Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 28, 2018 | Oct. 26, 2018 | Mar. 31, 2017 | |
Entity Registrant Name | Dolby Laboratories, Inc. | ||
Entity Central Index Key | 1,308,547 | ||
Current Fiscal Year End Date | --09-28 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 28, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 | $ 1,684,632,316 | ||
Class A Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 64,002,056 | ||
Class B Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 39,261,035 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 28, 2018 | Sep. 29, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 918,063 | $ 627,017 |
Restricted cash | 7,187 | 7,351 |
Short-term investments | 178,138 | 247,757 |
Accounts receivable, net of allowance for doubtful accounts of $5,352 and $2,967 | 137,151 | 73,750 |
Inventories | 26,206 | 25,051 |
Prepaid expenses and other current assets | 35,209 | 30,508 |
Total current assets | 1,301,954 | 1,011,434 |
Long-term investments | 187,782 | 314,364 |
Property, plant and equipment, net | 514,182 | 485,275 |
Intangible assets, net | 184,019 | 189,648 |
Goodwill | 327,982 | 311,087 |
Deferred taxes | 101,070 | 190,915 |
Other non-current assets | 42,280 | 30,831 |
Total assets | 2,659,269 | 2,533,554 |
Current liabilities: | ||
Accounts payable | 21,922 | 14,373 |
Accrued liabilities | 223,594 | 207,034 |
Income taxes payable | 2,680 | 1,216 |
Deferred revenue | 23,931 | 23,150 |
Total current liabilities | 272,127 | 245,773 |
Long-term deferred revenue | 40,064 | 36,425 |
Other non-current liabilities | 150,960 | 107,514 |
Total liabilities | 463,151 | 389,712 |
Stockholders' equity: | ||
Additional paid-in capital | 66,127 | 61,331 |
Retained earnings | 2,139,154 | 2,083,063 |
Accumulated other comprehensive income | (15,832) | (7,753) |
Total stockholders’ equity – Dolby Laboratories, Inc. | 2,189,551 | 2,136,742 |
Controlling interest | 6,567 | 7,100 |
Total stockholders’ equity | 2,196,118 | 2,143,842 |
Total liabilities and stockholders’ equity | 2,659,269 | 2,533,554 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 61 | 58 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | $ 41 | $ 43 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Thousands | Sep. 28, 2018USD ($)vote / shares$ / sharesshares | Sep. 29, 2017USD ($)vote / shares$ / sharesshares |
Allowance for doubtful accounts | $ | $ 5,352 | $ 2,967 |
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 | 63,978,752 | 59,281,837 |
Common Stock, Shares Outstanding | 63,978,752 | 59,281,837 |
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 | 39,261,035 | 42,873,597 |
Common Stock, Shares Outstanding | 39,261,035 | 42,873,597 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Revenue: | |||
Licensing | $ 1,057,606 | $ 965,792 | $ 917,032 |
Products | 94,552 | 95,290 | 90,543 |
Services | 19,766 | 20,372 | 18,163 |
Total revenue | 1,171,924 | 1,081,454 | 1,025,738 |
Cost of revenue: | |||
Cost of licensing | 43,492 | 39,216 | 28,333 |
Cost of products | 65,292 | 61,256 | 64,853 |
Cost of services | 19,476 | 17,835 | 15,796 |
Total cost of revenue | 128,260 | 118,307 | 108,982 |
Gross margin | 1,043,664 | 963,147 | 916,756 |
Operating expenses: | |||
Research and development | 236,794 | 233,312 | 219,607 |
Sales and marketing | 309,802 | 296,661 | 295,267 |
General and administrative | 197,516 | 171,686 | 168,854 |
Restructuring charges | 446 | (12,856) | (1,233) |
Total operating expenses | 743,666 | 714,515 | 684,961 |
Operating income | 299,998 | 248,632 | 231,795 |
Other income/expense: | |||
Interest income | 18,970 | 9,577 | 5,684 |
Interest expense | (198) | (127) | (125) |
Other income/(expense), net | (5,903) | (1,438) | (1,450) |
Total other income | 12,869 | 8,012 | 4,109 |
Income before income taxes | 312,867 | 256,644 | 235,904 |
Provision for income taxes | (190,062) | (54,217) | (49,502) |
Net income including controlling interest | 122,805 | 202,427 | 186,402 |
Less: net (income) attributable to controlling interest | (559) | (625) | (542) |
Net income attributable to Dolby Laboratories, Inc. | $ 122,246 | $ 201,802 | $ 185,860 |
Net Income Per Share: | |||
Basic (usd per share) | $ 1.18 | $ 1.98 | $ 1.85 |
Diluted (usd per share) | $ 1.14 | $ 1.95 | $ 1.81 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||
Basic (shares) | 103,377 | 101,784 | 100,717 |
Diluted (shares) | 106,978 | 103,286 | 102,424 |
Related party rent expense: | |||
Included in operating expenses | $ 3,483 | $ 3,142 | $ 3,097 |
