leases [Abstract] | |
Lease Cost Components, Supplemental Cash Flow Information and Supplemental Balance Sheet Information Schedules | The components of lease expense were as follows (in thousands): Fiscal Quarter Ended December 27, 2019 Lease cost Operating lease cost 5,356 Variable lease cost 394 Total lease cost 5,750 Supplemental balance sheet information related to leases was as follows: December 27, 2019 Weighted-average remaining lease term Operating leases 7.3 years Weighted-average discount rate Operating leases 3.4 % Supplemental cash flow information related to leases was as follows (in thousands): Fiscal Quarter Ended December 27, 2019 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 5,241 Right-of-use assets obtained in exchange for lease obligations: Operating lease liabilities 12,816 |
Maturities of Lessee Lease Liabilities after Adoption of 842 Schedule | The following table presents the maturity analysis of lease liabilities (in thousands): December 27, 2019 September 27, 2019 Operating Leases Operating Leases Remainder of Fiscal 2020 15,386 17,231 Fiscal 2021 13,643 9,329 Fiscal 2022 11,336 7,191 Fiscal 2023 9,375 6,218 Fiscal 2024 6,703 4,499 Thereafter 29,320 12,355 Total undiscounted lease payments 85,763 56,823 Less: imputed interest (12,174 ) Total lease liabilities 73,589 |
Maturities of Lessee Lease Liabilities before Adoption of 842 Schedule | The following table presents the maturity analysis of lease liabilities (in thousands): December 27, 2019 September 27, 2019 Operating Leases Operating Leases Remainder of Fiscal 2020 15,386 17,231 Fiscal 2021 13,643 9,329 Fiscal 2022 11,336 7,191 Fiscal 2023 9,375 6,218 Fiscal 2024 6,703 4,499 Thereafter 29,320 12,355 Total undiscounted lease payments 85,763 56,823 Less: imputed interest (12,174 ) Total lease liabilities 73,589 |
Maturities of Lessor Operating Lease Payments Schedule | The following table presents the maturity analysis of lease payments due to Dolby (in thousands): December 27, 2019 Operating Leases Sales-Type Leases Remainder of Fiscal 2020 1,669 4,059 Fiscal 2021 2,227 1,595 Fiscal 2022 2,227 1,595 Fiscal 2023 2,153 1,595 Fiscal 2024 1,107 795 Thereafter — 790 Total undiscounted cash flows 9,383 10,429 Less: present value of lease payments (recognized as lease receivables) (8,095 ) Difference 2,334 |
Maturities of Lessor Sales-Type Lease Payments Schedule | The following table presents the maturity analysis of lease payments due to Dolby (in thousands): December 27, 2019 Operating Leases Sales-Type Leases Remainder of Fiscal 2020 1,669 4,059 Fiscal 2021 2,227 1,595 Fiscal 2022 2,227 1,595 Fiscal 2023 2,153 1,595 Fiscal 2024 1,107 795 Thereafter — 790 Total undiscounted cash flows 9,383 10,429 Less: present value of lease payments (recognized as lease receivables) (8,095 ) Difference 2,334 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Dec. 27, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table outlines changes to the carrying amount of goodwill (in thousands): Goodwill Balance at September 27, 2019 $ 334,829 Acquired goodwill — Translation adjustments 614 Balance at December 27, 2019 $ 335,443 |
Schedule of Finite-Lived Intangible Assets | Intangible assets subject to amortization consist of the following (in thousands): December 27, 2019 September 27, 2019 Intangible Assets Cost Accumulated Amortization Net Cost Accumulated Amortization Net Acquired patents and technology $ 340,519 $ (183,283 ) $ 157,236 $ 338,075 $ (176,867 ) $ 161,208 Customer relationships 64,718 (46,417 ) 18,301 64,728 (45,510 ) 19,218 Other intangibles 22,942 (22,498 ) 444 22,902 (22,437 ) 465 Total $ 428,179 $ (252,198 ) $ 175,981 $ 425,705 $ (244,814 ) $ 180,891 With regard to our purchase of intangible assets during the periods presented, the following table summarizes the consideration paid, the weighted-average useful lives over which the acquired assets will be amortized using the greater of either the straight-line basis or a ratio-to-revenue method, and the classification of their amortized expense in our consolidated statements of operations: Fiscal Period Total Purchase Consideration (1) Weighted-Average Useful Life (in millions) (in years) Fiscal 2019 Q1 - Quarter ended December 28, 2018 $12.1 11.6 Fiscal 2020 Q1 - Quarter ended December 27, 2019 $2.9 14.0 (1) Amortization expense on the intangible assets from patent portfolio and business acquisitions is included within cost of revenue, R&D, and G&A in our consolidated statements of operations. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 27, 2019 , estimated amortization expense in future fiscal periods was as follows (in thousands): Fiscal Year Amortization Expense (in thousands) Remainder of 2020 $ 22,346 2021 29,585 2022 27,580 2023 23,898 2024 22,273 Thereafter 50,299 Total $ 175,981 |
Stockholders' Equity And Stoc_2
Stockholders' Equity And Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 27, 2019 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |
Summary Of Stock Options Issued To Officers, Directors, And Employees Under 2000 Stock Incentive Plan And 2005 Stock Plan | The following table summarizes information about all stock options issued under our 2005 Stock Plan: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (1) (in thousands) (in years) (in thousands) Options outstanding at September 27, 2019 7,201 $ 48.03 Grants 1,058 68.41 Exercises (441 ) 38.92 Forfeitures and cancellations (23 ) 60.18 Options outstanding at December 27, 2019 7,795 51.28 6.60 $ 132,844 Options vested and expected to vest at December 27, 2019 7,369 50.45 6.48 131,897 Options exercisable at December 27, 2019 4,633 $ 43.13 5.43 116,784 (1) Aggregate intrinsic value is based on the closing price of our Class A common stock on December 27, 2019 of $68.34 and excludes the impact of options that were not in-the-money. |
Summary Of Restricted Stock Units Issued To Officers, Directors And Employees Under 2005 Stock Incentive Plan | The following table summarizes information about RSUs issued under our 2005 Stock Plan: Shares Weighted-Average Grant Date Fair Value (in thousands) Non-vested at September 27, 2019 2,805 $ 58.84 Granted 1,214 66.28 Vested (897 ) 51.77 Forfeitures (43 ) 59.23 Non-vested at December 27, 2019 3,079 $ 62.39 |
Schedule Of Fair Value Of Stock-Based Awards Estimated Using Weighted-Average Assumptions | The weighted-average assumptions used in the determination of the fair value of our stock options were as follows: Fiscal Quarter Ended December 27, December 28, Expected life (in years) 4.91 4.90 Risk-free interest rate 1.7 % 2.7 % Expected stock price volatility 23.9 % 22.9 % Dividend yield 1.3 % 1.1 % |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following two tables separately present stock-based compensation expense both by award type and classification in our consolidated statements of operations (in thousands): Expense - By Award Type Fiscal Quarter Ended December 27, December 28, Compensation expense - by type Stock options $ 4,546 $ 5,022 Restricted stock units 16,967 15,375 Employee stock purchase plan 1,101 1,085 Total stock-based compensation 22,614 21,482 Benefit from income taxes (3,594 ) (3,760 ) Total stock-based compensation, net of tax $ 19,020 $ 17,722 Expense - By Income Statement Line Item Classification Fiscal Quarter Ended December 27, December 28, Compensation expense - by classification Cost of products and services $ 543 $ 488 Research and development 6,987 6,241 Sales and marketing 8,174 8,217 General and administrative 6,910 6,536 Total stock-based compensation expense 22,614 21,482 Benefit from income taxes (3,594 ) (3,760 ) Total stock-based compensation, net of tax $ 19,020 $ 17,722 |
Schedule of Tax Benefit from Exercise of Options | This benefit was as follows (in thousands): Fiscal Quarter Ended December 27, December 28, Tax benefit - shares issued under ESPP $ 202 $ 142 |
