Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 28, 2016 | Apr. 01, 2016 | |
Entity Registrant Name | Dolby Laboratories, Inc. | ||
Entity Central Index Key | 1,308,547 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1.7 | ||
Class A Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 57,079,744 | ||
Class B Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 44,403,847 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 25, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 516,112 | $ 531,926 |
Restricted cash | 3,645 | 2,936 |
Short-term investments | 121,629 | 138,901 |
Accounts receivable, net of allowance for doubtful accounts of $2,370 and $1,542 | 75,688 | 101,563 |
Inventories | 16,354 | 13,872 |
Prepaid expenses and other current assets | 26,302 | 32,031 |
Total current assets | 759,730 | 821,229 |
Long-term investments | 393,904 | 321,015 |
Property, plant and equipment, net | 443,656 | 403,091 |
Intangible assets, net | 215,342 | 127,507 |
Goodwill | 309,616 | 307,708 |
Deferred taxes | 166,790 | 143,279 |
Other non-current assets | 21,068 | 9,464 |
Total assets | 2,310,106 | 2,133,293 |
Current liabilities: | ||
Accounts payable | 17,544 | 20,710 |
Accrued liabilities | 169,055 | 169,307 |
Income taxes payable | 2,304 | 754 |
Deferred revenue | 24,180 | 18,910 |
Total current liabilities | 213,083 | 209,681 |
Long-term deferred revenue | 35,366 | 30,581 |
Other non-current liabilities | 82,922 | 77,024 |
Total liabilities | 331,371 | 317,286 |
Stockholders' equity: | ||
Additional paid-in capital | 42,032 | 17,571 |
Retained earnings | 1,938,320 | 1,800,857 |
Accumulated other comprehensive income | (10,197) | (11,462) |
Total stockholders’ equity – Dolby Laboratories, Inc. | 1,970,256 | 1,807,068 |
Controlling interest | 8,479 | 8,939 |
Total stockholders’ equity | 1,978,735 | 1,816,007 |
Total liabilities and stockholders’ equity | 2,310,106 | 2,133,293 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 57 | 51 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | $ 44 | $ 51 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Thousands | Sep. 30, 2016USD ($)vote / shares$ / sharesshares | Sep. 25, 2015USD ($)vote / shares$ / sharesshares |
Allowance for doubtful accounts | $ | $ 2,370 | $ 1,542 |
Class A Common Stock [Member] | ||
Common stock, par value (usd per share) | $ / shares | $ 0.001 | $ 0.001 |
Common stock voting right per share (votes per share) | vote / shares | 1 | 1 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares Issued | 57,018,362 | 50,291,426 |
Common Stock, Shares Outstanding | 57,018,362 | 50,291,426 |
Class B Common Stock [Member] | ||
Common stock, par value (usd per share) | $ / shares | $ 0.001 | $ 0.001 |
Common stock voting right per share (votes per share) | vote / shares | 10 | 10 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares Issued | 44,403,847 | 50,743,311 |
Common Stock, Shares Outstanding | 44,403,847 | 50,743,311 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Revenue: | |||
Licensing | $ 917,032 | $ 868,111 | $ 878,844 |
Products | 90,543 | 83,904 | 59,219 |
Services | 18,163 | 18,623 | 22,113 |
Total revenue | 1,025,738 | 970,638 | 960,176 |
Cost of revenue: | |||
Cost of licensing | 28,333 | 10,879 | 10,814 |
Cost of products | 64,853 | 70,490 | 45,132 |
Cost of services | 15,796 | 13,447 | 14,230 |
Total cost of revenue | 108,982 | 94,816 | 70,176 |
Gross margin | 916,756 | 875,822 | 890,000 |
Operating expenses: | |||
Research and development | 219,607 | 201,324 | 183,128 |
Sales and marketing | 295,267 | 279,174 | 252,647 |
General and administrative | 168,854 | 182,176 | 178,104 |
Restructuring charges | 1,233 | (80) | 2,403 |
Total operating expenses | 684,961 | 662,594 | 616,282 |
Operating income | 231,795 | 213,228 | 273,718 |
Other income/expense: | |||
Interest income | 5,684 | 4,544 | 3,344 |
Interest expense | (125) | (183) | 183 |
Other income/(expense), net | (1,450) | 28,193 | (1,146) |
Total other income | 4,109 | 32,554 | 2,381 |
Income before income taxes | 235,904 | 245,782 | 276,099 |
Provision for income taxes | (49,502) | (62,542) | (67,379) |
Net income including controlling interest | 186,402 | 183,240 | 208,720 |
Less: net (income) attributable to controlling interest | (542) | (1,850) | (2,617) |
Net income attributable to Dolby Laboratories, Inc. | $ 185,860 | $ 181,390 | $ 206,103 |
Net Income Per Share: | |||
Basic (usd per share) | $ 1.85 | $ 1.77 | $ 2.02 |
Diluted (usd per share) | $ 1.81 | $ 1.75 | $ 1.99 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||
Basic (shares) | 100,717 | 102,354 | 102,151 |
Diluted (shares) | 102,424 | 103,862 | 103,632 |
Related party rent expense: | |||
Included in operating expenses | $ 3,097 | $ 3,136 | $ 2,125 |
Included in net income attributable to controlling interest | $ 706 | $ 4,091 | $ 4,827 |
Cash dividend declared per common share | $ 0.50 | $ 0.42 | $ 0 |
Cash dividend paid per common share | $ 0.48 | $ 0.40 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income including controlling interest | $ 186,402 | $ 183,240 | $ 208,720 |
Other comprehensive income/(loss): | |||
Foreign currency translation adjustments, net of tax | 85 | (14,858) | (5,004) |
Unrealized gains/(losses) on available-for-sale securities, net of tax | 392 | (155) | 302 |
Comprehensive income | 186,879 | 168,227 | 204,018 |
Less: comprehensive (income) attributable to controlling interest | 246 | (1,326) | (2,715) |
Comprehensive income attributable to Dolby Laboratories, Inc. | $ 187,125 | $ 166,901 | $ 201,303 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Total | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total Dolby Laboratories,Inc.[Member] | Controlling Interest [Member] | Class B Common Stock [Member]Common Stock [Member] | Common Class A [Member]Common Stock [Member] |
Beginning balance, shares at Sep. 27, 2013 | 54,876,000 | 46,863,000 | ||||||
Beginning balance, value at Sep. 27, 2013 | $ 1,500,026 | $ 18,812 | $ 1,454,382 | $ 7,814 | $ 1,481,110 | $ 18,916 | $ 55 | $ 47 |
Net income | 208,720 | 206,103 | 206,103 | 2,617 | ||||
Translation adjustments, net of taxes | (5,004) | (5,102) | (5,102) | 98 | ||||
Unrealized gains/(losses) on available-for-sale securities, net of tax | 302 | 302 | 302 | |||||
Stock-based compensation expense | 65,680 | 65,680 | 65,680 | |||||
Repurchase of common stock, shares | (1,390,000) | |||||||
Repurchase of common stock, value | (56,028) | (56,027) | (56,028) | $ (1) | ||||
Tax benefit/(deficiency) from the stock incentive plans | (1,770) | (1,770) | (1,770) | |||||
Class A common stock issued under employee stock plans, shares | 2,143,000 | |||||||
Class A common stock issued under employee stock plans, value | 32,994 | 32,992 | 32,994 | $ 2 | ||||
Shares repurchased for tax witholdings on vesting of restricted stock, shares | (337,000) | |||||||
Shares repurchased for tax witholdings on vesting of restricted stock, value | (13,651) | (13,651) | (13,651) | |||||
Transfer of Class B common stock to Class A common stock, shares | (3,380,000) | (3,380,000) | ||||||
Transfer of Class B common stock to Class A common stock, value | $ (3) | $ (3) | ||||||
Ending balance, shares at Sep. 26, 2014 | 51,610,000 | 50,659,000 | ||||||
Ending balance, value at Sep. 26, 2014 | 1,731,648 | 46,415 | 1,660,485 | 3,014 | 1,710,017 | 21,631 | $ 52 | $ 51 |
Net income | 183,240 | 181,390 | 181,390 | 1,850 | ||||
Translation adjustments, net of taxes | (14,858) | (14,321) | (14,321) | (537) | ||||
Unrealized gains/(losses) on available-for-sale securities, net of tax | (155) | (155) | (155) | |||||
Distributions to controlling interest | (5,615) | (5,615) | ||||||
Stock-based compensation expense | 67,069 | 67,069 | 67,069 | |||||
Repurchase of common stock, shares | (2,939,000) | |||||||
Repurchase of common stock, value | (107,349) | (107,346) | (107,349) | $ (3) | ||||
Cash dividends declared and paid on common stock | (41,018) | (41,018) | (41,018) | |||||
Tax benefit/(deficiency) from the stock incentive plans | (1,484) | (1,484) | (1,484) | |||||
Class A common stock issued under employee stock plans, shares | 2,087,000 | |||||||
Class A common stock issued under employee stock plans, value | 28,620 | 28,618 | 28,620 | $ 2 | ||||
Shares repurchased for tax witholdings on vesting of restricted stock, shares | (382,000) | |||||||
Shares repurchased for tax witholdings on vesting of restricted stock, value | (15,708) | (15,708) | (15,708) | |||||
Transfer of Class B common stock to Class A common stock, shares | (867,000) | (867,000) | ||||||
Transfer of Class B common stock to Class A common stock, value | $ (1) | $ (1) | ||||||
Exercise of Class B stock options, value | 7 | 7 | 7 | |||||
Deconsolidation of subsidiary | (8,390) | (8,390) | ||||||
Ending balance, shares at Sep. 25, 2015 | 50,743,000 | 50,292,000 | ||||||
Ending balance, value at Sep. 25, 2015 | 1,816,007 | 17,571 | 1,800,857 | (11,462) | 1,807,068 | 8,939 | $ 51 | $ 51 |
Net income | 186,402 | 185,860 | 185,860 | 542 | ||||
Translation adjustments, net of taxes | 85 | 873 | 873 | (788) | ||||
Unrealized gains/(losses) on available-for-sale securities, net of tax | 392 | 392 | 392 | |||||
Distributions to controlling interest | (214) | (214) | ||||||
Stock-based compensation expense | $ 66,985 | 66,985 | 66,985 | |||||
Repurchase of common stock, shares | (2,616,384) | (2,616,000) | ||||||
Repurchase of common stock, value | $ (100,854) | (100,851) | (100,854) | $ (3) | ||||
Cash dividends declared and paid on common stock | (48,397) | (48,397) | (48,397) | |||||
Tax benefit/(deficiency) from the stock incentive plans | (850) | (850) | (850) | |||||
Class A common stock issued under employee stock plans, shares | 3,382,000 | |||||||
Class A common stock issued under employee stock plans, value | 71,111 | 71,108 | 71,111 | $ 3 | ||||
Shares repurchased for tax witholdings on vesting of restricted stock, shares | (379,000) | |||||||
Shares repurchased for tax witholdings on vesting of restricted stock, value | $ (13,632) | (13,631) | (13,632) | $ (1) | ||||
Transfer of Class B common stock to Class A common stock, shares | 6,339,000 | (6,339,000) | ||||||
Transfer of Class B common stock to Class A common stock, value | $ (7) | $ (7) | ||||||
Exercise of Class B stock options, shares | 1,930,000 | |||||||
Ending balance, shares at Sep. 30, 2016 | 44,404,000 | 57,018,000 | ||||||
Ending balance, value at Sep. 30, 2016 | $ 1,978,735 | $ 42,032 | $ 1,938,320 | $ (10,197) | $ 1,970,256 | $ 8,479 | $ 44 | $ 57 |
Consolidated Statements Of Sto7
Consolidated Statements Of Stockholders' Equity And Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Statement of Stockholders' Equity [Abstract] | ||||
Foreign currency translation tax | $ 586 | $ 864 | $ (46) | $ 497 |
Unrealized gains/(losses) on available-for-sale securities, tax | $ 49 | $ (87) | $ (131) | $ 493 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Operating activities: | |||
Net income including controlling interest | $ 186,402 | $ 183,240 | $ 208,720 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 85,152 | 69,133 | 53,278 |
Stock-based compensation | 66,985 | 67,069 | 65,680 |
Amortization of premium on investments | 3,824 | 9,162 | 9,398 |
Excess tax benefit from exercise of stock options | (3,225) | (2,544) | (2,434) |
Provision for doubtful accounts | 1,017 | 33 | 1,119 |
Deferred income taxes | (22,798) | (14,484) | (6,696) |
Gain on sale of ownership interest in subsidiary (pre-tax) | 0 | (26,221) | |
Other non-cash items affecting net income | 1,779 | 5,125 | 1,821 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 24,886 | (7,008) | 10,165 |
Inventories | (2,949) | 5,835 | 3,818 |
Prepaid expenses and other assets | (15,217) | (3,595) | (354) |
Accounts payable and other liabilities | 2,834 | (7,384) | 24,124 |
Income taxes, net | 17,265 | 21,767 | 951 |
Deferred revenue | 10,288 | 8,981 | (8,734) |
Other non-current liabilities | 596 | 268 | 691 |
Net cash provided by operating activities | 356,839 | 309,377 | 361,547 |
Investing activities: | |||
Purchases of available-for-sale securities | (426,118) | (392,936) | (389,282) |
Proceeds from sales of available-for-sale securities | 262,125 | 305,225 | 159,559 |
Proceeds from maturities of available-for-sale securities | 103,987 | 146,152 | 137,059 |
Purchases of property, plant and equipment | (100,762) | (157,526) | (75,363) |
Acquisitions, net of cash acquired | 0 | (93,516) | 0 |
Purchases of intangible assets | (121,020) | (37,416) | (37,950) |
Proceeds from sale of ownership interest in subsidiary (net) | 0 | 27,216 | 0 |
Change in restricted cash | (709) | (794) | 1,033 |
Net cash provided by/(used in) investing activities | (282,497) | (203,595) | (204,944) |
Financing activities: | |||
Proceeds from issuance of common stock | 71,111 | 28,627 | 33,373 |
Repurchase of common stock | (100,854) | (107,349) | (56,028) |
Payment of cash dividend | (48,397) | (41,018) | 0 |
Distribution to controlling interest | (214) | (5,615) | 0 |
Excess tax benefit from the exercise of stock options | 3,225 | 2,544 | 2,434 |
Shares repurchased for tax withholdings on vesting of restricted stock | (13,632) | (15,708) | (13,651) |
Payment of deferred consideration for prior business combination | 0 | 0 | (6,708) |
Net cash used in financing activities | (88,761) | (138,519) | (40,580) |
Effect of foreign exchange rate changes on cash and cash equivalents | (1,395) | (3,809) | (1,948) |
Net increase/(decrease) in cash and cash equivalents | (15,814) | (36,546) | 114,075 |
Cash and cash equivalents at beginning of period | 531,926 | 568,472 | 454,397 |
Cash and cash equivalents at end of period | 516,112 | 531,926 | 568,472 |
Supplemental disclosure: | |||
Cash paid for income taxes, net of refunds received | 55,085 | 51,881 | 72,177 |
Non-cash investing activities: | |||
Change in property, plant and equipment purchased and unpaid at period-end | (7,233) | 15,725 | 6,982 |
Purchase consideration payable for acquisition | $ 0 | $ 95 | $ 0 |
Basis Of Presentation
Basis Of Presentation | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1 . Basis of Presentation Principles of Consolidation The consolidated financial statements include the accounts of Dolby Laboratories, Inc. and our wholly owned subsidiaries. In addition, we have consolidated the financial results of jointly-owned affiliated companies in which our principal stockholder has a controlling interest. We report these controlling interests as a separate line in our consolidated statements of operations as net income attributable to controlling interest, and in our consolidated balance sheets as a controlling interest. We eliminate all intercompany accounts and transactions upon consolidation. Use of Estimates The preparation of our financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported and disclosed in our consolidated financial statements and accompanying notes. Actual results could differ from our estimates. Significant items subject to such estimates and assumptions include: • Estimated selling prices for elements sold in ME revenue arrangements • Valuation allowances for accounts receivable • Carrying values of inventories and certain PP&E, goodwill and intangible assets • Fair values of investments • Accrued liabilities, including liabilities for unrecognized tax benefits • Deferred income tax assets and liabilities • Stock-based compensation Fiscal Year Our fiscal year is a 52 or 53 week period ending on the last Friday in September. The fiscal years presented herein include the 53 week period ended September 30, 2016 (fiscal 2016 ) and the 52 week periods ended September 25, 2015 (fiscal 2015 ) and September 26, 2014 (fiscal 2014 ). Reclassifications We have reclassified certain prior period amounts within our consolidated financial statements and accompanying notes to conform to our current period presentation. These reclassifications did not affect total revenue, operating income, operating cash flows or net income. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2 . Summary of Significant Accounting Policies Concentration of Credit Risk Our financial instruments that are exposed to concentrations of credit risk principally consist of cash, cash equivalents, investments, and accounts receivable. Our investment portfolio consists of investment grade securities diversified amongst security types, industries, and issuers. All our securities are held in custody by a recognized financial institution. Our policy limits the amount of credit exposure to a maximum of 5% to any one issuer, except for the U.S. Treasury, and we believe no significant concentration risk exists with respect to these investments. Our products are sold to businesses primarily in the Americas and Europe, and the majority of our licensing revenue is generated from customers outside of the U.S. We manage this risk by evaluating in advance the financial condition and creditworthiness of our products and services customers and performing regular evaluations of the creditworthiness of our licensing customers. In fiscal 2016, we did not have any individual customers whose revenue exceeded 10% of our total revenue. In fiscal 2015 and 2014 , revenue from one customer, Samsung, accounted for approximately 12% and 11% of our total revenue, respectively, and consisted primarily of licensing revenue from our mobile and broadcast markets. Cash and Cash Equivalents We consider all short-term highly liquid investments with original maturities of 90 days or less from the date of purchase to be cash equivalents. Cash and cash equivalents primarily consist of funds held in general checking accounts, money market accounts, commercial paper, and U.S. agency notes. Restricted Cash Restricted cash on our consolidated balance sheets consist of cash contributed by Dolby and third-party licensors to Via Licensing Corporation, our wholly-owned subsidiary, that may only be used in defending patent pools administered by Via. Investments All of our investments are classified as available-for-sale securities, with the exception of our mutual fund investments held in our supplemental retirement plan, which are classified as trading securities. Investments that have an original maturity of 91 days or more at the date of purchase and a current maturity of less than one year are classified as short-term investments, while investments with a current maturity of more than one year are classified as long-term investments. Our investments are recorded at fair value in our consolidated balance sheets. Unrealized gains and losses on our AFS securities are reported as a component of AOCI, while realized gains and losses, other-than-temporary impairments, and credit losses are reported as a component of net income. Upon sale, gains and losses are reclassified from AOCI into earnings, and are determined based on specific identification of securities sold. We evaluate our investment portfolio for credit losses and other-than-temporary impairments by comparing the fair value with the cost basis for each of our investment securities. An investment is impaired if the fair value is less than its cost basis. If any portion of the impairment is deemed to be the result of a credit loss, the credit loss portion of the impairment is included as a component of net income. If we deem it probable that we will not recover the full cost basis of the security, the security is other-than-temporarily impaired and the impairment loss is recognized as a component of net income. Allowance for Doubtful Accounts We continually monitor customer payments and maintain a reserve for estimated losses resulting from our customers’ inability to make required payments. In determining the reserve, we evaluate the collectibility of our accounts receivable based upon a variety of factors. In cases where we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, we record a specific allowance against amounts due, and thereby reduce the net recognized receivable to the amount reasonably believed to be collectible. For all other customers, we recognize allowances for doubtful accounts based on our actual historical write-off experience in conjunction with the length of time the receivables are past due, the creditworthiness of the customer, geographic risk and the current business environment. Actual future losses from uncollectible accounts may differ from our estimates. Inventories Inventories are stated at the lower of cost or market (net realizable value). We evaluate our ending inventories for estimated excess quantities and obsolescence. Our evaluation includes the analysis of future sales demand by product within specific time horizons. Inventories in excess of projected future demand are written down to their net realizable value. In addition, we assess the impact of changing technology on our inventory balances and write-off inventories that are considered obsolete. Write-downs and write-offs of inventory are recorded as a cost of products in our consolidated statements of operations. We classify inventory that we do not expect to sell within twelve months as other non-current assets in our consolidated balance sheets. Property, Plant and Equipment PP&E is stated at cost less accumulated depreciation. Depreciation expense is recognized on a straight-line basis according to estimated useful lives assigned to each of our different categories of PP&E as summarized within the following table: PP&E Category Useful Life (Depreciable Base) Computer equipment and software 3 to 5 years Machinery and equipment 3 to 8 years Furniture and fixtures 5 to 8 years Leasehold improvements Lesser of useful life or related lease term Equipment provided under operating leases 15 years Buildings and building improvements 20 to 40 years We capitalize certain costs incurred during the construction phase of a project or asset into construction-in-progress until the construction process is complete. Once the related asset is placed into service, we transfer its carrying value into the appropriate fixed asset category and begin depreciating the value over its useful life. Equipment Provided Under Operating Leases. We account for our cinema equipment installed at third party sites under collaborative or other arrangements as operating leases, and depreciate these assets on a straight-line basis over their estimated useful life. Internal Use Software. We account for the costs of computer software developed for internal use by capitalizing costs of materials and external consultants. These costs are included in PP&E, net of accumulated amortization in our consolidated balance sheets. Our capitalized internal use software costs are typically amortized on a straight-line basis over estimated useful lives of three to five years. Costs incurred during the preliminary project and post-implementation stages are charged to expense. Goodwill, Intangible Assets, and Long-Lived Assets We test goodwill for impairment annually during our third fiscal quarter and whenever events or changes in circumstances indicate that the carrying amount may be impaired. We perform a qualitative assessment as a determinant for whether the two-step annual goodwill impairment test should be performed. In performing the qualitative assessment, we consider events and circumstances, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting unit's net assets, and changes in the price of our common stock. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then the two-step goodwill impairment test is not performed. If the two-step goodwill test is performed, we evaluate and test our goodwill for impairment at a reporting-unit level using expected future cash flows to be generated by the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the calculated fair value of the goodwill. A reporting unit is an operating segment or one level below. Our operating segment is aligned with the management principles of our business. We completed our annual goodwill impairment assessment for fiscal 2016 in the fiscal quarter ended July 1, 2016 . We determined, after performing a qualitative review for each of our separate reporting units, that it is more likely than not that the fair value of each of our reporting units that have goodwill substantially exceeds their respective carrying amounts. Accordingly, there was no indication of impairment, and the two-step goodwill impairment test was not required. We did not incur any goodwill impairment losses in any of the periods presented. Intangible assets are stated at their original cost less accumulated amortization, and those with definite lives are amortized over their estimated useful lives. Our intangible assets principally consist of acquired technology, patents, trademarks, customer relationships and contracts, the majority of which are amortized on a straight-line basis over their useful lives using a range from three to eighteen years. We review long-lived assets, including intangible assets, for impairment whenever events or a change in circumstances indicate an asset’s carrying value may not be recoverable. Recoverability of an asset is measured by comparing its carrying value to the total future undiscounted cash flows that the asset is expected to generate. If it is determined that an asset is not recoverable, an impairment loss is recorded in the amount by which the carrying value of the asset exceeds its estimated fair value. Revenue Recognition We enter into revenue arrangements with our customers to license technologies, trademarks and other aspects of our technological expertise and to sell products and services. We recognize revenue when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been completed, our price to the buyer is fixed or determinable, and collectability is probable. Multiple Element Arrangements. Some of our revenue arrangements include ME, such as hardware, software, maintenance and other services. We evaluate each element in a multiple-element arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when it has standalone value and delivery of an undelivered element is both probable and within our control. When these criteria are not met, the delivered and undelivered elements are combined and the arrangement fees are allocated to this combined single unit. If the unit separation criteria are met, we account for each element within a ME arrangement separately, whereby the total arrangement fees are allocated to each element based on its relative selling price, which we establish using a selling price hierarchy. We determine the selling price of each element based on its VSOE, if available, TPE, if VSOE is not available, or ESP, if neither VSOE nor TPE is available. For some arrangements, customers receive certain elements over a period of time, after delivery of the initial product. These elements may include support and maintenance or the right to receive upgrades. Revenue allocated to the undelivered element is recognized either over its estimated service period or when the upgrade is delivered. We do not recognize revenue that is contingent upon the future delivery of products or services or upon future performance obligations. We recognize revenue for delivered elements only when we have completed all contractual obligations. We determine our ESP for an individual element within a ME revenue arrangement using the same methods used to determine the selling price of an element sold on a standalone basis. If we sell the element on a standalone basis, we estimate the selling price by considering actual sales prices. Otherwise, we estimate the selling price by considering internal factors such as pricing practices and margin objectives. Consideration is also given to market conditions such as competitor pricing strategies, customer demands and industry technology lifecycles. Management applies judgment to establish margin objectives, pricing strategies and technology lifecycles. We account for the majority of our digital cinema server and processor sales as ME arrangements that may include up to four separate units, or elements, of accounting. ▪ The first element consists of our digital cinema server hardware and the accompanying software, which is essential to the functionality of the hardware. This element is typically delivered at the time of sale. ▪ The second element is the right to receive support and