Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Dec. 26, 2014 | Jan. 23, 2015 | |
Entity Registrant Name | Dolby Laboratories, Inc. | |
Entity Central Index Key | 1308547 | |
Current Fiscal Year End Date | -16 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 26-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 51,511,456 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 51,081,217 |
Interim_Condensed_Consolidated
Interim Condensed Consolidated Balance Sheets (USD $) | Dec. 26, 2014 | Sep. 26, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $409,115 | $568,472 |
Restricted cash | 2,040 | 2,142 |
Short-term investments | 211,443 | 231,208 |
Accounts receivable, net of allowance for doubtful accounts of $1,203 and $1,615 | 117,240 | 86,168 |
Inventories | 28,291 | 8,536 |
Deferred taxes | 86,937 | 86,445 |
Prepaid expenses and other current assets | 37,092 | 22,880 |
Total current assets | 892,158 | 1,005,851 |
Long-term investments | 318,448 | 296,335 |
Property, plant and equipment, net | 330,249 | 289,755 |
Intangible assets, net | 108,220 | 63,700 |
Goodwill | 315,791 | 277,574 |
Deferred taxes | 48,212 | 41,746 |
Other non-current assets | 9,341 | 9,051 |
Total assets | 2,022,419 | 1,984,012 |
Current liabilities: | ||
Accounts payable | 9,973 | 15,898 |
Accrued liabilities | 159,360 | 158,376 |
Income taxes payable | 1,754 | 2,600 |
Deferred revenue | 21,236 | 12,496 |
Total current liabilities | 192,323 | 189,370 |
Long-term deferred revenue | 23,203 | 19,279 |
Other non-current liabilities | 55,793 | 43,715 |
Total liabilities | 271,319 | 252,364 |
Stockholders' equity: | ||
Additional paid-in capital | 45,479 | 46,415 |
Retained earnings | 1,691,614 | 1,660,485 |
Accumulated other comprehensive income | -2,188 | 3,014 |
Total stockholders’ equity – Dolby Laboratories, Inc. | 1,735,008 | 1,710,017 |
Controlling interest | 16,092 | 21,631 |
Total stockholders’ equity | 1,751,100 | 1,731,648 |
Total liabilities and stockholders’ equity | 2,022,419 | 1,984,012 |
Class A, $0.001 par value, one vote per share, 500,000,000 shares authorized: 51,482,817 shares issued and outstanding at December 26, 2014 and 50,658,627 at September 26, 2014 | ||
Stockholders' equity: | ||
Common stock | 52 | 51 |
Class B, $0.001 par value, ten votes per share, 500,000,000 shares authorized: 51,081,624 shares issued and outstanding at December 26, 2014 and 51,610,239 at September 26, 2014 | ||
Stockholders' equity: | ||
Common stock | $51 | $52 |
Interim_Condensed_Consolidated1
Interim Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 26, 2014 | Sep. 26, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | ($1,203) | ($1,615) |
Class A Common Stock [Member] | ||
Common stock, par value (usd per share) | $0.00 | $0.00 |
Common stock voting right per share (votes per share) | 1 | 1 |
Common stock, shares authorized (shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (shares) | 51,482,817 | 50,658,627 |
Common stock, shares outstanding (shares) | 51,482,817 | 50,658,627 |
Class B Common Stock [Member] | ||
Common stock, par value (usd per share) | $0.00 | $0.00 |
Common stock voting right per share (votes per share) | 10 | 10 |
Common stock, shares authorized (shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (shares) | 51,081,624 | 51,610,239 |
Common stock, shares outstanding (shares) | 51,081,624 | 51,610,239 |
Interim_Condensed_Consolidated2
Interim Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Revenue: | ||
Licensing | $216,598 | $205,660 |
Products | 13,263 | 18,104 |
Services | 4,377 | 7,513 |
Total revenue | 234,238 | 231,277 |
Cost of revenue: | ||
Cost of licensing | 3,481 | 4,001 |
Cost of products | 12,584 | 13,788 |
Cost of services | 3,345 | 3,593 |
Total cost of revenue | 19,410 | 21,382 |
Gross margin | 214,828 | 209,895 |
Operating expenses: | ||
Research and development | 48,594 | 44,463 |
Sales and marketing | 68,018 | 60,379 |
General and administrative | 44,716 | 41,908 |
Restructuring charges/(credits) | -39 | 3,215 |
Total operating expenses | 161,289 | 149,965 |
Operating income | 53,539 | 59,930 |
Other income/expense: | ||
Interest income | 900 | 654 |
Interest expense | -15 | -112 |
Other income/(expense), net | -108 | 229 |
Total other income/expense | 777 | 771 |
Income before income taxes | 54,316 | 60,701 |
Provision for income taxes | -12,379 | -15,455 |
Net income including controlling interest | 41,937 | 45,246 |
Less: net (income) attributable to controlling interest | -580 | -731 |
Net income attributable to Dolby Laboratories, Inc. | 41,357 | 44,515 |
Net Income Per Share: | ||
Basic (in usd per share) | $0.40 | $0.44 |
Diluted (in usd per share) | $0.40 | $0.43 |
Weighted-Average Shares Outstanding: | ||
Basic (in shares) | 102,303 | 101,750 |
Diluted (in shares) | 104,275 | 103,192 |
Related party rent expense: | ||
Included in operating expenses | 788 | 346 |
Included in net income attributable to controlling interest | $1,153 | $1,255 |
Common stock, dividends declared (in dollars per share) | $0.10 | $0 |
Interim_Condensed_Consolidated3
Interim Condensed Consolidated Statements of Comprehensive Income Statement (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Statement of Comprehensive Income [Abstract] | ||
Net income including controlling interest | $41,937 | $45,246 |
Other comprehensive income: | ||
Foreign currency translation adjustments, net of tax | -5,553 | -390 |
Unrealized gains/(losses) on available-for-sale securities, net of tax | -177 | 105 |
Comprehensive income | 36,207 | 44,961 |
Less: comprehensive (income) attributable to controlling interest | -52 | -875 |
Comprehensive income attributable to Dolby Laboratories, Inc. | $36,155 | $44,086 |
Interim_Condensed_Consolidated4
Interim Condensed Consolidated Statements Of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total Dolby Laboratories,Inc.[Member] | Controlling Interest [Member] |
In Thousands, unless otherwise specified | |||||||
Beginning balance at Sep. 27, 2013 | $1,500,026 | $102 | $18,812 | $1,454,382 | $7,814 | $1,481,110 | $18,916 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 45,246 | 44,515 | 44,515 | 731 | |||
Translation adjustments, net of tax of $528 and $(61), respectively | -390 | -534 | -534 | 144 | |||
Unrealized gains (losses) on available-for-sale securities, net of tax of $180 and $(58), respectively | -105 | -105 | -105 | ||||
Stock-based compensation expense | 15,054 | 15,054 | 15,054 | ||||
Repurchase of common stock | -11,660 | -11,660 | -11,660 | ||||
Tax benefit/(deficiency) from the stock incentive plans | -11 | -11 | -11 | ||||
Common stock issued under employee stock plans | 8,089 | 1 | 8,088 | 8,089 | |||
Tax withholdings on vesting of restricted stock | -6,727 | -6,727 | -6,727 | ||||
Exercise of Class B stock options | 38 | 38 | 38 | ||||
Ending balance at Dec. 27, 2013 | 1,549,770 | 103 | 23,594 | 1,498,897 | 7,385 | 1,529,979 | 19,791 |
Beginning balance at Sep. 26, 2014 | 1,731,648 | 103 | 46,415 | 1,660,485 | 3,014 | 1,710,017 | 21,631 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 41,937 | 41,357 | 41,357 | 580 | |||
Translation adjustments, net of tax of $528 and $(61), respectively | -5,553 | -5,025 | -5,025 | -528 | |||
Unrealized gains (losses) on available-for-sale securities, net of tax of $180 and $(58), respectively | 177 | 177 | 177 | ||||
Distributions to controlling interest | -5,591 | -5,591 | |||||
Stock-based compensation expense | 17,842 | 17,842 | 17,842 | ||||
Repurchase of common stock | -16,953 | -1 | -16,952 | -16,953 | |||
Cash dividends declared and paid on common stock | -10,228 | -10,228 | -10,228 | ||||
Tax benefit/(deficiency) from the stock incentive plans | -1,509 | -1,509 | -1,509 | ||||
Common stock issued under employee stock plans | 7,511 | 1 | 7,510 | 7,511 | |||
Tax withholdings on vesting of restricted stock | -10,846 | -10,846 | -10,846 | ||||
Exercise of Class B stock options | 1 | 1 | 1 | ||||
Ending balance at Dec. 26, 2014 | $1,751,100 | $103 | $45,479 | $1,691,614 | ($2,188) | $1,735,008 | $16,092 |
Interim_Condensed_Consolidated5
Interim Condensed Consolidated Statements Of Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Statement of Stockholders' Equity [Abstract] | ||
Foreign currency translation tax | $528 | ($61) |
Unrealized gains (losses) on available-for-sale securities, tax | $180 | ($58) |
Interim_Condensed_Consolidated6
Interim Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Operating activities: | ||
Net income including controlling interest | $41,937 | $45,246 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 16,524 | 12,409 |
Stock-based compensation | 17,842 | 15,054 |
Amortization of premium on investments | 2,391 | 2,266 |
Excess tax benefit from exercise of stock options | -1,944 | -1,010 |
Provision for doubtful accounts | -376 | 374 |
Deferred income taxes | -6,310 | -1,322 |
Other non-cash items affecting net income | 653 | 105 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -22,442 | 21,148 |
Inventories | -2,997 | 2,225 |
Prepaid expenses and other assets | -4,473 | -1,631 |
Accounts payable and other liabilities | -46,801 | -16,696 |
Income taxes, net | 3,692 | 4,795 |
Deferred revenue | 4,452 | -5,897 |
Other non-current liabilities | 1,297 | 216 |
Net cash provided by operating activities | 3,445 | 77,282 |
Investing activities: | ||
Purchase of investments | -110,508 | -102,717 |
Proceeds from sales of investment securities | 63,454 | 27,426 |
Proceeds from maturities of investment securities | 42,700 | 46,739 |
Purchases of property, plant and equipment | -21,661 | -8,967 |
Acquisitions, net of cash acquired | -93,516 | 0 |
Purchases of intangible assets | -6,416 | 0 |
Proceeds from sale of property, plant and equipment and assets held for sale | 3 | 42 |
Change in restricted cash | 102 | -174 |
Net cash provided by/(used in) investing activities | -125,842 | -37,651 |
Financing activities: | ||
Proceeds from issuance of common stock | 7,512 | 8,127 |
Repurchase of common stock | -16,953 | -11,660 |
Payment of cash dividend | -10,228 | 0 |
Distribution to controlling interest | -5,591 | 0 |
Excess tax benefit from the exercise of stock options | 1,944 | 1,010 |
Shares repurchased for tax withholdings on vesting of restricted stock | -10,846 | -6,727 |
Net cash used in financing activities | -34,162 | -9,250 |
Effect of foreign exchange rate changes on cash and cash equivalents | -2,798 | -138 |
Net increase/(decrease) in cash and cash equivalents | -159,357 | 30,243 |
Cash and cash equivalents at beginning of period | 568,472 | |
Cash and cash equivalents at end of period | 409,115 | 484,640 |
Supplemental disclosure: | ||
Cash paid for income taxes, net of refunds received | 13,739 | 11,593 |
Cash paid for interest | 3 | 1 |
Capital expenditures incurred, but not yet paid | 33,260 | 8,770 |
Receivable for working capital adjustment from acquisition | 4,220 | 0 |
Noncash or Part Noncash Acquisition, Consideration Payable | $740 | $0 |
Basis_Of_Presentation
Basis Of Presentation | 3 Months Ended |
Dec. 26, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation |
Unaudited Interim Condensed Consolidated Financial Statements | |
We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”), and with Securities and Exchange Commission (“SEC”) rules and regulations, which allow for certain information and footnote disclosures that are normally included in annual financial statements prepared in accordance with 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 26, 2014 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 26, 2014, which are included in our Annual Report on Form 10-K filed with the SEC. | |
The results for the fiscal quarter ended December 26, 2014 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, 2015. | |
Principles of Consolidation | |
The unaudited interim condensed consolidated financial statements include the accounts of Dolby Laboratories 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 | |
We operate as a single reporting segment, and thus all required financial segment information is included in our unaudited interim condensed consolidated financial statements. This determination reflects the fact that our chief operating decision-maker ("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 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 selling prices for elements sold in multiple-element 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 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 26, 2014 and December 27, 2013. Our fiscal year ending September 25, 2015 (fiscal 2015) and our fiscal year ended September 26, 2014 (fiscal 2014) both consist of 52 weeks. |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 3 Months Ended |
Dec. 26, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies |
We continually assess any Accounting Standards Updates ("ASUs") or other new accounting pronouncements issued by the Financial Accounting Standards Board ("FASB") to determine their applicability and impact on us. Where it is determined that a new accounting pronouncement will result in a change to our financial reporting, we take the appropriate steps to ensure that such changes are properly reflected in our consolidated financial statements or notes thereto. | |
Recently Issued Accounting Standards | |
Adopted Standards | |
All recently pronounced accounting standards applicable to, and adopted by Dolby have been previously disclosed as part of a quarterly or annual filing from prior periods. Accounting pronouncements that were adopted and disclosed in prior periods have not had a significant impact on our unaudited interim condensed consolidated financial statements or notes thereto, and have not resulted in a change to our significant accounting policies. Furthermore, there have not been any changes to our significant accounting policies from those that were described in our Form 10-K for the prior fiscal year ended September 26, 2014. | |