Schedule of Stock Repurchase Authorizations | The following table summarizes the initial amount of authorized repurchases as well as additional repurchases approved by our Board of Directors as of December 27, 2019 (in thousands): Authorization Period Authorization Amount Fiscal 2010: November 2009 $ 250,000 Fiscal 2010: July 2010 300,000 Fiscal 2011: July 2011 250,000 Fiscal 2012: February 2012 100,000 Fiscal 2015: October 2014 200,000 Fiscal 2017: January 2017 200,000 Fiscal 2018: July 2018 350,000 Fiscal 2019: July 2019 350,000 Total $ 2,000,000 |
Schedule of Stock Repurchase Activity | The following table provides information regarding share repurchase activity under the program during fiscal 2020 : Quarterly Repurchase Activity Shares Repurchased Cost in thousands (1) Average Price Paid Per Share (2) Q1 - Quarter ended December 27, 2019 432,042 $ 30,003 $ 69.44 Total 432,042 $ 30,003 (1) Cost of share repurchases includes the price paid per share and applicable commissions. (2) Average price paid per share excludes commission costs. |
Dividends Declared | The following table summarizes dividends declared under the program in relation to fiscal 2020 : Fiscal Period Announcement Date Record Date Payment Date Cash Dividend Per Common Share Dividend Payment Fiscal 2020 Q1 - Quarter ended December 27, 2019 January 29, 2020 February 10, 2020 February 20, 2020 $ 0.22 $22.2 million (1) (1) The amount of the dividend payment is estimated based on the number of shares of our Class A and Class B common stock that we estimate will be outstanding as of the Record Date. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Dec. 27, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in the accumulated balances during the period, and includes information regarding the manner in which the reclassifications out of AOCI into earnings affect our consolidated statements of operations (in thousands): Fiscal Quarter Ended Investment Securities Cash Flow Hedges Currency Translation Adjustments Total Beginning Balance $ 2,198 $ — $ (22,823 ) $ (20,625 ) Other comprehensive income before reclassifications: Unrealized gains/(losses) (2,209 ) 315 — (1,894 ) Foreign currency translation gains/(losses) (1) — — 3,403 3,403 Income tax effect - benefit/(expense) — (37 ) 40 3 Net of tax (2,209 ) 278 3,443 1,512 Amounts reclassified from AOCI into earnings: Realized gains/(losses) (1) 1,308 6 — 1,314 Income tax effect - benefit/(expense) (2) (261 ) — — (261 ) Net of tax 1,047 6 — 1,053 Net current-period other comprehensive income/(loss) (1,162 ) 284 3,443 2,565 Ending Balance $ 1,036 $ 284 $ (19,380 ) $ (18,060 ) Fiscal Quarter Ended Investment Securities Cash Flow Hedges Currency Translation Adjustments Total Beginning Balance $ (2,948 ) $ — $ (12,884 ) $ (15,832 ) Other comprehensive income before reclassifications: Unrealized gains/(losses) 931 — — 931 Foreign currency translation gains/(losses) (1) — — (3,577 ) (3,577 ) Income tax effect - benefit/(expense) — — — — Net of tax 931 — (3,577 ) (2,646 ) Amounts reclassified from AOCI into earnings: Realized gains/(losses) (1) (201 ) — — (201 ) Income tax effect - benefit/(expense) (2) 40 — — 40 Net of tax (161 ) — — (161 ) Net current-period other comprehensive income/(loss) 770 — (3,577 ) (2,807 ) Ending Balance $ (2,178 ) $ — $ (16,461 ) $ (18,639 ) (1) Realized gains or losses, if any, from the sale of our AFS investment securities or from foreign currency translation adjustments are included within other income/expense, net in our consolidated statements of operations. Realized gains or losses on cash flow hedges are included in operating expenses together with the hedged item. (2) The income tax benefit or expense is included within provision for income taxes in our consolidated statements of operations. |
Per Share Data (Tables)
Per Share Data (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted EPS attributable to Dolby Laboratories, Inc. (in thousands, except per share amounts): Fiscal Quarter Ended December 27, December 28, Numerator: Net income attributable to Dolby Laboratories, Inc. $ 48,753 $ 98,219 Denominator: Weighted-average shares outstanding—basic 100,336 102,677 Potential common shares from options to purchase common stock 1,711 2,251 Potential common shares from restricted stock units 1,020 1,202 Potential common shares from ESPP 11 — Weighted-average shares outstanding—diluted 103,078 106,130 Net income per share attributable to Dolby Laboratories, Inc.: Basic $ 0.49 $ 0.96 Diluted $ 0.47 $ 0.93 Antidilutive awards excluded from calculation: Stock options 2,623 1,583 Restricted stock units 8 10 ESPP 3 — |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Dec. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Withholding Taxes |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Dec. 27, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Costs | Severance Leased facility exit costs Fixed assets write-off Other associated costs Total Balance at September 28, 2018 $ — $ — $ — $ 124 $ 124 Restructuring charges/(credits) 3,134 18,261 15,216 (53 ) 36,558 Cash payments (3,006 ) (4,577 ) — (130 ) (7,713 ) Non-cash and other adjustments — 2,039 (15,216 ) 59 (13,118 ) Balance at September 27, 2019 $ 128 $ 15,723 $ — $ — $ 15,851 Restructuring charges — 675 — — 675 Cash payments (72 ) (8,502 ) — — (8,574 ) Non-cash and other adjustments 158 24 — — 182 Balance at December 27, 2019 $ 214 $ 7,920 $ — $ — $ 8,134 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 3 Months Ended |
Dec. 27, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Contractual Obligations And Commitments | The following table presents a summary of our contractual obligations and commitments as of December 27, 2019 (in thousands): Payments Due By Fiscal Period Remainder of Fiscal 2020 Fiscal Fiscal Fiscal Fiscal Thereafter Total Naming rights $ 3,954 $ 8,008 $ 8,108 $ 8,209 $ 8,312 $ 70,344 $ 106,935 Purchase obligations 23,161 4,615 2,176 — — — 29,952 Donation commitments 4,077 141 141 141 141 1,059 5,700 Total $ 31,192 $ 12,764 $ 10,425 $ 8,350 $ 8,453 $ 71,403 $ 142,587 |
Basis Of Presentation (Details)
Basis Of Presentation (Details) | 3 Months Ended |
Dec. 27, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of weeks in fiscal year | 13 years |
Number of Operating Segments | 1 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Dec. 27, 2019 | Dec. 28, 2018 | Sep. 28, 2019 | Sep. 27, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets | $ 71,071 | $ 62,100 | ||
Total lease liabilities | 73,589 | $ 64,600 | ||
Revenues | 291,877 | $ 302,376 | ||
Gross margin | 254,562 | 263,747 | ||
(Provision for)/benefit from income taxes | (5,863) | 24,104 | ||
Net income (loss) attributable to Dolby Laboratories, Inc. | $ 48,753 | $ 98,219 | ||
Diluted (in usd per share) | $ 0.47 | $ 0.93 | ||
Accounts receivable, net | $ 191,001 | $ 189,115 | ||
Contract assets | 204,963 | 195,651 | ||
Prepaid expenses and other current assets | 52,551 | 39,704 | ||
Deferred taxes | 123,284 | 114,075 | ||
Other non-current assets | 95,282 | 93,395 | ||
Accrued liabilities | 242,052 | 268,144 | ||
Contract liabilities | 19,785 | 19,991 | ||
Non-current contract liabilities | 23,917 | 24,404 | ||
Other non-current liabilities | 179,222 | 177,462 | ||
Retained earnings | 2,351,251 | $ 2,327,877 | ||
Net income | 48,591 | $ 98,358 | ||
Deferred income taxes | (9,174) | (32,571) | ||
Accounts receivable | (2,331) | 17,736 | ||
Contract assets | (9,310) | (33,519) | ||
Prepaid expenses and other assets | (13,245) | (13,157) | ||
Accounts payable and other liabilities | (30,785) | (26,332) | ||
Contract liabilities | (724) | (678) | ||
Net cash provided by operating activities | $ 31,159 | $ 56,952 |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligation) (Details) $ in Millions | 3 Months Ended |
Dec. 27, 2019USD ($)country | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation, description of timing | one year or less |