maintenance, which is included with the purchase of the hardware element and is typically delivered over a service period subsequent to the initial sale. ▪ The third element is the right to receive specified upgrades, which is included with the purchase of the hardware element and is typically delivered when a specified upgrade is available, subsequent to the initial sale. Under revenue recognition accounting standards, sales of our digital cinema servers typically result in the allocation of a substantial majority of the arrangement fees to the delivered hardware element based on its ESP, which we recognize as revenue at the time of sale once delivery has occurred. A small portion of the arrangement fee is allocated to the undelivered support and maintenance element, and when applicable, to the undelivered specified upgrade element based on the VSOE or ESP of each element. The portion of the arrangement fees allocated to the support and maintenance element are recognized as revenue ratably over the estimated service period, and the portion of the arrangement fees allocated to specified upgrades are recognized as revenue upon delivery of the upgrade. ▪ The fourth element is the right to receive commissioning services performed solely in connection with our digital servers necessary for the installation of Dolby Atmos-enabled theaters. These services consist of the review of venue designs specifying proposed speaker placement, as well as calibration services performed for installed speakers to ensure optimal playback. A small portion of the arrangement fee is allocated to these services based on their ESP which we recognize as revenue once the services have been completed. Software Arrangements. Revenue recognition for transactions that involve software, such as fees we earn from certain system licensees, may include multiple elements. For some of our ME arrangements that involve software, customers receive certain elements over a period of time or after delivery of the initial software. These elements may include support and maintenance. The fair values of these elements are recognized over the estimated period for which these elements will be delivered, which is sometimes the estimated life of the software. If we do not have VSOE of fair value for any undelivered element included in these ME arrangements for software, we defer revenue until all elements are delivered or services have been performed, or until we have VSOE of fair value for all remaining undelivered elements. If the undelivered element is support and we do not have fair value for the support element, revenue for the entire arrangement is bundled and recognized ratably over the support period. In certain cases, our arrangements require the licensee to pay a fixed fee for the right to distribute units in the future. These fees are generally recognized upon contract execution, unless the arrangement includes contingency terms wherein we assess the totality of the existing facts and circumstances and conclude upon an accounting treatment thereon, or is considered a ME arrangement. Licensing. Our licensing revenue is primarily derived from royalties paid to us by licensees of our IP rights, including patents, trademarks, and trade secrets. Royalties are recognized when all revenue recognition criteria have been met. We determine that there is persuasive evidence of an arrangement upon the execution of a license agreement or upon the receipt of a licensee’s royalty report and payment. Generally, royalties are deemed fixed or determinable upon receipt of a licensee’s royalty report in accordance with the terms of the underlying executed agreement. We determine collectibility based on an evaluation of the licensee’s recent payment history, the existence of a standby letter-of-credit between the licensee’s financial institution and our financial institution, and other factors. If we cannot determine that collectibility is probable, we recognize revenue upon receipt of cash, provided that all other revenue recognition criteria have been met. Corrective royalty statements generally comprise less than 1% of our net licensing revenue and are recognized when received, or earlier if a reliable estimate can be made of an anticipated reduction in revenue from a prior royalty statement. An estimate of anticipated reduction in revenue based on historical negative correction royalty statements is also recorded. Deferred revenue represents amounts that we have already collected that are ultimately expected to be recognized as revenue, but for which not all revenue recognition criteria have been met. Licensing revenue also includes fees we earn for administering joint patent licensing programs (“patent pools”) containing patents owned by us and/or other companies. Royalties related to patent pools are recorded net of royalties payable to third party patent pool members and are recognized when all revenue recognition criteria have been met. We generate the majority of our licensing revenue through our licensing contracts with OEMs ("system licensees") and implementation licensees. Our revenue recognition policies for each of these arrangements are summarized below. Licensing to system licensees. We license our technologies to system licensees who manufacture consumer electronics products and, in return, the system licensee pays us a royalty generally for each unit shipped that incorporates our technologies. Royalties from system licensees are generally recognized upon receipt of a royalty report from the licensee and when all other revenue recognition criteria have been met. In certain cases, our arrangements require the licensee to pay up-front, non-refundable royalties for units they may distribute in the future. These up-front fees are generally recognized upon contract execution, unless the arrangement includes extended payment terms or is considered a ME arrangement. In addition, in some cases we receive initial license fees for our technologies and provide post-contract support. In these cases we recognize the initial fees ratably over the expected support term. Licensing to software vendors. We license our technologies for resale to software vendors and, in return, the software vendor pays us a royalty for each unit of software distributed that incorporates our technologies. Royalties from software vendors are generally recognized upon receipt of a royalty report from the licensee and when all other revenue recognition criteria have been met. In addition, in some cases we receive initial license fees for our technologies and provide post-contract upgrades and support. In these cases, we recognize the initial fees ratably over the expected support term, as VSOE of fair value typically does not exist for the upgrade and support elements of the contract. Recovery Payments from Licensees. Licensing revenue recognized in any given quarter may include recovery payments representing back payments and/or settlements from licensees. These payments arise as a result of ongoing collection efforts as well as activities aimed at identifying potential unauthorized uses of our technologies. Although such collections have become a recurring part of our business, we cannot predict the timing or magnitude of such payments with certainty. Back payments represent incremental royalties that relate to amounts not previously reported by licensees under existing licensing agreements. Consistent with the manner in which royalty revenue is recognized, we recognize reported back payments as revenue in either the period the fee becomes due and payable, or when collectability is deemed probable, whichever is later. Settlements represent new agreements under which a third party has agreed to remit payments to us based on past use of our technology. We recognize settlements as revenue in the period in which all revenue recognition criteria have been met. Generally, settlement fees are deemed to be fixed or determinable upon execution of the settlement agreement, provided such agreement contains no contingency terms. If we are unable to determine that collectability is probable based on an evaluation of a customer's creditworthiness, we recognize revenue upon the receipt of cash, provided the other revenue recognition criteria have been met. In general, we classify legal costs associated with activities aimed at identifying potential unauthorized uses of our technologies, auditing existing licensees, and on occasion, pursuing litigation as S&M in our consolidated statements of operations. Product Sales. Revenue from the sale of products is recognized when the risk of ownership has transferred to our customer, as provided under the terms of the governing purchase agreement, and when all other revenue recognition criteria have been met. Generally, these purchase agreements provide that the risk of ownership is transferred to the customer when the product is shipped, except in specific instances in which certain foreign regulations stipulate that the risk of ownership is transferred to the customer upon their receipt of the shipment. In these instances, we recognize revenue when the product is received by the customer. Services. Services revenue is recognized as the related services are performed and when all other revenue recognition criteria have been met. Collaborative Arrangements. In partnership with established cinema exhibitors, we launched Dolby Cinema, a branded premium cinema offering for movie audiences. Under such collaborations, Dolby and the exhibitor are both active participants, and share the significant risks and rewards associated with the business. Accordingly, these collaborations are governed by revenue sharing arrangements under which Dolby receives a portion of the theatrical box-office revenues in exchange for the use of our imaging and sound technologies, the use of our equipment at the exhibitor’s venue, as well as the use of our proprietary designs and corporate branding. Dolby's share of revenue, which is contingent upon ticket sales, is recognized when all revenue recognition criteria are met, which is generally upon receipt of quarterly box office reports from exhibitors, and on determining that collectability is probable. We recognize our share of ticket sales as licensing revenue in our consolidated statements of operations. Cost of Revenue Cost of licensing. Cost of licensing primarily consists of amortization expenses associated with purchased intangible assets and intangible assets acquired in business combinations. Cost of licensing also includes royalty obligations to third parties for licensing IP rights as part of arrangements with our customers as well as depreciation of our Dolby Cinema equipment provided under operating leases in collaborative arrangements. Cost of products. Cost of products primarily consists of the cost of materials related to products sold, applied labor, and manufacturing overhead. Our cost of products also includes third party royalty obligations paid to license IP that we include in our products. Cost of services. Cost of services primarily consists of the personnel and personnel-related costs of employees performing our professional services, and those of outside consultants, and reimbursable expenses incurred on behalf of customers. Stock-Based Compensation We measure expenses associated with all employee stock-based compensation awards using a fair-value method and record such expense in our consolidated financial statements on a straight-line basis over the requisite service period. Advertising and Promotional Costs Advertising and promotional costs are charged to S&M expense as incurred. Our advertising and promotional costs were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Advertising and promotional costs $ 44,221 $ 46,202 $ 37,895 Foreign Currency Activities Foreign Currency Translation. We maintain business operations in foreign countries. We translate the assets and liabilities of our international subsidiaries, the majority of which are denominated in non-U.S. dollar functional currencies, into U.S. dollars using exchange rates in effect at the end of each period. Revenues and expenses of these subsidiaries are translated using the average rates for the period. Gains and losses from these translations are included in AOCI within stockholders’ equity. Foreign Currency Transactions. Certain of our foreign subsidiaries transact in currencies other than their functional currency. Therefore, we re-measure non-functional currency assets and liabilities of these subsidiaries using exchange rates at the end of each period. As a result, we recognize foreign currency transaction and re-measurement gains and losses, which are recorded within other income, net in our consolidated statements of operations. These gains/(losses) were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Foreign currency transaction gains/(losses) $ (474 ) $ (142 ) $ 498 Foreign Currency Exchange Risk. In an effort to reduce the risk that our earnings will be adversely affected by foreign currency exchange rate fluctuations, we enter into foreign currency forward contracts to hedge against assets and liabilities for which we have foreign currency exchange rate exposure. These derivative instruments are carried at fair value with changes in the fair value recorded to other income/(expense), net, in our consolidated statements of operations. While not designated as hedging instruments, these foreign currency forward contracts are used to reduce the exchange rate risk associated primarily with intercompany receivables and payables. These contracts do not subject us to material balance sheet risk due to exchange rate movements as gains and losses on these derivatives are intended to offset gains and losses on the related receivables and payables for which we have foreign currency exchange rate exposure. As of September 30, 2016 and September 25, 2015 , the outstanding derivative instruments had maturities of equal to or less than 31 and 38 days, respectively, and the total notional amounts of outstanding contracts were $18.3 million and $22.3 million , respectively. The fair values of these contracts were nominal as of September 30, 2016 and September 25, 2015 , and were included within prepaid expenses and other current assets and within accrued liabilities in our consolidated balance sheets. Income Taxes We use the asset and liability method, under which deferred income tax assets and liabilities are determined based upon the difference between the financial statement carrying amounts and the tax bases of assets and liabilities, and NOL carryforwards are measured using the enacted tax rate expected to apply to taxable income in the years in which the differences are expected to be reversed. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is additionally dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities and projected future taxable income in making this assessment, and record a valuation allowance to reduce our deferred tax assets when uncertainty regarding their realizability exists. We record an unrecognized tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the tax authorities. We include interest and penalties related to gross unrecognized tax benefits within our provision for income taxes. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued are reduced in the period that such determination is made and are reflected as a reduction of the overall income tax provision. Repatriation of Undistributed Foreign Earnings. Beginning in fiscal 2010 , we initiated a policy election to indefinitely reinvest a portion of the undistributed earnings of certain foreign subsidiaries with operations outside of the U.S. We consider the earnings of these foreign subsidiaries to be indefinitely invested outside the U.S. on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs, and our specific plans for reinvestment of those subsidiary earnings. A majority of the amounts held outside of the U.S. are generally utilized to support non-U.S. liquidity needs in order to fund operations and other growth of our foreign subsidiaries and acquisitions. Sales Tax. We account for sales tax on a net basis by excluding sales tax from our revenue. 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 partial 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. Recently Issued Accounting Standards We continually assess any ASUs or other new accounting pronouncements issued by the 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. Adopted Standards Balance Sheet Classification - Deferred Taxes. During the first quarter of fiscal 2016, we elected to early-adopt ASU 2015-17, Balance Sheet Classification of Deferred Taxes . The new standard requires classification of all deferred tax assets and liabilities as non-current, which represented a change from our historical presentation whereby certain of our deferred tax assets and liabilities were classified as current, and the remainder were classified as non-current. We elected a transition method to apply the changes from the new standard on a retrospective basis, and upon adoption, reclassified $97.1 million of deferred tax assets from current assets to non-current assets on our consolidated balance sheet as of September 25, 2015. With the exception of the impact from the adoption of ASU 2015-17 discussed above, 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 25, 2015 . Standards Not Yet Effective Consolidation. In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis , which amends the consolidation requirements in ASC 810 and significantly changes the consolidation analysis required under U.S. GAAP. Among others, the ASU significantly amends how variable interests held by a reporting entity’s related parties or de facto agents affect its consolidation conclusion. The amendments are effective for us on October 1, 2016 when we will adopt them. We do not anticipate any changes to the entities currently consolidated by the Company and accordingly, do not anticipate that the adoption will have any impact on our consolidated financial statements. Inventory. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which affects reporting entities that measure inventory using first-in, first-out (FIFO) or average cost. Specifically, ASU 2015-11 requires that inventory b |
Composition Of Certain Financia
Composition Of Certain Financial Statement Captions | 12 Months Ended |
Sep. 30, 2016 | |
Composition Of Certain Financial Statement Captions [Abstract] | |
Composition Of Certain Financial Statement Captions | 3 . Composition of Certain Financial Statement Captions The following tables present detailed information from our consolidated balance sheets as of September 30, 2016 and September 25, 2015 (amounts displayed in thousands, except as otherwise noted). Accounts Receivable Accounts Receivable, Net September 30, September 25, Trade accounts receivable $ 66,229 $ 94,559 Accounts receivable from patent administration program customers 11,829 8,546 Accounts receivable, gross 78,058 103,105 Less: allowance for doubtful accounts (2,370 ) (1,542 ) Total $ 75,688 $ 101,563 Allowance for Doubtful Accounts Beginning Balance Charged to Operations Deductions Ending Balance For fiscal year ended: September 26, 2014 $ 514 $ 1,119 $ (18 ) $ 1,615 September 25, 2015 1,615 33 (106 ) 1,542 September 30, 2016 1,542 1,017 (189 ) 2,370 Inventories Inventories September 30, September 25, Raw materials $ 3,526 $ 3,246 Work in process 4,020 3,279 Finished goods 8,808 7,347 Total $ 16,354 $ 13,872 Inventories are stated at the lower of cost or market (net realizable value). Inventory with a consumption period expected to exceed twelve months is recorded within other non-current assets in our consolidated balance sheets. We have included $1.6 million and $1.4 million of raw materials inventory within other non-current assets in our consolidated balance sheets as of September 30, 2016 and September 25, 2015 , 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 September 30, September 25, Prepaid expenses $ 13,440 $ 13,680 Other current assets 11,578 7,525 Income tax receivable 1,284 10,826 Total $ 26,302 $ 32,031 Accrued Liabilities Accrued Liabilities September 30, September 25, Accrued royalties $ 1,939 $ 1,951 Amounts payable to patent administration program partners 34,472 40,466 Accrued compensation and benefits 71,261 70,317 Accrued professional fees 6,528 6,523 Other accrued liabilities 54,855 50,050 Total $ 169,055 $ 169,307 Other accrued liabilities include the accrual for unpaid PP&E additions of $17.1 million and $20.5 million as of September 30, 2016 and September 25, 2015 , respectively. Other Non-Current Liabilities Other Non-Current Liabilities September 30, September 25, Supplemental retirement plan obligations $ 2,540 $ 2,400 Non-current tax liabilities 68,254 62,843 Other liabilities 12,128 11,781 Total $ 82,922 $ 77,024 Refer to Note 10 “ Income Taxes ” for additional information related to tax liabilities. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Investments and Fair Value Measurements | 4 . Investments & Fair Value Measurements We use cash holdings to purchase investment grade securities diversified among security types, industries and issuers. All investments are measured at fair value, and are recorded within cash equivalents and both short and long-term investments in our consolidated balance sheets. With the exception of our mutual fund investments held in our SERP which are classified as trading securities, all of our investments are classified as AFS securities. Our investments primarily consist of municipal debt securities, corporate bonds, U.S. agency securities and commercial paper. In addition, our cash and cash equivalents also consist of highly-liquid money market funds. Consistent with our investment policy, none of our municipal debt investments are supported by letters of credit or standby purchase agreements. Our cash and investment portfolio consisted of the following (in thousands): September 30, 2016 Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 501,863 $ 501,863 Cash equivalents: Commercial paper 1,099 — — 1,099 1,099 Corporate bonds 2,240 — — 2,240 2,240 Money market funds 10,910 — — 10,910 10,910 Cash and cash equivalents 516,112 — — 516,112 10,910 3,339 — Short-term investments: Certificate of deposit (1) 13,912 6 — 13,918 13,918 Commercial paper 19,629 1 (10 ) 19,620 19,620 Corporate bonds 63,762 24 (14 ) 63,772 63,772 Municipal debt securities 24,334 — (15 ) 24,319 24,319 Short-term investments 121,637 31 (39 ) 121,629 — 121,629 — Long-term investments: Certificate of deposit (1) 4,500 10 — 4,510 4,510 U.S. agency securities 27,536 24 (26 ) 27,534 27,534 Government bonds 31,971 77 (12 ) 32,036 32,036 Corporate bonds 295,921 715 (266 ) 296,370 296,370 Municipal debt securities 30,090 28 (32 ) 30,086 30,086 Other long-term investments (2) 3,002 366 — 3,368 366 Long-term investments 393,020 1,220 (336 ) 393,904 59,936 330,966 — Total cash, cash equivalents, and investments $ 1,030,769 $ 1,251 $ (375 ) $ 1,031,645 $ 70,846 $ 455,934 $ — Investments held in supplemental retirement plan: Assets 2,638 2,638 2,638 Included in prepaid expenses and other current assets & other non-current assets Liabilities 2,638 2,638 2,638 Included in accrued liabilities & other non-current liabilities (1) Certificates of deposit include marketable securities and those with a maturity in excess of one year as of September 30, 2016 are classified within long-term investments. (2) Other long-term investments as of September 30, 2016 include a marketable equity security of $0.4 million , and other investments that are not carried at fair value including an equity method investment of $0.5 million and two cost method investments of $2.0 million and $0.5 million . September 25, Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 511,736 $ 511,736 Cash equivalents: Money market funds 19,014 — — 19,014 19,014 Corporate bonds 1,176 — — 1,176 1,176 Cash and cash equivalents 531,926 — — 531,926 19,014 1,176 — Short-term investments: Government bonds 2,000 1 — 2,001 2,001 Commercial paper 6,478 — — 6,478 6,478 Corporate bonds 86,543 46 (11 ) 86,578 86,578 Municipal debt securities 43,746 98 — 43,844 43,844 Short-term investments 138,767 145 (11 ) 138,901 2,001 136,900 — Long-term investments: U.S. agency securities 1,999 1 — 2,000 2,000 Government bonds 30,505 19 (17 ) 30,507 30,507 Corporate bonds 167,394 138 (392 ) 167,140 167,140 Municipal debt securities 117,552 189 (60 ) 117,681 117,681 Other long-term investments (1) 2,961 726 — 3,687 726 Long-term investments 320,411 1,073 (469 ) 321,015 33,233 284,821 — Total cash, cash equivalents, and investments $ 991,104 $ 1,218 $ (480 ) $ 991,842 $ 54,248 $ 422,897 $ — Investments held in supplemental retirement plan: Assets 2,498 2,498 2,498 Included in prepaid expenses and other current assets & other non-current assets Liabilities 2,498 2,498 2,498 Included in accrued liabilities & other non-current liabilities Contingent consideration related to acquisition: Liabilities 95 95 95 Included in accrued liabilities (1) Other long-term investments as of September 25, 2015 include a marketable equity security of $0.7 million , and other investments that are not carried at fair value including an equity method investment of $0.5 million and two cost method investments of $2.0 million and $0.5 million . Fair Value Hierarchy. Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. We minimize the use of unobservable inputs and use observable market data, if available, when determining fair value. We classify our inputs to measure fair value using the following three-level hierarchy: Level 1: Quoted prices in active markets at the measurement date for identical assets and liabilities. We base the fair value of our Level 1 financial instruments, which are traded in active markets, using quoted market prices for identical instruments. Level 2: Prices may be based upon quoted prices in active markets or inputs not quoted on active markets but are corroborated by market data. We obtain the fair value of our Level 2 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. The following table describes the valuation techniques and inputs applicable to each class of security held within our investment portfolio as of September 30, 2016: Asset Type Primary Source Update Frequency Fair Value Methodology Secondary Source Level 1 Money Market Funds Not Applicable Daily $1 per share Not Applicable U.S. Agency Securities FT Interactive Data Daily Institutional Bond Quotes - evaluations based on various market and industry inputs Standard & Poor's U.S. Government Bonds FT Interactive Data Daily Institutional Bond Quotes - evaluations based on various market and industry inputs Standard & Poor's Level 2 Certificates Of Deposit FT Interactive Data Monthly Market Prices Standard & Poor's Commercial Paper U.S. Bank Pricing Unit Daily Matrix Pricing Not Applicable Corporate Bonds FT Interactive Data Daily Institutional Bond Quotes - evaluations based on various market and industry inputs Standard & Poor's Municipal Debt Securities Standard & Poor's Daily Evaluations based on various market and industry inputs FT Interactive Data Securities In Gross Unrealized Loss Position. We periodically evaluate our investments for other-than- temporary declines in fair value. The unrealized losses on our AFS securities were primarily the result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. The following table presents the gross unrealized losses and fair value for those AFS securities that were in an unrealized loss position as of September 30, 2016 and September 25, 2015 (in thousands): September 30, 2016 September 25, 2015 Less Than 12 Months Greater Than 12 Months Less Than 12 Months Investment Type Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (1) U.S. agency securities $ 22,988 $ (38 ) $ — $ — $ 19,005 $ (17 ) Commercial paper 11,479 (10 ) — — — — Corporate bonds 153,491 (280 ) 1,000 — 148,034 (403 ) Municipal debt securities 35,625 (42 ) 4,615 (5 ) 35,476 (60 ) Total $ 223,583 $ (370 ) $ 5,615 $ (5 ) $ 202,515 $ (480 ) (1) As of September 25, 2015 , no AFS securities were in an unrealized loss position for 12 months or greater. Although we had certain securities that were in an unrealized loss position as of September 30, 2016 , 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 September 30, 2016 or September 25, 2015 to represent an other-than-temporary impairment, nor do we consider any of the unrealized losses to be credit losses. Investment Maturities. The following table summarizes the amortized cost and estimated fair value of the AFS securities within our investment portfolio based on stated maturities as of September 30, 2016 and September 25, 2015 , which are recorded within cash equivalents and both short and long-term investments in our consolidated balance sheets (in thousands): September 30, 2016 September 25, 2015 Range of maturity Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ 135,886 $ 135,884 $ 158,957 $ 159,090 Due in 1 to 2 years 225,679 225,953 173,571 173,577 Due in 2 to 3 years 164,339 164,583 143,879 143,752 Total $ 525,904 $ 526,420 $ 476,407 $ 476,419 |