Standards Not Yet Effective | |
Revenue Recognition. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This new standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on October 1, 2017 and early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that this standard will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method or determined the effect of the standard on our ongoing financial reporting. |
Composition_Of_Certain_Financi
Composition Of Certain Financial Statement Captions | 3 Months Ended | ||
Dec. 26, 2014 | |||
Composition Of Certain Financial Statement Captions [Abstract] | |||
Composition Of Certain Financial Statement Captions | Composition of Certain Financial Statement Captions | ||
The following tables present detailed information from our consolidated balance sheets as of December 26, 2014 and September 26, 2014 (amounts displayed in thousands, except as otherwise noted). | |||
Accounts Receivable | |||
Accounts Receivable, Net | December 26, | September 26, | |
2014 | 2014 | ||
Trade accounts receivable | $109,825 | $78,189 | |
Accounts receivable from patent administration program partners | 8,618 | 9,594 | |
Accounts Receivable, Gross | 118,443 | 87,783 | |
Less: allowance for doubtful accounts | -1,203 | -1,615 | |
Total | $117,240 | $86,168 | |
Inventories | |||
Inventories | December 26, | September 26, | |
2014 | 2014 | ||
Raw materials | $9,960 | $1,013 | |
Work in process | 5,087 | 47 | |
Finished goods | 13,244 | 7,476 | |
Total | $28,291 | $8,536 | |
Inventories are stated at the lower of cost (first-in, first-out) or market. 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 $1.8 million and $1.7 million of raw materials inventory within other non-current assets in our consolidated balance sheets as of December 26, 2014 and September 26, 2014, 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 | |||
Prepaid Expenses And Other Current Assets | December 26, | September 26, | |
2014 | 2014 | ||
Prepaid expenses | $13,774 | $11,665 | |
Other current assets | 13,367 | 7,152 | |
Income tax receivable | 9,951 | 4,063 | |
Total | $37,092 | $22,880 | |
Other current assets as of December 26, 2014 include the $0.9 million carrying value of a parcel of land that we intend to sell within the next twelve months. As of September 26, 2014, the carrying value of this parcel of land was $1.0 million. | |||
Accrued Liabilities | |||
Accrued Liabilities | December 26, | September 26, | |
2014 | 2014 | ||
Accrued royalties | $2,568 | $2,526 | |
Amounts payable to patent administration program partners | 41,998 | 43,438 | |
Accrued compensation and benefits | 45,483 | 71,677 | |
Accrued professional fees | 4,439 | 6,162 | |
Other accrued liabilities | 64,872 | 34,573 | |
Total | $159,360 | $158,376 | |
Other accrued liabilities include the accrual for unpaid property, plant and equipment additions of $33.3 million and $8.7 million as of December 26, 2014 and September 26, 2014, respectively. | |||
Other Non-Current Liabilities | |||
Other Non-Current Liabilities | December 26, | September 26, | |
2014 | 2014 | ||
Supplemental retirement plan obligations | $2,372 | $2,409 | |
Non-current tax liabilities | 39,690 | 30,715 | |
Other liabilities | 13,731 | 10,591 | |
Total | $55,793 | $43,715 |
Investments_Fair_Value_Measure
Investments & Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||
Dec. 26, 2014 | |||||||||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |||||||||||||||||||||||
Investments & Fair Value Measurements | Investments & Fair Value Measurements | ||||||||||||||||||||||
Investment Strategy. Under our investment management strategy, we use cash holdings to purchase investment grade securities that are diversified among security types, industries and issuers. Each of the investments within our investment portfolio is measured at fair value, and is recorded within cash equivalents, short-term investments, and long-term investments in our consolidated balance sheets. | |||||||||||||||||||||||
With the exception of our mutual fund investments held in our supplemental retirement plan which are classified as trading securities, all of our investments are classified as available-for-sale securities. Our investments primarily consist of municipal debt securities, corporate and government bonds (domestic and international), United States agency securities and commercial paper. In addition to the security types noted above, our cash and cash equivalents also consist of highly-liquid money market funds. Consistent with our investment policy, none of the municipal debt investments that we hold are supported by letters of credit or standby purchase agreements. | |||||||||||||||||||||||
Our cash and investment portfolio, which is recorded as cash equivalents and both short and long-term investments, consists of the following (in thousands): | |||||||||||||||||||||||
December 26, | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||
Cost | Unrealized | Estimated Fair Value | |||||||||||||||||||||
Gains | Losses | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||
Cash | $ | 406,849 | $ | 406,849 | |||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | 2,266 | — | — | 2,266 | 2,266 | ||||||||||||||||||
Cash and cash equivalents | 409,115 | — | — | 409,115 | 2,266 | — | — | ||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
Government bonds | 3,509 | 4 | — | 3,513 | 3,513 | ||||||||||||||||||
Commercial paper | 8,996 | 1 | (1 | ) | 8,996 | 8,996 | |||||||||||||||||
Corporate bonds | 88,447 | 57 | (56 | ) | 88,448 | 88,448 | |||||||||||||||||
Municipal debt securities | 110,310 | 176 | — | 110,486 | 110,486 | ||||||||||||||||||
Short-term investments | 211,262 | 238 | (57 | ) | 211,443 | 3,513 | 207,930 | — | |||||||||||||||
Long-term investments: | |||||||||||||||||||||||
U.S. agency securities | 4,999 | — | (1 | ) | 4,998 | 4,998 | |||||||||||||||||
Government bonds | 13,733 | — | (40 | ) | 13,693 | 13,693 | |||||||||||||||||
Corporate bonds | 140,883 | 95 | (263 | ) | 140,715 | 140,715 | |||||||||||||||||
Municipal debt securities | 157,419 | 217 | (144 | ) | 157,492 | 157,492 | |||||||||||||||||
Other long-term investments (2) | 500 | 1,050 | — | 1,550 | 1,050 | ||||||||||||||||||
Long-term investments | 317,534 | 1,362 | (448 | ) | 318,448 | 19,741 | 298,207 | — | |||||||||||||||
Total cash, cash equivalents, and investments (1) | $ | 937,911 | $ | 1,600 | $ | (505 | ) | $ | 939,006 | $ | 25,520 | $ | 506,137 | $ | — | ||||||||
Investments held in supplemental retirement plan: | |||||||||||||||||||||||
Assets | 2,554 | — | — | 2,554 | 2,554 | ||||||||||||||||||
Included in prepaid expenses and other current assets & other non-current assets | |||||||||||||||||||||||
Liabilities | 2,554 | — | — | 2,554 | 2,554 | ||||||||||||||||||
Included in accrued liabilities & other non-current liabilities | |||||||||||||||||||||||
Contingent consideration related to acquisition: | |||||||||||||||||||||||
Liabilities | 740 | — | — | 740 | 740 | ||||||||||||||||||
Included in accrued liabilities | |||||||||||||||||||||||
-1 | Total cash, cash equivalents, and investments exclude $2.0 million of restricted cash as of December 26, 2014. | ||||||||||||||||||||||
-2 | Other long-term investments as of December 26, 2014 include a cost method investment of $0.5 million that was made during fiscal 2014 in addition to a $1.1 million fair value write-up adjustment made during the first quarter of fiscal 2015 for a marketable equity security. | ||||||||||||||||||||||
September 26, | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||
Cost | Unrealized | Estimated Fair Value | |||||||||||||||||||||
Gains | Losses | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||
Cash | $ | 564,745 | $ | 564,745 | |||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | 1,727 | — | — | 1,727 | 1,727 | ||||||||||||||||||
Commercial paper | 2,000 | — | — | 2,000 | 2,000 | ||||||||||||||||||
Cash and cash equivalents | 568,472 | — | — | 568,472 | 1,727 | 2,000 | — | ||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
U.S. agency securities | 35,443 | 5 | (3 | ) | 35,445 | 35,445 | |||||||||||||||||
Commercial paper | 21,788 | — | — | 21,788 | 21,788 | ||||||||||||||||||
Corporate bonds | 56,106 | 81 | (10 | ) | 56,177 | 56,177 | |||||||||||||||||
Municipal debt securities | 117,606 | 197 | (5 | ) | 117,798 | 117,798 | |||||||||||||||||
Short-term investments | 230,943 | 283 | (18 | ) | 231,208 | 35,445 | 195,763 | — | |||||||||||||||
Long-term investments: | |||||||||||||||||||||||
U.S. agency securities | 31,980 | 19 | (6 | ) | 31,993 | 31,993 | |||||||||||||||||
Corporate bonds | 117,063 | 226 | (80 | ) | 117,209 | 117,209 | |||||||||||||||||
Municipal debt securities | 146,337 | 326 | (30 | ) | 146,633 | 146,633 | |||||||||||||||||
Other long-term investments (2) | 500 | — | — | 500 | |||||||||||||||||||
Long-term investments | 295,880 | 571 | (116 | ) | 296,335 | 31,993 | 263,842 | — | |||||||||||||||
Total cash, cash equivalents, and investments (1) | $ | 1,095,295 | $ | 854 | $ | (134 | ) | $ | 1,096,015 | $ | 69,165 | $ | 461,605 | $ | — | ||||||||
Investments held in supplemental retirement plan: | |||||||||||||||||||||||
Assets | 2,507 | — | — | 2,507 | 2,507 | ||||||||||||||||||
Included in prepaid expenses and other current assets & other non-current assets | |||||||||||||||||||||||
Liabilities | 2,507 | — | — | 2,507 | 2,507 | ||||||||||||||||||
Included in accrued liabilities & other non-current liabilities | |||||||||||||||||||||||
-1 | Total cash, cash equivalents, and investments exclude $2.1 million of restricted cash as of September 26, 2014. | ||||||||||||||||||||||
-2 | Other long-term investments as of September 26, 2014 include a cost method investment of $0.5 million that was made during fiscal 2014. | ||||||||||||||||||||||
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 financial instruments 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. | |||||||||||||||||||||||
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. We have not historically owned any Level 3 financial assets or liabilities, as was the case at September 26, 2014. As of December 26, 2014, the estimated fair value of our contingent consideration liability related to the Doremi acquisition was classified as a level 3 investment. For additional information on the contingent consideration liability, refer to Note 13 “Acquisitions” to our consolidated financial statements. | |||||||||||||||||||||||
Securities In Gross Unrealized Loss Position. We periodically evaluate our investments for other-than- temporary declines in fair value. The unrealized losses on our available-for-sale securities were primarily as a 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 available-for-sale securities that were in an unrealized loss position as of December 26, 2014 and September 26, 2014 (in thousands): | |||||||||||||||||||||||
December 26, 2014 | September 26, 2014 | ||||||||||||||||||||||
Investment Type | Fair Value | Gross Unrealized Losses (1) | Fair Value | Gross Unrealized Losses (1) | |||||||||||||||||||
U.S. agency securities | $18,692 | ($41) | $31,930 | ($9) | |||||||||||||||||||
Commercial paper | 3,996 | -1 | — | — | |||||||||||||||||||
Corporate bonds | 177,838 | -319 | 78,166 | -90 | |||||||||||||||||||
Municipal debt securities | 76,981 | -144 | 55,979 | -35 | |||||||||||||||||||
Total | $277,507 | ($505) | $166,075 | ($134) | |||||||||||||||||||
-1 | Our available-for-sale securities in an unrealized loss position were in such position for less than twelve months as of both December 26, 2014 and September 26, 2014. | ||||||||||||||||||||||
Although we had certain securities that were in an unrealized loss position as of December 26, 2014, we expect to recover the full carrying value of these securities as we do not intend to, nor do we currently anticipate a need to sell these securities prior to recovering the associated unrealized losses. As a result, we do not consider any portion of the unrealized losses at either December 26, 2014 or September 26, 2014 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 available-for-sale securities within our investment portfolio based on stated maturities as of December 26, 2014 and September 26, 2014, which are recorded within cash equivalents and both short and long-term investments in our consolidated balance sheets (in thousands): | |||||||||||||||||||||||
December 26, 2014 | September 26, 2014 | ||||||||||||||||||||||
Range of maturity | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
Due within 1 year | $ | 211,262 | $ | 211,443 | $ | 232,944 | $ | 233,208 | |||||||||||||||
Due in 1 to 2 years | 176,989 | 177,073 | 179,177 | 179,536 | |||||||||||||||||||
Due in 2 to 3 years | 140,023 | 139,803 | 116,204 | 116,299 | |||||||||||||||||||
Total | $ | 528,274 | $ | 528,319 | $ | 528,325 | $ | 529,043 | |||||||||||||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | |||||||
Dec. 26, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment | 5. Property, Plant & Equipment | |||||||
Property, plant and equipment are recorded at cost, with depreciation expense included in cost of products, cost of services, research & development expenses, sales & marketing expenses and general & administrative expenses in our consolidated statements of operations. Property, plant and equipment consist of the following (in thousands): | ||||||||
Property, Plant And Equipment | December 26, | September 26, | ||||||