Remaining performance obligation | $ | $ 41.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Countries technologies are licensed in | country | 60 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 1 year |
Remaining performance obligation, percent | 36.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 1 year |
Remaining performance obligation, percent | 24.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 1 year |
Remaining performance obligation, percent | 40.00% |
Revenue Recognition Narrative (
Revenue Recognition Narrative (Details) $ in Millions | 3 Months Ended |
Dec. 27, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue adjustment | $ 9 |
Revenue recognized | $ 6.8 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Revenue from External Customer [Line Items] | ||
Revenue from contract with customer | $ 291,877 | $ 302,376 |
Revenue from contract with customer, percent | 100.00% | 100.00% |
United States | ||
Revenue from External Customer [Line Items] | ||
Revenue from contract with customer | $ 107,627 | $ 119,799 |
Revenue from contract with customer, percent | 37.00% | 40.00% |
International | ||
Revenue from External Customer [Line Items] | ||
Revenue from contract with customer | $ 184,250 | $ 182,577 |
Revenue from contract with customer, percent | 63.00% | 60.00% |
Licensing | ||
Revenue from External Customer [Line Items] | ||
Revenue from contract with customer | $ 257,683 | $ 260,279 |
Revenue from contract with customer, licensing percent | 100.00% | 100.00% |
Revenue from contract with customer, percent | 88.00% | 86.00% |
Products and services | ||
Revenue from External Customer [Line Items] | ||
Revenue from contract with customer | $ 34,194 | $ 42,097 |
Revenue from contract with customer, percent | 12.00% | 14.00% |
Broadcast | ||
Revenue from External Customer [Line Items] | ||
Revenue from contract with customer | $ 102,133 | $ 100,138 |
Revenue from contract with customer, licensing percent | 40.00% | 38.00% |
PC | ||
Revenue from External Customer [Line Items] | ||
Revenue from contract with customer | $ 31,843 | $ 23,157 |
Revenue from contract with customer, licensing percent | 12.00% | 9.00% |
Mobile | ||
Revenue from External Customer [Line Items] | ||
Revenue from contract with customer | $ 34,481 | $ 34,173 |
Revenue from contract with customer, licensing percent | 13.00% | 13.00% |
CE | ||
Revenue from External Customer [Line Items] | ||
Revenue from contract with customer | $ 48,845 | $ 43,750 |
Revenue from contract with customer, licensing percent | 19.00% | 17.00% |
Other | ||
Revenue from External Customer [Line Items] | ||
Revenue from contract with customer | $ 40,381 | $ 59,061 |
Revenue from contract with customer, licensing percent | 16.00% | 23.00% |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 27, 2019 | Sep. 27, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Accounts Receivable, Net, Current | $ 191,001 | $ 189,115 |
Contract assets | 204,963 | 195,651 |
Other non-current assets | 95,282 | 93,395 |
Contract liabilities | 19,785 | 19,991 |
Non-current contract liabilities | 23,917 | 24,404 |
Other non-current liabilities | 179,222 | $ 177,462 |
Change ($) | ||
Accounts receivable, net | 1,886 | |
Contract assets | 9,312 | |
Contract liabilities - current | (206) | |
Contract liabilities - non-current | $ (487) | |
Change (%) | ||
Accounts receivable, net | 1.00% | |
Contract assets | 5.00% | |
Contract liabilities - current | (1.00%) | |
Contract liabilities - non-current | (2.00%) |
Composition Of Certain Financ_3
Composition Of Certain Financial Statement Captions (Schedule Of Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Sep. 27, 2019 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Trade accounts receivable | $ 148,625 | $ 151,996 |
Accounts receivable related to patent administration program | 51,274 | 46,894 |
Accounts receivable, gross | 199,899 | 198,890 |
Less: allowance for doubtful accounts | (8,898) | (9,775) |
Accounts receivable, net | $ 191,001 | $ 189,115 |
Composition Of Certain Financ_4
Composition Of Certain Financial Statement Captions (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Sep. 27, 2019 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Raw materials | $ 6,933 | $ 8,031 |
Work in process | 4,432 | 4,872 |
Finished goods | 17,739 | 19,428 |
Inventories | $ 29,104 | $ 32,331 |
Composition Of Certain Financ_5
Composition Of Certain Financial Statement Captions (Narrative) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Sep. 27, 2019 |
Composition Of Certain Financial Statement Captions [Line Items] | ||
Raw materials | $ 6,933 | $ 8,031 |
Other Noncurrent Assets [Member] | ||
Composition Of Certain Financial Statement Captions [Line Items] | ||
Raw materials | 3,300 | $ 3,000 |
Land and Building [Member] | Other Current Assets [Member] | ||
Composition Of Certain Financial Statement Captions [Line Items] | ||
Land and building held for sale | $ 2,200 |
Composition Of Certain Financ_6
Composition Of Certain Financial Statement Captions (Schedule Of Prepaid Expenses And Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Sep. 27, 2019 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Prepaid assets | $ 28,774 | $ 17,997 |
Other current assets | 23,105 | 20,924 |
Income tax receivable | 672 | 783 |
Prepaid expenses and other current assets | $ 52,551 | $ 39,704 |
Composition Of Certain Financ_7
Composition Of Certain Financial Statement Captions (Schedule Of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Sep. 27, 2019 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Accrued royalties | $ 3,107 | $ 2,957 |
Amounts payable to patent administration program partners | 58,015 | 58,899 |
Accrued compensation and benefits | 60,698 | 78,716 |
Accrued professional fees | 16,165 | 19,216 |
Capital expenditures incurred, but not yet paid | 14,350 | 15,332 |
Accrued customer refunds | 18,222 | 24,299 |
Other accrued liabilities | 71,495 | 68,725 |
Total | $ 242,052 | $ 268,144 |
Composition Of Certain Financ_8
Composition Of Certain Financial Statement Captions (Schedule Of Other Non-Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Sep. 27, 2019 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Supplemental retirement plan obligations | $ 3,649 | $ 3,466 |
Non-current tax liabilities | 138,305 | 136,323 |
Other liabilities | 37,268 | 37,673 |
Other non-current liabilities | $ 179,222 | $ 177,462 |
Investments & Fair Value Meas_3
Investments & Fair Value Measurements (Schedule Of Financial Assets and Liabilities Carried At Fair Value) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Sep. 27, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | $ 797,210 | ||
Cash Equivalents, at Carrying Value | $ 741,429 | ||
Cash and cash equivalents | 741,429 | 797,210 | |
Debt Securities, Available-for-sale, Unrealized Loss | 0 | $ 0 | |
Debt Securities, Available-for-sale, Amortized Cost | 331,641 | 413,927 | |
Debt Securities, Available-for-sale | 332,762 | 416,210 | |
Investment Owned, Unrecognized Unrealized Depreciation | (144) | (57) | |
Cash Cash Equivalents And Investments Total | 1,053,383 | 1,095,943 | |
Financial assets carried at fair value | 741,429 | 797,210 | |
Restricted Cash and Cash Equivalents | 11,726 | 8,383 | |
Long-term investments | 141,720 | 179,587 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 95,527 | 18,925 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (134) | (16) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 16,171 | 32,765 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (11) | (41) | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost | 192,373 | 238,186 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 192,537 | 238,354 | |
Available For Sale Securities Debt Maturities After One Through Two Years Amortized Cost | 57,931 | 93,948 | |
Available For Sale Securities Debt Maturities After One Through Two Years Fair Value | 58,481 | 94,899 | |
Available For Sale Securities Debt Maturities After Two Through Three Years Amortized Cost | 81,337 | 81,793 | |