Property, Plant & Equipment (No
Property, Plant & Equipment (Notes) | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 5 . Property, Plant & Equipment PP&E are recorded at cost, with depreciation expense included in cost of products, cost of services, R&D, S&M and G&A expenses in our consolidated statements of operations. Depreciation expense was $52.0 million , $48.2 million and $38.1 million in fiscal 2016 , 2015 and 2014 , respectively. As of September 30, 2016 and September 25, 2015 , PP&E consisted of the following (in thousands): Property, Plant And Equipment September 30, September 25, Land $ 43,325 $ 43,537 Buildings and building improvements 251,700 248,390 Leasehold improvements 60,480 61,455 Machinery and equipment 88,943 70,143 Computer equipment and software 154,291 136,666 Furniture and fixtures 26,900 25,489 Equipment provided under operating leases 35,968 7,638 Construction-in-progress 32,576 11,448 Property, plant and equipment, gross 694,183 604,766 Less: accumulated depreciation (250,527 ) (201,675 ) Property, plant and equipment, net $ 443,656 $ 403,091 Purchase Of 1275 Market Commercial Office Building In San Francisco, CA. In the fourth quarter of fiscal 2015, we completed the occupation of our new worldwide headquarters in San Francisco, California following the purchase of commercial office property for $109.8 million in fiscal 2012. As of September 30, 2016, construction-in-progress relates to costs for ongoing construction on ancillary facilities. |
Goodwill & Intangible Assets (N
Goodwill & Intangible Assets (Notes) | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6 . 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 (1) 37,094 Translation adjustments (6,960 ) Balance at September 25, 2015 $ 307,708 Translation adjustments 1,908 Balance at September 30, 2016 $ 309,616 (1) Total initial acquired goodwill recorded during fiscal 2015 consists of $36.4 million from the acquisition of Doremi and $0.7 million from an immaterial acquisition. Intangible Assets Intangible assets are stated at their original cost less accumulated amortization. Intangible assets subject to amortization consisted of the following (in thousands): September 30, 2016 September 25, 2015 Intangible Assets, Net Cost Accumulated Amortization Net Cost Accumulated Amortization Net Acquired patents and technology $ 293,824 $ (101,711 ) $ 192,113 $ 172,787 $ (74,398 ) $ 98,389 Customer relationships 56,821 (34,113 ) 22,708 56,933 (28,275 ) 28,658 Other intangibles 22,716 (22,195 ) 521 22,564 (22,104 ) 460 Total $ 373,361 $ (158,019 ) $ 215,342 $ 252,284 $ (124,777 ) $ 127,507 During fiscal 2016 and 2015 , we purchased various patents and developed technology for cash consideration of $121.0 million and $37.4 million , and upon acquisition, these intangible assets had a weighted-average useful life of 10.1 years and 18.0 years, respectively. These acquisitions facilitate our R&D efforts, technologies and potential product offerings. Included within the total patent purchases made during fiscal 2016 was the acquisition of a large individual patent portfolio that fits within our existing patent licensing programs in exchange for consideration of $105.0 million . These assets are categorized within the "Acquired patents and technology" intangible asset class, and are being amortized over their weighted-average useful life of 9.0 years. Amortization expense for our intangible assets is included in cost of licensing, cost of products, R&D and S&M expenses in our consolidated statements of operations. Amortization expense was $33.2 million , $21.0 million and $15.1 million in fiscal 2016 , 2015 and 2014 , respectively. As of September 30, 2016 , expected amortization expense of our intangible assets in future periods was as follows (in thousands): Fiscal Year Amortization Expense 2017 $ 30,725 2018 25,300 2019 24,717 2020 24,253 2021 24,226 Thereafter 86,121 Total $ 215,342 |
Stockholders' Equity And Stock-
Stockholders' Equity And Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |
Stockholders' Equity And Stock-Based Compensation | 7 . 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 RSUs under our equity incentive plans, as well as shares under our ESPP. Common Stock - Class A and Class B Our Board of Directors has authorized two classes of common stock, Class A and Class B. At September 30, 2016, we had authorized 500,000,000 Class A shares and 500,000,000 Class B shares. At September 30, 2016, we had 57,018,362 shares of Class A common stock and 44,403,847 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. 2005 Stock Incentive Plan Following shareholder approval in January 2005, our 2005 Stock Plan was adopted by our Board of Directors adopted on February 16, 2005, the day prior to the completion of our IPO. Our 2005 Stock Plan, as amended and restated, provides for the ability to grant ISOs, NQs, restricted stock, RSUs, SARs, deferred stock units, performance units, performance bonus awards and performance shares. A total of 38.0 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 for every one share returned. 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 ten years after the date of grant or three months after termination of service. Options granted to employees and officers from June 2008 onward generally vest over four years , with 25% of the shares subject to the option becoming exercisable on the one-year anniversary of the date of grant and the balance of the shares vesting in equal monthly installments over the following 36 months . These options expire on the earlier of ten years after the date of grant or three months after termination of service. All options granted vest over the requisite service period and upon the exercise of stock options, we issue new shares of Class A common stock under the 2005 Stock Plan. Our 2005 Stock Plan also allows us to grant stock awards which vest based on the satisfaction of specific performance criteria. Performance-Based Stock Options. On December 15, 2015, we granted PSOs exercisable for an aggregate of up to 419,623 shares of our Class A common stock to our senior executives, 397,748 of which were outstanding as of September 30, 2016. The contractual term for the PSOs is seven years, with vesting contingent upon market-based performance conditions, representing the achievement of specified Dolby annualized TSR targets at the end of a three-year measurement period ending December 15, 2018. If the minimum conditions are met, the PSOs earned will cliff vest on the third anniversary of the grant date, upon certification of achievement of the performance conditions by our Compensation Committee. Anywhere from 0% to 125% of the shares subject to a PSO may vest based on achievement of the performance conditions at the end of the three-year performance period. In valuing the PSOs which will be recognized as compensation cost, we used a Monte Carlo valuation model. Aside from the use of an expected term for the PSOs commensurate with their shorter contractual term, the nature of the valuation inputs used in the Monte Carlo valuation model were consistent with those used to value our non-performance based options granted under the 2005 Plan. Compensation cost is being amortized on a straight-line basis over the requisite service period. The following table summarizes information about stock options issued under our 2005 Stock Plan: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (1) (in thousands) (in years) (in thousands) Options outstanding at September 25, 2015 8,835 $ 35.85 Grants 2,220 33.42 Exercises (1,930 ) 31.81 Forfeitures and cancellations (435 ) 37.33 Options outstanding at September 30, 2016 8,690 35.98 7.1 $ 159,230 Options vested and expected to vest at September 30, 2016 8,172 35.97 7.0 149,856 Options exercisable at September 30, 2016 4,638 $ 35.08 6.0 88,040 (1) Aggregate intrinsic value is based on the closing price of our Class A common stock on September 30, 2016 of $54.29 and excludes the impact of options that were not in-the-money. The following table summarizes information about stock options outstanding and exercisable at September 30, 2016: Outstanding Options Options Exercisable Range of Exercise Price Shares Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Shares Weighted-Average Exercise Price (in thousands) (in years) (in thousands) $24.60 - $28.90 1,153 4.4 $ 28.22 1,153 $ 28.22 $28.91 - $33.40 3,129 7.7 32.25 963 30.48 $33.41 - $37.33 168 5.7 35.20 112 34.83 $37.34 - $42.95 2,163 7.1 38.42 1,467 38.43 $42.96 - $47.45 1,998 7.8 43.09 881 43.15 $47.46 - $58.07 59 4.7 49.26 42 49.00 $58.08 - $62.29 20 4.2 59.69 20 59.69 8,690 4,638 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 that vest based on the satisfaction of specific performance criteria, although no such awards had been granted as of September 30, 2016. At each vesting date, the holder of the award is issued shares of our Class A common stock. Compensation expense from these awards is equal to the fair market value of our Class A common stock on the date of grant and is recognized on a straight-line basis over the requisite service period. The following table summarizes information about RSUs issued under our 2005 Stock Plan: Shares Weighted-Average Grant Date Fair Value (in thousands) Non-vested at September 25, 2015 2,830 $ 40.73 Granted 1,407 35.04 Vested (1,122 ) 35.82 Forfeitures (243 ) 37.16 Non-vested at September 30, 2016 2,872 $ 40.16 The fair value as of the respective vesting dates of RSUs were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Restricted stock units - vest date fair value $ 40,283 $ 45,175 $ 40,810 Employee Stock Purchase Plan . Our plan allows eligible employees to have up to 10 percent of their eligible compensation withheld and used to purchase Class A common stock, subject to a maximum of $25,000 worth of stock purchased in a calendar year or no more than 1,000 shares in an offering period, whichever is less. An offering period consists of successive six -month purchase periods, with a look back feature to our stock price at the commencement of a one -year offering period. The plan provides for a discount equal to 15 percent of the lower of the closing price of our Class A common stock on the New York Stock Exchange on the first and last day of the offering periods. The plan also includes an automatic reset feature that provides for an offering period to be reset and recommenced to a new lower-priced offering if the offering price of a new offering period is less than that of the immediately preceding offering period. Stock Option Valuation Assumptions We use the Black-Scholes option pricing model to determine the estimated fair value of employee stock options at the date of the grant. The Black-Scholes model includes inputs that require us to make certain estimates and assumptions regarding the expected term of the award, as well as the future risk-free interest rate, and the volatility of our stock price over the expected term of the award. Expected Term. The expected term of an award represents the estimated period of time that options granted will remain outstanding, and is measured from the grant date to the date at which the option is either exercised or canceled. Our determination of the expected term involves an evaluation of historical terms and other factors such as the exercise and termination patterns of our employees who hold options to acquire our Class A common stock, and is based on certain assumptions made regarding the future exercise and termination behavior. Risk-Free Interest Rate. The risk-free interest rate is based on the yield curve of United States Treasury instruments in effect on the date of grant. In determining an estimate for the risk-free interest rate, we use average interest rates based on these instruments’ constant maturities with a term that approximates and corresponds with the expected term of our awards. Expected Stock Price Volatility. The expected volatility represents the estimated volatility in the price of our Class A common stock over a time period that approximates the expected term of the awards, and is determined using a blended combination of historical and implied volatility. Historical volatility is representative of the historical trends in our stock price for periods preceding the measurement date for a period that is commensurate with the expected term. Implied volatility is based upon externally traded option contracts of our Class A common stock. Dividend Yield. The dividend yield is based on our anticipated dividend payout over the expected term of our option awards. Dividend declarations and the establishment of future record and payment dates are subject to the Board of Directors’ continuing determination that the dividend policy is in the best interests of our stockholders. The dividend policy may be changed or canceled at the discretion of the Board of Directors at any time. The weighted-average assumptions used in the determination of the fair value of our stock options were as follows: Fiscal Year Ended September 30, September 25, September 26, Expected term (in years) 5.24 4.64 4.58 Risk-free interest rate 1.7 % 1.5 % 1.4 % Expected stock price volatility 29.8 % 29.6 % 32.0 % Dividend yield 1.4 % 0.9 % — % The following table summarizes the weighted-average fair value (per share) of stock options granted and the total intrinsic value of stock options exercised (in thousands): Fiscal Year Ended September 30, September 25, September 26, Stock options granted - weighted-average grant date fair value $ 8.49 $ 10.54 $ 11.11 Stock options exercised - intrinsic value 27,485 8,546 15,300 Stock-Based Compensation Expense Stock-based compensation expense for equity awards granted to employees is determined by estimating their fair value on the date of grant, and recognizing that value as an expense on a straight-line basis over the requisite service period in which our employees earn the awards. Compensation expense related to these equity awards is recognized net of estimated forfeitures, which reduce the expense recorded in the consolidated statements of operations. Our methodology under which estimated forfeiture rates are derived 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 estimates, we will revise such estimates accordingly. Beginning in fiscal 2015, we revised the method under which we estimate forfeitures. The impact of this change in estimate was not material. The estimated forfeiture rates used for awards granted were 10.49% , 9.98% and 6.13% in fiscal 2016, 2015 and 2014, respectively. The following tables separately present stock-based compensation expense both by award type and classification within our consolidated statements of operations (in thousands): Expense - By Award Type Fiscal Year Ended September 30, September 25, September 26, Stock options $ 21,311 $ 22,972 $ 19,680 Restricted stock units 42,201 40,332 42,221 Employee stock purchase plan 3,473 3,765 3,779 Total stock-based compensation 66,985 67,069 65,680 Benefit from income taxes (19,627 ) (19,606 ) (19,315 ) Total stock-based compensation, net of tax $ 47,358 $ 47,463 $ 46,365 Expense - By Income Statement Classification Fiscal Year Ended Compensation Expense - By Classification September 30, September 25, September 26, Cost of products $ 859 $ 949 $ 812 Cost of services 547 457 402 Research and development 17,771 18,682 18,510 Sales and marketing 27,579 24,283 23,236 General and administrative 20,229 22,698 22,720 Total stock-based compensation 66,985 67,069 65,680 Benefit from income taxes (19,627 ) (19,606 ) (19,315 ) Total stock-based compensation, net of tax $ 47,358 $ 47,463 $ 46,365 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 Year Ended September 30, September 25, September 26, Tax benefit - stock option exercises & shares issued under ESPP $ 550 $ 328 $ 538 Unrecognized Compensation Expense. At September 30, 2016, total unrecorded compensation expense associated with employee stock options expected to vest was approximately $32.3 million , which is expected to be recognized over a weighted-average period of 2.2 years. At September 30, 2016, total unrecorded compensation expense associated with RSUs expected to vest was approximately $70.8 million , which is expected to be recognized over a weighted-average period of 2.5 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 September 30, 2016 (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 September 30, 2016, the remaining authorization to purchase additional shares is approximately $51.9 million . The following table provides information regarding share repurchase activity under the program in fiscal 2016 : Quarterly Repurchase Activity Shares Repurchased Cost (1) Average Price Paid Per Share (2) (in thousands) Q1 - Quarter ended January 1, 2016 1,140,700 $ 39,449 $ 34.57 Q2 - Quarter ended April 1, 2016 975,745 37,407 38.32 Q3 - Quarter ended July 1, 2016 176,854 7,998 45.22 Q4 - Quarter ended September 30, 2016 323,085 16,000 49.51 Total 2,616,384 $ 100,854 (1) Cost of share repurchases includes the price paid per share and applicable commissions. (2) Average price paid per share excludes commission costs. Dividend Program In October 2014, our Board of Directors initiated a quarterly cash dividend program for our stockholders. The following table summarizes dividend payments made under the program during fiscal 2016 : Fiscal Period Declaration Date Record Date Payment Date Cash Dividend Per Common Share Dividend Payment Fiscal 2016 Q1 - Quarter ended January 1, 2016 January 25, 2016 February 8, 2016 February 17, 2016 $ 0.12 $12.1 million Q2 - Quarter ended April 1, 2016 April 25, 2016 May 9, 2016 May 18, 2016 $ 0.12 $12.0 million Q3 - Quarter ended July 1, 2016 July 25, 2016 August 8, 2016 August 17, 2016 $ 0.12 $12.1 million Q4 - Quarter ended September 30, 2016 October 24, 2016 November 7, 2016 November 16, 2016 $ 0.14 $14.2 million (1) (1) The dividend payment amount is estimated based on the number of shares of our Class A and Class B common stock that we estimate will be outstanding as of the Record Date. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 8 . Accumulated Other Comprehensive Income OCI consists of two components: unrealized gains or losses on our AFS 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 AOCI, a subsection within stockholders’ equity in our consolidated balance sheets. Unrealized gains and losses on our investment securities are reclassified from AOCI into earnings when realized upon sale, and are determined based on specific identification of securities sold. 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 Year Ended September 30, 2016 Fiscal Year Ended Investment Securities Currency Translation Adjustments Total Investment Securities Currency Translation Adjustments Total Beginning Balance $ 350 $ (11,812 ) $ (11,462 ) $ 505 $ 2,509 $ 3,014 Other comprehensive income before reclassifications: Unrealized gains/(losses) - investment securities (220 ) (220 ) 290 290 Foreign currency translation gains/(losses) (1) 287 287 (15,185 ) (15,185 ) Income tax effect - benefit/(expense) 188 586 774 (87 ) 864 777 Net of tax (32 ) 873 841 203 (14,321 ) (14,118 ) Amounts reclassified from AOCI into earnings: Realized gains/(losses) - investment securities (1) 563 563 (446 ) (446 ) Income tax effect - benefit/(expense) (2) (139 ) (139 ) 88 88 Net of tax 424 — 424 (358 ) — (358 ) Net current-period other comprehensive income/(loss) 392 873 1,265 (155 ) (14,321 ) (14,476 ) Ending Balance $ 742 $ (10,939 ) $ (10,197 ) $ 350 $ (11,812 ) $ (11,462 ) (1) Realized gains or losses from the sale of our AFS investment securities or from foreign currency translation adjustments are included within other income/expense, net in our consolidated statements of operations. (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 | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 9 . Earnings Per Share Basic EPS is computed by dividing net income attributable to Dolby Laboratories, Inc. by the number of weighted-average shares of Class A and Class B common stock outstanding during the period. Through application of the treasury stock method, diluted EPS is computed in the same manner, except that the number of weighted-average shares outstanding is increased by the number of potentially dilutive shares from employee incentive plans during the period. Potentially dilutive shares include the hypothetical number of shares issued under the assumed exercise of outstanding stock options, vesting of outstanding RSUs and shares issued under our ESPP. Basic and diluted EPS are computed independently for each fiscal quarter and year-to-date period presented, which involves the use of different weighted-average share count figures relating to quarterly and annual periods. As a result, and after factoring the effect of rounding to the nearest cent per share, the sum of all four quarter-to-date EPS figures may not equal year-to-date EPS. The following table sets forth the computation of basic and diluted EPS attributable to Dolby Laboratories, Inc. (in thousands, except per share amounts): Fiscal Year Ended September 30, September 25, September 26, 2014 Numerator: Net income attributable to Dolby Laboratories, Inc. $ 185,860 $ 181,390 $ 206,103 Denominator: Weighted-average shares outstanding—basic 100,717 102,354 102,151 Potential common shares from options to purchase common stock 1,013 811 582 Potential common shares from restricted stock units 694 697 899 Weighted-average shares outstanding—diluted 102,424 103,862 103,632 Net income per share attributable to Dolby Laboratories, Inc.: Basic $ 1.85 $ 1.77 $ 2.02 Diluted $ 1.81 $ 1.75 $ 1.99 Antidilutive awards excluded from calculation: Stock options 2,971 4,270 3,987 Restricted stock units 30 127 1,835 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10 . 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 U.S. and numerous foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax expense. Income Tax Provision The following two tables present the components of our income before provision for income taxes by geographic region and the portion of our provision for income taxes classified as current and deferred (in thousands): Fiscal Year Ended September 30, September 25, September 26, United States $ 37,223 $ 17,091 $ 160,839 Foreign 198,681 228,691 115,260 Total $ 235,904 $ 245,782 $ 276,099 Fiscal Year Ended September 30, September 25, September 26, Current: Federal $ 19,226 $ 24,262 $ 20,533 State 521 130 543 Foreign 52,492 52,461 52,999 Total current 72,239 76,853 74,075 Deferred: Federal (19,540 ) (9,593 ) (2,345 ) State (3,451 ) (3,686 ) (3,544 ) Foreign 254 (1,032 ) (807 ) Total deferred (22,737 ) (14,311 ) (6,696 ) Provision for income taxes $ 49,502 $ 62,542 $ 67,379 Repatriation of Undistributed Foreign Earnings Beginning in fiscal 2010 , we initiated a policy election to indefinitely reinvest a portion of the undistributed earnings of certain foreign subsidiaries with operations outside of the U.S. We consider the earnings of these foreign subsidiaries to be indefinitely invested outside the U.S. on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and our specific plans for reinvestment of those subsidiary earnings. A majority of the amounts held outside of the U.S. are generally utilized to support non-U.S. liquidity needs in order to fund operations and other growth of our foreign subsidiaries and acquisitions. As a result, we have not recorded a deferred tax liability on undistributed earnings of foreign subsidiaries of approximately $678.1 million , which are permanently reinvested outside the U.S. If these undistributed earnings held by foreign subsidiaries are repatriated to the U.S., they may be subject to federal and state income taxes, less any applicable foreign tax credits and withholding taxes, estimated at approximately $173.0 million as of September 30, 2016. Accordingly, if a determination is made to repatriate some or all of these foreign earnings, we would need to adjust our income tax provision in the period that the determination is made to accrue for taxes payable on earnings that will no longer be indefinitely invested outside the U.S. 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 partial foreign tax credit in our income tax provision. The foreign current tax provision includes this withholding tax expense while the appropriate foreign tax credit benefit is included in current federal and foreign tax provision. Withholding taxes were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Withholding taxes $ 45,151 $ 45,372 $ 47,131 Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, using enacted tax rates in effect for the year in which the differences are expected to reverse. Based upon the level of historical taxable income and projections for future taxable income over periods in which the deferred tax assets are deductible, we believe it is more likely than not that the benefits of these deductible differences will be realized; therefore, a valuation allowance is not required. A summary of the tax effects of the temporary differences were as follows (in thousands): Fiscal Year Ended September 30, September 25, Deferred income tax assets: Investments $ 972 $ 977 Inventories 7,855 8,800 Net operating loss 2,818 1,406 Accrued expenses 16,497 16,843 Stock-based compensation 31,397 32,359 Revenue recognition 54,043 52,282 Intangibles — 401 Depreciation and amortization 26,364 6,443 Research and development credits 12,837 7,977 Foreign tax credits 9,727 11,119 Translation adjustment 1,223 719 Other 9,473 9,092 Total gross deferred income tax assets 173,206 148,418 Less: valuation allowance — — Total deferred income tax assets 173,206 148,418 Deferred income tax liabilities: Intangibles (2,014 ) — International earnings (4,097 ) (4,646 ) Unrealized gain on investments (305 ) (493 ) Deferred income tax assets, net (non-current) $ 166,790 $ 143,279 NOL and Tax Credit Carryforwards At September 30, 2016, the NOL carried forward for federal and California tax purposes were $3.0 million and $9.7 million , respectively, and will expire in fiscal 2029 if unused. Additionally, we had a total foreign NOL carryforward of $6.8 million as of September 30, 2016, an amount which is not subject to expiration. At September 30, 2016, we also had foreign tax credit and federal R&D tax credit carryforwards of $7.0 million and $4.9 million , respectively, which will expire between fiscal 2025 and fiscal 2035, and California and foreign R&D tax credits of $16.5 million and $1.0 million , respectively, which will be carried forward indefinitely. 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. The benefit associated with the foreign rate differential shown below is net of the impact of uncertain tax positions affecting the amount of income subject to foreign taxation. A reconciliation of the federal statutory tax rate to our effective tax rate on income from continuing operations was as follows: Fiscal Year Ended September 30, September 25, September 26, Federal statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal effect 0.7 0.7 0.6 Stock-based compensation expense rate 1.5 1.7 1.4 Research and development tax credits (5.2 ) (3.0 ) (1.6 ) Tax exempt interest (0.1 ) (0.2 ) (0.2 ) U.S. manufacturing tax incentives (1.1 ) (0.3 ) (2.0 ) Foreign rate differential (9.5 ) (9.1 ) (8.9 ) Audit settlements (2.3 ) — — Other 2.0 0.6 0.1 Effective tax rate 21.0 % 25.4 % 24.4 % Our effective tax rate decreased from 25.4% in fiscal 2015 to 21.0% in fiscal 2016 . The decrease was primarily due to benefits from the settlement of a multi-year state audit and federal R&D tax credits that where retroactively reinstated in fiscal 2015. Our effective tax rate increased from 24.4% in fiscal 2014 to 25.4% in fiscal 2015 . Our effective tax rate in fiscal 2015 reflects an increase from taxes associated with the sale of our ownership interest in a U.S.