2014 | 2014 | |||||||
Land | $ | 49,697 | $ | 45,842 | ||||
Buildings and building improvements | 175,055 | 61,712 | ||||||
Leasehold improvements | 56,251 | 56,665 | ||||||
Machinery and equipment | 49,323 | 47,639 | ||||||
Computer systems and software | 112,437 | 108,225 | ||||||
Furniture and fixtures | 13,441 | 13,540 | ||||||
Construction-in-progress | 54,453 | 127,569 | ||||||
Property, Plant And Equipment, Gross | 510,657 | 461,192 | ||||||
Less: accumulated depreciation | (180,408 | ) | (171,437 | ) | ||||
Property, Plant And Equipment, Net | $ | 330,249 | $ | 289,755 | ||||
Purchase Of 1275 Market Commercial Office Building In San Francisco, CA. During fiscal 2012, we purchased commercial office property in San Francisco, California for approximately $109.8 million. Based on a fair value analysis, we allocated $35.5 million of the property's purchase price to the land and $74.3 million to the building. Following the purchase, we began a process of making substantial improvements to the building in order to prepare it for its intended use as our new worldwide headquarters. While we are still in the process of making these improvements, the first phase of construction was completed and we occupied a portion of the building during the first quarter of fiscal 2015. As of September 26, 2014, construction-in-progress included both the book value of the building and costs for ongoing construction while as of December 26, 2014, construction-in-progress included only costs for ongoing construction. |
Goodwill_and_intangible_Assets
Goodwill and intangible Assets | 3 Months Ended | |||||||||||||||||||
Dec. 26, 2014 | ||||||||||||||||||||
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 26, 2014 | $ | 277,574 | ||||||||||||||||||
Acquired goodwill (preliminary) (1) | 40,600 | |||||||||||||||||||
Translation adjustments | (2,383 | ) | ||||||||||||||||||
Balance at December 26, 2014 | $ | 315,791 | ||||||||||||||||||
-1 | Total acquired goodwill recorded during the first quarter of fiscal 2015 consists of $39.9 million from the acquisition of Doremi Labs and $0.7 million related to an immaterial acquisition completed during the quarter. | |||||||||||||||||||
Intangible Assets | ||||||||||||||||||||
Intangible assets subject to amortization consist of the following (in thousands): | ||||||||||||||||||||
December 26, 2014 | September 26, 2014 | |||||||||||||||||||
Intangible Assets, Net | Cost | Accumulated | Net | Cost | Accumulated | Net | ||||||||||||||
Amortization | Amortization | |||||||||||||||||||
Acquired patents and technology | $ | 140,830 | $ | (64,708 | ) | $ | 76,122 | $ | 99,262 | $ | (61,678 | ) | $ | 37,584 | ||||||
Customer relationships | 53,723 | (23,894 | ) | 29,829 | 30,717 | (22,739 | ) | 7,978 | ||||||||||||
Other intangibles | 23,470 | (21,201 | ) | 2,269 | 38,694 | (20,556 | ) | 18,138 | ||||||||||||
Total | $ | 218,023 | $ | (109,803 | ) | $ | 108,220 | $ | 168,673 | $ | (104,973 | ) | $ | 63,700 | ||||||
During the first quarter of fiscal 2015, we purchased various patents and developed technology for total cash consideration of approximately $6.4 million. These intangible assets have a weighted-average useful life of 18 years. These acquisitions facilitate our research & development efforts, technologies and potential product offerings. | ||||||||||||||||||||
Amortization expense for our intangible assets is included in cost of licensing, cost of products, research & development and sales & marketing expenses in our consolidated statements of operations. As of December 26, 2014, expected amortization expense in future fiscal periods was as follows (in thousands): | ||||||||||||||||||||
Fiscal Year | Amortization Expense | |||||||||||||||||||
Remainder Of 2015 | $ | 14,979 | ||||||||||||||||||
2016 | 17,253 | |||||||||||||||||||
2017 | 14,250 | |||||||||||||||||||
2018 | 8,870 | |||||||||||||||||||
2019 | 8,198 | |||||||||||||||||||
Thereafter | 44,670 | |||||||||||||||||||
Total | $ | 108,220 | ||||||||||||||||||
Stockholders_Equity_And_StockB
Stockholders' Equity And Stock-Based Compensation | 3 Months Ended | |||||||||
Dec. 26, 2014 | ||||||||||
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 Employee Stock Purchase Plan (“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 26, 2014, we had authorized 500,000,000 Class A shares and 500,000,000 Class B shares. At December 26, 2014, we had 51,482,817 shares of Class A common stock and 51,081,624 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 | ||||||||||
2000 Stock Incentive Plan. Effective October 2000, we adopted the 2000 Stock Incentive Plan. The 2000 Stock Incentive Plan, as amended, provides for the issuance of incentive and non-qualified stock options to our employees, directors, and consultants to purchase up to 15.1 million shares of Class B common stock. Under the terms of this plan, options became exercisable as established by the Board of Directors (ratably over four years), and expire ten years after the date of the grant. Options issued under the plan were made at their grant-date fair market value. Subsequent to fiscal 2005, no further options were granted under this plan. The 2000 Stock Incentive Plan terminated on October 1, 2010 and no shares of our common stock remained available for future issuance under that plan other than pursuant to outstanding options. As of December 26, 2014, there were options outstanding to purchase 372 shares of Class B common stock, all of which were vested and exercisable, with a remaining weighted-average contractual life of 0.1 years. | ||||||||||
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 ("ISOs"), nonstatutory stock options ("NQs"), restricted stock, RSUs, SARs, deferred stock units, performance units, performance bonus awards and performance shares. A total of 29.0 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. | ||||||||||
As of December 26, 2014, there were options outstanding to purchase 9.8 million shares of Class A common stock, of which 3.8 million were vested and exercisable. The options outstanding have a remaining weighted-average contractual life of 7.9 years. | ||||||||||
Stock Options. Stock options are generally granted at fair market value on the date of grant. Options granted to employees and officers prior to June 2008 generally vest over four years, with equal annual cliff-vesting and expire on the earlier of 10 years after the date of grant or 3 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 10 years after the date of grant or 3 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 and new shares of Class B common stock under the 2000 Stock Incentive Plan. Our 2005 Stock Plan also allows us to grant stock awards which vest based on the satisfaction of specific performance criteria. | ||||||||||
The following table summarizes information about stock options issued under our 2000 Stock Incentive Plan and 2005 Stock Plan: | ||||||||||
Shares | Weighted-Average | Weighted-Average | Aggregate | |||||||
Exercise Price | Remaining | Intrinsic | ||||||||
Contractual Life | Value (1) | |||||||||
(in thousands) | (in years) | (in thousands) | ||||||||
Options outstanding at September 26, 2014 | 7,611 | $ | 32.96 | |||||||
Grants | 2,326 | 42.91 | ||||||||
Exercises | (122 | ) | 28.7 | |||||||
Forfeitures and cancellations | (49 | ) | 33.57 | |||||||
Options outstanding at December 26, 2014 | 9,766 | 35.3 | 7.9 | $ | 86,537 | |||||
Options vested and expected to vest at December 26, 2014 | 9,519 | 35.28 | 7.9 | 85,285 | ||||||
Options exercisable at December 26, 2014 | 3,826 | $ | 30.96 | 6.2 | 51,138 | |||||
-1 | Aggregate intrinsic value is based on the closing price of our common stock on December 26, 2014 of $44.17 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 vest over three years, with equal annual cliff-vesting. Awards granted after November 2010 and prior to fiscal 2014 to new directors vest 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 which vest based on the satisfaction of specific performance criteria, although no such awards have been granted as of December 26, 2014. 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 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 26, 2014 | 2,903 | $35.79 | ||||||||
Granted | 1,047 | 42.89 | ||||||||
Vested | -686 | 35.8 | ||||||||
Forfeitures | -36 | 33.59 | ||||||||
Non-vested at December 26, 2014 | 3,228 | $38.12 | ||||||||
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 closing price of our common stock on the New York Stock Exchange on the last day of the purchase period and for overlapping one-year 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 volatility of our stock price over this 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 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 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 since our initial public offering. Implied volatility is based upon externally traded option contracts of our common stock. | ||||||||||
Dividend Yield. The dividend yield is based on our anticipated quarterly dividend payout over the expected term of our option awards. | ||||||||||
The weighted-average assumptions used in the determination of the fair value of our stock options were as follows: | ||||||||||
Fiscal Quarter Ended | ||||||||||
December 26, | December 27, | |||||||||
2014 | 2013 | |||||||||
Expected term (in years) | 4.58 | 4.57 | ||||||||
Risk-free interest rate | 1.50% | 1.40% | ||||||||
Expected stock price volatility | 29.70% | 31.90% | ||||||||
Dividend yield | 0.90% | —% | ||||||||
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): | ||||||||||
Compensation Expense - By Award Type | ||||||||||
Fiscal Quarter Ended | ||||||||||
December 26, | December 27, | |||||||||
2014 | 2013 | |||||||||
Compensation Expense - By Type | ||||||||||
Stock options | $6,283 | $3,870 | ||||||||
Restricted stock units | 10,215 | 10,257 | ||||||||
Employee stock purchase plan | 1,344 | 927 | ||||||||
Total stock-based compensation | 17,842 | 15,054 | ||||||||
Benefit from income taxes | -5,151 | -4,396 | ||||||||
Total stock-based compensation, net of tax | $12,691 | $10,658 | ||||||||
Compensation Expense - By Income Statement Line Item Classification | ||||||||||
Fiscal Quarter Ended | ||||||||||
December 26, | December 27, | |||||||||
2014 | 2013 | |||||||||
Compensation Expense - By Classification | ||||||||||
Cost of products | $246 | $190 | ||||||||
Cost of services | 122 | 87 | ||||||||
Research and development | 5,274 | 4,307 | ||||||||
Sales and marketing | 5,909 | 5,025 | ||||||||
General and administrative | 6,291 | 5,445 | ||||||||
Total stock-based compensation | 17,842 | 15,054 | ||||||||
Benefit from income taxes | -5,151 | -4,396 | ||||||||
Total stock-based compensation, net of tax | $12,691 | $10,658 | ||||||||
The tax benefit that we recognize from certain exercises of ISOs and shares issued under our ESPP are excluded from the tables above. This benefit was as follows (in thousands): | ||||||||||
Fiscal Quarter Ended | ||||||||||
December 26, | December 27, | |||||||||
2014 | 2013 | |||||||||
Tax benefit - stock option exercises & shares issued under ESPP | $168 | $175 | ||||||||
Unrecognized Compensation Expense. At December 26, 2014, total unrecorded compensation expense associated with employee stock options expected to vest was approximately $39.8 million, which is expected to be recognized over a weighted-average period of 2.4 years. At December 26, 2014, total unrecorded compensation expense associated with RSUs expected to vest was approximately $103.1 million, which is expected to be recognized over a weighted-average period of 3.1 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 26, 2014 (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 | |||||||||
Total | $ | 1,100,000 | ||||||||
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 26, 2014, the remaining authorization to purchase additional shares is approximately $243.1 million. | ||||||||||
The following table provides information regarding share repurchase activity under the program during fiscal 2015: | ||||||||||
Quarterly Repurchase Activity | Shares | Cost (1) | Average Price Paid Per Share (2) | |||||||
Repurchased | ||||||||||
(in thousands) | ||||||||||
Q1 - Quarter ended December 26, 2014 | 389,500 | $ | 16,953 | $ | 43.51 | |||||
-1 | Cost of share repurchases includes the price paid per share and applicable commissions. | |||||||||
-2 | Average price paid per share excludes commission costs. | |||||||||
Dividend | ||||||||||
In October 2014, our Board of Directors initiated a recurring quarterly dividend program for its stockholders. The first dividend payment of $10.2 million pertaining to fiscal 2014 representing $0.10 per share of Class A and Class B Common Stock, was paid on November 20, 2014 to stockholders of record as of the close of business on November 3, 2014. We announced another $0.10 per share quarterly dividend payment on January 21, 2015, payable on February 10, 2015 to stockholders of record as of the close of business on February 2, 2015. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||||||||||||
Dec. 26, 2014 | ||||||||||||||
Equity [Abstract] | ||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income | |||||||||||||
Other comprehensive income ("OCI") consists of two components: unrealized gains or losses on our available-for-sale marketable investment securities and the gain or loss from foreign currency translation adjustments. Until realized and reported as a component of net income, these comprehensive income items accumulate and are included within accumulated other comprehensive income ("AOCI"), a subsection within stockholders’ equity in our consolidated balance sheet. 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. Gains and losses from the translation of assets and liabilities denominated in non-U.S. dollar functional currencies are included in AOCI. | ||||||||||||||