Available For Sale Securities Debt Maturities After Two Through Three Years Fair Value | 81,744 | 82,957 | |
Investment Owned, at Cost | 1,052,261 | 1,093,659 | |
Investment Owned, Unrecognized Unrealized Appreciation | 1,266 | 2,341 | |
Available-for-sale Securities, Gross Unrealized Gain | 0 | ||
Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 741,429 | 796,210 | |
Financial assets carried at fair value | 805,952 | 821,664 | |
Derivative Asset | 0 | 0 | |
Derivative Liability | 0 | 0 | |
Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 1,000 | |
Financial assets carried at fair value | 245,936 | 272,548 | |
Derivative Asset | 426 | 0 | |
Derivative Liability | (62) | (242) | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative Asset | 0 | 0 | |
Derivative Liability | 0 | 0 | |
Cash [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 719,126 | 680,287 | |
Cash Equivalents, at Carrying Value | 719,126 | ||
Cash [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 719,126 | 680,287 | |
Money Market Funds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 22,303 | 115,270 | |
Cash Equivalents, at Carrying Value | 22,303 | ||
Money Market Funds [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 22,303 | 115,270 | |
Money Market Funds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 115,270 | ||
Certificates of Deposit [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 4,298 | 300 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2) | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | |
U.S. Agency Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 333 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 4,797 | 4,787 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | (9) | |
U.S. Agency Securities [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Noncurrent, Fair Value Disclosure | 0 | ||
US Government Agencies Short-term Debt Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Available-for-sale, Unrealized Loss | (1) | ||
Debt Securities, Available-for-sale | 6,399 | 10,972 | |
Debt Securities, Available-for-sale, Unrealized Gain | 4 | ||
US Government Agencies Short-term Debt Securities [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Fair Value Disclosure | 6,399 | ||
Government Bonds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 653 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 38,385 | 1,426 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (21) | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | |
Government Bonds [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 653 | ||
Government Bonds [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | ||
Commercial Paper [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | |
Investment Owned, at Cost | 11,787 | 0 | |
Investment Owned, Unrecognized Unrealized Appreciation | 9 | 0 | |
Corporate Debt Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 1,000 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 36,756 | 7,647 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (100) | (3) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 11,374 | 27,078 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (10) | (32) | |
Corporate Debt Securities [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 1,000 | ||
Municipal Bonds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2) | (13) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 900 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | |
Investment Owned, at Cost | 3,968 | 9,552 | |
Short-term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Available-for-sale, Unrealized Gain | 219 | ||
Other Long-term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Noncurrent, Fair Value Disclosure | 1,500 | 1,700 | |
Investments Held In Supplemental Retirement Plan [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Financial assets carried at fair value | 3,746 | 3,564 | |
Financial liabilities carried at fair value | 3,746 | 3,564 | |
Short-term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Available-for-sale, Unrealized Loss | (51) | ||
Debt Securities, Available-for-sale, Amortized Cost | 118,978 | ||
Debt Securities, Available-for-sale | 119,146 | ||
Short-term Investments [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Fair Value Disclosure | 41,658 | 5,784 | |
Short-term Investments [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Fair Value Disclosure | 128,576 | 113,362 | |
Short-term Investments [Member] | Certificates of Deposit [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Available-for-sale, Unrealized Loss | (2) | 0 | |
Debt Securities, Available-for-sale, Amortized Cost | 4,730 | 1,265 | |
Debt Securities, Available-for-sale | 4,728 | ||
Debt Securities, Available-for-sale, Unrealized Gain | 0 | 1 | |
Available-for-sale Securities | 1,266 | ||
Short-term Investments [Member] | Certificates of Deposit [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Fair Value Disclosure | 4,728 | 1,266 | |
Short-term Investments [Member] | U.S. Agency Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Available-for-sale, Amortized Cost | 10,973 | ||
Short-term Investments [Member] | US Government Agencies Short-term Debt Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Available-for-sale, Unrealized Loss | (9) | ||
Debt Securities, Available-for-sale, Amortized Cost | 6,396 | ||
Debt Securities, Available-for-sale, Unrealized Gain | 8 | ||
Short-term Investments [Member] | US Government Agencies Short-term Debt Securities [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Fair Value Disclosure | 10,972 | ||
Short-term Investments [Member] | Government Bonds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Available-for-sale, Unrealized Loss | 0 | (1) | |
Debt Securities, Available-for-sale, Amortized Cost | 44,911 | 8,381 | |
Debt Securities, Available-for-sale | 44,926 | 8,391 | |
Debt Securities, Available-for-sale, Unrealized Gain | 15 | 11 | |
Short-term Investments [Member] | Government Bonds [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Fair Value Disclosure | 41,658 | 5,784 | |
Short-term Investments [Member] | Government Bonds [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Fair Value Disclosure | 3,268 | 2,607 | |
Short-term Investments [Member] | Commercial Paper [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Available-for-sale, Unrealized Loss | (8) | 0 | |
Debt Securities, Available-for-sale, Amortized Cost | 15,884 | 6,347 | |
Debt Securities, Available-for-sale | 15,880 | 6,356 | |
Debt Securities, Available-for-sale, Unrealized Gain | 4 | 9 | |
Short-term Investments [Member] | Commercial Paper [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Fair Value Disclosure | 15,880 | 6,356 | |
Short-term Investments [Member] | Corporate Debt Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Available-for-sale, Unrealized Loss | (22) | (34) | |
Debt Securities, Available-for-sale, Amortized Cost | 83,679 | 76,802 | |
Debt Securities, Available-for-sale | 83,810 | 76,940 | |
Debt Securities, Available-for-sale, Unrealized Gain | 153 | 172 | |
Short-term Investments [Member] | Corporate Debt Securities [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Fair Value Disclosure | 83,810 | 76,940 | |
Short-term Investments [Member] | Municipal Bonds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Available-for-sale, Unrealized Loss | (1) | (7) | |
Debt Securities, Available-for-sale, Amortized Cost | 14,470 | 15,210 | |
Debt Securities, Available-for-sale | 14,491 | 15,221 | |
Debt Securities, Available-for-sale, Unrealized Gain | 22 | 18 | |
Short-term Investments [Member] | Municipal Bonds [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Fair Value Disclosure | 14,491 | 15,221 | |
Short-term Investments [Member] | Short-term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Available-for-sale, Unrealized Loss | (34) | ||
Debt Securities, Available-for-sale, Amortized Cost | 170,070 | ||