-based jointly-owned real estate entity whose primary asset was a building. This sale had a higher marginal tax rate than our entity-wide blended average. In addition, our effective tax rate in fiscal 2015 reflects a benefit from a higher proportion of our overall earnings being attributable to lower tax-rate jurisdictions, and was also increased as a result of reduced benefits from U.S. manufacturing tax incentive deductions. The overall increase in the rate was partially offset by a discrete benefit from federal R&D tax credits that were retroactively reinstated for the 2014 calendar year only. Uncertain Tax Positions As of September 30, 2016, the total amount of gross unrecognized tax benefits was $75.2 million , of which $62.1 million , if recognized, would reduce our effective tax rate. Our liability for unrecognized tax benefits is classified within other non-current liabilities in our consolidated balance sheets. Over the next twelve months, we estimate that this amount will be reduced by $2.7 million and $1.1 million as a result of the expiration of certain statute of limitations and the expected settlement of ongoing audits, respectively. Aggregate changes in the balance of gross unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Beginning Balance $ 65,161 $ 31,351 $ 32,468 Gross increases - tax positions taken during prior years 4,343 507 333 Gross increases - tax positions taken during current year 26,585 34,293 2,916 Gross decreases - settlements with tax authorities during current year (20,086 ) — — Lapse of statute of limitations (835 ) (990 ) (4,366 ) Ending Balance $ 75,168 $ 65,161 $ 31,351 Classification of Interest and Penalties We include interest and penalties related to gross unrecognized tax benefits within our provision for income taxes. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued are reduced in the period that such determination is made and are reflected as a reduction of the overall income tax provision. In fiscal 2016 , our current tax provision was increased by interest expense of $0.4 million and reduced by penalties of $0.5 million , while in fiscal 2015 , our current tax provision was increased by interest expense of $0.6 million and reduced by penalties of $0.4 million . Accrued interest and penalties are included within the related tax liability line item in our consolidated balance sheets. Our accrued interest and penalties on unrecognized tax benefits as of September 30, 2016 and September 25, 2015 were as follows (in thousands): Fiscal Year Ended September 30, September 25, Accrued interest $ 1,936 $ 2,977 Accrued penalties 53 589 Total $ 1,989 $ 3,566 We continue to monitor the progress of ongoing income tax controversies and the impact, if any, of the expected tolling of the statute of limitations in various taxing jurisdictions. We file income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions. The material income tax jurisdictions are the United States (Federal), California, New York and the Netherlands. Our tax filings remain subject to examination by applicable tax authorities for a certain length of time following the tax year to which those filings relate. During fiscal 2016, we settled two multi-year examinations of our tax filings by taxing authorities, and as a result, recognized a total net tax benefit of $5.5 million related to the settlement of these audits. During the first quarter of fiscal 2016, we settled the examination of our tax filings by the Internal Revenue Service (“IRS”) for the 2011 and 2012 fiscal years, and during the second quarter of fiscal 2016 settled the examination of our tax filings with the State of California for the 2007 and 2008 fiscal years. We are currently under audit by the State of California for the 2009 through 2011 fiscal years and by the State of New York for the 2012 through 2013 fiscal years. In other major states and major foreign jurisdictions, the fiscal years subsequent to 2012 and 2009, respectively, remain open and could be subject to examination by the taxing authorities. Management does not believe that the outcome of any ongoing examination will have a material impact on our consolidated financial statements. We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If resolution of any tax issues addressed in our current audits are done in a manner inconsistent with management’s expectations, we could be required to adjust our tax provision for income taxes in the period such resolution occurs. |
Restructuring
Restructuring | 12 Months Ended |
Sep. 30, 2016 | |
Restructuring Charges [Abstract] | |
Restructuring | 11 . Restructuring Restructuring charges recorded in our statements of operations represent costs associated with separate individual restructuring plans implemented in various fiscal periods. Accruals for restructuring charges are included within accrued liabilities in our consolidated balance sheets while restructuring charges are included within restructuring charges in our consolidated statements of operations. Fiscal 2016 Restructuring Plan. In January 2016, we implemented a plan to reorganize and consolidate certain activities and positions within our global business infrastructure. As a result, we recorded $1.3 million in restructuring costs during fiscal 2016, representing severance and other related benefits offered to approximately 30 employees that were affected by this action. The table presented below summarizes changes in restructuring accruals under this plan, and reflects the completion of activity during the second quarter of fiscal 2016 (in thousands): Severance and associated costs Restructuring charges $ 1,294 Cash payments (1,233 ) Non-cash and other adjustments (61 ) Balance at September 30, 2016 $ — 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 changes in restructuring accruals under this plan, and reflects the completion of activity during the first quarter of fiscal 2015 (in thousands): Severance and associated costs Restructuring charges $ 3,301 Cash payments (3,164 ) Non-cash and other adjustments 9 Balance at September 26, 2014 $ 146 Restructuring (credits) (39 ) Cash payments (10 ) Non-cash and other adjustments (97 ) Balance at September 25, 2015 $ — During fiscal 2014 , we recognized a $0.7 million credit representing the release of a facility exit obligation accrued under this plan following the sale of certain property located in Wootton Bassett, U.K. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | 12 . 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 September 30, 2016 (in thousands): Payments Due By Fiscal Period Fiscal Fiscal Fiscal Fiscal Fiscal Thereafter Total Naming rights $ 7,619 $ 7,715 $ 7,811 $ 7,909 $ 8,008 $ 94,972 $ 134,034 Donation commitments 320 6,300 322 322 122 1,013 8,399 Operating leases 13,261 10,653 8,186 7,521 6,401 24,282 70,304 Purchase obligations 6,936 2,615 1,199 — — — 10,750 Total $ 28,136 $ 27,283 $ 17,518 $ 15,752 $ 14,531 $ 120,267 $ 223,487 Naming Rights. In fiscal 2012 , we entered into 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. 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 fifteen years from its expected opening date in fiscal 2018. 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. The following table summarizes information about our total rental expenses under operating leases, including the portion of this total rent expense which is payable to our principal stockholder (in thousands): Fiscal Year Ended September 30, September 25, September 26, Total rent expense $ 13,288 $ 15,349 $ 14,278 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 R&D 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 IP. We have also entered into indemnification agreements with our officers, directors, and certain employees, and our certificate of incorporation and bylaws contain similar indemnification obligations. Additionally, and although not a contractual requirement, we have at times elected to defend our licensees from third party IP infringement claims. Since the terms and conditions of our contractual indemnification clauses do not explicitly specify our obligations, we are unable to reasonably estimate the maximum potential exposure for which we could be liable. Furthermore, we have not historically made any payments in connection with any such obligation and believe there to be a remote likelihood that any potential exposure in future periods would be of a material amount. As a result, no amounts have been accrued in our consolidated financial statements with respect to the contingent aspect of these indemnities. |
Business Combinations
Business Combinations | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 13 . Business Combinations Doremi Technologies On October 31, 2014 ("acquisition date"), we completed our acquisition of all outstanding interests of Doremi Technologies, LLC ("Doremi"), a privately held company, and certain assets related to the business of Doremi from Doremi Labs, Inc. and Highlands Technologies SAS (the “Doremi-related assets”) for cash consideration of $98.4 million 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. Upon acquisition, the fair value of the contingent consideration liability was estimated to be $0.7 million , and based on revisions to initial estimates, the fair value of this liability was remeasured to $0.1 million as of September 25, 2015 and to zero as of September 30, 2016. The following table summarizes the purchase price allocation made to the net tangible and intangible assets acquired (including cash of $8.4 million ), and liabilities assumed based on their acquisition date fair values, with the excess amount recorded as goodwill, which is representative of the expected benefits from the integration of Doremi's technologies and assembled workforce (in thousands): Purchase Price Allocation Current assets $ 17,231 Inventories 16,372 Intangible assets 45,600 Goodwill 39,672 Current liabilities (11,653 ) Non-current liabilities (8,820 ) Cash consideration paid to sellers 98,402 Add: contingent consideration 740 Total purchase consideration $ 99,142 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. The value of these acquired intangibles was determined based on the present value of estimated future cash flows under various valuation techniques and inputs. Intangible Assets Acquired Purchase Price Allocation Weighted-Average Useful Life (Years) Income Statement Classification: Amortization Expense Customer relationships $ 25,600 10 Sales & Marketing Developed technology 17,500 7.5 Cost of Sales Trade name 1,300 1 Sales & Marketing Backlog 1,200 1 Cost of Sales Total $ 45,600 Total acquisition-related costs incurred in connection with the transaction were $0.4 million and $5.9 million during fiscal 2015 and 2014, respectively. These costs were included in G&A expenses in our consolidated statements of operations. Pro forma financial information has not been presented for any period since the impact of the Doremi acquisition was not material. |
Operating Segments and Geograph
Operating Segments and Geographic Data | 12 Months Ended |
Sep. 30, 2016 | |
Segments, Geographical Areas [Abstract] | |
Operating Segments and Geographic Data | 14 . Operating Segments & Geographic Information Operating Segments Operating segments are defined as components of an enterprise for which separate financial information is available, and which are evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and assess performance. Our CODM is our Chief Executive Officer. Reporting segments are operating segments exceeding specified revenue, profit or loss, or asset thresholds for which separate disclosure of information is necessary. We operate as a single reporting segment. This reflects the fact that our CODM evaluates the Company’s financial information and resources, and assesses the performance of these resources on a consolidated basis. Since the Company operates as one reporting segment, all required financial segment information is included in our consolidated financial statements. Subsequent to September 30, 2016, we reorganized certain aspects of our internal business infrastructure primarily to integrate and align sales support more directly with our business units. During the first quarter of fiscal 2017, we will determine whether this results in any change to the composition of reporting segments. Geographic Information The method to determine revenue by geographic region for each of the three categories included within total revenue in our consolidated statements of operations are described within the table presented below. Revenue Category Basis For Determining Geographic Location Licensing Region in which our licensees’ headquarters are located Products Destination to which our products are shipped Services Location in which the relevant services are performed The following tables present selected information regarding total revenue by geographic location (amounts presented in thousands). Revenue Composition - Domestic & Foreign Fiscal Year Ended Location September 30, September 25, September 26, United States $ 320,129 $ 276,733 $ 316,256 International 705,609 693,905 643,920 Total revenue $ 1,025,738 $ 970,638 $ 960,176 Revenue Concentration - Significant Individual Geographic Regions Fiscal Year Ended Location September 30, September 25, September 26, United States 31 % 29 % 33 % South Korea 17 % 21 % 20 % China 14 % 7 % 12 % Europe 14 % 13 % 12 % Japan 12 % 13 % 13 % Taiwan 4 % 10 % 3 % Other 8 % 7 % 7 % Total 100 % 100 % 100 % Long-lived tangible assets, net of accumulated depreciation, by geographic region were as follows (in thousands): Location September 30, September 25, United States $ 412,447 $ 374,203 International 31,209 28,888 Total long-lived tangible assets, net of accumulated depreciation $ 443,656 $ 403,091 |
Legal Matters
Legal Matters | 12 Months Ended |
Sep. 30, 2016 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Legal Matters | 15 . Legal Matters We are involved in various legal proceedings that occasionally arise in the normal course of business. These can include claims of alleged infringement of IP rights, commercial, employment and other matters. In our opinion, resolution of these proceedings is not expected to have a material adverse impact on our operating results or financial condition. Given the unpredictable nature of legal proceedings, it is possible that an unfavorable resolution of one or more such proceedings could materially affect our future operating results or financial condition in a particular period, including as a result of required changes to our licensing terms, monetary penalties and other potential consequences. However, based on the information known by us as of the date of this filing and the rules and regulations applicable to the preparation of our consolidated financial statements, any such amounts are either immaterial, or it is not possible to provide an estimated amount of any such potential losses. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 16 . Related Parties We maintain contractual agreements relating to certain entities affiliated with the Dolby family, who is considered a related party as our principal stockholder. These jointly-owned entities were established for the purpose of acquiring and leasing commercial property in the U.S. and U.K. primarily for our operational use. Although the entities affiliated with the Dolby family are the limited member or LP in each of these entities, they have a controlling interest based on holding majority economic ownership. We are the managing member or general partner in each of these affiliated entities, and with the exception of isolated instances where portions of these facilities are leased to third parties, we occupy the majority of the space. Therefore, since these affiliated entities are an integrated part of our operations, we have consolidated the entities’ assets and liabilities and results of operations in our consolidated financial statements. The share of earnings and net assets of the entities attributable to the limited member or LP, as the case may be, is reflected as controlling interest in our consolidated financial statements. Our interests in these consolidated affiliated entities and the location of the property leased to Dolby Laboratories as of September 30, 2016 were as follows: Entity Name Minority Ownership Interest Location Of Properties Dolby Properties Brisbane, LLC 49.0 % Brisbane, California Dolby Properties Burbank, LLC 49.0 % Burbank, California Dolby Properties UK, LLC 49.0 % Wootton Bassett, England Dolby Properties, LP 10.0 % Wootton Bassett, England Jointly-Owned Real Estate Entities. We lease from our principal stockholder a commercial office building located at 100 Potrero Avenue in San Francisco, California under a term that expires on October 31, 2024 , and we lease additional facilities located in California and the U.K. from the jointly-owned real estate entities described above. Related party rent expense included in operating expenses in our consolidated statements of operations were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Related party rent expense included in operating expenses $ 3,097 $ 3,136 $ 2,125 Distributions. Distributions made by the jointly-owned real estate entities to our principal stockholder were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Distributions to principal stockholder $ 214 $ 5,615 $ — Related Party Transaction: Sale of interests in Affiliated Entity. During fiscal 2015, we entered into an Agreement with entities affiliated with the Dolby family to sell our 37.5% ownership interest in Dolby Properties, LLC, a jointly-owned real estate entity. As a result of this related party transaction, we no longer have a continuing involvement with, nor retain the rights previously held to control the operations of this entity, and it was therefore deconsolidated from our consolidated financial statements for the fiscal year ended September 25, 2015 . Upon deconsolidation, we recognized a pre-tax gain on sale of $26.2 million , which is included within other income/(expense), net in our consolidated statements of operations. As shown within the table presented below, the gain on sale was measured as the cash consideration received in exchange for our interests of $31.3 million , less the net book value of Dolby Properties, LLC as of the August 5, 2015 transaction date (in thousands). Dolby Properties, LLC was established for operating the commercial office building and approximate 122,000 square feet of space located at 999 Brannan Street in San Francisco, California, and its primary assets represented the land, building and capital improvements made to the property. Determination of the fair value of the interests sold was based upon an independent appraisal completed by real estate valuation experts. Deconsolidation of Subsidiary Cash consideration received (1) $ 31,263 Less: net book value of Dolby, Properties, LLC (5,042 ) Gain on sale (pre-tax) $ 26,221 (1) Net cash proceeds from the sale of $27.2 million as disclosed within our consolidated statements of cash flows is derived by deducting cash balances of $4.1 million held by the Subsidiary and acquired by the Purchaser from gross cash consideration received of $31.3 million . The arrangements and nature of our involvement in the four other real estate entities jointly-owned with Dolby family-affiliated entities were unaffected by this transaction. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Sep. 30, 2016 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Retirement Plans | 17 . Retirement Plans We maintain a tax-qualified Section 401(k) retirement plan for employees in the United States and similar plans in foreign jurisdictions. Under the plan, employees are eligible to receive matching contributions and profit-sharing contributions. We also maintain a SERP, a non-qualified, employer-funded retirement plan for certain senior executives employed in the United States. The plan was adopted in October 2004 prior to our IPO and was terminated in fiscal 2005 . We have not made any contributions to the SERP since fiscal 2006 . The purpose of the plan was to provide these executives with the opportunity to receive retirement income benefits in addition to the benefits generally available to all employees. The benefits provided to participants were based on defined contributions that we made to the plan and the gains and losses on the investment of those contributions. At September 30, 2016 , the balance in the SERP account represents amounts contributed prior to the plan's termination, with the underlying plan investments consisting primarily of mutual fund investments. SERP assets are included within prepaid expenses and other current assets and within other non-current assets, while SERP liabilities are included within accrued liabilities and within other non-current liabilities in our consolidated balance sheets. Retirement plan expenses, which are included in cost of products, cost of services, R&D, S&M and G&A expense in our consolidated statements of operations, were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Retirement plan expenses $ 20,471 $ 19,431 $ 17,369 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data (unaudited) | 18 . Selected Quarterly Financial Data The following table presents selected unaudited quarterly financial information from fiscal 2016 and 2015 (in thousands, except per share amounts): Fiscal Year 2016 Fiscal Year 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue: Licensing $ 211,129 $ 249,336 $ 253,026 $ 203,541 $ 216,598 $ 243,333 $ 204,855 $ 203,325 Products 24,809 20,063 20,638 25,033 13,263 22,985 22,596 25,060 Services 4,876 4,941 3,923 4,423 4,377 5,632 4,251 4,363 Total revenue 240,814 274,340 277,587 232,997 234,238 271,950 231,702 232,748 Cost of revenue 29,766 24,373 24,621 30,222 19,410 25,149 24,880 25,377 Gross margin 211,048 249,967 252,966 202,775 214,828 246,801 206,822 207,371 Income before taxes and controlling interest 39,484 83,823 81,784 30,813 54,316 79,885 47,378 64,203 Net income attributable to Dolby Laboratories $ 30,901 $ 67,398 $ 63,628 $ 23,933 $ 41,357 $ 57,974 $ 35,506 $ 46,553 Earnings per share: Basic $ 0.31 $ 0.67 $ 0.63 $ 0.24 $ 0.40 $ 0.57 $ 0.35 $ 0.46 Diluted $ 0.30 $ 0.66 $ 0.62 $ 0.23 $ 0.40 $ 0.56 $ 0.34 $ 0.45 Weighted-average shares outstanding: Basic 100,734 100,456 100,533 101,145 102,303 102,509 102,670 101,935 Diluted 101,931 101,555 102,677 103,766 104,275 103,904 104,105 103,059 |
Basis Of Presentation Organizat
Basis Of Presentation Organization, Consolidation and Presentation of Financial Statements (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles Of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Dolby Laboratories, Inc. and our wholly owned subsidiaries. In addition, we have consolidated the financial results of jointly-owned affiliated companies in which our principal stockholder has a controlling interest. We report these controlling interests as a separate line in our consolidated statements of operations as net income attributable to controlling interest, and in our consolidated balance sheets as a controlling interest. We eliminate all intercompany accounts and transactions upon consolidation. |
Use of Estimates | Use of Estimates The preparation of our financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported and disclosed in our consolidated financial statements and accompanying notes. Actual results could differ from our estimates. Significant items subject to such estimates and assumptions include: • Estimated selling prices for elements sold in ME revenue arrangements • Valuation allowances for accounts receivable • Carrying values of inventories and certain PP&E, goodwill and intangible assets • Fair values of investments • Accrued liabilities, including liabilities for unrecognized tax benefits • Deferred income tax assets and liabilities • Stock-based compensation |
Fiscal Year | Fiscal Year Our fiscal year is a 52 or 53 week period ending on the last Friday in September. The fiscal years presented herein include the 53 week period ended September 30, 2016 (fiscal 2016 ) and the 52 week periods ended September 25, 2015 (fiscal 2015 ) and September 26, 2014 (fiscal 2014 ). |
Reclassifications | Reclassifications We have reclassified certain prior period amounts within our consolidated financial statements and accompanying notes to conform to our current period presentation. These reclassifications did not affect total revenue, operating income, operating cash flows or net income. |
Summary Of Significant Accoun28
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk Our financial instruments that are exposed to concentrations of credit risk principally consist of cash, cash equivalents, investments, and accounts receivable. Our investment portfolio consists of investment grade securities diversified amongst security types, industries, and issuers. All our securities are held in custody by a recognized financial institution. Our policy limits the amount of credit exposure to a maximum of 5% to any one issuer, except for the U.S. Treasury, and we believe no significant concentration risk exists with respect to these investments. Our products are sold to businesses primarily in the Americas and Europe, and the majority of our licensing revenue is generated from customers outside of the U.S. We manage this risk by evaluating in advance the financial condition and creditworthiness of our products and services customers and performing regular evaluations of the creditworthiness of our licensing customers. In fiscal 2016, we did not have any individual customers whose revenue exceeded 10% of our total revenue. In fiscal 2015 and 2014 , revenue from one customer, Samsung, accounted for approximately 12% and 11% of our total revenue, respectively, and consisted primarily of licensing revenue from our mobile and broadcast markets. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all short-term highly liquid investments with original maturities of 90 days or less from the date of purchase to be cash equivalents. Cash and cash equivalents primarily consist of funds held in general checking accounts, money market accounts, commercial paper, and U.S. agency notes. |
Restricted Cash | Restricted Cash Restricted cash on our consolidated balance sheets consist of cash contributed by Dolby and third-party licensors to Via Licensing Corporation, our wholly-owned subsidiary, that may only be used in defending patent pools administered by Via. |
Investments | Investments All of our investments are classified as available-for-sale securities, with the exception of our mutual fund investments held in our supplemental retirement plan, which are classified as trading securities. Investments that have an original maturity of 91 days or more at the date of purchase and a current maturity of less than one year are classified as short-term investments, while investments with a current maturity of more than one year are classified as long-term investments. Our investments are recorded at fair value in our consolidated balance sheets. Unrealized gains and losses on our AFS securities are reported as a component of AOCI, while realized gains and losses, other-than-temporary impairments, and credit losses are reported as a component of net income. Upon sale, gains and losses are reclassified from AOCI into earnings, and are determined based on specific identification of securities sold. We evaluate our investment portfolio for credit losses and other-than-temporary impairments by comparing the fair value with the cost basis for each of our investment securities. An investment is impaired if the fair value is less than its cost basis. If any portion of the impairment is deemed to be the result of a credit loss, the credit loss portion of the impairment is included as a component of net income. If we deem it probable that we will not recover the full cost basis of the security, the security is other-than-temporarily impaired and the impairment loss is recognized as a component of net income. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We continually monitor customer payments and maintain a reserve for estimated losses resulting from our customers’ inability to make required payments. In determining the reserve, we evaluate the collectibility of our accounts receivable based upon a variety of factors. In cases where we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, we record a specific allowance against amounts due, and thereby reduce the net recognized receivable to the amount reasonably believed to be collectible. For all other customers, we recognize allowances for doubtful accounts based on our actual historical write-off experience in conjunction with the length of time the receivables are past due, the creditworthiness of the customer, geographic risk and the current business environment. Actual future losses from uncollectible accounts may differ from our estimates. |