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 | Fiscal Quarter Ended | |||||||||||||
26-Dec-14 | 27-Dec-13 | |||||||||||||
Unrealized Gain/Loss - Investments | Currency Translation Adjustments | Total | Unrealized Gain/Loss - Investments | Currency Translation Adjustments | Total | |||||||||
Balance, Beginning Of Period | $505 | $2,509 | $3,014 | $ | 203 | $ | 7,611 | $ | 7,814 | |||||
Other Comprehensive Income Before Reclassifications: | ||||||||||||||
Unrealized Gains/(Losses) - Investment Securities | -385 | -385 | 235 | 235 | ||||||||||
Foreign Currency Translation (Losses) (1) | -5,553 | -5,553 | (473 | ) | (473 | ) | ||||||||
Income Tax Effect - Benefit/(Expense) | 180 | 528 | 708 | (84 | ) | (61 | ) | (145 | ) | |||||
Net Of Tax | -205 | -5,025 | -5,230 | 151 | (534 | ) | (383 | ) | ||||||
Amounts Reclassified From AOCI Into Earnings: | ||||||||||||||
Realized (Gains)/Losses - Investment Securities (1) | 28 | 28 | (72 | ) | (72 | ) | ||||||||
Income Tax Effect - Expense (2) | — | — | 26 | 26 | ||||||||||
Net Of Tax | -177 | -5,025 | -5,202 | 105 | (534 | ) | (429 | ) | ||||||
Balance, End Of Period | $328 | ($2,516) | ($2,188) | $ | 308 | $ | 7,077 | $ | 7,385 | |||||
-1 | Realized gains or losses from the sale of our available-for-sale investment securities or from foreign currency translation adjustments are included within other income/expense, net in our consolidated statements of operations. | |||||||||||||
-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. 26, 2014 | |||
Earnings Per Share [Abstract] | |||
Earnings Per Share | Earnings Per Share | ||
Basic earnings per share ("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. Potentially dilutive shares include the hypothetical number of shares issued under the assumed exercise of outstanding stock options, vesting of outstanding restricted stock units, and shares issued under our employee stock purchase plan. | |||
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 26, | December 27, | ||
2014 | 2013 | ||
Numerator: | |||
Net income attributable to Dolby Laboratories, Inc. | $41,357 | $44,515 | |
Denominator: | |||
Weighted-average shares outstanding—basic | 102,303 | 101,750 | |
Potential common shares from options to purchase common stock | 992 | 328 | |
Potential common shares from restricted stock units | 980 | 1,114 | |
Weighted-average shares outstanding—diluted | 104,275 | 103,192 | |
Net income per share attributable to Dolby Laboratories, Inc.: | |||
Basic | $0.40 | $0.44 | |
Diluted | $0.40 | $0.43 | |
Antidilutive awards excluded from calculation: | |||
Stock options | 2,683 | 6,791 | |
Restricted stock units | 159 | 1,038 |
Income_Taxes
Income Taxes | 3 Months Ended | ||
Dec. 26, 2014 | |||
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 both 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 26, 2014, the total amount of gross unrecognized tax benefits was $40.3 million, of which $29.9 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. | |||
Withholding Taxes | |||
We recognize licensing revenue gross of withholding taxes, which our licensees remit directly to their local tax authorities, and for which we receive a related foreign tax credit in our income tax provision. The foreign current tax includes this withholding tax expense while the appropriate foreign tax credit benefit is included in current federal and foreign taxes. Withholding taxes were as follows (in thousands): | |||
Fiscal Quarter Ended | |||
December 26, | December 27, | ||
2014 | 2013 | ||
Withholding Taxes | $12,200 | $10,425 | |
Effective Tax Rate | |||
Each period, the combination of multiple 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 that may occur in, but are not necessarily consistent between periods. | |||
Our effective tax rate decreased from 25% in the first quarter of fiscal 2014 to 23% in the first quarter of fiscal 2015, which reflects a discrete benefit from federal R&D tax credits that were retroactively reinstated for the 2014 calendar year only. The overall decrease in the rate was partially offset by the fact that our estimated fiscal 2015 tax provision included reduced benefits from U.S. manufacturing tax incentives as a higher proportion of overall earnings were attributable to foreign jurisdictions. |
Restructuring
Restructuring | 3 Months Ended | |||
Dec. 26, 2014 | ||||
Restructuring Charges [Abstract] | ||||
Restructuring | 11. Restructuring | |||
Fiscal 2014 Restructuring Plan. In October 2013, we implemented a plan to reorganize and consolidate certain activities and positions within our global business infrastructure. As a result, we recorded $3.3 million in restructuring costs during fiscal 2014, representing severance and other related benefits offered to approximately 50 employees that were affected as a result of this action. The table presented below summarizes the changes in our accrued liability under this restructuring plan during the fiscal quarter ended December 26, 2014 (in thousands) as the first quarter of fiscal 2015 marked the completion of activity under the Fiscal 2014 Restructuring Plan. | ||||
Severance and associated costs | ||||
Balance at September 26, 2014 | $ | 146 | ||
Restructuring charges/(credits) | (39 | ) | ||
Cash payments | (10 | ) | ||
Non-cash and other adjustments | (97 | ) | ||
Balance at December 26, 2014 | $ | — | ||
Accruals for restructuring charges are included within accrued liabilities in our consolidated balance sheets while restructuring charges/(credits) are included within restructuring charges/(credits) in our consolidated statements of operations. |
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended | |||||||
Dec. 26, 2014 | ||||||||
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 26, 2014 (in thousands): | ||||||||
Payments Due By Fiscal Period | ||||||||
Remainder Of Fiscal 2015 | Fiscal | Fiscal | Fiscal | Fiscal | Thereafter | Total | ||
2016 | 2017 | 2018 | 2019 | |||||
Naming rights | $3,716 | $7,525 | $7,619 | $7,715 | $7,811 | $110,888 | $145,274 | |
Donation commitments | — | — | 6,045 | 67 | 67 | 805 | 6,984 | |
Operating leases | 10,714 | 11,474 | 9,731 | 8,404 | 7,422 | 36,181 | 83,926 | |
Purchase obligations | 7,275 | 2,183 | 451 | — | — | — | 9,909 | |
Total | $21,705 | $21,182 | $23,846 | $16,186 | $15,300 | $147,874 | $246,093 | |
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. | ||||||||
Donation Commitments. During fiscal 2014, we entered into a non-cancelable obligation to donate and install imaging and audio products to the Museum of the Academy of Motion Picture Arts and Sciences in Los Angeles, California, and provide maintenance services for a fifteen-year period following the Academy's expected opening date in 2017. | ||||||||
Operating Leases. Operating lease payments represent our commitments for future minimum rent made under non-cancellable leases for office space, including those payable to our principal stockholder and portions attributable to the controlling interests in our wholly owned subsidiaries. | ||||||||
Purchase Obligations. Purchase obligations primarily consist of our commitments made under agreements to purchase goods and services for purposes that include IT and telecommunications, marketing and professional services, and manufacturing and other research and development activities. | ||||||||
Indemnification Clauses. On a limited basis, our contractual agreements will contain a clause under which we have agreed to provide indemnification to the counterparty, most commonly to licensees in connection with licensing arrangements that include our intellectual property. Additionally, and although not a contractual requirement, we have at times elected to defend our licensees from third party intellectual property 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. |
Acquisitions
Acquisitions | 3 Months Ended | |||
Dec. 26, 2014 | ||||
Business Combinations [Abstract] | ||||
Acquisitions | Acquisitions | |||
Doremi Labs. | ||||
On October 31, 2014 ("acquisition date"), we completed our acquisition of all outstanding interests of Doremi Labs ("Doremi"), a privately held company. Doremi is a leading developer and manufacturer of digital cinema servers and the acquisition is expected to accelerate the delivery and deployment of innovative solutions to exhibitors. Doremi's operating results from the acquisition date through December 26, 2014 are included in our consolidated financial statements for the first quarter of fiscal 2015, however these results did not have a material impact on our total consolidated revenues or net income for the period. | ||||
We acquired Doremi for cash consideration of $92.5 million, adjusted for specified negotiated terms including excess working capital, and up to an additional $20.0 million in contingent consideration that may be earned over a four-year period following the closing of the acquisition. We estimated the fair value of contingent consideration by applying a discounted and probability-weighted approach to potential shipments of specified products during the four years following the acquisition date. As of December 26, 2014, we have recorded $0.7 million as a contingent consideration liability that, along with cash paid to the sellers of $98.4 million in the first quarter of fiscal 2015, comprised the preliminary purchase price of $99.1 million. | ||||
We have accounted for the transaction under the acquisition method of accounting for business combinations. Additionally, we have estimated the fair values of the net tangible and intangible assets acquired, and liabilities assumed as of the acquisition date, with any amounts paid in excess of the net assets recorded as goodwill. The purchase price allocation is preliminary, and subject to further change during the measurement period until the working capital adjustment is finalized. | ||||
The following table summarizes the acquisition date fair values allocated to the net assets acquired, including cash of $8.4 million and liabilities assumed. Included in current assets is a separately recognized receivable of $4.2 million related to the preliminary estimated working capital adjustment to the purchase price as of December 26, 2014 (in thousands): | ||||
Recognized Identifiable Assets Acquired and Liabilities Assumed | Purchase Price Allocation (Preliminary) | |||
Current assets | $21,088 | |||
Inventories | 16,485 | |||
Intangible assets | 41,000 | |||
Goodwill | 39,884 | |||
Current liabilities | -10,898 | |||
Non-current liabilities | -8,417 | |||
Purchase consideration | $99,142 | |||
Goodwill is representative of our expectation of the benefits and synergies from the integration of Doremi technology with our existing technology and the assembled workforce of the Doremi, which does not qualify for separate recognition as an intangible asset. | ||||
The following table summarizes the fair values allocated to the various intangible assets acquired (in thousands), the weighted-average useful lives over which they will be amortized using the straight-line method, and the classification of their amortized expense in our consolidated statements of operations: | ||||
Intangible Assets Acquired | Purchase Price Allocation | Weighted-Average Useful Life (Years) | Income Statement Classification: Amortization Expense | |
Customer relationships | $22,400 | 10 | Sales & Marketing | |
Developed technology | 16,200 | 7.5 | Cost of Sales | |
Trade name | 1,300 | 1 | Sales & Marketing | |
Backlog | 1,100 | 1 | Cost of Sales | |
Total | $41,000 | |||
The fair values of the intangible assets at the acquisition date were measured primarily based on significant inputs that are not observable in the market and thus represent a Level 3 measurement as defined in ASC 820. The value of acquired intangibles was determined based on the present value of estimated future cash flows using the following valuation techniques and inputs: | ||||
• | Customer relationships and backlog - Primarily the excess earnings method using inputs such as probability-weighted revenue attributable to existing customer relationships, customer attrition, estimated expenses, effective income tax rate, and discount rate. | |||
• | Developed technology and Trade name - Primarily the relief-from-royalty method using inputs such as estimated revenues attributable to the digital cinema server technology, estimated net royalty rate, maintenance R&D expenses, effective income tax rate, and discount rate. | |||
Acquisition-related costs of $0.4 million and $0.8 million were incurred during the first quarter of fiscal 2015 and first quarter of fiscal 2014, respectively, and were included in general and administrative expenses in the consolidated statements of operations. Total acquisition-related costs of $5.9 million were incurred during fiscal 2014. |
Legal_Proceedings
Legal Proceedings | 3 Months Ended |
Dec. 26, 2014 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Legal Proceedings | Legal Matters |
In December 2013, the Korean Fair Trade Commission (“KFTC”) initiated a review of the Company under Korean competition law. In March 2014, the National Development and Reform Commission of China (“NDRC”) initiated a review under the Chinese competition laws. The KFTC and NDRC have requested information relating to our business practices in Korea and China, respectively. We are cooperating with the KFTC and NDRC as they conduct their reviews. | |