Debt Securities, Available-for-sale | 170,234 | ||
Debt Securities, Available-for-sale, Unrealized Gain | 198 | ||
Long-term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 177,471 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,122 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (6) | ||
Available-for-sale Securities | 179,587 | ||
Long-term Investments [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Noncurrent, Fair Value Disclosure | 22,865 | 19,670 | |
Long-term Investments [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Noncurrent, Fair Value Disclosure | 117,360 | 158,186 | |
Long-term Investments [Member] | Asset-backed Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 400 | ||
Available-for-sale Securities | 402 | ||
Available-for-sale Securities, Gross Unrealized Gain | 2 | ||
Available-for-sale Securities, Gross Unrealized Loss | 0 | ||
Long-term Investments [Member] | Asset-backed Securities [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Noncurrent, Fair Value Disclosure | 402 | ||
Long-term Investments [Member] | U.S. Agency Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 8,704 | 7,102 | |
Available-for-sale Securities | 8,835 | 7,248 | |
Available-for-sale Securities, Gross Unrealized Gain | 132 | 146 | |
Available-for-sale Securities, Gross Unrealized Loss | (1) | 0 | |
Long-term Investments [Member] | U.S. Agency Securities [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Noncurrent, Fair Value Disclosure | 8,835 | 7,248 | |
Long-term Investments [Member] | Government Bonds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 26,219 | 23,563 | |
Available-for-sale Securities | 26,277 | 23,750 | |
Available-for-sale Securities, Gross Unrealized Gain | 78 | 187 | |
Available-for-sale Securities, Gross Unrealized Loss | (20) | 0 | |
Long-term Investments [Member] | Government Bonds [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Noncurrent, Fair Value Disclosure | 22,865 | 19,670 | |
Long-term Investments [Member] | Government Bonds [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Noncurrent, Fair Value Disclosure | 3,412 | 4,080 | |
Long-term Investments [Member] | Corporate Debt Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 91,812 | 134,360 | |
Available-for-sale Securities | 92,483 | 136,060 | |
Available-for-sale Securities, Gross Unrealized Gain | 759 | 1,700 | |
Available-for-sale Securities, Gross Unrealized Loss | (88) | 0 | |
Long-term Investments [Member] | Corporate Debt Securities [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Noncurrent, Fair Value Disclosure | 92,483 | 136,060 | |
Long-term Investments [Member] | Municipal Bonds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 12,532 | 10,315 | |
Available-for-sale Securities | 12,630 | 10,396 | |
Available-for-sale Securities, Gross Unrealized Gain | 99 | 87 | |
Available-for-sale Securities, Gross Unrealized Loss | (1) | (6) | |
Long-term Investments [Member] | Municipal Bonds [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Noncurrent, Fair Value Disclosure | 12,630 | 10,396 | |
Long-term Investments [Member] | Other Long-term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 1,495 | 1,731 | |
Available-for-sale Securities | 1,495 | 1,731 | |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 | |
Available-for-sale Securities, Gross Unrealized Loss | 0 | 0 | |
Long-term Investments [Member] | Other Long-term Investments [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments, Noncurrent, Fair Value Disclosure | 0 | 0 | |
Long-term Investments [Member] | Long-term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 140,762 | ||
Available-for-sale Securities | 141,720 | ||
Available-for-sale Securities, Gross Unrealized Gain | 1,068 | ||
Available-for-sale Securities, Gross Unrealized Loss | (110) | ||
Derivative Financial Instruments, Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative Financial Instruments, Assets, Amortized Cost Basis | 0 | 0 | |
Derivative Financial Instruments, Unrealized Gain | 426 | 0 | |
Derivative Financial Instruments, Unrealized Loss | 0 | 0 | |
Derivative Asset | 426 | 0 | |
Derivative Financial Instruments, Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative Financial Instruments, Unrealized Gain | 0 | 0 | |
Derivative Financial Instruments, Unrealized Loss | (62) | $ (242) | |
Derivative Financial Instruments, Liabilities, Amortized Cost Basis | 0 | 0 | |
Derivative Liability | $ (62) | $ (242) |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Sep. 27, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant And Equipment, Gross | $ 977,628 | $ 954,731 |
Less: accumulated depreciation | (428,133) | (417,299) |
Property, Plant And Equipment, Net | 549,495 | 537,432 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant And Equipment, Gross | 41,980 | 41,918 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant And Equipment, Gross | 283,462 | 282,924 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant And Equipment, Gross | 67,253 | 66,730 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant And Equipment, Gross | 127,183 | 128,525 |
Computer Systems and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant And Equipment, Gross | 219,773 | 219,455 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant And Equipment, Gross | 31,571 | 34,191 |
Equipment Leased to Other Party [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant And Equipment, Gross | 174,155 | 161,372 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant And Equipment, Gross | $ 32,251 | $ 19,616 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | 3 Months Ended |
Dec. 27, 2019USD ($) | |
Lessor, Lease, Description [Line Items] | |
Lesse lease term | 11 years |
Lessee lease renewal term | 8 years |
Lessee lease termination period | 1 year |
Variable operating lease income | $ 7.3 |
Fixed operating lease income | 0.7 |
Unguaranteed residual value of sales-type leases | $ 0.7 |
Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Lessor lease term | 4 years |
Lessor lease renewal term | 1 year |
Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Lessor lease term | 10 years |
Lessor lease renewal term | 5 years |
Leases (Lease Cost Components)
Leases (Lease Cost Components) (Details) $ in Thousands | 3 Months Ended |
Dec. 27, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 5,356 |
Variable lease cost | 394 |
Total lease cost | $ 5,750 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Schedule) (Details) $ in Thousands | 3 Months Ended |
Dec. 27, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 5,241 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating lease liabilities | $ 12,816 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information Schedule) (Details) | Dec. 27, 2019 |
Weighted-average remaining lease term | |
Operating leases | 7 years 3 months 18 days |
Weighted-average discount rate | |
Operating leases | 3.40% |
Leases (Maturities of Lessee Le
Leases (Maturities of Lessee Lease Liabilities Schedule) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Sep. 28, 2019 | Sep. 27, 2019 |
Operating Lease After Adoption of 842 | |||
Remainder of Fiscal 2020 | $ 15,386 | ||
Fiscal 2021 | 13,643 | ||
Fiscal 2022 | 11,336 | ||
Fiscal 2023 | 9,375 | ||
Fiscal 2024 | 6,703 | ||
Thereafter | 29,320 | ||
Total undiscounted lease payments | 85,763 | ||
Less: imputed interest | (12,174) | ||
Total lease liabilities | $ 73,589 | $ 64,600 | |
Operating Leases Before Adoption of 842 | |||
Remainder of Fiscal 2020 | $ 17,231 | ||
Fiscal 2021 | 9,329 | ||
Fiscal 2022 | 7,191 | ||
Fiscal 2023 | 6,218 | ||
Fiscal 2024 | 4,499 | ||
Thereafter | 12,355 | ||
Total undiscounted lease payments | $ 56,823 |
Leases (Maturities of Lessor Le
Leases (Maturities of Lessor Lease Payments Schedule) (Details) $ in Thousands | Dec. 27, 2019USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
Remainder of Fiscal 2020 | $ 1,669 |