Inventories | Inventories Inventories are stated at the lower of cost or market (net realizable value). We evaluate our ending inventories for estimated excess quantities and obsolescence. Our evaluation includes the analysis of future sales demand by product within specific time horizons. Inventories in excess of projected future demand are written down to their net realizable value. In addition, we assess the impact of changing technology on our inventory balances and write-off inventories that are considered obsolete. Write-downs and write-offs of inventory are recorded as a cost of products in our consolidated statements of operations. We classify inventory that we do not expect to sell within twelve months as other non-current assets in our consolidated balance sheets. |
Property, Plant, and Equipment | Property, Plant and Equipment PP&E is stated at cost less accumulated depreciation. Depreciation expense is recognized on a straight-line basis according to estimated useful lives assigned to each of our different categories of PP&E as summarized within the following table: PP&E Category Useful Life (Depreciable Base) Computer equipment and software 3 to 5 years Machinery and equipment 3 to 8 years Furniture and fixtures 5 to 8 years Leasehold improvements Lesser of useful life or related lease term Equipment provided under operating leases 15 years Buildings and building improvements 20 to 40 years We capitalize certain costs incurred during the construction phase of a project or asset into construction-in-progress until the construction process is complete. Once the related asset is placed into service, we transfer its carrying value into the appropriate fixed asset category and begin depreciating the value over its useful life. Equipment Provided Under Operating Leases. We account for our cinema equipment installed at third party sites under collaborative or other arrangements as operating leases, and depreciate these assets on a straight-line basis over their estimated useful life. |
Internal Use Software | Internal Use Software. We account for the costs of computer software developed for internal use by capitalizing costs of materials and external consultants. These costs are included in PP&E, net of accumulated amortization in our consolidated balance sheets. Our capitalized internal use software costs are typically amortized on a straight-line basis over estimated useful lives of three to five years. Costs incurred during the preliminary project and post-implementation stages are charged to expense. |
Goodwill, Intangible Assets, and Long-Lived Assets | Goodwill, Intangible Assets, and Long-Lived Assets We test goodwill for impairment annually during our third fiscal quarter and whenever events or changes in circumstances indicate that the carrying amount may be impaired. We perform a qualitative assessment as a determinant for whether the two-step annual goodwill impairment test should be performed. In performing the qualitative assessment, we consider events and circumstances, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting unit's net assets, and changes in the price of our common stock. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then the two-step goodwill impairment test is not performed. If the two-step goodwill test is performed, we evaluate and test our goodwill for impairment at a reporting-unit level using expected future cash flows to be generated by the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the calculated fair value of the goodwill. A reporting unit is an operating segment or one level below. Our operating segment is aligned with the management principles of our business. We completed our annual goodwill impairment assessment for fiscal 2016 in the fiscal quarter ended July 1, 2016 . We determined, after performing a qualitative review for each of our separate reporting units, that it is more likely than not that the fair value of each of our reporting units that have goodwill substantially exceeds their respective carrying amounts. Accordingly, there was no indication of impairment, and the two-step goodwill impairment test was not required. We did not incur any goodwill impairment losses in any of the periods presented. Intangible assets are stated at their original cost less accumulated amortization, and those with definite lives are amortized over their estimated useful lives. Our intangible assets principally consist of acquired technology, patents, trademarks, customer relationships and contracts, the majority of which are amortized on a straight-line basis over their useful lives using a range from three to eighteen years. We review long-lived assets, including intangible assets, for impairment whenever events or a change in circumstances indicate an asset’s carrying value may not be recoverable. Recoverability of an asset is measured by comparing its carrying value to the total future undiscounted cash flows that the asset is expected to generate. If it is determined that an asset is not recoverable, an impairment loss is recorded in the amount by which the carrying value of the asset exceeds its estimated fair value. |
Revenue Recognition | Revenue Recognition We enter into revenue arrangements with our customers to license technologies, trademarks and other aspects of our technological expertise and to sell products and services. We recognize revenue when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been completed, our price to the buyer is fixed or determinable, and collectability is probable. Multiple Element Arrangements. Some of our revenue arrangements include ME, such as hardware, software, maintenance and other services. We evaluate each element in a multiple-element arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when it has standalone value and delivery of an undelivered element is both probable and within our control. When these criteria are not met, the delivered and undelivered elements are combined and the arrangement fees are allocated to this combined single unit. If the unit separation criteria are met, we account for each element within a ME arrangement separately, whereby the total arrangement fees are allocated to each element based on its relative selling price, which we establish using a selling price hierarchy. We determine the selling price of each element based on its VSOE, if available, TPE, if VSOE is not available, or ESP, if neither VSOE nor TPE is available. For some arrangements, customers receive certain elements over a period of time, after delivery of the initial product. These elements may include support and maintenance or the right to receive upgrades. Revenue allocated to the undelivered element is recognized either over its estimated service period or when the upgrade is delivered. We do not recognize revenue that is contingent upon the future delivery of products or services or upon future performance obligations. We recognize revenue for delivered elements only when we have completed all contractual obligations. We determine our ESP for an individual element within a ME revenue arrangement using the same methods used to determine the selling price of an element sold on a standalone basis. If we sell the element on a standalone basis, we estimate the selling price by considering actual sales prices. Otherwise, we estimate the selling price by considering internal factors such as pricing practices and margin objectives. Consideration is also given to market conditions such as competitor pricing strategies, customer demands and industry technology lifecycles. Management applies judgment to establish margin objectives, pricing strategies and technology lifecycles. We account for the majority of our digital cinema server and processor sales as ME arrangements that may include up to four separate units, or elements, of accounting. ▪ The first element consists of our digital cinema server hardware and the accompanying software, which is essential to the functionality of the hardware. This element is typically delivered at the time of sale. ▪ The second element is the right to receive support and maintenance, which is included with the purchase of the hardware element and is typically delivered over a service period subsequent to the initial sale. ▪ The third element is the right to receive specified upgrades, which is included with the purchase of the hardware element and is typically delivered when a specified upgrade is available, subsequent to the initial sale. Under revenue recognition accounting standards, sales of our digital cinema servers typically result in the allocation of a substantial majority of the arrangement fees to the delivered hardware element based on its ESP, which we recognize as revenue at the time of sale once delivery has occurred. A small portion of the arrangement fee is allocated to the undelivered support and maintenance element, and when applicable, to the undelivered specified upgrade element based on the VSOE or ESP of each element. The portion of the arrangement fees allocated to the support and maintenance element are recognized as revenue ratably over the estimated service period, and the portion of the arrangement fees allocated to specified upgrades are recognized as revenue upon delivery of the upgrade. ▪ The fourth element is the right to receive commissioning services performed solely in connection with our digital servers necessary for the installation of Dolby Atmos-enabled theaters. These services consist of the review of venue designs specifying proposed speaker placement, as well as calibration services performed for installed speakers to ensure optimal playback. A small portion of the arrangement fee is allocated to these services based on their ESP which we recognize as revenue once the services have been completed. Software Arrangements. Revenue recognition for transactions that involve software, such as fees we earn from certain system licensees, may include multiple elements. For some of our ME arrangements that involve software, customers receive certain elements over a period of time or after delivery of the initial software. These elements may include support and maintenance. The fair values of these elements are recognized over the estimated period for which these elements will be delivered, which is sometimes the estimated life of the software. If we do not have VSOE of fair value for any undelivered element included in these ME arrangements for software, we defer revenue until all elements are delivered or services have been performed, or until we have VSOE of fair value for all remaining undelivered elements. If the undelivered element is support and we do not have fair value for the support element, revenue for the entire arrangement is bundled and recognized ratably over the support period. In certain cases, our arrangements require the licensee to pay a fixed fee for the right to distribute units in the future. These fees are generally recognized upon contract execution, unless the arrangement includes contingency terms wherein we assess the totality of the existing facts and circumstances and conclude upon an accounting treatment thereon, or is considered a ME arrangement. Licensing. Our licensing revenue is primarily derived from royalties paid to us by licensees of our IP rights, including patents, trademarks, and trade secrets. Royalties are recognized when all revenue recognition criteria have been met. We determine that there is persuasive evidence of an arrangement upon the execution of a license agreement or upon the receipt of a licensee’s royalty report and payment. Generally, royalties are deemed fixed or determinable upon receipt of a licensee’s royalty report in accordance with the terms of the underlying executed agreement. We determine collectibility based on an evaluation of the licensee’s recent payment history, the existence of a standby letter-of-credit between the licensee’s financial institution and our financial institution, and other factors. If we cannot determine that collectibility is probable, we recognize revenue upon receipt of cash, provided that all other revenue recognition criteria have been met. Corrective royalty statements generally comprise less than 1% of our net licensing revenue and are recognized when received, or earlier if a reliable estimate can be made of an anticipated reduction in revenue from a prior royalty statement. An estimate of anticipated reduction in revenue based on historical negative correction royalty statements is also recorded. Deferred revenue represents amounts that we have already collected that are ultimately expected to be recognized as revenue, but for which not all revenue recognition criteria have been met. Licensing revenue also includes fees we earn for administering joint patent licensing programs (“patent pools”) containing patents owned by us and/or other companies. Royalties related to patent pools are recorded net of royalties payable to third party patent pool members and are recognized when all revenue recognition criteria have been met. We generate the majority of our licensing revenue through our licensing contracts with OEMs ("system licensees") and implementation licensees. Our revenue recognition policies for each of these arrangements are summarized below. Licensing to system licensees. We license our technologies to system licensees who manufacture consumer electronics products and, in return, the system licensee pays us a royalty generally for each unit shipped that incorporates our technologies. Royalties from system licensees are generally recognized upon receipt of a royalty report from the licensee and when all other revenue recognition criteria have been met. In certain cases, our arrangements require the licensee to pay up-front, non-refundable royalties for units they may distribute in the future. These up-front fees are generally recognized upon contract execution, unless the arrangement includes extended payment terms or is considered a ME arrangement. In addition, in some cases we receive initial license fees for our technologies and provide post-contract support. In these cases we recognize the initial fees ratably over the expected support term. Licensing to software vendors. We license our technologies for resale to software vendors and, in return, the software vendor pays us a royalty for each unit of software distributed that incorporates our technologies. Royalties from software vendors are generally recognized upon receipt of a royalty report from the licensee and when all other revenue recognition criteria have been met. In addition, in some cases we receive initial license fees for our technologies and provide post-contract upgrades and support. In these cases, we recognize the initial fees ratably over the expected support term, as VSOE of fair value typically does not exist for the upgrade and support elements of the contract. Recovery Payments from Licensees. Licensing revenue recognized in any given quarter may include recovery payments representing back payments and/or settlements from licensees. These payments arise as a result of ongoing collection efforts as well as activities aimed at identifying potential unauthorized uses of our technologies. Although such collections have become a recurring part of our business, we cannot predict the timing or magnitude of such payments with certainty. Back payments represent incremental royalties that relate to amounts not previously reported by licensees under existing licensing agreements. Consistent with the manner in which royalty revenue is recognized, we recognize reported back payments as revenue in either the period the fee becomes due and payable, or when collectability is deemed probable, whichever is later. Settlements represent new agreements under which a third party has agreed to remit payments to us based on past use of our technology. We recognize settlements as revenue in the period in which all revenue recognition criteria have been met. Generally, settlement fees are deemed to be fixed or determinable upon execution of the settlement agreement, provided such agreement contains no contingency terms. If we are unable to determine that collectability is probable based on an evaluation of a customer's creditworthiness, we recognize revenue upon the receipt of cash, provided the other revenue recognition criteria have been met. In general, we classify legal costs associated with activities aimed at identifying potential unauthorized uses of our technologies, auditing existing licensees, and on occasion, pursuing litigation as S&M in our consolidated statements of operations. Product Sales. Revenue from the sale of products is recognized when the risk of ownership has transferred to our customer, as provided under the terms of the governing purchase agreement, and when all other revenue recognition criteria have been met. Generally, these purchase agreements provide that the risk of ownership is transferred to the customer when the product is shipped, except in specific instances in which certain foreign regulations stipulate that the risk of ownership is transferred to the customer upon their receipt of the shipment. In these instances, we recognize revenue when the product is received by the customer. Services. Services revenue is recognized as the related services are performed and when all other revenue recognition criteria have been met. Collaborative Arrangements. In partnership with established cinema exhibitors, we launched Dolby Cinema, a branded premium cinema offering for movie audiences. Under such collaborations, Dolby and the exhibitor are both active participants, and share the significant risks and rewards associated with the business. Accordingly, these collaborations are governed by revenue sharing arrangements under which Dolby receives a portion of the theatrical box-office revenues in exchange for the use of our imaging and sound technologies, the use of our equipment at the exhibitor’s venue, as well as the use of our proprietary designs and corporate branding. Dolby's share of revenue, which is contingent upon ticket sales, is recognized when all revenue recognition criteria are met, which is generally upon receipt of quarterly box office reports from exhibitors, and on determining that collectability is probable. We recognize our share of ticket sales as licensing revenue in our consolidated statements of operations. |
Cost of Revenue | Cost of Revenue Cost of licensing. Cost of licensing primarily consists of amortization expenses associated with purchased intangible assets and intangible assets acquired in business combinations. Cost of licensing also includes royalty obligations to third parties for licensing IP rights as part of arrangements with our customers as well as depreciation of our Dolby Cinema equipment provided under operating leases in collaborative arrangements. Cost of products. Cost of products primarily consists of the cost of materials related to products sold, applied labor, and manufacturing overhead. Our cost of products also includes third party royalty obligations paid to license IP that we include in our products. Cost of services. Cost of services primarily consists of the personnel and personnel-related costs of employees performing our professional services, and those of outside consultants, and reimbursable expenses incurred on behalf of customers. |
Stock-Based Compensation | Stock-Based Compensation We measure expenses associated with all employee stock-based compensation awards using a fair-value method and record such expense in our consolidated financial statements on a straight-line basis over the requisite service period. |
Advertising and Promotional Costs | Advertising and Promotional Costs Advertising and promotional costs are charged to S&M expense as incurred. Our advertising and promotional costs were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Advertising and promotional costs $ 44,221 $ 46,202 $ 37,895 |
Foreign Currency Translation | Foreign Currency Activities Foreign Currency Translation. We maintain business operations in foreign countries. We translate the assets and liabilities of our international subsidiaries, the majority of which are denominated in non-U.S. dollar functional currencies, into U.S. dollars using exchange rates in effect at the end of each period. Revenues and expenses of these subsidiaries are translated using the average rates for the period. Gains and losses from these translations are included in AOCI within stockholders’ equity. Foreign Currency Transactions. Certain of our foreign subsidiaries transact in currencies other than their functional currency. Therefore, we re-measure non-functional currency assets and liabilities of these subsidiaries using exchange rates at the end of each period. As a result, we recognize foreign currency transaction and re-measurement gains and losses, which are recorded within other income, net in our consolidated statements of operations. These gains/(losses) were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Foreign currency transaction gains/(losses) $ (474 ) $ (142 ) $ 498 Foreign Currency Exchange Risk. In an effort to reduce the risk that our earnings will be adversely affected by foreign currency exchange rate fluctuations, we enter into foreign currency forward contracts to hedge against assets and liabilities for which we have foreign currency exchange rate exposure. These derivative instruments are carried at fair value with changes in the fair value recorded to other income/(expense), net, in our consolidated statements of operations. While not designated as hedging instruments, these foreign currency forward contracts are used to reduce the exchange rate risk associated primarily with intercompany receivables and payables. These contracts do not subject us to material balance sheet risk due to exchange rate movements as gains and losses on these derivatives are intended to offset gains and losses on the related receivables and payables for which we have foreign currency exchange rate exposure. As of September 30, 2016 and September 25, 2015 , the outstanding derivative instruments had maturities of equal to or less than 31 and 38 days, respectively, and the total notional amounts of outstanding contracts were $18.3 million and $22.3 million , respectively. The fair values of these contracts were nominal as of September 30, 2016 and September 25, 2015 , and were included within prepaid expenses and other current assets and within accrued liabilities in our consolidated balance sheets. |
Income Taxes | Income Taxes We use the asset and liability method, under which deferred income tax assets and liabilities are determined based upon the difference between the financial statement carrying amounts and the tax bases of assets and liabilities, and NOL carryforwards are measured using the enacted tax rate expected to apply to taxable income in the years in which the differences are expected to be reversed. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is additionally dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities and projected future taxable income in making this assessment, and record a valuation allowance to reduce our deferred tax assets when uncertainty regarding their realizability exists. We record an unrecognized tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the tax authorities. We include interest and penalties related to gross unrecognized tax benefits within our provision for income taxes. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued are reduced in the period that such determination is made and are reflected as a reduction of the overall income tax provision. Repatriation of Undistributed Foreign Earnings. Beginning in fiscal 2010 , we initiated a policy election to indefinitely reinvest a portion of the undistributed earnings of certain foreign subsidiaries with operations outside of the U.S. We consider the earnings of these foreign subsidiaries to be indefinitely invested outside the U.S. on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs, and our specific plans for reinvestment of those subsidiary earnings. A majority of the amounts held outside of the U.S. are generally utilized to support non-U.S. liquidity needs in order to fund operations and other growth of our foreign subsidiaries and acquisitions. Sales Tax. We account for sales tax on a net basis by excluding sales tax from our revenue. 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 partial 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. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards We continually assess any ASUs or other new accounting pronouncements issued by the 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. Adopted Standards Balance Sheet Classification - Deferred Taxes. During the first quarter of fiscal 2016, we elected to early-adopt ASU 2015-17, Balance Sheet Classification of Deferred Taxes . The new standard requires classification of all deferred tax assets and liabilities as non-current, which represented a change from our historical presentation whereby certain of our deferred tax assets and liabilities were classified as current, and the remainder were classified as non-current. We elected a transition method to apply the changes from the new standard on a retrospective basis, and upon adoption, reclassified $97.1 million of deferred tax assets from current assets to non-current assets on our consolidated balance sheet as of September 25, 2015. With the exception of the impact from the adoption of ASU 2015-17 discussed above, 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 25, 2015 . Standards Not Yet Effective Consolidation. In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis , which amends the consolidation requirements in ASC 810 and significantly changes the consolidation analysis required under U.S. GAAP. Among others, the ASU significantly amends how variable interests held by a reporting entity’s related parties or de facto agents affect its consolidation conclusion. The amendments are effective for us on October 1, 2016 when we will adopt them. We do not anticipate any changes to the entities currently consolidated by the Company and accordingly, do not anticipate that the adoption will have any impact on our consolidated financial statements. Inventory. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which affects reporting entities that measure inventory using first-in, first-out (FIFO) or average cost. Specifically, ASU 2015-11 requires that inventory be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The ASU is effective for us beginning September 30, 2017. Early adoption is permitted, and we are currently evaluating the timing and impact of the standard on our consolidated financial statements. Revenue Recognition. In May 2014, the FASB issued ASU 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 existing revenue recognition guidance in U.S. GAAP when it becomes effective, and may also impact the accounting for certain direct costs associated with revenues and contract acquisition costs such as sales commissions. The new standard permits the use of either the retrospective or cumulative effect transition method. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing , which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard, ASU 2014-09. The effective date for this ASU coincides with the effective date for ASU 2014-09. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures, and have yet to select a transition method or determine the effect of the standard on our ongoing financial reporting. Although permitted, we do not intend to early-adopt the new standard, but we will adopt it beginning September 29, 2018. Leases. In February 2016, the FASB issued ASU 2016-02, Leases, which amends the existing accounting standards for leases. Under the new guidance, a lessee will be required to recognize a lease liability and right-of-use asset for all leases with terms in excess of twelve months. The new guidance also modifies the classification criteria and accounting for sales-type and direct financing leases, and requires additional disclosures to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. Consistent with current guidance, a lessee's recognition, measurement, and presentation of expenses and cash flows arising from a lease will continue to depend primarily on its classification. The ASU is effective for us beginning September 28, 2019, and must be applied using a modified retrospective approach. Early adoption is permitted, including adoption in an interim period. Upon adoption, we will recognize a lease liability and right-of-use asset for each of our long-term lease arrangements, and we are currently evaluating the timing and impact of the standard on our consolidated financial statements. Share-Based Compensation . In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory withholding requirements, as well as classification in the statement of cash flows. The ASU is effective for us beginning September 30, 2017. Early adoption is permitted, including adoption in an interim period, and we are currently evaluating the timing and impact of the standard on our consolidated financial statements. Cash Flow Classification. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The new guidance addresses eight specific cash flow issues, with the objective of reducing an existing diversity in practices regarding the manner in which certain cash receipts and payments are presented and classified in the statement of cash flows. The ASU is effective for us beginning September 29, 2018. Early adoption is permitted, including adoption in an interim period, and we are currently evaluating the timing and impact of the standard on our consolidated financial statements. Income Taxes: Intra-Entity Asset Transfers. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . The new guidance requires the recognition of the income tax consequences of an intercompany asset transfer, other than transfers of inventory, when the transfer occurs. For intercompany transfers of inventory, the income tax effects will continue to be deferred until the inventory has been sold to a third party. The ASU is effective for us beginning September 29, 2018. Early adoption is permitted, including adoption in an interim period, and we are currently evaluating the timing and impact of the standard on our consolidated financial statements. |