Included in net income attributable to controlling interest | $ 712 | $ 702 | $ 706 |
Cash dividend declared per common share | $ 0.67 | $ 0.58 | $ 0.50 |
Cash dividend paid per common share | $ 0.64 | $ 0.56 | $ 0.48 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income including controlling interest | $ 122,805 | $ 202,427 | $ 186,402 |
Other comprehensive income/(loss): | |||
Foreign currency translation adjustments, net of tax | (5,578) | 3,653 | 85 |
Unrealized gains/(losses) on available-for-sale securities, net of tax | (2,571) | (1,119) | 392 |
Comprehensive income | 114,656 | 204,961 | 186,879 |
Less: comprehensive (income) attributable to controlling interest | (489) | (715) | 246 |
Comprehensive income attributable to Dolby Laboratories, Inc. | $ 114,167 | $ 204,246 | $ 187,125 |
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. 25, 2015 | 50,743,000 | 50,292,000 | ||||||
Beginning 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) | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 66,985 | 66,985 | 66,985 | |||||
Repurchase of common stock, shares | (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) | ||||||
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 |
Net income | 202,427 | 201,802 | 201,802 | 625 | ||||
Translation adjustments, net of taxes | 3,653 | 3,563 | 3,563 | 90 | ||||
Unrealized gains/(losses) on available-for-sale securities, net of tax | (1,119) | (1,119) | (1,119) | |||||
Distributions to controlling interest | (2,094) | (2,094) | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 65,343 | 65,343 | 65,343 | |||||
Repurchase of common stock, shares | (2,025,000) | |||||||
Repurchase of common stock, value | (100,000) | (99,998) | (100,000) | $ (2) | ||||
Cash dividends declared and paid on common stock | (57,059) | (57,059) | (57,059) | |||||
Tax benefit/(deficiency) from the stock incentive plans | 1,634 | 1,634 | 1,634 | |||||
Class A common stock issued under employee stock plans, shares | 3,138,000 | |||||||
Class A common stock issued under employee stock plans, value | 69,998 | 69,996 | 69,998 | $ 2 | ||||
Shares repurchased for tax witholdings on vesting of restricted stock, shares | (379,000) | |||||||
Shares repurchased for tax witholdings on vesting of restricted stock, value | (17,676) | (17,676) | (17,676) | |||||
Transfer of Class B common stock to Class A common stock, shares | 1,530,000 | (1,530,000) | ||||||
Transfer of Class B common stock to Class A common stock, value | $ 1 | $ (1) | ||||||
Ending balance, shares at Sep. 29, 2017 | 42,874,000 | 59,282,000 | ||||||
Ending balance, value at Sep. 29, 2017 | 2,143,842 | 61,331 | 2,083,063 | (7,753) | 2,136,742 | 7,100 | $ 43 | $ 58 |
Net income | 122,805 | 122,246 | 122,246 | 559 | ||||
Translation adjustments, net of taxes | (5,578) | (5,508) | (5,508) | (70) | ||||
Unrealized gains/(losses) on available-for-sale securities, net of tax | (2,571) | (2,571) | (2,571) | |||||
Distributions to controlling interest | (1,022) | 1,022 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | $ 71,249 | 71,249 | 71,249 | |||||
Repurchase of common stock, shares | (2,381,100) | (2,381,000) | ||||||
Repurchase of common stock, value | $ (150,470) | 150,468 | 150,470 | $ 2 | ||||
Cash dividends declared and paid on common stock | (66,155) | (66,155) | (66,155) | |||||
Class A common stock issued under employee stock plans, shares | 3,823,000 | |||||||
Class A common stock issued under employee stock plans, value | 106,162 | 106,159 | 106,162 | $ 3 | ||||
Shares repurchased for tax witholdings on vesting of restricted stock, shares | (358,000) | |||||||
Shares repurchased for tax witholdings on vesting of restricted stock, value | (22,144) | (22,144) | (22,144) | $ 0 | ||||
Transfer of Class B common stock to Class A common stock, shares | 3,613,000 | (3,613,000) | ||||||
Transfer of Class B common stock to Class A common stock, value | $ 2 | $ (2) | ||||||
Ending balance, shares at Sep. 28, 2018 | 39,261,000 | 63,979,000 | ||||||
Ending balance, value at Sep. 28, 2018 | $ 2,196,118 | $ 66,127 | $ 2,139,154 | $ (15,832) | $ 2,189,551 | $ 6,567 | $ 41 | $ 61 |
Consolidated Statements Of St_2
Consolidated Statements Of Stockholders' Equity And Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Foreign currency translation tax | $ 106 | $ (621) | $ 586 |
Unrealized gains/(losses) on available-for-sale securities, tax | $ 89 | $ 38 | $ 49 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Operating activities: | |||