We are involved in various legal proceedings that occasionally arise in the normal course of business. These can include claims of alleged infringement of intellectual property 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; however, based on the information known by us as of the date of this filing and the rules and regulations applicable to the preparation of our consolidated financial statements, any such amount is either immaterial, or it is not possible to provide an estimated amount of any such potential loss. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Dec. 26, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 3 Months Ended |
Dec. 26, 2014 | |
Accounting Policies [Abstract] | |
Principles Of Consolidation | Principles of Consolidation |
The unaudited interim condensed consolidated financial statements include the accounts of Dolby Laboratories 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 |
We operate as a single reporting segment, and thus all required financial segment information is included in our unaudited interim condensed consolidated financial statements. This determination reflects the fact that our chief operating decision-maker ("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 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 selling prices for elements sold in multiple-element 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 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 26, 2014 and December 27, 2013. Our fiscal year ending September 25, 2015 (fiscal 2015) and our fiscal year ended September 26, 2014 (fiscal 2014) both consist of 52 weeks. | |
Reclassifications | ur 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 26, 2014 and December 27, 2013. Our fiscal year ending September 25, 2015 (fiscal 2015) and our fiscal year ended September 26, 2014 (fiscal 2014) both consist of 52 weeks. |
Composition_Of_Certain_Financi1
Composition Of Certain Financial Statement Captions (Tables) | 3 Months Ended | ||
Dec. 26, 2014 | |||
Composition Of Certain Financial Statement Captions [Abstract] | |||
Schedule Of Accounts Receivable | Accounts Receivable | ||
Accounts Receivable, Net | December 26, | September 26, | |
2014 | 2014 | ||
Trade accounts receivable | $109,825 | $78,189 | |
Accounts receivable from patent administration program partners | 8,618 | 9,594 | |
Accounts Receivable, Gross | 118,443 | 87,783 | |
Less: allowance for doubtful accounts | -1,203 | -1,615 | |
Total | $117,240 | $86,168 | |
Schedule Of Inventories | Inventories | ||
Inventories | December 26, | September 26, | |
2014 | 2014 | ||
Raw materials | $9,960 | $1,013 | |
Work in process | 5,087 | 47 | |
Finished goods | 13,244 | 7,476 | |
Total | $28,291 | $8,536 | |
Schedule Of Prepaid Expenses And Other Current Assets | Prepaid Expenses And Other Current Assets | ||
Prepaid Expenses And Other Current Assets | December 26, | September 26, | |
2014 | 2014 | ||
Prepaid expenses | $13,774 | $11,665 | |
Other current assets | 13,367 | 7,152 | |
Income tax receivable | 9,951 | 4,063 | |
Total | $37,092 | $22,880 | |
Schedule Of Accrued Liabilities | Accrued Liabilities | ||
Accrued Liabilities | December 26, | September 26, | |
2014 | 2014 | ||
Accrued royalties | $2,568 | $2,526 | |
Amounts payable to patent administration program partners | 41,998 | 43,438 | |
Accrued compensation and benefits | 45,483 | 71,677 | |
Accrued professional fees | 4,439 | 6,162 | |
Other accrued liabilities | 64,872 | 34,573 | |
Total | $159,360 | $158,376 | |
Schedule Of Other Non-Current Liabilities | Other Non-Current Liabilities | ||
Other Non-Current Liabilities | December 26, | September 26, | |
2014 | 2014 | ||
Supplemental retirement plan obligations | $2,372 | $2,409 | |
Non-current tax liabilities | 39,690 | 30,715 | |
Other liabilities | 13,731 | 10,591 | |
Total | $55,793 | $43,715 |
Investments_Fair_Value_Measure1
Investments & Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||
Dec. 26, 2014 | |||||||||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |||||||||||||||||||||||
Schedule Of Financial Assets and Liabilities Carried At Fair Value | Our cash and investment portfolio, which is recorded as cash equivalents and both short and long-term investments, consists of the following (in thousands): | ||||||||||||||||||||||
December 26, | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||
Cost | Unrealized | Estimated Fair Value | |||||||||||||||||||||
Gains | Losses | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||
Cash | $ | 406,849 | $ | 406,849 | |||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | 2,266 | — | — | 2,266 | 2,266 | ||||||||||||||||||
Cash and cash equivalents | 409,115 | — | — | 409,115 | 2,266 | — | — | ||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
Government bonds | 3,509 | 4 | — | 3,513 | 3,513 | ||||||||||||||||||
Commercial paper | 8,996 | 1 | (1 | ) | 8,996 | 8,996 | |||||||||||||||||
Corporate bonds | 88,447 | 57 | (56 | ) | 88,448 | 88,448 | |||||||||||||||||
Municipal debt securities | 110,310 | 176 | — | 110,486 | 110,486 | ||||||||||||||||||
Short-term investments | 211,262 | 238 | (57 | ) | 211,443 | 3,513 | 207,930 | — | |||||||||||||||
Long-term investments: | |||||||||||||||||||||||
U.S. agency securities | 4,999 | — | (1 | ) | 4,998 | 4,998 | |||||||||||||||||
Government bonds | 13,733 | — | (40 | ) | 13,693 | 13,693 | |||||||||||||||||
Corporate bonds | 140,883 | 95 | (263 | ) | 140,715 | 140,715 | |||||||||||||||||
Municipal debt securities | 157,419 | 217 | (144 | ) | 157,492 | 157,492 | |||||||||||||||||
Other long-term investments (2) | 500 | 1,050 | — | 1,550 | 1,050 | ||||||||||||||||||
Long-term investments | 317,534 | 1,362 | (448 | ) | 318,448 | 19,741 | 298,207 | — | |||||||||||||||
Total cash, cash equivalents, and investments (1) | $ | 937,911 | $ | 1,600 | $ | (505 | ) | $ | 939,006 | $ | 25,520 | $ | 506,137 | $ | — | ||||||||
Investments held in supplemental retirement plan: | |||||||||||||||||||||||
Assets | 2,554 | — | — | 2,554 | 2,554 | ||||||||||||||||||
Included in prepaid expenses and other current assets & other non-current assets | |||||||||||||||||||||||
Liabilities | 2,554 | — | — | 2,554 | 2,554 | ||||||||||||||||||
Included in accrued liabilities & other non-current liabilities | |||||||||||||||||||||||
Contingent consideration related to acquisition: | |||||||||||||||||||||||
Liabilities | 740 | — | — | 740 | 740 | ||||||||||||||||||
Included in accrued liabilities | |||||||||||||||||||||||
-1 | Total cash, cash equivalents, and investments exclude $2.0 million of restricted cash as of December 26, 2014. | ||||||||||||||||||||||
-2 | Other long-term investments as of December 26, 2014 include a cost method investment of $0.5 million that was made during fiscal 2014 in addition to a $1.1 million fair value write-up adjustment made during the first quarter of fiscal 2015 for a marketable equity security. | ||||||||||||||||||||||
September 26, | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||
Cost | Unrealized | Estimated Fair Value | |||||||||||||||||||||
Gains | Losses | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||
Cash | $ | 564,745 | $ | 564,745 | |||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | 1,727 | — | — | 1,727 | 1,727 | ||||||||||||||||||
Commercial paper | 2,000 | — | — | 2,000 | 2,000 | ||||||||||||||||||
Cash and cash equivalents | 568,472 | — | — | 568,472 | 1,727 | 2,000 | — | ||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
U.S. agency securities | 35,443 | 5 | (3 | ) | 35,445 | 35,445 | |||||||||||||||||
Commercial paper | 21,788 | — | — | 21,788 | 21,788 | ||||||||||||||||||
Corporate bonds | 56,106 | 81 | (10 | ) | 56,177 | 56,177 | |||||||||||||||||
Municipal debt securities | 117,606 | 197 | (5 | ) | 117,798 | 117,798 | |||||||||||||||||
Short-term investments | 230,943 | 283 | (18 | ) | 231,208 | 35,445 | 195,763 | — | |||||||||||||||
Long-term investments: | |||||||||||||||||||||||
U.S. agency securities | 31,980 | 19 | (6 | ) | 31,993 | 31,993 | |||||||||||||||||
Corporate bonds | 117,063 | 226 | (80 | ) | 117,209 | 117,209 | |||||||||||||||||
Municipal debt securities | 146,337 | 326 | (30 | ) | 146,633 | 146,633 | |||||||||||||||||
Other long-term investments (2) | 500 | — | — | 500 | |||||||||||||||||||
Long-term investments | 295,880 | 571 | (116 | ) | 296,335 | 31,993 | 263,842 | — | |||||||||||||||
Total cash, cash equivalents, and investments (1) | $ | 1,095,295 | $ | 854 | $ | (134 | ) | $ | 1,096,015 | $ | 69,165 | $ | 461,605 | $ | — | ||||||||
Investments held in supplemental retirement plan: | |||||||||||||||||||||||
Assets | 2,507 | — | — | 2,507 | 2,507 | ||||||||||||||||||
Included in prepaid expenses and other current assets & other non-current assets | |||||||||||||||||||||||
Liabilities | 2,507 | — | — | 2,507 | 2,507 | ||||||||||||||||||
Included in accrued liabilities & other non-current liabilities | |||||||||||||||||||||||
-1 | Total cash, cash equivalents, and investments exclude $2.1 million of restricted cash as of September 26, 2014. | ||||||||||||||||||||||
-2 | Other long-term investments as of September 26, 2014 include a cost method investment of $0.5 million that was made during fiscal 2014. | ||||||||||||||||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table presents the gross unrealized losses and fair value for those available-for-sale securities that were in an unrealized loss position as of December 26, 2014 and September 26, 2014 (in thousands): | ||||||||||||||||||||||
December 26, 2014 | September 26, 2014 | ||||||||||||||||||||||
Investment Type | Fair Value | Gross Unrealized Losses (1) | Fair Value | Gross Unrealized Losses (1) | |||||||||||||||||||
U.S. agency securities | $18,692 | ($41) | $31,930 | ($9) | |||||||||||||||||||
Commercial paper | 3,996 | -1 | — | — | |||||||||||||||||||
Corporate bonds | 177,838 | -319 | 78,166 | -90 | |||||||||||||||||||
Municipal debt securities | 76,981 | -144 | 55,979 | -35 | |||||||||||||||||||
Total | $277,507 | ($505) | $166,075 | ($134) | |||||||||||||||||||
-1 | Our available-for-sale securities in an unrealized loss position were in such position for less than twelve months as of both December 26, 2014 and September 26, 2014. | ||||||||||||||||||||||
Available-for-sale Securities | The following table summarizes the amortized cost and estimated fair value of the available-for-sale securities within our investment portfolio based on stated maturities as of December 26, 2014 and September 26, 2014, which are recorded within cash equivalents and both short and long-term investments in our consolidated balance sheets (in thousands): | ||||||||||||||||||||||
December 26, 2014 | September 26, 2014 | ||||||||||||||||||||||
Range of maturity | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
Due within 1 year | $ | 211,262 | $ | 211,443 | $ | 232,944 | $ | 233,208 | |||||||||||||||
Due in 1 to 2 years | 176,989 | 177,073 | 179,177 | 179,536 | |||||||||||||||||||
Due in 2 to 3 years | 140,023 | 139,803 | 116,204 | 116,299 | |||||||||||||||||||
Total | $ | 528,274 | $ | 528,319 | $ | 528,325 | $ | 529,043 | |||||||||||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | |||||||
Dec. 26, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment | sales & marketing expenses and general & administrative expenses in our consolidated statements of operations. Property, plant and equipment consist of the following (in thousands): | |||||||
Property, Plant And Equipment | December 26, | September 26, | ||||||
2014 | 2014 | |||||||
Land | $ | 49,697 | $ | 45,842 | ||||
Buildings and building improvements | 175,055 | 61,712 | ||||||
Leasehold improvements | 56,251 | 56,665 | ||||||
Machinery and equipment | 49,323 | 47,639 | ||||||
Computer systems and software | 112,437 | 108,225 | ||||||
Furniture and fixtures | 13,441 | 13,540 | ||||||
Construction-in-progress | 54,453 | 127,569 | ||||||
Property, Plant And Equipment, Gross | 510,657 | 461,192 | ||||||
Less: accumulated depreciation | (180,408 | ) | (171,437 | ) | ||||
Property, Plant And Equipment, Net | $ | 330,249 | $ | 289,755 | ||||
Pu |
Goodwill_and_intangible_Assets1
Goodwill and intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||
Dec. 26, 2014 | ||||||||||||||||||||
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 26, 2014 | $ | 277,574 | ||||||||||||||||||
Acquired goodwill (preliminary) (1) | 40,600 | |||||||||||||||||||
Translation adjustments | (2,383 | ) | ||||||||||||||||||
Balance at December 26, 2014 | $ | 315,791 | ||||||||||||||||||
-1 | Total acquired goodwill recorded during the first quarter of fiscal 2015 consists of $39.9 million from the acquisition of Doremi Labs and $0.7 million related to an immaterial acquisition completed during the quarter. | |||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | Intangible assets subject to amortization consist of the following (in thousands): | |||||||||||||||||||
December 26, 2014 | September 26, 2014 | |||||||||||||||||||
Intangible Assets, Net | Cost | Accumulated | Net | Cost | Accumulated | Net | ||||||||||||||
Amortization | Amortization | |||||||||||||||||||
Acquired patents and technology | $ | 140,830 | $ | (64,708 | ) | $ | 76,122 | $ | 99,262 | $ | (61,678 | ) | $ | 37,584 | ||||||
Customer relationships | 53,723 | (23,894 | ) | 29,829 | 30,717 | (22,739 | ) | 7,978 | ||||||||||||
Other intangibles | 23,470 | (21,201 | ) | 2,269 | 38,694 | (20,556 | ) | 18,138 | ||||||||||||
Total | $ | 218,023 | $ | (109,803 | ) | $ | 108,220 | $ | 168,673 | $ | (104,973 | ) | $ | 63,700 | ||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 26, 2014, expected amortization expense in future fiscal periods was as follows (in thousands): | |||||||||||||||||||
Fiscal Year | Amortization Expense | |||||||||||||||||||