Summary Of Significant Accoun29
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule Of Property, Plant, And Equipment, Estimated Useful Life | PP&E is stated at cost less accumulated depreciation. Depreciation expense is recognized on a straight-line basis according to estimated useful lives assigned to each of our different categories of PP&E as summarized within the following table: PP&E Category Useful Life (Depreciable Base) Computer equipment and software 3 to 5 years Machinery and equipment 3 to 8 years Furniture and fixtures 5 to 8 years Leasehold improvements Lesser of useful life or related lease term Equipment provided under operating leases 15 years Buildings and building improvements 20 to 40 years |
Advertising and Promotional Costs | Advertising and promotional costs are charged to S&M expense as incurred. Our advertising and promotional costs were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Advertising and promotional costs $ 44,221 $ 46,202 $ 37,895 |
Schedule of Foreign Currency Translation Gains (Losses) | These gains/(losses) were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Foreign currency transaction gains/(losses) $ (474 ) $ (142 ) $ 498 |
Composition Of Certain Financ30
Composition Of Certain Financial Statement Captions (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Composition Of Certain Financial Statement Captions [Abstract] | |
Schedule Of Accounts Receivable | Accounts Receivable, Net September 30, September 25, Trade accounts receivable $ 66,229 $ 94,559 Accounts receivable from patent administration program customers 11,829 8,546 Accounts receivable, gross 78,058 103,105 Less: allowance for doubtful accounts (2,370 ) (1,542 ) Total $ 75,688 $ 101,563 |
Schedule Of Allowance For Doubtful Accounts | Allowance for Doubtful Accounts Beginning Balance Charged to Operations Deductions Ending Balance For fiscal year ended: September 26, 2014 $ 514 $ 1,119 $ (18 ) $ 1,615 September 25, 2015 1,615 33 (106 ) 1,542 September 30, 2016 1,542 1,017 (189 ) 2,370 |
Schedule Of Inventories | Inventories Inventories September 30, September 25, Raw materials $ 3,526 $ 3,246 Work in process 4,020 3,279 Finished goods 8,808 7,347 Total $ 16,354 $ 13,872 |
Schedule Of Prepaid Expenses And Other Current Assets | Prepaid Expenses And Other Current Assets September 30, September 25, Prepaid expenses $ 13,440 $ 13,680 Other current assets 11,578 7,525 Income tax receivable 1,284 10,826 Total $ 26,302 $ 32,031 |
Schedule Of Accrued Liabilities | Accrued Liabilities September 30, September 25, Accrued royalties $ 1,939 $ 1,951 Amounts payable to patent administration program partners 34,472 40,466 Accrued compensation and benefits 71,261 70,317 Accrued professional fees 6,528 6,523 Other accrued liabilities 54,855 50,050 Total $ 169,055 $ 169,307 |
Schedule Of Other Non-Current Liabilities | Other Non-Current Liabilities September 30, September 25, Supplemental retirement plan obligations $ 2,540 $ 2,400 Non-current tax liabilities 68,254 62,843 Other liabilities 12,128 11,781 Total $ 82,922 $ 77,024 |
Investments and Fair Value Meas
Investments and Fair Value Measurements (Tables) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 25, 2015 | |
Fair Value Disclosures [Abstract] | ||
Assets and Liabilities Measured on Recurring Basis | September 25, Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 511,736 $ 511,736 Cash equivalents: Money market funds 19,014 — — 19,014 19,014 Corporate bonds 1,176 — — 1,176 1,176 Cash and cash equivalents 531,926 — — 531,926 19,014 1,176 — Short-term investments: Government bonds 2,000 1 — 2,001 2,001 Commercial paper 6,478 — — 6,478 6,478 Corporate bonds 86,543 46 (11 ) 86,578 86,578 Municipal debt securities 43,746 98 — 43,844 43,844 Short-term investments 138,767 145 (11 ) 138,901 2,001 136,900 — Long-term investments: U.S. agency securities 1,999 1 — 2,000 2,000 Government bonds 30,505 19 (17 ) 30,507 30,507 Corporate bonds 167,394 138 (392 ) 167,140 167,140 Municipal debt securities 117,552 189 (60 ) 117,681 117,681 Other long-term investments (1) 2,961 726 — 3,687 726 Long-term investments 320,411 1,073 (469 ) 321,015 33,233 284,821 — Total cash, cash equivalents, and investments $ 991,104 $ 1,218 $ (480 ) $ 991,842 $ 54,248 $ 422,897 $ — Investments held in supplemental retirement plan: Assets 2,498 2,498 2,498 Included in prepaid expenses and other current assets & other non-current assets Liabilities 2,498 2,498 2,498 Included in accrued liabilities & other non-current liabilities Contingent consideration related to acquisition: Liabilities 95 95 95 Included in accrued liabilities (1) Other long-term investments as of September 25, 2015 include a marketable equity security of $0.7 million , and other investments that are not carried at fair value including an equity method investment of $0.5 million and two cost method investments of $2.0 million and $0.5 million . | |
Available for sale Securities, Unrealized Loss Position | The following table presents the gross unrealized losses and fair value for those AFS securities that were in an unrealized loss position as of September 30, 2016 and September 25, 2015 (in thousands): September 30, 2016 September 25, 2015 Less Than 12 Months Greater Than 12 Months Less Than 12 Months Investment Type Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (1) U.S. agency securities $ 22,988 $ (38 ) $ — $ — $ 19,005 $ (17 ) Commercial paper 11,479 (10 ) — — — — Corporate bonds 153,491 (280 ) 1,000 — 148,034 (403 ) Municipal debt securities 35,625 (42 ) 4,615 (5 ) 35,476 (60 ) Total $ 223,583 $ (370 ) $ 5,615 $ (5 ) $ 202,515 $ (480 ) | |
Available-for-sale Securities | Investment Maturities. The following table summarizes the amortized cost and estimated fair value of the AFS securities within our investment portfolio based on stated maturities as of September 30, 2016 and September 25, 2015 , which are recorded within cash equivalents and both short and long-term investments in our consolidated balance sheets (in thousands): September 30, 2016 September 25, 2015 Range of maturity Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ 135,886 $ 135,884 $ 158,957 $ 159,090 Due in 1 to 2 years 225,679 225,953 173,571 173,577 Due in 2 to 3 years 164,339 164,583 143,879 143,752 Total $ 525,904 $ 526,420 $ 476,407 $ 476,419 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | As of September 30, 2016 and September 25, 2015 , PP&E consisted of the following (in thousands): Property, Plant And Equipment September 30, September 25, Land $ 43,325 $ 43,537 Buildings and building improvements 251,700 248,390 Leasehold improvements 60,480 61,455 Machinery and equipment 88,943 70,143 Computer equipment and software 154,291 136,666 Furniture and fixtures 26,900 25,489 Equipment provided under operating leases 35,968 7,638 Construction-in-progress 32,576 11,448 Property, plant and equipment, gross 694,183 604,766 Less: accumulated depreciation (250,527 ) (201,675 ) Property, plant and equipment, net $ 443,656 $ 403,091 |
Goodwill & Intangible Assets (T
Goodwill & Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 6 . 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 (1) 37,094 Translation adjustments (6,960 ) Balance at September 25, 2015 $ 307,708 Translation adjustments 1,908 Balance at September 30, 2016 $ 309,616 (1) Total initial acquired goodwill recorded during fiscal 2015 consists of $36.4 million from the acquisition of Doremi and $0.7 million from an immaterial acquisition. Intangible Assets Intangible assets are stated at their original cost less accumulated amortization. Intangible assets subject to amortization consisted of the following (in thousands): September 30, 2016 September 25, 2015 Intangible Assets, Net Cost Accumulated Amortization Net Cost Accumulated Amortization Net Acquired patents and technology $ 293,824 $ (101,711 ) $ 192,113 $ 172,787 $ (74,398 ) $ 98,389 Customer relationships 56,821 (34,113 ) 22,708 56,933 (28,275 ) 28,658 Other intangibles 22,716 (22,195 ) 521 22,564 (22,104 ) 460 Total $ 373,361 $ (158,019 ) $ 215,342 $ 252,284 $ (124,777 ) $ 127,507 During fiscal 2016 and 2015 , we purchased various patents and developed technology for cash consideration of $121.0 million and $37.4 million , and upon acquisition, these intangible assets had a weighted-average useful life of 10.1 years and 18.0 years, respectively. These acquisitions facilitate our R&D efforts, technologies and potential product offerings. Included within the total patent purchases made during fiscal 2016 was the acquisition of a large individual patent portfolio that fits within our existing patent licensing programs in exchange for consideration of $105.0 million . These assets are categorized within the "Acquired patents and technology" intangible asset class, and are being amortized over their weighted-average useful life of 9.0 years. Amortization expense for our intangible assets is included in cost of licensing, cost of products, R&D and S&M expenses in our consolidated statements of operations. Amortization expense was $33.2 million , $21.0 million and $15.1 million in fiscal 2016 , 2015 and 2014 , respectively. As of September 30, 2016 , expected amortization expense of our intangible assets in future periods was as follows (in thousands): Fiscal Year Amortization Expense 2017 $ 30,725 2018 25,300 2019 24,717 2020 24,253 2021 24,226 Thereafter 86,121 Total $ 215,342 |
Schedule of Goodwill | Goodwill Balance at September 26, 2014 $ 277,574 Acquired goodwill (1) 37,094 Translation adjustments (6,960 ) Balance at September 25, 2015 $ 307,708 Translation adjustments 1,908 Balance at September 30, 2016 $ 309,616 (1) Total initial acquired goodwill recorded during fiscal 2015 consists of $36.4 million from the acquisition of Doremi and $0.7 million from an immaterial acquisition. |
Schedule of Finite-Lived Intangible Assets | Intangible assets are stated at their original cost less accumulated amortization. Intangible assets subject to amortization consisted of the following (in thousands): September 30, 2016 September 25, 2015 Intangible Assets, Net Cost Accumulated Amortization Net Cost Accumulated Amortization Net Acquired patents and technology $ 293,824 $ (101,711 ) $ 192,113 $ 172,787 $ (74,398 ) $ 98,389 Customer relationships 56,821 (34,113 ) 22,708 56,933 (28,275 ) 28,658 Other intangibles 22,716 (22,195 ) 521 22,564 (22,104 ) 460 Total $ 373,361 $ (158,019 ) $ 215,342 $ 252,284 $ (124,777 ) $ 127,507 |
Future Amortization Expense | As of September 30, 2016 , expected amortization expense of our intangible assets in future periods was as follows (in thousands): Fiscal Year Amortization Expense 2017 $ 30,725 2018 25,300 2019 24,717 2020 24,253 2021 24,226 Thereafter 86,121 Total $ 215,342 |
Stockholders' Equity And Stoc34
Stockholders' Equity And Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |
Schedule of Treasury Stock Authorizations [Table Text Block] | 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 September 30, 2016 (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 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 Year Ended September 30, September 25, September 26, Expected term (in years) 5.24 4.64 4.58 Risk-free interest rate 1.7 % 1.5 % 1.4 % Expected stock price volatility 29.8 % 29.6 % 32.0 % Dividend yield 1.4 % 0.9 % — % |
Summary Of Weighted-Average Fair Value Of Stock Options Granted And Total Intrinsic Value Of Stock Options Exercised | The following table summarizes the weighted-average fair value (per share) of stock options granted and the total intrinsic value of stock options exercised (in thousands): Fiscal Year Ended September 30, September 25, September 26, Stock options granted - weighted-average grant date fair value $ 8.49 $ 10.54 $ 11.11 Stock options exercised - intrinsic value 27,485 8,546 15,300 |
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 2005 Stock Plan: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (1) (in thousands) (in years) (in thousands) Options outstanding at September 25, 2015 8,835 $ 35.85 Grants 2,220 33.42 Exercises (1,930 ) 31.81 Forfeitures and cancellations (435 ) 37.33 Options outstanding at September 30, 2016 8,690 35.98 7.1 $ 159,230 Options vested and expected to vest at September 30, 2016 8,172 35.97 7.0 149,856 Options exercisable at September 30, 2016 4,638 $ 35.08 6.0 88,040 |
Summary Of Stock Options Outstanding And Exercisable | The following table summarizes information about stock options outstanding and exercisable at September 30, 2016: Outstanding Options Options Exercisable Range of Exercise Price Shares Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Shares Weighted-Average Exercise Price (in thousands) (in years) (in thousands) $24.60 - $28.90 1,153 4.4 $ 28.22 1,153 $ 28.22 $28.91 - $33.40 3,129 7.7 32.25 963 30.48 $33.41 - $37.33 168 5.7 35.20 112 34.83 $37.34 - $42.95 2,163 7.1 38.42 1,467 38.43 $42.96 - $47.45 1,998 7.8 43.09 881 43.15 $47.46 - $58.07 59 4.7 49.26 42 49.00 $58.08 - $62.29 20 4.2 59.69 20 59.69 8,690 4,638 |
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 25, 2015 2,830 $ 40.73 Granted 1,407 35.04 Vested (1,122 ) 35.82 Forfeitures (243 ) 37.16 Non-vested at September 30, 2016 2,872 $ 40.16 |
Schedule of Share-Based Payment Fair Value by Vesting Date | The fair value as of the respective vesting dates of RSUs were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Restricted stock units - vest date fair value $ 40,283 $ 45,175 $ 40,810 |
Schedule Of Stock-Based Compensation Expense By Plan | The following tables separately present stock-based compensation expense both by award type and classification within our consolidated statements of operations (in thousands): Expense - By Award Type Fiscal Year Ended September 30, September 25, September 26, Stock options $ 21,311 $ 22,972 $ 19,680 Restricted stock units 42,201 40,332 42,221 Employee stock purchase plan 3,473 3,765 3,779 Total stock-based compensation 66,985 67,069 65,680 Benefit from income taxes (19,627 ) (19,606 ) (19,315 ) Total stock-based compensation, net of tax $ 47,358 $ 47,463 $ 46,365 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Expense - By Income Statement Classification Fiscal Year Ended Compensation Expense - By Classification September 30, September 25, September 26, Cost of products $ 859 $ 949 $ 812 Cost of services 547 457 402 Research and development 17,771 18,682 18,510 Sales and marketing 27,579 24,283 23,236 General and administrative 20,229 22,698 22,720 Total stock-based compensation 66,985 67,069 65,680 Benefit from income taxes (19,627 ) (19,606 ) (19,315 ) Total stock-based compensation, net of tax $ 47,358 $ 47,463 $ 46,365 |
Schedule of Stock Repurchase Activity | The following table provides information regarding share repurchase activity under the program in fiscal 2016 : Quarterly Repurchase Activity Shares Repurchased Cost (1) Average Price Paid Per Share (2) (in thousands) Q1 - Quarter ended January 1, 2016 1,140,700 $ 39,449 $ 34.57 Q2 - Quarter ended April 1, 2016 975,745 37,407 38.32 Q3 - Quarter ended July 1, 2016 176,854 7,998 45.22 Q4 - Quarter ended September 30, 2016 323,085 16,000 49.51 Total 2,616,384 $ 100,854 (1) Cost of share repurchases includes the price paid per share and applicable commissions. (2) Average price paid per share excludes commission costs. |
Schedule of Tax Benefit from Exercise of Options [Table Text Block] | 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 Year Ended September 30, September 25, September 26, Tax benefit - stock option exercises & shares issued under ESPP $ 550 $ 328 $ 538 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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 Year Ended September 30, 2016 Fiscal Year Ended Investment Securities Currency Translation Adjustments Total Investment Securities Currency Translation Adjustments Total Beginning Balance $ 350 $ (11,812 ) $ (11,462 ) $ 505 $ 2,509 $ 3,014 Other comprehensive income before reclassifications: Unrealized gains/(losses) - investment securities (220 ) (220 ) 290 290 Foreign currency translation gains/(losses) (1) 287 287 (15,185 ) (15,185 ) Income tax effect - benefit/(expense) 188 586 774 (87 ) 864 777 Net of tax (32 ) 873 841 203 (14,321 ) (14,118 ) Amounts reclassified from AOCI into earnings: Realized gains/(losses) - investment securities (1) 563 563 (446 ) (446 ) Income tax effect - benefit/(expense) (2) (139 ) (139 ) 88 88 Net of tax 424 — 424 (358 ) — (358 ) Net current-period other comprehensive income/(loss) 392 873 1,265 (155 ) (14,321 ) (14,476 ) Ending Balance $ 742 $ (10,939 ) $ (10,197 ) $ 350 $ (11,812 ) $ (11,462 ) (1) Realized gains or losses from the sale of our AFS investment securities or from foreign currency translation adjustments are included within other income/expense, net in our consolidated statements of operations. (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) | 12 Months Ended |
Sep. 30, 2016 | |
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 Year Ended September 30, September 25, September 26, 2014 Numerator: Net income attributable to Dolby Laboratories, Inc. $ 185,860 $ 181,390 $ 206,103 Denominator: Weighted-average shares outstanding—basic 100,717 102,354 102,151 Potential common shares from options to purchase common stock 1,013 811 582 Potential common shares from restricted stock units 694 697 899 Weighted-average shares outstanding—diluted 102,424 103,862 103,632 Net income per share attributable to Dolby Laboratories, Inc.: Basic $ 1.85 $ 1.77 $ 2.02 Diluted $ 1.81 $ 1.75 $ 1.99 Antidilutive awards excluded from calculation: Stock options 2,971 4,270 3,987 Restricted stock units 30 127 1,835 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Components Of Income Before Provision For Income Taxes | (in thousands): Fiscal Year Ended September 30, September 25, September 26, United States $ 37,223 $ 17,091 $ 160,839 Foreign 198,681 228,691 115,260 Total $ 235,904 $ 245,782 $ 276,099 |
Schedule Of Provision For Income Taxes | Fiscal Year Ended September 30, September 25, September 26, Current: Federal $ 19,226 $ 24,262 $ 20,533 State 521 130 543 Foreign 52,492 52,461 52,999 Total current 72,239 76,853 74,075 Deferred: Federal (19,540 ) (9,593 ) (2,345 ) State (3,451 ) (3,686 ) (3,544 ) Foreign 254 (1,032 ) (807 ) Total deferred (22,737 ) (14,311 ) (6,696 ) Provision for income taxes $ 49,502 $ 62,542 $ 67,379 |
Schedule of Withholding Taxes | The foreign current tax provision includes this withholding tax expense while the appropriate foreign tax credit benefit is included in current federal and foreign tax provision. Withholding taxes were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Withholding taxes $ 45,151 $ 45,372 $ 47,131 |
Summary Of Tax Effects Of The Temporary Differences Between Carrying Amounts And Amounts Used For Tax | A summary of the tax effects of the temporary differences were as follows (in thousands): Fiscal Year Ended September 30, September 25, Deferred income tax assets: Investments $ 972 $ 977 Inventories 7,855 8,800 Net operating loss 2,818 1,406 Accrued expenses 16,497 16,843 Stock-based compensation 31,397 32,359 Revenue recognition 54,043 52,282 Intangibles — 401 Depreciation and amortization 26,364 6,443 Research and development credits 12,837 7,977 Foreign tax credits 9,727 11,119 Translation adjustment 1,223 719 Other 9,473 9,092 Total gross deferred income tax assets 173,206 148,418 Less: valuation allowance — — Total deferred income tax assets 173,206 148,418 Deferred income tax liabilities: Intangibles (2,014 ) — International earnings (4,097 ) (4,646 ) Unrealized gain on investments (305 ) (493 ) Deferred income tax assets, net (non-current) $ 166,790 $ 143,279 |
Reconciliation Of Federal Statutory Tax Rate To Our Effective Tax Rate | A reconciliation of the federal statutory tax rate to our effective tax rate on income from continuing operations was as follows: Fiscal Year Ended September 30, September 25, September 26, Federal statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal effect 0.7 0.7 0.6 Stock-based compensation expense rate 1.5 1.7 1.4 Research and development tax credits (5.2 ) (3.0 ) (1.6 ) Tax exempt interest (0.1 ) (0.2 ) (0.2 ) U.S. manufacturing tax incentives (1.1 ) (0.3 ) (2.0 ) Foreign rate differential (9.5 ) (9.1 ) (8.9 ) Audit settlements (2.3 ) — — Other 2.0 0.6 0.1 Effective tax rate 21.0 % 25.4 % 24.4 % |
Aggregate Changes In Balance Of Gross Unrecognized Tax Benefits, Excluding Interest And Penalties | Aggregate changes in the balance of gross unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Beginning Balance $ 65,161 $ 31,351 $ 32,468 Gross increases - tax positions taken during prior years 4,343 507 333 Gross increases - tax positions taken during current year 26,585 34,293 2,916 Gross decreases - settlements with tax authorities during current year (20,086 ) — — Lapse of statute of limitations (835 ) (990 ) (4,366 ) Ending Balance $ 75,168 $ 65,161 $ 31,351 |
Schedule of Accrued Interest and Penalties on Unrecognized Tax Benefits | Our accrued interest and penalties on unrecognized tax benefits as of September 30, 2016 and September 25, 2015 were as follows (in thousands): Fiscal Year Ended September 30, September 25, Accrued interest $ 1,936 $ 2,977 Accrued penalties 53 589 Total $ 1,989 $ 3,566 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Restructuring Charges [Abstract] | |
Schedule Of Changes In Restructuring Accruals | The table presented below summarizes changes in restructuring accruals under this plan, and reflects the completion of activity during the second quarter of fiscal 2016 (in thousands): Severance and associated costs Restructuring charges $ 1,294 Cash payments (1,233 ) Non-cash and other adjustments (61 ) Balance at September 30, 2016 $ — The table presented below summarizes changes in restructuring accruals under this plan, and reflects the completion of activity during the first quarter of fiscal 2015 (in thousands): Severance and associated costs Restructuring charges $ 3,301 Cash payments (3,164 ) Non-cash and other adjustments 9 Balance at September 26, 2014 $ 146 Restructuring (credits) (39 ) Cash payments (10 ) Non-cash and other adjustments (97 ) Balance at September 25, 2015 $ — |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 (in thousands): Payments Due By Fiscal Period Fiscal Fiscal Fiscal Fiscal Fiscal Thereafter Total Naming rights $ 7,619 $ 7,715 $ 7,811 $ 7,909 $ 8,008 $ 94,972 $ 134,034 Donation commitments 320 6,300 322 322 122 1,013 8,399 Operating leases 13,261 10,653 8,186 7,521 6,401 24,282 70,304 Purchase obligations 6,936 2,615 1,199 — — — 10,750 Total $ 28,136 $ 27,283 $ 17,518 $ 15,752 $ 14,531 $ 120,267 $ 223,487 |
Schedule of Rent Expense | The following table summarizes information about our total rental expenses under operating leases, including the portion of this total rent expense which is payable to our principal stockholder (in thousands): Fiscal Year Ended September 30, September 25, September 26, Total rent expense $ 13,288 $ 15,349 $ 14,278 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the purchase price allocation made to the net tangible and intangible assets acquired (including cash of $8.4 million ), and liabilities assumed based on their acquisition date fair values, with the excess amount recorded as goodwill, which is representative of the expected benefits from the integration of Doremi's technologies and assembled workforce (in thousands): Purchase Price Allocation Current assets $ 17,231 Inventories 16,372 Intangible assets 45,600 Goodwill 39,672 Current liabilities (11,653 ) Non-current liabilities (8,820 ) Cash consideration paid to sellers 98,402 Add: contingent consideration 740 Total 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. The value of these acquired intangibles was determined based on the present value of estimated future cash flows under various valuation techniques and inputs. Intangible Assets Acquired Purchase Price Allocation Weighted-Average Useful Life (Years) Income Statement Classification: Amortization Expense Customer relationships $ 25,600 10 Sales & Marketing Developed technology 17,500 7.5 Cost of Sales Trade name 1,300 1 Sales & Marketing Backlog 1,200 1 Cost of Sales Total $ 45,600 |
Operating Segments and Geogra41
Operating Segments and Geographic Data (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Segments, Geographical Areas [Abstract] | |
Revenue By Geographic Region | Revenue Category Basis For Determining Geographic Location Licensing Region in which our licensees’ headquarters are located Products Destination to which our products are shipped Services Location in which the relevant services are performed The following tables present selected information regarding total revenue by geographic location (amounts presented in thousands). Revenue Composition - Domestic & Foreign Fiscal Year Ended Location September 30, September 25, September 26, United States $ 320,129 $ 276,733 $ 316,256 International 705,609 693,905 643,920 Total revenue $ 1,025,738 $ 970,638 $ 960,176 |