Fiscal 2021 | 2,227 |
Fiscal 2022 | 2,227 |
Fiscal 2023 | 2,153 |
Fiscal 2024 | 1,107 |
Thereafter | 0 |
Total undiscounted cash flows | 9,383 |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |
Remainder of Fiscal 2020 | 4,059 |
Fiscal 2021 | 1,595 |
Fiscal 2022 | 1,595 |
Fiscal 2023 | 1,595 |
Fiscal 2024 | 795 |
Thereafter | 790 |
Total undiscounted cash flows | 10,429 |
Less: present value of lease payments (recognized as lease receivables) | (8,095) |
Difference | $ 2,334 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets Goodwill Rollforward (Details) $ in Thousands | 3 Months Ended |
Dec. 27, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance at September 27, 2019 | $ 334,829 |
Acquired goodwill | 0 |
Translation adjustments | 614 |
Balance at September 27, 2019 | $ 335,443 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Sep. 27, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 428,179 | $ 425,705 | |
Accumulated Amortization | (252,198) | (244,814) | |
Total | 175,981 | 180,891 | |
Purchases of intangible assets | $ 2,900 | $ 12,100 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | 11 years 7 months 6 days | |
Amortization of Intangible Assets | $ 7,200 | $ 6,600 | |
Acquired Patents And Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 340,519 | 338,075 | |
Accumulated Amortization | (183,283) | (176,867) | |
Total | 157,236 | 161,208 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 64,718 | 64,728 | |
Accumulated Amortization | (46,417) | (45,510) | |
Total | 18,301 | 19,218 | |
Other Intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 22,942 | 22,902 | |
Accumulated Amortization | (22,498) | (22,437) | |
Total | $ 444 | $ 465 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Sep. 27, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2020 | $ 22,346 | |
2018 | 29,585 | |
2019 | 27,580 | |
2020 | 23,898 | |
2021 | 22,273 | |
Thereafter | 50,299 | |
Total | $ 175,981 | $ 180,891 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets Intangible Assets, Additions (Details) | 3 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | 11 years 7 months 6 days |
Stockholders' Equity And Stoc_3
Stockholders' Equity And Stock-Based Compensation (Narrative) (Details) | Jan. 29, 2020$ / shares | Dec. 15, 2018shares | Dec. 15, 2017shares | Dec. 15, 2016shares | Dec. 15, 2015shares | Dec. 27, 2019USD ($)vote$ / sharesshares | Dec. 28, 2018$ / shares | Oct. 31, 2010 | Mar. 28, 2014 | Sep. 27, 2019shares | Jul. 31, 2019USD ($) | Jul. 25, 2018USD ($) | Jan. 25, 2017USD ($) | Oct. 31, 2014USD ($) | Feb. 29, 2012USD ($) | Jul. 31, 2011USD ($) | Jul. 31, 2010USD ($) | Nov. 30, 2009USD ($) |
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Options outstanding to purchase | 7,201,000 | |||||||||||||||||
Year end stock price | $ / shares | $ 68.34 | |||||||||||||||||
Percentage of vesting per year | 50.00% | |||||||||||||||||
Common stock, dividends declared (in dollars per share) | $ / shares | $ 0.22 | $ 0.19 | ||||||||||||||||
Remaining authorization to purchase additional shares | $ | $ 331,000,000 | |||||||||||||||||
Authorization Amount | $ | 2,000,000,000 | $ 250,000,000 | ||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Common stock, dividends declared (in dollars per share) | $ / shares | $ 0.22 | |||||||||||||||||
Employee Stock Option [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Stock options expected to vest | $ | $ 33,200,000 | |||||||||||||||||
Employee stock options expected to be recognized over a weighted-average period | 2 years 8 months 12 days | |||||||||||||||||
Performance-Based Stock Options [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 7 years | |||||||||||||||||
Compensation requisite measurement period | 3 years | |||||||||||||||||
Performance-Based Stock Options [Member] | Executive Officer [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Shares exercisable (in shares) | 1,169,120 | |||||||||||||||||
Percentage Of Target Award | 125.00% | |||||||||||||||||
Options outstanding to purchase | 745,639 | |||||||||||||||||
Performance-Based Stock Options [Member] | Executive Officer [Member] | Awarded Fiscal 2018 [Member] [Domain] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Shares exercisable (in shares) | 330,000 | |||||||||||||||||
Percentage Of Target Award | 125.00% | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 264,000 | |||||||||||||||||
Performance-Based Stock Options [Member] | Executive Officer [Member] | Awarded Fiscal 2016 [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Percentage Of Target Award | 125.00% | |||||||||||||||||
Options vested and exercisable | 334,623 | |||||||||||||||||
Performance-Based Stock Options [Member] | Executive Officer [Member] | Awarded Fiscal 2017 [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Shares exercisable (in shares) | 240,539 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 276,199 | |||||||||||||||||
Performance-Based Stock Options [Member] | Executive Officer [Member] | Awarded Fiscal 2019 [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Shares exercisable (in shares) | 301,375 | |||||||||||||||||
Percentage Of Target Award | 125.00% | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 241,100 | |||||||||||||||||
Performance-Based Restricted Stock Units [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Compensation requisite measurement period | 3 years | |||||||||||||||||
Performance-Based Restricted Stock Units [Member] | Executive Officer [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Shares exercisable (in shares) | 124,000 | |||||||||||||||||
Percentage Of Target Award | 200.00% | |||||||||||||||||
Options outstanding to purchase | 62,000 | |||||||||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Stock options expected to vest | $ | $ 156,800,000 | |||||||||||||||||
Employee stock options expected to be recognized over a weighted-average period | 3 years | |||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Employees and Officers [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Awards Granted Prior to November 2010 [Member] | Directors [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 1 year | ||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Awards Granted After November 2010 [Member] | Directors [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||||||||||||||||
Awards Granted Under 2005 Stock Plan Prior To February 2011 [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Terms for issuance of stock | 2 | |||||||||||||||||
Awards Granted Under 2005 Stock Plan From February 2011 [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Terms for issuance of stock | 1.6 | |||||||||||||||||
Employee Stock Purchase Plan [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Percentage of compensation withheld by employees to purchase common stock | 10.00% | |||||||||||||||||
Common stock purchase price determined over percentage of closing price | 15.00% | |||||||||||||||||
Additional Stock Approved [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Authorization Amount | $ | $ 350,000,000 | $ 350,000,000 | $ 200,000,000 | $ 200,000,000 | $ 100,000,000 | $ 250,000,000 | $ 300,000,000 | |||||||||||
Class A Common Stock [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Common stock, shares authorized (shares) | 500,000,000 | 500,000,000 | ||||||||||||||||
Common stock, shares issued (shares) | 64,649,011 | 63,911,270 | ||||||||||||||||
Common stock, number of votes per share | vote | 1 | |||||||||||||||||
Common stock, shares outstanding (shares) | 64,649,011 | 63,911,270 | ||||||||||||||||
Class A Common Stock [Member] | 2005 Stock Plan. [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Shares authorized under plan | 46,000,000 | |||||||||||||||||
Options outstanding to purchase | 7,795,000 | |||||||||||||||||
Weighted average remaining contractual life | 6 years 7 months 6 days | |||||||||||||||||