Remainder Of 2015 | $ | 14,979 | ||||||||||||||||||
2016 | 17,253 | |||||||||||||||||||
2017 | 14,250 | |||||||||||||||||||
2018 | 8,870 | |||||||||||||||||||
2019 | 8,198 | |||||||||||||||||||
Thereafter | 44,670 | |||||||||||||||||||
Total | $ | 108,220 | ||||||||||||||||||
Stockholders_Equity_And_StockB1
Stockholders' Equity And Stock-Based Compensation (Tables) | 3 Months Ended | |||||||||
Dec. 26, 2014 | ||||||||||
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 stock options issued under our 2000 Stock Incentive Plan and 2005 Stock Plan: | |||||||||
Shares | Weighted-Average | Weighted-Average | Aggregate | |||||||
Exercise Price | Remaining | Intrinsic | ||||||||
Contractual Life | Value (1) | |||||||||
(in thousands) | (in years) | (in thousands) | ||||||||
Options outstanding at September 26, 2014 | 7,611 | $ | 32.96 | |||||||
Grants | 2,326 | 42.91 | ||||||||
Exercises | (122 | ) | 28.7 | |||||||
Forfeitures and cancellations | (49 | ) | 33.57 | |||||||
Options outstanding at December 26, 2014 | 9,766 | 35.3 | 7.9 | $ | 86,537 | |||||
Options vested and expected to vest at December 26, 2014 | 9,519 | 35.28 | 7.9 | 85,285 | ||||||
Options exercisable at December 26, 2014 | 3,826 | $ | 30.96 | 6.2 | 51,138 | |||||
-1 | Aggregate intrinsic value is based on the closing price of our common stock on December 26, 2014 of $44.17 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 26, 2014 | 2,903 | $35.79 | ||||||||
Granted | 1,047 | 42.89 | ||||||||
Vested | -686 | 35.8 | ||||||||
Forfeitures | -36 | 33.59 | ||||||||
Non-vested at December 26, 2014 | 3,228 | $38.12 | ||||||||
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 26, | December 27, | |||||||||
2014 | 2013 | |||||||||
Expected term (in years) | 4.58 | 4.57 | ||||||||
Risk-free interest rate | 1.50% | 1.40% | ||||||||
Expected stock price volatility | 29.70% | 31.90% | ||||||||
Dividend yield | 0.90% | —% | ||||||||
Schedule Of Stock-Based Compensation Expense By Plan | ||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Compensation Expense - By Award Type | |||||||||
Fiscal Quarter Ended | ||||||||||
December 26, | December 27, | |||||||||
2014 | 2013 | |||||||||
Compensation Expense - By Type | ||||||||||
Stock options | $6,283 | $3,870 | ||||||||
Restricted stock units | 10,215 | 10,257 | ||||||||
Employee stock purchase plan | 1,344 | 927 | ||||||||
Total stock-based compensation | 17,842 | 15,054 | ||||||||
Benefit from income taxes | -5,151 | -4,396 | ||||||||
Total stock-based compensation, net of tax | $12,691 | $10,658 | ||||||||
Compensation Expense - By Income Statement Line Item Classification | ||||||||||
Fiscal Quarter Ended | ||||||||||
December 26, | December 27, | |||||||||
2014 | 2013 | |||||||||
Compensation Expense - By Classification | ||||||||||
Cost of products | $246 | $190 | ||||||||
Cost of services | 122 | 87 | ||||||||
Research and development | 5,274 | 4,307 | ||||||||
Sales and marketing | 5,909 | 5,025 | ||||||||
General and administrative | 6,291 | 5,445 | ||||||||
Total stock-based compensation | 17,842 | 15,054 | ||||||||
Benefit from income taxes | -5,151 | -4,396 | ||||||||
Total stock-based compensation, net of tax | $12,691 | $10,658 | ||||||||
Schedule of Tax Benefit from Exercise of Options | This benefit was as follows (in thousands): | |||||||||
Fiscal Quarter Ended | ||||||||||
December 26, | December 27, | |||||||||
2014 | 2013 | |||||||||
Tax benefit - stock option exercises & shares issued under ESPP | $168 | $175 | ||||||||
Schedule of Stock Repurchase Authorizations | 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 26, 2014 (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 | |||||||||
Total | $ | 1,100,000 | ||||||||
Schedule of Stock Repurchase Activity | The following table provides information regarding share repurchase activity under the program during fiscal 2015: | |||||||||
Quarterly Repurchase Activity | Shares | Cost (1) | Average Price Paid Per Share (2) | |||||||
Repurchased | ||||||||||
(in thousands) | ||||||||||
Q1 - Quarter ended December 26, 2014 | 389,500 | $ | 16,953 | $ | 43.51 | |||||
-1 | Cost of share repurchases includes the price paid per share and applicable commissions. | |||||||||
-2 | Average price paid per share excludes commission costs. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||
Dec. 26, 2014 | ||||||||||||||
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 | Fiscal Quarter Ended | |||||||||||||
26-Dec-14 | 27-Dec-13 | |||||||||||||
Unrealized Gain/Loss - Investments | Currency Translation Adjustments | Total | Unrealized Gain/Loss - Investments | Currency Translation Adjustments | Total | |||||||||
Balance, Beginning Of Period | $505 | $2,509 | $3,014 | $ | 203 | $ | 7,611 | $ | 7,814 | |||||
Other Comprehensive Income Before Reclassifications: | ||||||||||||||
Unrealized Gains/(Losses) - Investment Securities | -385 | -385 | 235 | 235 | ||||||||||
Foreign Currency Translation (Losses) (1) | -5,553 | -5,553 | (473 | ) | (473 | ) | ||||||||
Income Tax Effect - Benefit/(Expense) | 180 | 528 | 708 | (84 | ) | (61 | ) | (145 | ) | |||||
Net Of Tax | -205 | -5,025 | -5,230 | 151 | (534 | ) | (383 | ) | ||||||
Amounts Reclassified From AOCI Into Earnings: | ||||||||||||||
Realized (Gains)/Losses - Investment Securities (1) | 28 | 28 | (72 | ) | (72 | ) | ||||||||
Income Tax Effect - Expense (2) | — | — | 26 | 26 | ||||||||||
Net Of Tax | -177 | -5,025 | -5,202 | 105 | (534 | ) | (429 | ) | ||||||
Balance, End Of Period | $328 | ($2,516) | ($2,188) | $ | 308 | $ | 7,077 | $ | 7,385 | |||||
-1 | Realized gains or losses from the sale of our available-for-sale investment securities or from foreign currency translation adjustments are included within other income/expense, net in our consolidated statements of operations. | |||||||||||||
-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. 26, 2014 | |||
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 26, | December 27, | ||
2014 | 2013 | ||
Numerator: | |||
Net income attributable to Dolby Laboratories, Inc. | $41,357 | $44,515 | |
Denominator: | |||
Weighted-average shares outstanding—basic | 102,303 | 101,750 | |
Potential common shares from options to purchase common stock | 992 | 328 | |
Potential common shares from restricted stock units | 980 | 1,114 | |
Weighted-average shares outstanding—diluted | 104,275 | 103,192 | |
Net income per share attributable to Dolby Laboratories, Inc.: | |||
Basic | $0.40 | $0.44 | |
Diluted | $0.40 | $0.43 | |
Antidilutive awards excluded from calculation: | |||
Stock options | 2,683 | 6,791 | |
Restricted stock units | 159 | 1,038 |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||
Dec. 26, 2014 | |||
Income Tax Disclosure [Abstract] | |||
Schedule of Withholding Taxes | Withholding taxes were as follows (in thousands): | ||
Fiscal Quarter Ended | |||
December 26, | December 27, | ||
2014 | 2013 | ||
Withholding Taxes | $12,200 | $10,425 |
Restructuring_Tables
Restructuring (Tables) | 3 Months Ended | |||
Dec. 26, 2014 | ||||
Restructuring Charges [Abstract] | ||||
Schedule Of Changes In Restructuring Accruals | (in thousands) as the first quarter of fiscal 2015 marked the completion of activity under the Fiscal 2014 Restructuring Plan. | |||
Severance and associated costs | ||||
Balance at September 26, 2014 | $ | 146 | ||
Restructuring charges/(credits) | (39 | ) | ||
Cash payments | (10 | ) | ||
Non-cash and other adjustments | (97 | ) | ||
Balance at December 26, 2014 | $ | — | ||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 3 Months Ended | |||||||
Dec. 26, 2014 | ||||||||
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 26, 2014 (in thousands): | |||||||
Payments Due By Fiscal Period | ||||||||
Remainder Of Fiscal 2015 | Fiscal | Fiscal | Fiscal | Fiscal | Thereafter | Total | ||
2016 | 2017 | 2018 | 2019 | |||||
Naming rights | $3,716 | $7,525 | $7,619 | $7,715 | $7,811 | $110,888 | $145,274 | |
Donation commitments | — | — | 6,045 | 67 | 67 | 805 | 6,984 | |
Operating leases | 10,714 | 11,474 | 9,731 | 8,404 | 7,422 | 36,181 | 83,926 | |
Purchase obligations | 7,275 | 2,183 | 451 | — | — | — | 9,909 | |
Total | $21,705 | $21,182 | $23,846 | $16,186 | $15,300 | $147,874 | $246,093 |
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | |||
Dec. 26, 2014 | ||||
Business Combinations [Abstract] | ||||
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the acquisition date fair values allocated to the net assets acquired, including cash of $8.4 million and liabilities assumed. Included in current assets is a separately recognized receivable of $4.2 million related to the preliminary estimated working capital adjustment to the purchase price as of December 26, 2014 (in thousands): | |||
Recognized Identifiable Assets Acquired and Liabilities Assumed | Purchase Price Allocation (Preliminary) | |||
Current assets | $21,088 | |||
Inventories | 16,485 | |||
Intangible assets | 41,000 | |||
Goodwill | 39,884 | |||
Current liabilities | -10,898 | |||
Non-current liabilities | -8,417 | |||
Purchase consideration | $99,142 | |||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the fair values allocated to the various intangible assets acquired (in thousands), the weighted-average useful lives over which they will be amortized using the straight-line method, and the classification of their amortized expense in our consolidated statements of operations: | |||
Intangible Assets Acquired | Purchase Price Allocation | Weighted-Average Useful Life (Years) | Income Statement Classification: Amortization Expense | |
Customer relationships | $22,400 | 10 | Sales & Marketing | |
Developed technology | 16,200 | 7.5 | Cost of Sales | |
Trade name | 1,300 | 1 | Sales & Marketing | |
Backlog | 1,100 | 1 | Cost of Sales | |
Total | $41,000 |
Basis_Of_Presentation_Details
Basis Of Presentation (Details) | 3 Months Ended | |
Dec. 26, 2014 | Dec. 27, 2013 | |
segment | ||
Significant Accounting Policies [Line Items] | ||
Number of weeks in fiscal year | 364 days | 364 days |
Number of Operating Segments | 1 | |
Minimum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Number of weeks in fiscal year | 364 days | |
Maximum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Number of weeks in fiscal year | 371 days |
Composition_Of_Certain_Financi2
Composition Of Certain Financial Statement Captions (Schedule Of Accounts Receivable) (Details) (USD $) | Dec. 26, 2014 | Sep. 26, 2014 |
In Thousands, unless otherwise specified | ||
Composition Of Certain Financial Statement Captions [Abstract] | ||
Trade accounts receivable | $109,825 | $78,189 |
Accounts receivable related to patent administration program | 8,618 | 9,594 |
Accounts receivable, gross | 118,443 | 87,783 |
Less: allowance for doubtful accounts | -1,203 | -1,615 |
Accounts receivable, net | $117,240 | $86,168 |
Composition_Of_Certain_Financi3
Composition Of Certain Financial Statement Captions (Schedule Of Inventories) (Details) (USD $) | Dec. 26, 2014 | Sep. 26, 2014 |
In Thousands, unless otherwise specified | ||
Composition Of Certain Financial Statement Captions [Abstract] | ||
Raw materials | $9,960 | $1,013 |
Work in process | 5,087 | 47 |
Finished goods | 13,244 | 7,476 |
Inventories | $28,291 | $8,536 |
Composition_Of_Certain_Financi4
Composition Of Certain Financial Statement Captions (Narrative) (Details) (USD $) | Dec. 26, 2014 | Sep. 26, 2014 |
Composition Of Certain Financial Statement Captions [Line Items] | ||
Raw materials | $9,960,000 | $1,013,000 |
Assets held for sale | 900,000 | 1,000,000 |
Other Noncurrent Assets [Member] | ||
Composition Of Certain Financial Statement Captions [Line Items] | ||
Raw materials | $1,800,000 | $1,700,000 |
Composition_Of_Certain_Financi5
Composition Of Certain Financial Statement Captions (Schedule Of Prepaid Expenses And Other Current Assets) (Details) (USD $) | Dec. 26, 2014 | Sep. 26, 2014 |
In Thousands, unless otherwise specified | ||
Composition Of Certain Financial Statement Captions [Abstract] | ||
Prepaid assets | $13,774 | $11,665 |
Other current assets | 13,367 | 7,152 |
Income tax receivable | 9,951 | 4,063 |
Prepaid expenses and other current assets | $37,092 | $22,880 |
Composition_Of_Certain_Financi6
Composition Of Certain Financial Statement Captions (Schedule Of Accrued Liabilities) (Details) (USD $) | Dec. 26, 2014 | Sep. 26, 2014 |
In Thousands, unless otherwise specified | ||
Composition Of Certain Financial Statement Captions [Abstract] | ||
Accrued royalties | $2,568 | $2,526 |
Amounts payable to patent administration program partners | 41,998 | 43,438 |
Accrued compensation and benefits | 45,483 | 71,677 |
Accrued professional fees | 4,439 | 6,162 |
Other accrued liabilities | 64,872 | 34,573 |
Total | 159,360 | 158,376 |
Capital expenditures incurred, but not yet paid | $33,300 | $8,700 |
Composition_Of_Certain_Financi7
Composition Of Certain Financial Statement Captions (Schedule Of Other Non-Current Liabilities) (Details) (USD $) | Dec. 26, 2014 | Sep. 26, 2014 |
In Thousands, unless otherwise specified | ||
Composition Of Certain Financial Statement Captions [Abstract] | ||
Supplemental retirement plan obligations | $2,372 | $2,409 |
Non-current tax liabilities | 39,690 | 30,715 |
Other liabilities | 13,731 | 10,591 |
Other non-current liabilities | $55,793 | $43,715 |
Investments_Fair_Value_Measure2
Investments & Fair Value Measurements (Schedule Of Financial Assets and Liabilities Carried At Fair Value) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Dec. 26, 2014 | Sep. 26, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $409,115,000 | $568,472,000 |
Available-for-sale Securities, Debt Securities | 528,319,000 | 529,043,000 |
Available-for-sale Securities, Amortized Cost Basis | 295,880,000 | |