Schedule Of Concentration Of Revenue From Individual Geographic Regions | Revenue Concentration - Significant Individual Geographic Regions Fiscal Year Ended Location September 30, September 25, September 26, United States 31 % 29 % 33 % South Korea 17 % 21 % 20 % China 14 % 7 % 12 % Europe 14 % 13 % 12 % Japan 12 % 13 % 13 % Taiwan 4 % 10 % 3 % Other 8 % 7 % 7 % Total 100 % 100 % 100 % |
Schedule Of Long-Lived Tangible Assets, Net Of Accumulated Depreciation, By Geographic Region | Long-lived tangible assets, net of accumulated depreciation, by geographic region were as follows (in thousands): Location September 30, September 25, United States $ 412,447 $ 374,203 International 31,209 28,888 Total long-lived tangible assets, net of accumulated depreciation $ 443,656 $ 403,091 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule Of Ownership Interest In The Consolidated Affiliated Entities | Our interests in these consolidated affiliated entities and the location of the property leased to Dolby Laboratories as of September 30, 2016 were as follows: Entity Name Minority Ownership Interest Location Of Properties Dolby Properties Brisbane, LLC 49.0 % Brisbane, California Dolby Properties Burbank, LLC 49.0 % Burbank, California Dolby Properties UK, LLC 49.0 % Wootton Bassett, England Dolby Properties, LP 10.0 % Wootton Bassett, England Jointly-Owned Real Estate Entities. We lease from our principal stockholder a commercial office building located at 100 Potrero Avenue in San Francisco, California under a term that expires on October 31, 2024 , and we lease additional facilities located in California and the U.K. from the jointly-owned real estate entities described above. Related party rent expense included in operating expenses in our consolidated statements of operations were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Related party rent expense included in operating expenses $ 3,097 $ 3,136 $ 2,125 Distributions. Distributions made by the jointly-owned real estate entities to our principal stockholder were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Distributions to principal stockholder $ 214 $ 5,615 $ — |
Schedule of Related Party Transactions | Deconsolidation of Subsidiary Cash consideration received (1) $ 31,263 Less: net book value of Dolby, Properties, LLC (5,042 ) Gain on sale (pre-tax) $ 26,221 (1) Net cash proceeds from the sale of $27.2 million as disclosed within our consolidated statements of cash flows is derived by deducting cash balances of $4.1 million held by the Subsidiary and acquired by the Purchaser from gross cash consideration received of $31.3 million . |
Retirement Plans Retirement Pla
Retirement Plans Retirement Plans (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Schedule of Costs of Retirement Plans | Retirement plan expenses, which are included in cost of products, cost of services, R&D, S&M and G&A expense in our consolidated statements of operations, were as follows (in thousands): Fiscal Year Ended September 30, September 25, September 26, Retirement plan expenses $ 20,471 $ 19,431 $ 17,369 |
Selected Quarterly Financial 44
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule Of Selected Quarterly Financial Data | Fiscal Year 2016 Fiscal Year 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue: Licensing $ 211,129 $ 249,336 $ 253,026 $ 203,541 $ 216,598 $ 243,333 $ 204,855 $ 203,325 Products 24,809 20,063 20,638 25,033 13,263 22,985 22,596 25,060 Services 4,876 4,941 3,923 4,423 4,377 5,632 4,251 4,363 Total revenue 240,814 274,340 277,587 232,997 234,238 271,950 231,702 232,748 Cost of revenue 29,766 24,373 24,621 30,222 19,410 25,149 24,880 25,377 Gross margin 211,048 249,967 252,966 202,775 214,828 246,801 206,822 207,371 Income before taxes and controlling interest 39,484 83,823 81,784 30,813 54,316 79,885 47,378 64,203 Net income attributable to Dolby Laboratories $ 30,901 $ 67,398 $ 63,628 $ 23,933 $ 41,357 $ 57,974 $ 35,506 $ 46,553 Earnings per share: Basic $ 0.31 $ 0.67 $ 0.63 $ 0.24 $ 0.40 $ 0.57 $ 0.35 $ 0.46 Diluted $ 0.30 $ 0.66 $ 0.62 $ 0.23 $ 0.40 $ 0.56 $ 0.34 $ 0.45 Weighted-average shares outstanding: Basic 100,734 100,456 100,533 101,145 102,303 102,509 102,670 101,935 Diluted 101,931 101,555 102,677 103,766 104,275 103,904 104,105 103,059 |
Summary Of Significant Accoun45
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Maximum credit exposure (percent) | 5.00% | ||
Goodwill | $ 309,616 | $ 307,708 | $ 277,574 |
Advertising expense | 44,221 | 46,202 | 37,895 |
Transaction and re-measurement gains/losses | $ (474) | (142) | $ 498 |
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets with definite lives, useful life, minimum years | 3 years | ||
Minimum [Member] | Internal Use Software [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets with definite lives, useful life, minimum years | 3 years | ||
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets with definite lives, useful life, minimum years | 18 years | ||
Corrective royalties, percentage of license revenue (percent) | 1.00% | ||
Maximum [Member] | Internal Use Software [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets with definite lives, useful life, minimum years | 5 years | ||
Foreign Exchange Forward [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Notional amount of derivative | $ 18,300 | $ 22,300 | |
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percent of revenue from significant customer (percent) | 12.00% | 11.00% |
Summary Of Significant Accoun46
Summary Of Significant Accounting Policies (Schedule Of Property, Plant, And Equipment, Estimated Useful Life) (Details) | 12 Months Ended |
Sep. 30, 2016 | |
Cinema equipment provided under operating leases [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 15 years |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 40 years |
Minimum [Member] | Systems And Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 3 years |
Minimum [Member] | Machinery And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 3 years |
Minimum [Member] | Furniture And Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 5 years |
Maximum [Member] | Systems And Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 5 years |
Maximum [Member] | Machinery And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 8 years |
Maximum [Member] | Furniture And Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 8 years |
Composition Of Certain Financ47
Composition Of Certain Financial Statement Captions (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 25, 2015 |
Composition Of Certain Financial Statement Captions [Line Items] | ||
Raw materials | $ 3,526 | $ 3,246 |
Other Noncurrent Assets [Member] | ||
Composition Of Certain Financial Statement Captions [Line Items] | ||
Raw materials | $ 1,600 | $ 1,400 |
Composition Of Certain Financ48
Composition Of Certain Financial Statement Captions (Schedule Of Accounts Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 25, 2015 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Trade accounts receivable | $ 66,229 | $ 94,559 |
Accounts receivable from patent administration program partners | 11,829 | 8,546 |
Accounts Receivable, Gross | 78,058 | 103,105 |
Less: allowance for doubtful accounts | (2,370) | (1,542) |
Accounts Receivable, Net | $ 75,688 | $ 101,563 |
Composition Of Certain Financ49
Composition Of Certain Financial Statement Captions (Schedule Of Allowance For Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Fiscal Year | $ 1,542 | $ 1,615 | $ 514 | |
Charged to Operations | 1,017 | 33 | $ 1,119 | |
Deductions | (189) | (106) | (18) | |
Balance at End of Fiscal Year | $ 2,370 | $ 1,542 | $ 1,615 | $ 514 |
Composition Of Certain Financ50
Composition Of Certain Financial Statement Captions (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 25, 2015 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Raw materials | $ 3,526 | $ 3,246 |
Work in process | 4,020 | 3,279 |
Finished goods | 8,808 | 7,347 |
Inventories | $ 16,354 | $ 13,872 |
Composition Of Certain Financ51
Composition Of Certain Financial Statement Captions (Schedule Of Prepaid Expenses And Other Current Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 25, 2015 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Prepaid assets | $ 13,440 | $ 13,680 |
Other current assets | 11,578 | 7,525 |
Income tax receivable | 1,284 | 10,826 |
Prepaid expenses and other current assets | $ 26,302 | $ 32,031 |
Composition Of Certain Financ52
Composition Of Certain Financial Statement Captions (Schedule Of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 25, 2015 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Accrual for Unpaid, Property, Plant and Equipment Additions | $ 17,100 | $ 20,500 |
Accrued royalties | 1,939 | 1,951 |
Amounts payable to joint licensing program partners | 34,472 | 40,466 |
Accrued compensation and benefits | 71,261 | 70,317 |
Accrued professional fees | 6,528 | 6,523 |
Other accrued liabilities | 54,855 | 50,050 |
Accrued liabilities | $ 169,055 | $ 169,307 |
Composition Of Certain Financ53
Composition Of Certain Financial Statement Captions (Schedule Of Other Non-Current Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 25, 2015 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Supplemental retirement plan obligations | $ 2,540 | $ 2,400 |
Non-current tax liabilities | 68,254 | 62,843 |
Other liabilities | 12,128 | 11,781 |
Other non-current liabilities | $ 82,922 | $ 77,024 |
Investments and Fair Value Me54
Investments and Fair Value Measurements (Schedule Of Financial Assets Carried At Fair Value) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 25, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | $ 516,112 | $ 531,926 |
Short-term investments, cost | 525,904 | 476,407 |
Short term investments, total | 526,420 | 476,419 |
Long-term investments, total | 321,015 | |
Total cash, cash equivalents, and investments, cost | 1,030,769 | 991,104 |
Total cash, cash equivalents, and investments, unrealized gains | 1,251 | 1,218 |
Total cash, cash equivalents, and investments, unrealized losses | (375) | (480) |
Total cash, cash equivalents, and investments, total | 1,031,645 | 991,842 |
Assets | 516,112 | 531,926 |
Other long-term Investments | 393,904 | 321,015 |
Business Combination, Contingent Consideration, Liability, Fair Value Disclosure | 95 | |
US Treasury and Government [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, cost | 31,971 | 30,505 |
Long-term investments, unrealized gains | 77 | 19 |
Long-term investments, unrealized losses | (12) | (17) |
Long-term investments, total | 32,036 | 30,507 |
U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 2,000 | |
Short-term investments, unrealized gains | 1 | |
Short-term investments, unrealized losses | 0 | |
Short term investments, total | 2,001 | |
Long-term investments, cost | 27,536 | 1,999 |
Long-term investments, unrealized gains | 24 | 1 |
Long-term investments, unrealized losses | (26) | 0 |
Long-term investments, total | 27,534 | 2,000 |
Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 1,099 | |
Short-term investments, cost | 19,629 | 6,478 |
Short-term investments, unrealized gains | 1 | 0 |
Short-term investments, unrealized losses | (10) | 0 |
Short term investments, total | 19,620 | 6,478 |
Total cash, cash equivalents, and investments, cost | 11,479 | 0 |
Total cash, cash equivalents, and investments, unrealized gains | 10 | 0 |
Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 2,240 | 1,176 |
Short-term investments, cost | 63,762 | 86,543 |
Short-term investments, unrealized gains | 24 | 46 |
Short-term investments, unrealized losses | (14) | (11) |
Short term investments, total | 63,772 | 86,578 |
Long-term investments, cost | 295,921 | 167,394 |
Long-term investments, unrealized gains | 715 | 138 |
Long-term investments, unrealized losses | (266) | (392) |
Long-term investments, total | 296,370 | 167,140 |
Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 24,334 | 43,746 |
Short-term investments, unrealized gains | 0 | 98 |
Short-term investments, unrealized losses | (15) | 0 |
Short term investments, total | 24,319 | 43,844 |
Long-term investments, cost | 30,090 | 117,552 |
Long-term investments, unrealized gains | 28 | 189 |
Long-term investments, unrealized losses | (32) | (60) |
Long-term investments, total | 30,086 | 117,681 |
Total cash, cash equivalents, and investments, cost | 35,625 | 35,476 |
Other long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost Method Investment, Fair Value Measurement Adjustment | 400 | 700 |
Long-term investments, cost | 3,002 | 2,961 |
Long-term investments, unrealized gains | 366 | 726 |
Long-term investments, unrealized losses | 0 | 0 |
Long-term investments, total | 3,368 | 3,687 |
Long-term investments | 500 | 500 |
Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 121,637 | 138,767 |
Short-term investments, unrealized gains | 31 | 145 |
Short-term investments, unrealized losses | (39) | (11) |
Short term investments, total | 121,629 | 138,901 |
Long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, cost | 393,020 | 320,411 |
Long-term investments, unrealized gains | 1,220 | 1,073 |
Long-term investments, unrealized losses | (336) | (469) |
Long-term investments, total | 393,904 | |
Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 13,912 | |
Short-term investments, unrealized gains | 6 | |
Short-term investments, unrealized losses | 0 | |
Short term investments, total | 13,918 | |
Long-term investments, cost | 4,500 | |
Long-term investments, unrealized gains | 10 | |
Long-term investments, unrealized losses | 0 | |
Long-term investments, total | 4,510 | |
Cash | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 501,863 | 511,736 |
Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 10,910 | 19,014 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 10,910 | 19,014 |
Short-term investments | 0 | 2,001 |
Long-term investments | 59,936 | 33,233 |
Assets | 70,846 | 54,248 |
Level 1 | US Treasury and Government [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments | 32,036 | 30,507 |
Level 1 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 2,001 | |
Long-term investments | 27,534 | 2,000 |
Level 1 | Other long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments | 366 | 726 |
Level 1 | Investments held in supplemental retirement plan: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 2,638 | 2,498 |
Liabilities | 2,638 | 2,498 |
Level 1 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 10,910 | 19,014 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 3,339 | 1,176 |
Short-term investments | 121,629 | 136,900 |
Long-term investments | 330,966 | 284,821 |
Assets | 455,934 | 422,897 |
Level 2 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 1,099 | |
Short-term investments | 19,620 | 6,478 |
Level 2 | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 2,240 | 1,176 |
Short-term investments | 63,772 | 86,578 |
Long-term investments | 296,370 | 167,140 |
Level 2 | Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 24,319 | 43,844 |
Long-term investments | 30,086 | 117,681 |
Level 2 | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 13,918 | |
Long-term investments | 4,510 | |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments | 0 | |
Assets | 0 | 0 |
Business Combination, Contingent Consideration, Liability, Fair Value Disclosure | 95 | |
Level 3 | Other long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments | ||
Cost Method Investment 1 [Member] | Other long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term Investments | 2,000 | 2,000 |
Cost Method Investment 2 [Member] | Other long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term Investments | $ 500 | $ 500 |
Investments and Fair Value Me55
Investments and Fair Value Measurements (Unrealized Loss Position) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 25, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Document Period End Date | Sep. 30, 2016 | |
Fair Value | $ 223,583 | $ 202,515 |
Gross Unrealized Losses | (370) | (480) |
Greater than 12 months, Fair Value | 5,615 | |
Greater than 12 months, Gross Unrealized Losses | (5) | |
Investment Owned, at Cost | 1,030,769 | 991,104 |
Investment Owned, Unrecognized Unrealized Appreciation | (1,251) | (1,218) |
U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 22,988 | 19,005 |
Gross Unrealized Losses | (38) | (17) |
Greater than 12 months, Fair Value | 0 | |
Greater than 12 months, Gross Unrealized Losses | 0 | |
Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 153,491 | 148,034 |
Gross Unrealized Losses | (280) | (403) |
Greater than 12 months, Fair Value | 1,000 | |
Greater than 12 months, Gross Unrealized Losses | 0 | |
Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross Unrealized Losses | (42) | (60) |
Greater than 12 months, Fair Value | 4,615 | |
Greater than 12 months, Gross Unrealized Losses | (5) | |
Investment Owned, at Cost | 35,625 | 35,476 |
Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Greater than 12 months, Fair Value | 0 | |
Greater than 12 months, Gross Unrealized Losses | 0 | |
Investment Owned, at Cost | 11,479 | 0 |
Investment Owned, Unrecognized Unrealized Appreciation | $ (10) | $ 0 |
Investments and Fair Value Me56
Investments and Fair Value Measurements Investments and Fair Value Measurements (Investment Maturities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 25, 2015 | |
Fair Value Disclosures [Abstract] | ||
Document Period End Date | Sep. 30, 2016 | |
Amortized Cost | ||
Due within 1 year | $ 135,886 | $ 158,957 |
Due in 1 to 2 years | 225,679 | 173,571 |
Due in 2 to 3 years | 164,339 | 143,879 |
Total | 525,904 | 476,407 |
Fair Value | ||
Due within 1 year | 135,884 | 159,090 |
Due in 1 to 2 years | 225,953 | 173,577 |
Due in 2 to 3 years | 164,583 | 143,752 |
Total | $ 526,420 | $ 476,419 |
Property, Plant & Equipment (De
Property, Plant & Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | $ 694,183 | $ 604,766 | ||
Less: accumulated depreciation | (250,527) | (201,675) | ||
Property, Plant And Equipment, Net | 443,656 | 403,091 | ||
Purchase of commercial office building | $ 109,800 | |||
Depreciation | 52,000 | 48,200 | $ 38,100 | |
Land [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 43,325 | 43,537 | ||
Building [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 251,700 | 248,390 | ||
Leasehold Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 60,480 | 61,455 | ||
Machinery and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 88,943 | 70,143 | ||
Computer Systems and Software [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 154,291 | 136,666 | ||
Furniture and Fixtures [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 26,900 | 25,489 | ||
Cinema equipment provided under operating leases [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 35,968 | 7,638 | ||
Construction in Progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | $ 32,576 | $ 11,448 |
Goodwill & Intangible Assets (D
Goodwill & Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2014 | Jan. 01, 2016 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, Acquired During Period | $ 37,094 | ||||
Goodwill [Roll Forward] | |||||
Goodwill | $ 307,708 | $ 307,708 | 277,574 | ||
Goodwill, Translation and Purchase Accounting Adjustments | 1,908 | (6,960) | |||
Goodwill | 309,616 | 307,708 | $ 277,574 | ||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Cost | 373,361 | 252,284 | |||
Accumulated Amortization | (158,019) | (124,777) | |||
Net | 215,342 | 127,507 | |||
Payments to acquire intangible assets | 121,020 | 37,416 | 37,950 | ||
Amortization of intangible assets | 33,200 | 21,000 | $ 15,100 | ||
Acquired patents and technology | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Cost | 293,824 | 172,787 | |||
Accumulated Amortization | (101,711) | (74,398) | |||
Net | 192,113 | 98,389 | |||
Payments to acquire intangible assets | $ 105,000 | $ 121,000 | $ 37,400 | ||
Weighted-average useful life | 9 years | 10 years 1 month 6 days | 18 years | ||
Customer relationships | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Cost | $ 56,821 | $ 56,933 | |||
Accumulated Amortization | (34,113) | (28,275) | |||
Net | 22,708 | 28,658 | |||
Other intangibles | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Cost | 22,716 | 22,564 | |||
Accumulated Amortization | (22,195) | (22,104) | |||
Net | 521 | 460 | |||
Other Acquisitions [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, Acquired During Period | 700 | ||||
Doremi Labs [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, Acquired During Period | 36,400 | ||||
Goodwill [Roll Forward] | |||||
Goodwill | $ 39,672 | $ 39,672 | |||
Goodwill | $ 39,672 | ||||
Doremi Labs [Member] | Customer relationships | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Weighted-average useful life | 10 years |
Goodwill & Intangible Assets -
Goodwill & Intangible Assets - Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 25, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,016 | $ 30,725 | |
2,017 | 25,300 | |
2,018 | 24,717 | |
2,019 | 24,253 | |
2,020 | 24,226 | |
Thereafter | 86,121 | |
Net | $ 215,342 | $ 127,507 |
Stockholders' Equity And Stoc60
Stockholders' Equity And Stock-Based Compensation (Narrative) (Details) - USD ($) | Jul. 25, 2016 | Apr. 25, 2016 | Jan. 25, 2016 | Dec. 15, 2015 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 28, 2012 | Oct. 31, 2010 | Mar. 28, 2014 | Oct. 31, 2014 | Feb. 29, 2012 | Jul. 31, 2011 | Jul. 31, 2010 | Nov. 30, 2009 |
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||||||||||
Estimated forfeiture rate, percent | 10.49% | 9.98% | 6.13% | ||||||||||||
Options granted under the plan | 2,220,000 | ||||||||||||||
Options outstanding to purchase | 8,835,000 | ||||||||||||||
Recognized tax benefit from the exercise of ISO and ESPP | $ 550,000 | $ 328,000 | $ 538,000 | ||||||||||||
Percentage of vesting per year | 50.00% | ||||||||||||||
Share based compensation expense | 66,985,000 | 67,069,000 | 65,680,000 | ||||||||||||
Fair value of restricted stock units vested | $ 40,283,000 | 45,175,000 | 40,810,000 | ||||||||||||
Year end stock price | $ 54.29 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,407,000 | ||||||||||||||
Employee stock options expected to be recognized over a weighted-average period | 7 years | ||||||||||||||
Allocated Share-based Compensation Expense | $ 66,985,000 | $ 67,069,000 | $ 65,680,000 | ||||||||||||
Stock authorized for repurchase | 1,100,000,000 | $ 250,000,000 | |||||||||||||
Remaining authorization to purchase additional shares | $ 51,900,000 | ||||||||||||||
Common stock, dividends declared (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.50 | $ 0.42 | $ 0 | |||||||||
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) | 57,018,362 | 50,291,426 | |||||||||||||
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) | 44,403,847 | 50,743,311 | |||||||||||||
2005 Stock Plan. [Member] | Class A Common Stock [Member] | |||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||||||||||
Shares authorized under plan | 38,000,000 | ||||||||||||||
Options outstanding to purchase | 8,690,000 | ||||||||||||||
Weighted Average Remaining Contractual Life, Options outstanding | 7 years 1 month 24 days | ||||||||||||||
Options vested and exercisable | 4,638,000 | ||||||||||||||
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 Purchase Plan [Member] | Class A Common Stock [Member] | |||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||||||||||
Maximum value of common stock available for eligible employees | $ 25,000 | ||||||||||||||
Maximum number of common stock available for eligible employees | 1,000 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Period | 6 months | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Look Back Commencement Period | 1 year | ||||||||||||||
Additional Stock Approved [Member] | |||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||||||||||
Stock authorized for repurchase | $ 200,000,000 | $ 100,000,000 | $ 250,000,000 | $ 300,000,000 | |||||||||||
Employee Stock Option [Member] | |||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||||||||||
Stock options expected to vest | $ 32,300,000 | ||||||||||||||
Employee stock options expected to be recognized over a weighted-average period | 2 years 2 months 12 days | ||||||||||||||
Employee Stock Option [Member] | Options Granted Prior To June 2008 [Member] | |||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||||||||||
Options expiration period | 10 years | ||||||||||||||
Employee Stock Option [Member] | Options Granted From June 2008 [Member] | |||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||||||||||
Options vesting period | 4 years | 36 months | |||||||||||||
Percentage of stock option becoming exercisable subjected to date of grant | 25.00% | ||||||||||||||
Options maximum vesting period, months | 4 years | 36 months | |||||||||||||
Performance-Based Stock Options [Member] | |||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||||||||||
Options granted under the plan | 419,623 | ||||||||||||||
Options outstanding to purchase | 397,748 | ||||||||||||||
Restricted Stock Units [Member] | |||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||||||||||
Share based compensation expense | $ 42,201,000 | $ 40,332,000 | $ 42,221,000 | ||||||||||||
Stock options expected to vest | $ 70,800,000 | ||||||||||||||
Employee stock options expected to be recognized over a weighted-average period | 2 years 6 months | ||||||||||||||
Employee and Officer [Member] | Restricted Stock Units [Member] | |||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||||||||||
Options vesting period | 4 years | ||||||||||||||
Options maximum vesting period, months | 4 years | ||||||||||||||
Awards Granted Prior to November 2010 [Member] | Director [Member] | Restricted Stock Units [Member] | |||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||||||||||
Options vesting period | 3 years | 1 year | |||||||||||||
Options maximum vesting period, months | 3 years | 1 year | |||||||||||||
Awards Granted After November 2010 [Member] | Director [Member] | Restricted Stock Units [Member] | |||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||||||||||
Options vesting period | 2 years | ||||||||||||||
Options maximum vesting period, months | 2 years | ||||||||||||||
Minimum [Member] | Performance-Based Stock Options [Member] | |||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||||||||||
Award vesting percentage | 0.00% | ||||||||||||||
Maximum [Member] | Performance-Based Stock Options [Member] | |||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||||||||||||||
Award vesting percentage | 125.00% |
Stockholders' Equity And Stoc61
Stockholders' Equity And Stock-Based Compensation (Summary Of Stock Options Issued To Officers, Directors, And Employees Under 2000 Stock Incentive Plan And 2005 Stock Plan) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Shares | |
Options outstanding at September 25, 2015 | shares | 8,835 |
Grants | shares | 2,220 |
Exercises | shares | (1,930) |
Forfeitures and cancellations | shares | (435) |
Options vested and expected to vest at September 30, 2016 | shares | 8,172 |
Weighted-Average Exercise Price | |
Options outstanding at September 25, 2015 | $ 35.85 |
Grants | 33.42 |
Exercises | 31.81 |
Forfeitures and cancellations | 37.33 |
Options outstanding at September 30, 2016 | 35.98 |
Options vested and expected to vest at September 30, 2016 | 35.97 |
Options exercisable at September 30, 2016 | $ 35.08 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted Average Remaining Contractual Life, Options vested and expected to vest at September 28, 2012 | 7 years |
Weighted Average Remaining Contractual Life, Options exercisable | 6 years |
Aggregate Intrinsic Value, Options outstanding | $ | $ 159,230 |
Aggregate Intrinsic Value, Options vested and expected to vest | $ | 149,856 |
Aggregate Intrinsic Value, Options exercisable | $ | $ 88,040 |
Year End Stock Price | $ 54.29 |
Two Thousand Five Stock Plan Member | Common Class A [Member] | |
Shares | |
Options outstanding at September 30, 2016 | shares | 8,690 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted Average Remaining Contractual Life, Options outstanding | 7 years 1 month 24 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | shares | 4,638 |