Options vested and exercisable | 4,633,000 | |||||||||||||||||
Class A Common Stock [Member] | Employee Stock Purchase Plan [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Maximum value of common stock available for eligible employees | $ | $ 25,000 | |||||||||||||||||
Maximum number of common stock available for eligible employees | 1,000 | |||||||||||||||||
Purchase period | 6 months | |||||||||||||||||
Look back commencement period | 1 year | |||||||||||||||||
Class B Common Stock [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Common stock, shares authorized (shares) | 500,000,000 | 500,000,000 | ||||||||||||||||
Common stock, shares issued (shares) | 36,229,820 | 36,229,820 | ||||||||||||||||
Common stock, number of votes per share | vote | 10 | |||||||||||||||||
Common stock, shares outstanding (shares) | 36,229,820 | 36,229,820 | ||||||||||||||||
Options Granted Prior To June 2008 [Member] | Employee Stock Option [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||||||||||||
Options expiration period | 10 years | |||||||||||||||||
Options Granted From June Two Thousand Eight Member | Employee Stock Option [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||||||||||||
Options expiration period | 10 years | |||||||||||||||||
Options Granted From June Two Thousand Eight Member | Employee Stock Option [Member] | One year anniversary date | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Percentage of stock option becoming exercisable subjected to date of grant | 25.00% | |||||||||||||||||
Options Granted From June Two Thousand Eight Member | Employee Stock Option [Member] | Over 36 equally installment periods following one year anniversary date | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 36 months | |||||||||||||||||
Minimum [Member] | Performance-Based Stock Options [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Percentage Of Target Award | 0.00% | |||||||||||||||||
Minimum [Member] | Performance-Based Restricted Stock Units [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Percentage Of Target Award | 0.00% | |||||||||||||||||
Maximum [Member] | Performance-Based Stock Options [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Percentage Of Target Award | 125.00% | |||||||||||||||||
Maximum [Member] | Performance-Based Restricted Stock Units [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Percentage Of Target Award | 200.00% |
Stockholders' Equity And Stoc_4
Stockholders' Equity And Stock-Based Compensation (Summary Of Stock Options Issued To Officers, Directors, And Employees Under 2000 Stock Incentive Plan And 2005 Stock Plan) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Dec. 27, 2019USD ($)$ / sharesshares | |
Shares | |
Shares, Options outstanding at beginning of period | shares | 7,201 |
Shares, Grants | shares | 1,058 |
Shares, Exercises | shares | (441) |
Shares, Forfeitures and cancellations | shares | (23) |
Shares, Options vested and expected to vest | shares | 7,369 |
Weighted-Average Exercise Price | |
Weighted Average Exercise Price, Options outstanding at beginning of period | $ 48.03 |
Weighted Average Exercise Price, Grants (in usd per share) | 68.41 |
Weighted Average Exercise Price, Exercises (in usd per share) | 38.92 |
Weighted Average Exercise Price, Forfeitures and cancellations (in usd per share) | 60.18 |
Weighted Average Exercise Price, Options outstanding at end of period | 51.28 |
Weighted Average Exercise Price, Options vested and expected to vest (in usd per share) | 50.45 |
Weighted Average Exercise Price, Options exercisable (in usd per share) | $ 43.13 |
Weighted Average Remaining Contractual Life, Options vested and expected to vest at end of period | 6 years 5 months 23 days |
Weighted Average Remaining Contractual Life, Options exercisable | 5 years 5 months 4 days |
Aggregate Intrinsic Value, Options outstanding | $ | $ 132,844 |
Aggregate Intrinsic Value, Options vested and expected to vest | $ | 131,897 |
Aggregate Intrinsic Value, Options exercisable | $ | $ 116,784 |
Employee Stock Option [Member] | Options Granted From June Two Thousand Eight Member | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Stockholders' Equity And Stoc_5
Stockholders' Equity And Stock-Based Compensation (Summary Of Restricted Stock Units Issued To Officers, Directors, And Employees Under 2005 Stock Incentive Plan) (Details) shares in Thousands | 3 Months Ended |
Dec. 27, 2019$ / sharesshares | |
Shares | |
Shares, Non-vested at beginning of period | shares | 2,805 |
Shares, Granted | shares | 1,214 |
Shares, Vested | shares | (897) |
Shares, Forfeitures | shares | (43) |
Shares, Non-vested at end of period | shares | 3,079 |
Weighted-Average Grant Date Fair Value | |
Weighted Average Fair Value, Non-vested at beginning of period | $ / shares | $ 58.84 |
Weighted Average Fair Value, Granted | $ / shares | 66.28 |
Weighted Average Fair Value, Vested | $ / shares | 51.77 |
Weighted Average Fair Value, Forfeitures | $ / shares | 59.23 |
Weighted Average Fair Value, Non-vested at end of period | $ / shares | $ 62.39 |
Stockholders' Equity And Stoc_6
Stockholders' Equity And Stock-Based Compensation (Schedule Of Fair Value Of Stock-Based Awards Estimated Using Weighted-Average Assumptions) (Details) | 3 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | ||
Expected life (in years) | 4 years 10 months 28 days | 4 years 10 months 24 days |
Risk-free interest rate | 1.70% | 2.70% |
Expected stock price volatility | 23.90% | 22.90% |
Dividend yield | 1.30% | 1.10% |
Stockholders' Equity And Stoc_7
Stockholders' Equity And Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense By Plan) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | $ 22,614 | $ 21,482 |
Share-based Compensation | 22,614 | 21,482 |
Benefit from income taxes | (3,594) | (3,760) |
Total stock-based compensation, net of tax | 19,020 | 17,722 |
Stock Option [Member] | ||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | 4,546 | 5,022 |
Restricted Stock Units (RSUs) [Member] | ||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | 16,967 | 15,375 |
Employee Stock Purchase Plan [Member] | ||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | 1,101 | 1,085 |
Cost of Sales [Member] | ||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | 543 | 488 |
Research and Development Expense [Member] | ||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | 6,987 | 6,241 |
Selling and Marketing Expense [Member] | ||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | 8,174 | 8,217 |
General and Administrative Expense [Member] | ||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | $ 6,910 | $ 6,536 |
Stockholders' Equity And Stoc_8
Stockholders' Equity And Stock-Based Compensation (Schedule of Stock-Based Compensation By Classification) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 22,614 | $ 21,482 |
Benefit from income taxes | (3,594) | (3,760) |
Total stock-based compensation, net of tax | 19,020 | 17,722 |
Cost of products [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 543 | 488 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 6,987 | 6,241 |
Sales and marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 8,174 | 8,217 |
General and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 6,910 | $ 6,536 |
Stockholders' Equity And Stoc_9
Stockholders' Equity And Stock-Based Compensation (Tax Benefit from Exercise of Options) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ 202 | $ 142 |
Stockholders' Equity And Sto_10
Stockholders' Equity And Stock-Based Compensation (Stock Repurchase Authorizations) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Jul. 31, 2019 | Jul. 25, 2018 | Jan. 25, 2017 | Oct. 31, 2014 | Feb. 29, 2012 | Jul. 31, 2011 | Jul. 31, 2010 | Nov. 30, 2009 |
Equity, Class of Treasury Stock [Line Items] | |||||||||
Authorization Amount | $ 2,000,000 | $ 250,000 | |||||||