Investment Owned, at Cost | 937,911,000 | 1,095,295,000 |
Investment Owned, Unrecognized Unrealized Appreciation | 1,600,000 | 854,000 |
Investment Owned, Unrecognized Unrealized Depreciation | -505,000 | -134,000 |
Cash Cash Equivalents And Investments Total | 939,006,000 | 1,096,015,000 |
Financial assets carried at fair value | 0 | |
Contingent Consideration Classified as Equity, Fair Value Disclosure | 740,000 | |
Restricted Cash and Cash Equivalents | 2,040,000 | 2,142,000 |
Long-term investments | 318,448,000 | 296,335,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 277,507,000 | 166,075,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -505,000 | -134,000 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | 211,262,000 | 232,944,000 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 211,443,000 | 233,208,000 |
Available For Sale Securities Debt Maturities After One Through Two Years Amortized Cost | 176,989,000 | 179,177,000 |
Available For Sale Securities Debt Maturities After One Through Two Years Fair Value | 177,073,000 | 179,536,000 |
Available For Sale Securities Debt Maturities After Two Through Three Years Amortized Cost | 140,023,000 | 116,204,000 |
Available For Sale Securities Debt Maturities After Two Through Three Years Fair Value | 139,803,000 | 116,299,000 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 528,274,000 | 528,325,000 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 2,266,000 | 1,727,000 |
Investments, Fair Value Disclosure | 3,513,000 | 35,445,000 |
Investments, Noncurrent, Fair Value Disclosure | 19,741,000 | 31,993,000 |
Financial assets carried at fair value | 25,520,000 | 69,165,000 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 2,000,000 | |
Investments, Fair Value Disclosure | 207,930,000 | 195,763,000 |
Investments, Noncurrent, Fair Value Disclosure | 298,207,000 | 263,842,000 |
Financial assets carried at fair value | 506,137,000 | 461,605,000 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | |
Investments, Fair Value Disclosure | 0 | |
Investments, Noncurrent, Fair Value Disclosure | 0 | |
Financial assets carried at fair value | 0 | |
Contingent Consideration Classified as Equity, Fair Value Disclosure | 740,000 | |
Cash [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 406,849,000 | 564,745,000 |
Financial assets carried at fair value | ||
Cash [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets carried at fair value | ||
Cash [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets carried at fair value | ||
Cash [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets carried at fair value | ||
Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 2,266,000 | 1,727,000 |
Financial assets carried at fair value | 0 | |
Money Market Funds [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 2,266,000 | 1,727,000 |
Money Market Funds [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | ||
Money Market Funds [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | ||
Commercial Paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 2,000,000 | |
Financial assets carried at fair value | 0 | |
Commercial Paper [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | ||
Commercial Paper [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | ||
U.S. Agency Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 3,509,000 | 35,443,000 |
Available-for-sale Debt Securities Gross Unrealized Gain | 4,000 | 5,000 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 3,000 | |
Available-for-sale Securities, Debt Securities | 3,513,000 | 35,445,000 |
Available-for-sale Securities, Amortized Cost Basis | 4,999,000 | 31,980,000 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 19,000 |
Available-for-sale Securities, Gross Unrealized Loss | -1,000 | -6,000 |
Available-for-sale Securities | 4,998,000 | 31,993,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 18,692,000 | 31,930,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -41,000 | -9,000 |
U.S. Agency Securities [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | 3,513,000 | 35,445,000 |
Investments, Noncurrent, Fair Value Disclosure | 4,998,000 | 31,993,000 |
Government Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 13,733,000 | |
Available-for-sale Securities, Gross Unrealized Gain | 0 | |
Available-for-sale Securities, Gross Unrealized Loss | -40,000 | |
Available-for-sale Securities | 13,693,000 | |
Government Bonds [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments, Noncurrent, Fair Value Disclosure | 13,693,000 | |
Commercial Paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 8,996,000 | 21,788,000 |
Available-for-sale Debt Securities Gross Unrealized Gain | 1,000 | 0 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 1,000 | 0 |
Available-for-sale Securities, Debt Securities | 8,996,000 | 21,788,000 |
Investment Owned, at Cost | 3,996,000 | 0 |
Investment Owned, Unrecognized Unrealized Appreciation | -1,000 | 0 |
Commercial Paper [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 2,000,000 | |
Investments, Fair Value Disclosure | 8,996,000 | 21,788,000 |
Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 88,447,000 | 56,106,000 |
Available-for-sale Debt Securities Gross Unrealized Gain | 57,000 | 81,000 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 56,000 | 10,000 |
Available-for-sale Securities, Debt Securities | 88,448,000 | 56,177,000 |
Available-for-sale Securities, Amortized Cost Basis | 140,883,000 | 117,063,000 |
Available-for-sale Securities, Gross Unrealized Gain | 95,000 | 226,000 |
Available-for-sale Securities, Gross Unrealized Loss | -263,000 | -80,000 |
Available-for-sale Securities | 140,715,000 | 117,209,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 177,838,000 | 78,166,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -319,000 | -90,000 |
Corporate Bonds [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | 88,448,000 | 56,177,000 |
Investments, Noncurrent, Fair Value Disclosure | 140,715,000 | 117,209,000 |
Municipal Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 110,310,000 | 117,606,000 |
Available-for-sale Debt Securities Gross Unrealized Gain | 176,000 | 197,000 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 5,000 | |
Available-for-sale Securities, Debt Securities | 110,486,000 | 117,798,000 |
Available-for-sale Securities, Amortized Cost Basis | 157,419,000 | 146,337,000 |
Available-for-sale Securities, Gross Unrealized Gain | 217,000 | 326,000 |
Available-for-sale Securities, Gross Unrealized Loss | -144,000 | -30,000 |
Available-for-sale Securities | 157,492,000 | 146,633,000 |
Investment Owned, at Cost | 76,981,000 | 55,979,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -144,000 | -35,000 |
Municipal Bonds [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | 110,486,000 | 117,798,000 |
Investments, Noncurrent, Fair Value Disclosure | 157,492,000 | 146,633,000 |
Short-term Investments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 211,262,000 | 230,943,000 |
Available-for-sale Debt Securities Gross Unrealized Gain | 238,000 | 283,000 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 57,000 | 18,000 |
Available-for-sale Securities, Debt Securities | 211,443,000 | 231,208,000 |
Other Long-term Investments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 500,000 | 500,000 |
Available-for-sale Securities, Gross Unrealized Gain | 1,050,000 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | 0 |
Available-for-sale Securities | 1,550,000 | 500,000 |
Investments, Noncurrent, Fair Value Disclosure | 1,050,000 | |
Long-term investments | 500,000 | |
Cost Method Investment, Fair Value Measurement Adjustment | 1,100,000 | |
Long-term Investments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 317,534,000 | |
Available-for-sale Securities, Gross Unrealized Gain | 1,362,000 | 571,000 |
Available-for-sale Securities, Gross Unrealized Loss | -448,000 | -116,000 |
Available-for-sale Securities | 318,448,000 | 296,335,000 |
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 | 2,554,000 | 2,507,000 |
Financial liabilities carried at fair value | $2,554,000 | $2,507,000 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Dec. 26, 2014 | Sep. 26, 2014 | Sep. 28, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property, Plant And Equipment, Gross | $510,657,000 | $461,192,000 | |
Less: accumulated depreciation | -180,408,000 | -171,437,000 | |
Property, Plant And Equipment, Net | 330,249,000 | 289,755,000 | |
Purchase price of property | 109,800,000 | ||
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant And Equipment, Gross | 49,697,000 | 45,842,000 | |
Purchase price of property | 35,500,000 | ||
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant And Equipment, Gross | 175,055,000 | 61,712,000 | |
Purchase price of property | 74,300,000 | ||
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant And Equipment, Gross | 56,251,000 | 56,665,000 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant And Equipment, Gross | 49,323,000 | 47,639,000 | |
Computer Systems and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant And Equipment, Gross | 112,437,000 | 108,225,000 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant And Equipment, Gross | 13,441,000 | 13,540,000 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant And Equipment, Gross | $54,453,000 | $127,569,000 |
Goodwill_and_intangible_Assets2
Goodwill and intangible Assets Goodwill Rollforward (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 26, 2014 | Oct. 31, 2014 |
Goodwill [Roll Forward] | ||
Balance at September 26, 2014 | $277,574 | |
Acquired goodwill (preliminary) | 40,600 | |
Translation adjustments | -2,383 | |
Balance at December 26, 2014 | 315,791 | |
Doremi Labs [Member] | ||
Goodwill [Roll Forward] | ||
Balance at September 26, 2014 | 39,884 | |
Acquired goodwill (preliminary) | 39,900 | |
Balance at December 26, 2014 | 39,884 | |
Other Acquisitions [Member] | ||
Goodwill [Roll Forward] | ||
Acquired goodwill (preliminary) | $700 |
Goodwill_and_intangible_Assets3
Goodwill and intangible Assets Finite-Lived Intangible Assets (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Sep. 26, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||
Cost | $218,023 | $168,673 | |
Accumulated Amortization | 109,803 | 104,973 | |
Total | 108,220 | 63,700 | |
Purchases of intangible assets | -6,416 | 0 | |
Acquired Patents And Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 140,830 | 99,262 | |
Accumulated Amortization | 64,708 | 61,678 | |
Total | 76,122 | 37,584 | |
Purchases of intangible assets | 6,400 | ||
Weighted average useful life | 18 years | ||
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 53,723 | 30,717 | |
Accumulated Amortization | 23,894 | 22,739 | |
Total | 29,829 | 7,978 | |
Other Intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 23,470 | 38,694 | |
Accumulated Amortization | 21,201 | 20,556 | |
Total | $2,269 | $18,138 |
Goodwill_and_intangible_Assets4
Goodwill and intangible Assets Future Amortization Expense (Details) (USD $) | Dec. 26, 2014 | Sep. 26, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2015 | $14,979 | |
2016 | 17,253 | |
2017 | 14,250 | |
2018 | 8,870 | |
2019 | 8,198 | |
Thereafter | 44,670 | |
Total | $108,220 | $63,700 |
Stockholders_Equity_And_StockB2
Stockholders' Equity And Stock-Based Compensation (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 37 Months Ended | 41 Months Ended | 0 Months Ended | ||
Oct. 31, 2014 | Dec. 26, 2014 | Dec. 27, 2013 | Oct. 31, 2010 | Mar. 28, 2014 | Jan. 21, 2015 | Sep. 26, 2014 | |
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||
Options outstanding to purchase | 9,766,000 | 7,611,000 | |||||
Weighted average remaining contractual life | 7 years 10 months 24 days | ||||||
Year end stock price | $44.17 | ||||||
Percentage of vesting per year | 50.00% | ||||||
Common stock, dividends declared (in dollars per share) | $0.10 | $0.10 | $0 | ||||
Dividends, amount | $10,200,000 | ||||||
Remaining authorization to purchase additional shares | 243,100,000 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||
Stock options expected to vest | 103,100,000 | ||||||
Employee stock options expected to be recognized over a weighted-average period | 3 years 1 month 6 days | ||||||
Employees and Officers [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||
Options vesting period | 4 years | ||||||
Awards Granted Prior to November 2010 [Member] | Directors [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||
Options vesting period | 3 years | 1 year | |||||
Awards Granted After November 2010 [Member] | Directors [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||
Options 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% | ||||||
Employee Stock Option [Member] | |||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||
Stock options expected to vest | 39,800,000 | ||||||
Employee stock options expected to be recognized over a weighted-average period | 2 years 4 months 24 days | ||||||
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) | 51,482,817 | 50,658,627 | |||||
Common stock, shares outstanding (shares) | 51,482,817 | 50,658,627 | |||||
Class A Common Stock [Member] | 2005 Stock Plan. [Member] | |||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||
Shares authorized under plan | 29,000,000 | ||||||
Options outstanding to purchase | 9,800,000 | ||||||
Weighted average remaining contractual life | 7 years 10 months 24 days | ||||||
Options vested and exercisable | 3,800,000 | ||||||
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 | ||||||
Purchase period | 6 months | ||||||
Look back commencement period | 1 year | ||||||