Stockholders' Equity And Stoc62
Stockholders' Equity And Stock-Based Compensation (Summary Of Stock Options Outstanding And Exercisable) (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 25, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Shares, Outstanding Options | 8,690 | |
Weighted-Average Exercise Price, Outstanding Options | $ 35.98 | $ 35.85 |
Shares, Options Exercisable | 4,638 | |
$24.60 - $28.90 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Shares, Outstanding Options | 1,153 | |
Weighted-Average Remaining Contractual Life, Outstanding Options | 4 years 4 months 12 days | |
Weighted-Average Exercise Price, Outstanding Options | $ 28.22 | |
Shares, Options Exercisable | 1,153 | |
Weighted Average Exercise Price, Options Exercisable | $ 28.22 | |
$28.91 - $33.40 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Shares, Outstanding Options | 3,129 | |
Weighted-Average Remaining Contractual Life, Outstanding Options | 7 years 8 months 12 days | |
Weighted-Average Exercise Price, Outstanding Options | $ 32.25 | |
Shares, Options Exercisable | 963 | |
Weighted Average Exercise Price, Options Exercisable | $ 30.48 | |
$33.41 - 37.33 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Shares, Outstanding Options | 168 | |
Weighted-Average Remaining Contractual Life, Outstanding Options | 5 years 8 months 12 days | |
Weighted-Average Exercise Price, Outstanding Options | $ 35.20 | |
Shares, Options Exercisable | 112 | |
Weighted Average Exercise Price, Options Exercisable | $ 34.83 | |
$37.34 - $42.95 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Shares, Outstanding Options | 2,163 | |
Weighted-Average Remaining Contractual Life, Outstanding Options | 7 years 1 month 24 days | |
Weighted-Average Exercise Price, Outstanding Options | $ 38.42 | |
Shares, Options Exercisable | 1,467 | |
Weighted Average Exercise Price, Options Exercisable | $ 38.43 | |
$42.96 - $47.45 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Shares, Outstanding Options | 1,998 | |
Weighted-Average Remaining Contractual Life, Outstanding Options | 7 years 9 months 12 days | |
Weighted-Average Exercise Price, Outstanding Options | $ 43.09 | |
Shares, Options Exercisable | 881 | |
Weighted Average Exercise Price, Options Exercisable | $ 43.15 | |
$47.46 - $58.07 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Shares, Outstanding Options | 59 | |
Weighted-Average Remaining Contractual Life, Outstanding Options | 4 years 8 months 12 days | |
Weighted-Average Exercise Price, Outstanding Options | $ 49.26 | |
Shares, Options Exercisable | 42 | |
Weighted Average Exercise Price, Options Exercisable | $ 49 | |
$58.08 And Above [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Shares, Outstanding Options | 20 | |
Weighted-Average Remaining Contractual Life, Outstanding Options | 4 years 2 months 12 days | |
Weighted-Average Exercise Price, Outstanding Options | $ 59.69 | |
Shares, Options Exercisable | 20 | |
Weighted Average Exercise Price, Options Exercisable | $ 59.69 |
Stockholders' Equity And Stoc63
Stockholders' Equity And Stock-Based Compensation (Summary Of Restricted Stock Units Issued To Officers, Directors, And Employees Under 2005 Stock Incentive Plan) (Details) shares in Thousands | 12 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Shares | |
Non-vested at September 25, 2015 | shares | 2,830 |
Granted | shares | 1,407 |
Vested | shares | (1,122) |
Forfeitures | shares | (243) |
Non-vested at September 30, 2016 | shares | 2,872 |
Weighted-Average Grant Date Fair Value | |
Non-vested at September 25, 2015 | $ / shares | $ 40.73 |
Granted | $ / shares | 35.04 |
Vested | $ / shares | 35.82 |
Forfeitures | $ / shares | 37.16 |
Non-vested at September 30, 2016 | $ / shares | $ 40.16 |
Stockholders' Equity And Stoc64
Stockholders' Equity And Stock-Based Compensation (RSU Vest Date Fair Value) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |||
Document Period End Date | Sep. 30, 2016 | ||
Restricted stock units - vest date fair value | $ 40,283 | $ 45,175 | $ 40,810 |
Stockholders' Equity And Stoc65
Stockholders' Equity And Stock-Based Compensation (Schedule Of Fair Value Of Stock-Based Awards Estimated Using Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |||
Document Period End Date | Sep. 30, 2016 | ||
Expected life (in years) | 5 years 2 months 27 days | 4 years 7 months 21 days | 4 years 6 months 29 days |
Risk-free interest rate | 1.70% | 1.50% | 1.40% |
Expected stock price volatility | 29.80% | 29.60% | 32.00% |
Dividend yield | 1.40% | 0.90% | 0.00% |
Stockholders' Equity And Stoc66
Stockholders' Equity And Stock-Based Compensation (Summary Of Weighted-Average Fair Value Of Stock Options Granted And Total Intrinsic Value Of Stock Options Exercised) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |||
Document Period End Date | Sep. 30, 2016 | ||
Weighted-average fair value at date of grant | $ 8.49 | $ 10.54 | $ 11.11 |
Intrinsic value of options exercised | $ 27,485 | $ 8,546 | $ 15,300 |
Stockholders' Equity And Stoc67
Stockholders' Equity And Stock-Based Compensation (Forfeiture Rates) (Details) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |||
Estimated forfeiture rate, percent | 10.49% | 9.98% | 6.13% |
Stockholders' Equity And Stoc68
Stockholders' Equity And Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense By Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||
Allocated Share-based Compensation Expense | $ 66,985 | $ 67,069 | $ 65,680 |
Share based compensation expense | 66,985 | 67,069 | 65,680 |
Benefit from income taxes | (19,627) | (19,606) | (19,315) |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 550 | 328 | 538 |
Allocated Share-based Compensation Expense, Net of Tax | 47,358 | 47,463 | 46,365 |
Stock Option [Member] | |||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||
Share based compensation expense | 21,311 | 22,972 | 19,680 |
Restricted Stock Units [Member] | |||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||
Share based compensation expense | 42,201 | 40,332 | 42,221 |
Employee Stock Purchase Plan [Member] | |||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||
Share based compensation expense | $ 3,473 | $ 3,765 | $ 3,779 |
Stockholders' Equity And Stoc69
Stockholders' Equity And Stock-Based Compensation (Schedule of Stock-Based Compensation By Classification) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 66,985 | $ 67,069 | $ 65,680 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 19,627 | 19,606 | 19,315 |
Allocated Share-based Compensation Expense, Net of Tax | 47,358 | 47,463 | 46,365 |
Recognized tax benefit from the exercise of ISO and ESPP | 550 | 328 | 538 |
Cost of products [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 859 | 949 | 812 |
Cost of services [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 547 | 457 | 402 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 17,771 | 18,682 | 18,510 |
Sales and marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 27,579 | 24,283 | 23,236 |
General and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 20,229 | $ 22,698 | $ 22,720 |
Stockholders' Equity And Stoc70
Stockholders' Equity And Stock-Based Compensation (Stock Repurchase) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Oct. 31, 2014 | Feb. 29, 2012 | Jul. 31, 2011 | Jul. 31, 2010 | Nov. 30, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock Repurchase Program, Authorized Amount | $ 1,100,000 | $ 1,100,000 | $ 250,000 | |||||||||
Shares repurchased (in shares) | 323,085 | 176,854 | 975,745 | 1,140,700 | 2,616,384 | |||||||
Cost | $ 16,000 | $ 7,998 | $ 37,407 | $ 39,449 | $ 100,854 | $ 107,349 | $ 56,028 | |||||
Average Price Paid per Share (in dollars per share) | $ 49.51 | $ 45.22 | $ 38.32 | $ 34.57 | $ 49.51 | |||||||
Additional Stock Approved [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock Repurchase Program, Authorized Amount | $ 200,000 | $ 100,000 | $ 250,000 | $ 300,000 |
Stockholders' Equity And Stoc71
Stockholders' Equity And Stock-Based Compensation Stockholders' Equity And Stock- Based Compensation - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 24, 2016 | Jul. 25, 2016 | Apr. 25, 2016 | Jan. 25, 2016 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 |
Dividends Payable [Line Items] | |||||||
Cash dividend declared per common share | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.50 | $ 0.42 | $ 0 | |
Dividends | $ 12.1 | $ 12 | $ 12.1 | ||||
Subsequent Event [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Cash dividend declared per common share | $ 0.14 | ||||||
Dividends | $ 14.2 |
Accumulated Other Comprehensi72
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 25, 2015 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, Beginning Of Period | $ (11,462) | $ 3,014 | ||
Income Tax Effect - Benefit/(Expense) | 774 | 777 | ||
Net of tax | 841 | (14,118) | ||
Realized (Gains) - Investment Securities | [1] | 563 | 446 | |
Income Tax Effect - Expense | [2] | (139) | (88) | |
Net Of Tax | 424 | (358) | ||
Net current-period other comprehensive income/(loss) | 1,265 | (14,476) | ||
Balance, End Of Period | (10,197) | (11,462) | ||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, Beginning Of Period | 350 | 505 | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (220) | (290) | ||
Income Tax Effect - Benefit/(Expense) | 188 | (87) | ||
Net of tax | (32) | 203 | ||
Realized (Gains) - Investment Securities | 563 | [1] | 446 | |
Income Tax Effect - Expense | (139) | [2] | (88) | |
Net Of Tax | 424 | (358) | ||
Net current-period other comprehensive income/(loss) | 392 | (155) | ||
Balance, End Of Period | 742 | 350 | ||
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, Beginning Of Period | (11,812) | 2,509 | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | [1] | (287) | (15,185) | |
Income Tax Effect - Benefit/(Expense) | 586 | 864 | ||
Net of tax | 873 | (14,321) | ||
Net current-period other comprehensive income/(loss) | 873 | (14,321) | ||
Balance, End Of Period | $ (10,939) | $ (11,812) | ||
[1] | Realized gains or losses from the sale of our AFS investment securities or from foreign currency translation adjustments are included within other income/expense, net in our consolidated statements of operations | |||
[2] | The income tax benefit or expense is included within provision for income taxes in our consolidated statements of operations. |
Per Share Data (Details)
Per Share Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Net income attributable to Dolby Laboratories, Inc. | $ 23,933 | $ 63,628 | $ 67,398 | $ 30,901 | $ 46,553 | $ 35,506 | $ 57,974 | $ 41,357 | $ 185,860 | $ 181,390 | $ 206,103 |
Weighted Average Number of Shares Outstanding, Basic | 101,145 | 100,533 | 100,456 | 100,734 | 101,935 | 102,670 | 102,509 | 102,303 | 100,717 | 102,354 | 102,151 |
Potential common shares from options to purchase Class A and Class B common stock | 1,013 | 811 | 582 | ||||||||
Potential common shares from restricted stock units | 694 | 697 | 899 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 103,766 | 102,677 | 101,555 | 101,931 | 103,059 | 104,105 | 103,904 | 104,275 | 102,424 | 103,862 | 103,632 |
Basic (usd per share) | $ 0.24 | $ 0.63 | $ 0.67 | $ 0.31 | $ 0.46 | $ 0.35 | $ 0.57 | $ 0.40 | $ 1.85 | $ 1.77 | $ 2.02 |
Net income per share attributable to Dolby Laboratories, Inc. - Diluted | $ 0.23 | $ 0.62 | $ 0.66 | $ 0.30 | $ 0.45 | $ 0.34 | $ 0.56 | $ 0.40 | $ 1.81 | $ 1.75 | $ 1.99 |
Stock Options [Member] | |||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Anti-dilutive securities, excluded from calculations | 2,971 | 4,270 | 3,987 | ||||||||
Restricted Stock Units [Member] | |||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Anti-dilutive securities, excluded from calculations | 30 | 127 | 1,835 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Tax Credit Carryforward [Line Items] | ||||
Deferred income tax withholding tax foreign earnings | $ 678,100 | |||
U.S. income taxes, adjusted for any foreign tax credits, and withholding taxes | 173,000 | |||
Net operating loss carryovers for Federal tax purposes | 3,000 | |||
Net operating loss carryovers for California tax purposes | $ 9,700 | |||
Effective tax rate | 21.00% | 25.40% | 24.40% | |
Unrecognized tax benefits, gross | $ 75,168 | $ 65,161 | $ 31,351 | $ 32,468 |
Unrecognized tax benefits if recognized, would affect our effective tax rate | 62,100 | |||
Estimated decrease in unrecognized tax benefits due to lapse in statute of limitations | 2,700 | |||
Unrecognized tax benefits, expected reduction as a result of settlement | 1,100 | |||
Increase in interest expense for current tax provision | 400 | 600 | ||
Reduction in penalties for current tax provision | (500) | $ (400) | ||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 6,800 | |||
Deferred Tax Assets, Tax Credit Carryforwards, Research | 4,900 | |||
Foreign Tax Credit Carryforward [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 7,000 | |||
California Research Tax Credit Carryforward [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 16,500 | |||
Research Tax Credit Carryforward [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | $ 1,000 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income Before Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ 37,223 | $ 17,091 | $ 160,839 | ||||||||
Foreign | 198,681 | 228,691 | 115,260 | ||||||||
Income before income taxes | $ 30,813 | $ 81,784 | $ 83,823 | $ 39,484 | $ 64,203 | $ 47,378 | $ 79,885 | $ 54,316 | $ 235,904 | $ 245,782 | $ 276,099 |
Income Taxes (Schedule Of Provi
Income Taxes (Schedule Of Provision For Income Taxes ) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Current: | |||
Federal | $ 19,226 | $ 24,262 | $ 20,533 |
State | 521 | 130 | 543 |
Foreign | 52,492 | 52,461 | 52,999 |
Total current | 72,239 | 76,853 | 74,075 |
Deferred: | |||
Federal | (19,540) | (9,593) | (2,345) |
State | (3,451) | (3,686) | (3,544) |
Foreign | 254 | (1,032) | (807) |
Total deferred | (22,737) | (14,311) | (6,696) |
Provision for income taxes | 49,502 | $ 62,542 | $ 67,379 |
Deferred income tax withholding tax foreign earnings | 678,100 | ||
Foreign income tax rate differential | $ 173,000 |
Income Taxes (Withholding Taxes
Income Taxes (Withholding Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Income Tax Disclosure [Abstract] | |||
Withholding taxes | $ 45,151 | $ 45,372 | $ 47,131 |
Income Taxes (Summary Of Tax Ef
Income Taxes (Summary Of Tax Effects Of The Temporary Differences Between Carrying Amounts And Amounts Used For Tax) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 25, 2015 |
Income Tax Disclosure [Abstract] | ||
Investments | $ 972 | $ 977 |
Inventories | 7,855 | 8,800 |
Net operating loss | 2,818 | 1,406 |
Accrued expenses | 16,497 | 16,843 |
Stock-based compensation | 31,397 | 32,359 |
Revenue recognition | 54,043 | 52,282 |
Deferred Tax Assets, Goodwill and Intangible Assets | 0 | 401 |
Depreciation and amortization | 26,364 | 6,443 |
Research and development credits | 12,837 | 7,977 |
Foreign tax credits | 9,727 | 11,119 |
Deferred Tax Assets, Unrealized Currency Losses | 1,223 | 719 |
Other | 9,473 | 9,092 |
Total gross deferred income tax assets | 173,206 | 148,418 |
Less: valuation allowance | 0 | 0 |
Total deferred income tax assets | 173,206 | 148,418 |
Intangibles | (2,014) | 0 |
International earnings | (4,097) | (4,646) |
Unrealized gain on investments | (305) | (493) |
Deferred income tax assets, net | 166,790 | $ 143,279 |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 6,800 | |
Deferred Tax Assets, Tax Credit Carryforwards, Research | $ 4,900 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Federal Statutory Tax Rate To Our Effective Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory rate | 35.00% | 35.00% | 35.00% | |
State income taxes, net of federal effect | 0.70% | 0.70% | 0.60% | |
Stock-based compensation expense rate | 1.50% | 1.70% | 1.40% | |
Research and development tax credits | (5.20%) | (3.00%) | (1.60%) | |
Tax exempt interest | (0.10%) | (0.20%) | (0.20%) | |
U.S. manufacturing tax incentives | (1.10%) | (0.30%) | (2.00%) | |
Foreign rate differential | (9.50%) | (9.10%) | (8.90%) | |
Audit settlements | (2.30%) | |||
Other | 2.00% | 0.60% | 0.10% | |
Effective tax rate | 21.00% | 25.40% | 24.40% | |
Unrecognized Tax Benefits | $ 75,168 | $ 65,161 | $ 31,351 | $ 32,468 |
Unrecognized tax benefits if recognized, would affect our effective tax rate | $ 62,100 |
Income Taxes (Aggregate Changes
Income Taxes (Aggregate Changes In Balance Of Gross Unrecognized Tax Benefits, Excluding Interest And Penalties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unrecognized tax benefits if recognized, would affect our effective tax rate | $ 62,100 | ||
Estimated decrease in unrecognized tax benefits due to lapse in statute of limitations | 2,700 | ||
Unrecognized Tax Benefits, Expected Reduction as a Result of Settlement | 1,100 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits, Beginning Balance | 65,161 | $ 31,351 | $ 32,468 |
Increases in balances related to tax positions taken during prior years | 4,343 | 507 | 333 |
Increases in balances related to tax positions taken during the current year | 26,585 | 34,293 | 2,916 |
Lapse of statute of limitations | (835) | (990) | (4,366) |
Settlements | (20,086) | ||
Unrecognized Tax Benefits, Ending Balance | $ 75,168 | $ 65,161 | $ 31,351 |
Income Taxes (Interest and Pena
Income Taxes (Interest and Penalties on Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 25, 2015 |
Income Tax Disclosure [Abstract] | ||
Accrued interest | $ 1,936 | $ 2,977 |
Accrued penalties | 53 | 589 |
Total | $ 1,989 | $ 3,566 |
Restructuring (Details)
Restructuring (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 26, 2014USD ($) | Sep. 30, 2016USD ($)employee | Sep. 25, 2015USD ($) | Sep. 26, 2014USD ($)employee | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | $ (1,233) | $ 80 | $ (2,403) | |
2016 Restructuring Plan [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | (1,294) | |||
Cash payments | (1,233) | |||
Non-cash charges | (61) | |||
Restructuring reserve, ending balance | 0 | |||
Restructuring Charges [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | (1,300) | $ (3,300) | ||
2014 Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of positions eliminated | employee | 50 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | $ 0 | 146 | ||
Restructuring charges | (39) | $ (3,301) | ||
Cash payments | (10) | (3,164) | ||
Non-cash charges | (97) | (9) | ||
Restructuring reserve, ending balance | $ 146 | $ 0 | $ 146 | |
2013 Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of positions eliminated | employee | 30 | |||
2013 Restructuring Program [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Non-cash charges | $ (700) |
Commitments And Contingencies83
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 28, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Term of agreement | 20 years | |||
Total rent expense | $ 13,288 | $ 15,349 | $ 14,278 |
Commitments And Contingencies84
Commitments And Contingencies (Schedule Of Contractual Obligations And Commitments) (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Naming rights, Fiscal 2017 | $ 7,619 |
Naming rights, Fiscal 2018 | 7,715 |
Naming rights, Fiscal 2019 | 7,811 |
Naming rights, Fiscal 2020 | 7,909 |
Naming rights, Fiscal 2021 | 8,008 |
Naming rights, Thereafter | 94,972 |
Naming rights, Total | 134,034 |
Donation commitments | |
Donation commitments, Fiscal 2017 | 320 |
Donation commitments, Fiscal 2018 | 6,300 |
Donation commitments, Fiscal 2019 | 322 |
Donation commitments, Fiscal 2020 | 322 |
Donation commitments, Fiscal 2021 | 122 |
Donation commitments, Thereafter | 1,013 |
Donation commitments, Total | 8,399 |
Operating leases | |
Operating leases, Fiscal 2017 | 13,261 |
Operating leases, Fiscal 2018 | 10,653 |
Operating leases, Fiscal 2019 | 8,186 |
Operating leases, Fiscal 2020 | 7,521 |
Operating leases, Fiscal 2021 | 6,401 |
Operating leases, Thereafter | 24,282 |
Operating leases, Total | 70,304 |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Purchase obligation, Fiscal 2017 | 6,936 |
Purchase obligation, Fiscal 2018 | 2,615 |
Purchase obligation, Fiscal 2019 | 1,199 |
Purchase Obligation, Fiscal 2020 | 0 |
Purchase Obligation, Fiscal 2021 | 0 |
Purchase Obligation, Thereafter | 0 |
Purchase obligation, Total | 10,750 |
Total | |
Total, due in Fiscal 2017 | 28,136 |
Total, due in Fiscal 2018 | 27,283 |
Total, due in Fiscal 2019 | 17,518 |
Total, due in Fiscal 2020 | 15,752 |
Total, due in Fiscal 2021 | 14,531 |
Total, due Thereafter | 120,267 |
Total due | $ 223,487 |
Business Combinations (Details)
Business Combinations (Details) - Doremi Labs [Member] - USD ($) $ in Thousands | Oct. 31, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 30, 2016 |
Business Acquisition [Line Items] | ||||
Gross purchase price | $ 99,142 | |||
Cash consideration | (98,400) | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 20,000 | |||
Cash acquired | $ 8,400 | |||
Business Combination, Contingent Consideration Arrangements, Earnout Period | 4 years | |||
Business Combination, Contingent Consideration, Liability, Current | $ 700 | $ 100 | $ 0 | |
Acquisition-related transaction costs | $ 400 | $ 5,900 |
Business Combinations (Purchase
Business Combinations (Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Oct. 31, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 309,616 | $ 307,708 | $ 277,574 | |
Finite-lived Intangible Assets Acquired | $ 45,600 | |||
Doremi Labs [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 17,231 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 16,372 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 45,600 | |||
Goodwill | 39,672 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 11,653 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | $ 8,820 | |||
Payments to Acquire Businesses, Gross | 98,402 | |||
Business Combination, Contingent Consideration, Liability | 740 | |||
Gross purchase price | 99,142 | |||
Customer Relationships [Member] | Doremi Labs [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived Intangible Assets Acquired | $ 25,600 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||
Developed Technology Rights [Member] | Doremi Labs [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived Intangible Assets Acquired | $ 17,500 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 6 months | |||
Trade Names [Member] | Doremi Labs [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived Intangible Assets Acquired | $ 1,300 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year | |||
Order or Production Backlog [Member] | Doremi Labs [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived Intangible Assets Acquired | $ 1,200 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year |
Operating Segments and Geogra87
Operating Segments and Geographic Data (Revenue By Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenue | $ 232,997 | $ 277,587 | $ 274,340 | $ 240,814 | $ 232,748 | $ 231,702 | $ 271,950 | $ 234,238 | $ 1,025,738 | $ 970,638 | $ 960,176 |
U.S. [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenue | 320,129 | 276,733 | 316,256 | ||||||||
International [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenue | $ 705,609 | $ 693,905 | $ 643,920 |
Operating Segments and Geogra88
Operating Segments and Geographic Data (Schedule Of Concentration Of Revenue From Individual Geographic Regions) (Details) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Revenue From External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 100.00% | 100.00% | 100.00% |
U.S. [Member] | |||
Revenue From External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 31.00% | 29.00% | 33.00% |
South Korea [Member] | |||
Revenue From External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 17.00% | 21.00% | 20.00% |
Japan [Member] | |||
Revenue From External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 12.00% | 13.00% | 13.00% |
Europe [Member] | |||
Revenue From External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 14.00% | 13.00% | 12.00% |
Taiwan [Member] | |||
Revenue From External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 4.00% | 10.00% | 3.00% |
China [Member] | |||
Revenue From External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 14.00% | 7.00% | 12.00% |
Other [Member] | |||
Revenue From External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 8.00% | 7.00% | 7.00% |
Operating Segments and Geogra89
Operating Segments and Geographic Data (Schedule Of Long-Lived Assets, Net Of Accumulated Depreciation, By Geographic Region) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 25, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets, net of accumulated depreciation | $ 443,656 | $ 403,091 |
U.S. [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 412,447 | 374,203 |
International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 31,209 | $ 28,888 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | Aug. 05, 2015 | ||
Related party rent expense | $ 3,097 | $ 3,136 | $ 2,125 | ||
Distributions to principal stockholder | 214 | 5,615 | 0 | ||
Deconsolidation of Subsidiary | |||||
Gain on sale (pretax) | 0 | 26,221 | |||
Proceeds from sale of ownership interest in subsidiary (net) | $ 0 | 27,216 | $ 0 | ||
Cash acquired by purchaser | $ 4,100 | ||||
Dolby Properties, LLC [Member] | |||||
Ownership interest (percent) | 37.50% | ||||
Deconsolidation of Subsidiary | |||||
Cash consideration received | [1] | $ 31,263 | |||
Less: net book value of Dolby, Properties, LLC | $ (5,042) | ||||
Gain on sale (pretax) | $ 26,221 | ||||
Dolby Properties Brisbane, LLC [Member] | |||||
Ownership interest (percent) | 49.00% | ||||
Dolby Properties Burbank, LLC [Member] | |||||
Ownership interest (percent) | 49.00% | ||||
Dolby Properties United Kingdom, LLC [Member] | |||||
Ownership interest (percent) | 49.00% | ||||
Dolby Properties, LP [Member] | |||||
Ownership interest (percent) | 10.00% | ||||
[1] | (1)Net cash proceeds from the sale of $27.2 million as disclosed within our consolidated statements of cash flows is derived by deducting cash balances of $4.1 million held by the Subsidiary and acquired by the Purchaser from gross cash consideration received of $31.3 million. |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |||
Retirement plan expenses | $ 20,471 | $ 19,431 | $ 17,369 |
Selected Quarterly Financial 92
Selected Quarterly Financial Data (unaudited) (Schedule Of Selected Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 30, 2016 | Sep. 25, 2015 | Sep. 26, 2014 | |
Quarterly Financial Data [Abstract] | |||||||||||
Licensing | $ 203,541 | $ 253,026 | $ 249,336 | $ 211,129 | $ 203,325 | $ 204,855 | $ 243,333 | $ 216,598 | $ 917,032 | $ 868,111 | $ 878,844 |
Products | 25,033 | 20,638 | 20,063 | 24,809 | 25,060 | 22,596 | 22,985 | 13,263 | 90,543 | 83,904 | 59,219 |
Services | 4,423 | 3,923 | 4,941 | 4,876 | 4,363 | 4,251 | 5,632 | 4,377 | 18,163 | 18,623 | 22,113 |
Total revenue | 232,997 | 277,587 | 274,340 | 240,814 | 232,748 | 231,702 | 271,950 | 234,238 | 1,025,738 | 970,638 | 960,176 |
Cost of revenue | 30,222 | 24,621 | 24,373 | 29,766 | 25,377 | 24,880 | 25,149 | 19,410 | 108,982 | 94,816 | 70,176 |
Gross margin | 202,775 | 252,966 | 249,967 | 211,048 | 207,371 | 206,822 | 246,801 | 214,828 | 916,756 | 875,822 | 890,000 |
Income before taxes and controlling interest | 30,813 | 81,784 | 83,823 | 39,484 | 64,203 | 47,378 | 79,885 | 54,316 | 235,904 | 245,782 | 276,099 |
Net income attributable to Dolby Laboratories, Inc. | $ 23,933 | $ 63,628 | $ 67,398 | $ 30,901 | $ 46,553 | $ 35,506 | $ 57,974 | $ 41,357 | $ 185,860 | $ 181,390 | $ 206,103 |
Net Income Per Share: | |||||||||||
Basic (usd per share) | $ 0.24 | $ 0.63 | $ 0.67 | $ 0.31 | $ 0.46 | $ 0.35 | $ 0.57 | $ 0.40 | $ 1.85 | $ 1.77 | $ 2.02 |
Diluted (usd per share) | $ 0.23 | $ 0.62 | $ 0.66 | $ 0.30 | $ 0.45 | $ 0.34 | $ 0.56 | $ 0.40 | $ 1.81 | $ 1.75 | $ 1.99 |
Weighted-average shares outstanding: | |||||||||||
Basic (shares) | 101,145 | 100,533 | 100,456 | 100,734 | 101,935 | 102,670 | 102,509 | 102,303 | 100,717 | 102,354 | 102,151 |
Diluted (shares) | 103,766 | 102,677 | 101,555 | 101,931 | 103,059 | 104,105 | 103,904 | 104,275 | 102,424 | 103,862 | 103,632 |