Additional Stock Approved [Member] | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Authorization Amount | $ 350,000 | $ 350,000 | $ 200,000 | $ 200,000 | $ 100,000 | $ 250,000 | $ 300,000 |
Stockholders' Equity And Sto_11
Stockholders' Equity And Stock-Based Compensation (Stock Repurchase) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares repurchased (in shares) | 432,042 | |
Payments for Repurchase of Common Stock | $ 30,003 | $ 112,545 |
Repurchase of common stock | $ 30,003 | |
Stock Repurchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares repurchased (in shares) | 432,042 | |
Average Price Paid per Share (in dollars per share) | $ 69.44 |
Stockholders' Equity and Sto_12
Stockholders' Equity and Stock-Based Compensation - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 20, 2020 | Jan. 29, 2020 | Dec. 27, 2019 | Dec. 28, 2018 |
Dividends Payable [Line Items] | ||||
Common stock, dividends declared (in dollars per share) | $ 0.22 | $ 0.19 | ||
Subsequent Event [Member] | ||||
Dividends Payable [Line Items] | ||||
Common stock, dividends declared (in dollars per share) | $ 0.22 | |||
Dividend Payment | $ 22.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance, Beginning Of Period | $ (20,625) | $ (15,832) |
Unrealized Gains (Losses) | (1,894) | |
Income Tax Effect - Benefit/(Expense) | 3 | 0 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1,512 | (2,646) |
Realized (Gains) - Investment Securities | 1,314 | (201) |
Income Tax Effect - (Benefit)/Expense | (261) | 40 |
Net Of Tax | 1,053 | (161) |
Net current-period other comprehensive income/(loss) | 2,565 | (2,807) |
Balance, End Of Period | (18,060) | (18,639) |
Unrealized Gains/Losses On Available-For-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance, Beginning Of Period | 2,198 | (2,948) |
Unrealized Gains (Losses) | (2,209) | 931 |
Income Tax Effect - Benefit/(Expense) | 0 | 0 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (2,209) | 931 |
Realized (Gains) - Investment Securities | 1,308 | (201) |
Income Tax Effect - (Benefit)/Expense | (261) | 40 |
Net Of Tax | 1,047 | (161) |
Net current-period other comprehensive income/(loss) | (1,162) | 770 |
Balance, End Of Period | 1,036 | (2,178) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance, Beginning Of Period | 0 | |
Unrealized Gains (Losses) | 315 | |
Income Tax Effect - Benefit/(Expense) | (37) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 278 | |
Realized (Gains) - Investment Securities | 6 | |
Net Of Tax | 6 | |
Net current-period other comprehensive income/(loss) | 284 | |
Balance, End Of Period | 284 | |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance, Beginning Of Period | (22,823) | (12,884) |
Unrealized Gains (Losses) | 3,403 | (3,577) |
Income Tax Effect - Benefit/(Expense) | 40 | 0 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 3,443 | (3,577) |
Net current-period other comprehensive income/(loss) | 3,443 | (3,577) |
Balance, End Of Period | $ (19,380) | $ (16,461) |
Per Share Data (Details)
Per Share Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||
Net income attributable to Dolby Laboratories, Inc. | $ 48,753 | $ 98,219 |
Weighted average shares outstanding-basic (in shares) | 100,336 | 102,677 |
Potential common shares from options to purchase common stock (in shares) | 1,711 | 2,251 |
Potential common shares from restricted stock units (in shares) | 1,020 | 1,202 |
Potential common shares from ESPP (in shares) | 11 | 0 |
Weighted average shares outstanding-diluted (in shares) | 103,078 | 106,130 |
Net income per share attributable to Dolby Laboratories, Inc. - Basic (in usd per share) | $ 0.49 | $ 0.96 |
Net income per share attributable to Dolby Laboratories, Inc. - Diluted (in usd per share) | $ 0.47 | $ 0.93 |
Employee Stock Option [Member] | ||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||
Anti-dilutive securities, excluded from calculations (in shares) | 2,623 | 1,583 |
Restricted Stock Units (RSUs) [Member] | ||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||
Anti-dilutive securities, excluded from calculations (in shares) | 8 | 10 |
Employee Stock Purchase Plan [Member] | ||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||
Anti-dilutive securities, excluded from calculations (in shares) | 3 | 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Sep. 27, 2019 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, gross | $ 110,200 | $ 108,500 | |
Unrecognized tax benefits if recognized, would affect our effective tax rate | $ 74,500 | $ 72,800 | |
Effective tax rate (as a percent) | 10.80% | (32.50%) | |
Provision (benefit) for income taxes | $ 5,863 | $ (24,104) | |
Federal tax rate | 21.00% |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | Sep. 27, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 15,851 | $ 124 | $ 124 |
Restructuring charges | (675) | (14) | (36,558) |
Cash payments | (8,574) | (7,713) | |
Non-cash and other adjustments | 182 | (13,118) | |
Restructuring reserve, ending balance | 8,134 | 15,851 | |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 128 | 0 | 0 |
Restructuring charges | 0 | (3,134) | |
Cash payments | (72) | (3,006) | |
Non-cash and other adjustments | 158 | 0 | |
Restructuring reserve, ending balance | 214 | 128 | |
Leased facility exit costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 15,723 | 0 | 0 |
Restructuring charges | (675) | (18,261) | |
Cash payments | (8,502) | (4,577) | |
Non-cash and other adjustments | 24 | 2,039 | |
Restructuring reserve, ending balance | 7,920 | 15,723 | |
Fixed assets write-off | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 0 | 0 | 0 |
Restructuring charges | 0 | (15,216) | |
Cash payments | 0 | 0 | |
Non-cash and other adjustments | 0 | (15,216) | |
Restructuring reserve, ending balance | 0 | 0 | |
Other associated costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 0 | $ 124 | 124 |
Restructuring charges | 0 | 53 | |
Cash payments | 0 | (130) | |
Non-cash and other adjustments | 0 | 59 | |
Restructuring reserve, ending balance | $ 0 | $ 0 |
Commitments And Contingencies_2
Commitments And Contingencies (Schedule Of Contractual Obligations And Commitments) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Sep. 27, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Remainder of Fiscal 2018 | $ 3,954 | |
Naming rights, Fiscal 2019 | 8,008 | |
Naming rights, Fiscal 2020 | 8,108 | |
Naming rights, Fiscal 2021 | 8,209 | |
Naming rights, Fiscal 2022 | 8,312 | |
Naming rights, Thereafter | 70,344 | |
Naming rights, Total | 106,935 | |
Donation commitments, Remainder of Fiscal 2018 | 4,077 | |
Donation commitments, Fiscal 2019 | 141 | |
Donation commitments, Fiscal 2020 | 141 | |
Donation commitments, Fiscal 2021 | 141 | |
Donation commitments, Fiscal 2022 | 141 | |
Donation commitments, Thereafter | 1,059 | |
Donation commitments, Total | 5,700 | |
Fiscal 2021 | $ 9,329 | |
Fiscal 2022 | 7,191 | |
Fiscal 2023 | 6,218 | |
Fiscal 2024 | 4,499 | |
Thereafter | $ 12,355 | |
Purchase obligation, Remainder of 2018 | 23,161 | |
Purchase obligation, Fiscal 2019 | 4,615 | |
Purchase obligation, Fiscal 2020 | 2,176 | |
Purchase Obligation, Fiscal 2021 | 0 | |
Purchase obligation, Fiscal 2022 | 0 | |
Purchase obligation, Thereafter | 0 | |
Purchase obligation, Total | 29,952 | |
Total, due in Remainder of Fiscal 2018 | 31,192 | |
Total, due in Fiscal 2019 | 12,764 | |
Total, due in Fiscal 2020 | 10,425 | |
Total, due in Fiscal 2021 | 8,350 | |
Total, due in Fiscal 2022 | 8,453 | |
Total, due Thereafter | 71,403 | |
Total due | $ 142,587 |
Commitments And Contingencies_3
Commitments And Contingencies (Narrative) (Details) | 3 Months Ended |
Dec. 27, 2019 | |
Naming Rights [Member] | |
Other Commitments [Line Items] | |
Term of agreement | 20 years |
Donation Commitments [Member] | |
Other Commitments [Line Items] | |
Term of agreement | 15 years |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Nov. 30, 2009 |
Subsequent Event [Line Items] | ||
Stock repurchase program, authorized amount | $ 2,000,000 | $ 250,000 |