Overlapping offering period | 1 year | ||||||
Class A Common Stock [Member] | Employee Stock Purchase Plan [Member] | Maximum [Member] | |||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||
Maximum number of common stock available for eligible employees | 1,000 | ||||||
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) | 51,081,624 | 51,610,239 | |||||
Common stock, shares outstanding (shares) | 51,081,624 | 51,610,239 | |||||
Class B Common Stock [Member] | 2000 Stock Incentive Plan [Member] | |||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||
Shares authorized under plan | 15,100,000 | ||||||
Options vesting period | 4 years | ||||||
Options outstanding to purchase | 372 | ||||||
Weighted average remaining contractual life | 0 years 1 month 6 days | ||||||
Options expiration period | 10 years | ||||||
Options Granted Prior To June 2008 [Member] | Employee Stock Option [Member] | |||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||
Options expiration period | 10 years | ||||||
Options Granted From June 2008 [Member] | Employee Stock Option [Member] | |||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||
Options vesting period | 4 years | ||||||
Percentage of stock option becoming exercisable subjected to date of grant | 25.00% | ||||||
Subsequent Event [Member] | |||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||
Common stock, dividends declared (in dollars per share) | $0.10 |
Stockholders_Equity_And_StockB3
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) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 26, 2014 |
Shares | |
Shares, Options outstanding at beginning of period | 7,611 |
Shares, Grants | 2,326 |
Shares, Exercises | -122 |
Shares, Forfeitures and cancellations | -49 |
Shares, Options outstanding at end of period | 9,766 |
Shares, Options vested and expected to vest | 9,519 |
Shares, Options exercisable | 3,826 |
Weighted-Average Exercise Price | |
Weighted Average Exercise Price, Options outstanding at beginning of period | $32.96 |
Weighted Average Exercise Price, Grants (in usd per share) | $42.91 |
Weighted Average Exercise Price, Exercises (in usd per share) | $28.70 |
Weighted Average Exercise Price, Forfeitures and cancellations (in usd per share) | $33.57 |
Weighted Average Exercise Price, Options outstanding at end of period | $35.30 |
Weighted Average Exercise Price, Options vested and expected to vest (in usd per share) | $35.28 |
Weighted Average Exercise Price, Options exercisable (in usd per share) | $30.96 |
Weighted Average Remaining Contractual Life, Options outstanding | 7 years 10 months 24 days |
Weighted Average Remaining Contractual Life, Options vested and expected to vest at end of period | 7 years 10 months 24 days |
Weighted Average Remaining Contractual Life, Options exercisable | 6 years 2 months 12 days |
Aggregate Intrinsic Value, Options outstanding | $86,537 |
Aggregate Intrinsic Value, Options vested and expected to vest | 85,285 |
Aggregate Intrinsic Value, Options exercisable | $51,138 |
Stockholders_Equity_And_StockB4
Stockholders' Equity And Stock-Based Compensation (Summary Of Restricted Stock Units Issued To Officers, Directors, And Employees Under 2005 Stock Incentive Plan) (Details) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 26, 2014 |
Shares | |
Shares, Non-vested at beginning of period | 2,903 |
Shares, Granted | 1,047 |
Shares, Vested | -686 |
Shares, Forfeitures | -36 |
Shares, Non-vested at end of period | 3,228 |
Weighted-Average Grant Date Fair Value | |
Weighted Average Fair Value, Non-vested at beginning of period | $35.79 |
Weighted Average Fair Value, Granted | $42.89 |
Weighted Average Fair Value, Vested | $35.80 |
Weighted Average Fair Value, Forfeitures | $33.59 |
Weighted Average Fair Value, Non-vested at end of period | $38.12 |
Stockholders_Equity_And_StockB5
Stockholders' Equity And Stock-Based Compensation (Schedule Of Fair Value Of Stock-Based Awards Estimated Using Weighted-Average Assumptions) (Details) | 3 Months Ended | |
Dec. 26, 2014 | Dec. 27, 2013 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | ||
Expected life (in years) | 4 years 6 months 29 days | 4 years 6 months 26 days |
Risk-free interest rate | 1.50% | 1.40% |
Expected stock price volatility | 29.70% | 31.90% |
Dividend yield | 0.00% | 0.00% |
Stockholders_Equity_And_StockB6
Stockholders' Equity And Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense By Plan) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | $17,842 | $15,054 |
Benefit from income taxes | -5,151 | -4,396 |
Total stock-based compensation, net of tax | 12,691 | 10,658 |
Stock Option [Member] | ||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | 6,283 | 3,870 |
Restricted Stock Units [Member] | ||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | 10,215 | 10,257 |
Employee Stock Purchase Plan [Member] | ||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | $1,344 | $927 |
Stockholders_Equity_And_StockB7
Stockholders' Equity And Stock-Based Compensation (Schedule of Stock-Based Compensation By Classification) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $17,842 | $15,054 |
Benefit from income taxes | -5,151 | -4,396 |
Total stock-based compensation, net of tax | 12,691 | 10,658 |
Cost of products [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 246 | 190 |
Cost of services [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 122 | 87 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 5,274 | 4,307 |
Sales and marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 5,909 | 5,025 |
General and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $6,291 | $5,445 |
Stockholders_Equity_And_StockB8
Stockholders' Equity And Stock-Based Compensation (Tax Benefit from Exercise of Options) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Tax Benefit - stock option exercises & shares issued under ESPP | $168 | $175 |
Stockholders_Equity_And_StockB9
Stockholders' Equity And Stock-Based Compensation (Stock Repurchase Authorizations) (Details) (USD $) | 1 Months Ended | 60 Months Ended | 1 Months Ended | |||
In Thousands, unless otherwise specified | Nov. 30, 2009 | Oct. 31, 2014 | Oct. 31, 2014 | Feb. 29, 2012 | Jul. 31, 2011 | Jul. 31, 2010 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Authorization Amount | $250,000 | $1,100,000 | ||||
Additional Stock Approved [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Authorization Amount | $200,000 | $100,000 | $250,000 | $300,000 |
Recovered_Sheet1
Stockholders' Equity And Stock-Based Compensation (Stock Repurchase) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Stockholders' Equity And Stock-Based Compensation [Abstract] | ||
Shares repurchased (in shares) | 389,500 | |
Cost | $16,953 | $11,660 |
Average Price Paid per Share (in dollars per share) | $43.51 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance, Beginning Of Period | $3,014 | $7,814 |
Income Tax Effect - Benefit/(Expense) | 708 | -145 |
Net Of Tax | -5,230 | -383 |
Realized (Gains) - Investment Securities | 28 | -72 |
Income Tax Effect - (Benefit)/Expense | 0 | 26 |
Net Of Tax | -5,202 | -429 |
Balance, End Of Period | -2,188 | 7,385 |
Unrealized Gains/Losses On Available-For-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance, Beginning Of Period | 505 | 203 |
Unrealized Gains (Losses) | -385 | 235 |
Income Tax Effect - Benefit/(Expense) | 180 | -84 |
Net Of Tax | -205 | 151 |
Realized (Gains) - Investment Securities | 28 | -72 |
Income Tax Effect - (Benefit)/Expense | 0 | 26 |
Net Of Tax | -177 | 105 |
Balance, End Of Period | 328 | 308 |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance, Beginning Of Period | 2,509 | 7,611 |
Unrealized Gains (Losses) | -5,553 | -473 |
Income Tax Effect - Benefit/(Expense) | 528 | -61 |
Net Of Tax | -5,025 | -534 |
Net Of Tax | -5,025 | -534 |
Balance, End Of Period | ($2,516) | $7,077 |
Per_Share_Data_Details
Per Share Data (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||
Net income attributable to Dolby Laboratories, Inc. | $41,357 | $44,515 |
Weighted average shares outstanding-basic | 102,303 | 101,750 |
Potential common shares from options to purchase common stock | 992 | 328 |
Potential common shares from restricted stock units | 980 | 1,114 |
Weighted average shares outstanding-diluted | 104,275 | 103,192 |
Net income per share attributable to Dolby Laboratories, Inc. - Basic (in usd per share) | $0.40 | $0.44 |
Net income per share attributable to Dolby Laboratories, Inc. - Diluted (in usd per share) | $0.40 | $0.43 |
Stock Options [Member] | ||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||
Anti-dilutive securities, excluded from calculations (in shares) | 2,683 | 6,791 |
Restricted Stock Units [Member] | ||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||
Anti-dilutive securities, excluded from calculations (in shares) | 159 | 1,038 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | |
Dec. 26, 2014 | Dec. 27, 2013 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits, gross | $40,300,000 | |
Unrecognized tax benefits if recognized, would affect our effective tax rate | $29,900,000 | |
Effective tax rate (as a percent) | 23.00% | 25.00% |
Income_Taxes_Withholding_Taxes
Income Taxes (Withholding Taxes) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Income Tax Disclosure [Abstract] | ||
Withholding taxes | $12,200 | $10,425 |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | ($39) | $3,215 |
Restructuring Charges [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 3,300 | |
2014 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of positions eliminated | 50 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 146 | |
Restructuring charges | -39 | |
Cash payments | 10 | |
Non-cash charges and other adjustments | 97 | |
Restructuring reserve, ending balance | $0 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Schedule Of Contractual Obligations And Commitments) (Details) (USD $) | Dec. 26, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Naming rights, Remainder of Fiscal 2014 | $3,716 |
Naming rights, Fiscal 2015 | 7,525 |
Naming rights, Fiscal 2016 | 7,619 |
Naming rights, Fiscal 2017 | 7,715 |
Naming rights, Fiscal 2018 | 7,811 |
Naming rights, Thereafter | 110,888 |
Naming rights, Total | 145,274 |
Donation commitments, Remainder of Fiscal 2015 | 0 |
Donation commitments, Fiscal 2016 | 0 |
Donation commitments, Fiscal 2017 | 6,045 |
Donation commitments, Fiscal 2018 | 67 |
Donation commitments, Fiscal 2019 | 67 |
Donation commitments, Thereafter | 805 |
Donation commitments, Total | 6,984 |
Operating leases, Remainder of Fiscal 2014 | 10,714 |
Operating leases, Fiscal 2015 | 11,474 |
Operating leases, Fiscal 2016 | 9,731 |
Operating leases, Fiscal 2017 | 8,404 |
Operating leases, Fiscal 2018 | 7,422 |
Operating leases, Thereafter | 36,181 |
Operating leases, Total | 83,926 |
Purchase obligation, Remainder of Fiscal 2014 | 7,275 |
Purchase obligation, Fiscal 2015 | 2,183 |
Purchase obligation, Fiscal 2016 | 451 |
Purchase Obligation, Fiscal 2017 | 0 |
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 0 |
Unrecorded Unconditional Purchase Obligation, Due after Five Years | 0 |
Purchase obligation, Total | 9,909 |
Total, due in Remainder of Fiscal 2014 | 21,705 |
Total, due in Fiscal 2015 | 21,182 |
Total, due in Fiscal 2016 | 23,846 |
Total, due in Fiscal 2017 | 16,186 |
Total, due in Fiscal 2018 | 15,300 |
Total, due Thereafter | 147,874 |
Total due | $246,093 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Narrative) (Details) | 3 Months Ended |
Dec. 28, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | |
Term of agreement | 20 years |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |
Dec. 26, 2014 | Dec. 27, 2013 | Sep. 26, 2014 | Oct. 31, 2014 | |
Business Acquisition, Contingent Consideration [Line Items] | ||||
Receivable for working capital adjustment from acquisition | $4,220,000 | $0 | ||
Acquisition related costs | 400,000 | 800,000 | 5,900,000 | |
Doremi Labs [Member] | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Payments to acquire business | 92,500,000 | |||
Contingent consideration earnout period | 4 years | |||
Contingent consideration liability | 700,000 | 20,000,000 | ||
Cash paid to sellers | 98,400,000 | |||
Purchase price | 99,142,000 | |||
Cash acquired | $8,400,000 |
Acquisitions_Recognized_Identi
Acquisitions (Recognized Identifiable Assets Acquired and Liabilities Assumed) (Details) (USD $) | 0 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Dec. 26, 2014 | Sep. 26, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $315,791 | $277,574 | |
Doremi Labs [Member] | |||
Business Acquisition [Line Items] | |||
Current assets | 21,088 | ||
Inventories | 16,485 | ||
Intangible assets | 41,000 | ||
Goodwill | 39,884 | ||
Current liabilities | -10,898 | ||
Non-current liabilities | -8,417 | ||
Purchase price | $99,142 |
Acquisitions_Acquisitions_Inta
Acquisitions Acquisitions (Intangible Assets Acquired) (Details) (Doremi Labs [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Purchase Price Allocation (Preliminary) | $41,000 |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Purchase Price Allocation (Preliminary) | 22,400 |
Weighted average useful life | 10 years |
Developed Technology [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Purchase Price Allocation (Preliminary) | 16,200 |
Weighted average useful life | 7 years 6 months |
Trade Name [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Purchase Price Allocation (Preliminary) | 1,300 |
Weighted average useful life | 1 year |
Backlog [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Purchase Price Allocation (Preliminary) | $1,100 |
Weighted average useful life | 1 year |