Net income including controlling interest | $ 122,805 | $ 202,427 | $ 186,402 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 81,283 | 84,308 | 85,152 |
Stock-based compensation | 71,249 | 65,343 | 66,985 |
Amortization of premium on investments | 2,473 | 2,758 | 3,824 |
Provision for doubtful accounts | 2,507 | 924 | 1,017 |
Deferred income taxes | 89,934 | (29,368) | (22,798) |
Other non-cash items affecting net income | 7,570 | 2,886 | 1,779 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (65,723) | 1,041 | 24,886 |
Inventories | (6,602) | (11,922) | (2,949) |
Prepaid expenses and other assets | (14,895) | (12,411) | (15,217) |
Accounts payable and other liabilities | 15,690 | 44,453 | 2,834 |
Income taxes, net | 39,738 | 26,950 | 17,265 |
Deferred revenue | 4,362 | 23 | 10,288 |
Other non-current liabilities | 1,811 | 381 | 596 |
Net cash provided by operating activities | 352,202 | 377,793 | 360,064 |
Investing activities: | |||
Purchases of available-for-sale securities | (174,195) | (289,530) | (426,118) |
Proceeds from sales of available-for-sale securities | 123,058 | 84,047 | 262,125 |
Proceeds from maturities of available-for-sale securities | 237,432 | 152,324 | 103,987 |
Purchases of property, plant and equipment | (72,814) | (99,617) | (100,762) |
Acquisitions, net of cash acquired | (22,852) | 0 | 0 |
Purchases of intangible assets | (12,543) | (5,250) | (121,020) |
Change in restricted cash | 164 | (3,706) | (709) |
Net cash provided by/(used in) investing activities | 78,250 | (161,732) | (282,497) |
Financing activities: | |||
Proceeds from issuance of common stock | 106,162 | 69,998 | 71,111 |
Repurchase of common stock | (150,470) | (100,000) | (100,854) |
Payment of cash dividend | (66,155) | (57,059) | (48,397) |
Distribution to controlling interest | (1,022) | (2,094) | (214) |
Shares repurchased for tax withholdings on vesting of restricted stock | (22,144) | (17,676) | (13,632) |
Net cash used in financing activities | (133,629) | (106,831) | (91,986) |
Effect of foreign exchange rate changes on cash and cash equivalents | (5,777) | 1,675 | (1,395) |
Net increase/(decrease) in cash and cash equivalents | 291,046 | 110,905 | (15,814) |
Cash and cash equivalents at beginning of period | 627,017 | 516,112 | 531,926 |
Cash and cash equivalents at end of period | 918,063 | 627,017 | 516,112 |
Supplemental disclosure: | |||
Cash paid for income taxes, net of refunds received | 60,875 | 56,760 | 55,085 |
Non-cash investing activities: | |||
Change in PP&E purchases unpaid at period-end | 7,990 | (9,613) | (7,233) |
Purchase consideration payable for acquisition | $ 3,750 | $ 0 | $ 0 |
Basis Of Presentation
Basis Of Presentation | 12 Months Ended |
Sep. 28, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | . 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 28, 2018 (fiscal 2018 ) and September 29, 2017 (fiscal 2017 ). 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. 28, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | . 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. The majority of our licensing revenue is generated from customers outside of the U.S. We manage this risk by performing regular evaluations of the creditworthiness of our licensing customers. In fiscal 2018 , 2017 , and 2016 , we did not have any individual customers whose revenue exceeded 10% of our total revenue. 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 government bonds. Restricted Cash Restricted cash on our consolidated balance sheets consists of cash contributed by Dolby and third-party licensors to Via Licensing Corporation, our wholly-owned subsidiary, that may only be used for licensor enforcement actions or licensee compliance activities related to certain Via-administered patent pools, as well as to disperse costs associated with any audit of Via Licensing Corporation for the Wideband Code Division Multiple Access (W-CDMA) patent pool. 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 maintain a provision for estimated losses on receivables resulting from our customers' inability to make required payments. In determining the provision, 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, geographic risk and the current business environment. Actual future losses from uncollectible accounts may differ from our estimates. Inventories Inventories are accounted for using the first-in, first-out method, and are valued to the lower of cost and 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 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. During the fiscal quarter ended December 30, 2016, we reorganized certain aspects of our internal business infrastructure primarily to integrate and align sales support more directly with our business units. In accordance with ASC Topic 350, we reviewed and reassigned our goodwill amongst our reporting units using a relative fair value allocation approach. Before doing so, we performed a “Step Zero” qualitative assessment during the quarter ended September 30, 2016 and determined that there was minimal risk of goodwill impairment in our pre-reorganization reporting units. Immediately after the reorganization, and related to our consolidated balance of goodwill of $307.1 million as of December 30, 2016, we initiated the "Step One" goodwill impairment assessment using a market approach and an income approach to value our reporting units. We completed this assessment as of March 31, 2017 and determined that there was no goodwill impairment. In addition, we completed our annual goodwill impairment assessment for fiscal 2018 in the fiscal quarter ended June 29, 2018 . We determined in our qualitative review that it is more likely than not that the fair value of our reporting units are substantially in excess of their respective carrying amounts. Accordingly, there was no impairment, and the "Step One" 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 multiple elements, 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, maintenance, and services. The fair value 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 of these ME arrangements that include 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 VSOE of fair value for the support element, revenue for the entire arrangement is bundled and recognized ratably over the support period. To the extent that the undelivered element is support within the context of a royalty usage based arrangement, and assuming all other revenue recognition criteria are met, we recognize the entire royalty fee as license revenue once reported. 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 in cases where an agreement has expired, 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 or extended payment 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 offer Dolby Cinema, a branded premium cinema experience 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, our proprietary designs and corporate branding as well as for the use of our equipment at the exhibitor’s venue. The use of our equipment meets the definition of a lease, and for the related portion of Dolby's share of revenue, we apply ASC 840, Leases, and recognize revenue upon receipt of quarterly box office reports from exhibitors, and on determining that collectability is probable. In general, revenues from collaboration arrangements are recognized 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, depreciation of our Dolby Cinema equipment provided under operating leases in collaborative arrangements, and direct fees incurred. 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 28, September 29, September 30, Advertising and promotional costs $ 49,519 $ 47,402 $ 44,221 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 losses were as follows (in thousands): Fiscal Year Ended September 28, September 29, September 30, Foreign currency transaction (losses) $ (823 ) $ (74 ) $ (474 ) 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 28, 2018 and September 29, 2017 , the outstanding derivative instruments had maturities of equal to or less than 31 days and 31 days, respectively, and the total notional amounts of outstanding contracts were $25.1 million and $24.5 million , respectively. The fair values of these contracts were nominal as of September 28, 2018 and September 29, 2017 , 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 we record a valuation allowance to reduce our deferred tax assets when it's more-likely-than-not that some portion or all of the deferred tax assets will not be realized. 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. The Tax Cuts and Jobs Act of 2017 ("the Tax Act"), provides an exemption from federal income taxes for distributions by foreign subsidiaries made after December 31, 2017 that were not subject to the transition tax. Therefore, we have provided for U.S. state income taxes and foreign withholding taxes on undistributed earnings of certain foreign subsidiaries to the extent such earnings are no longer considered to be indefinitely reinvested in the operations of those subsidiaries. We consider the earnings of certain foreign subsidiaries to be indefinitely reinvested 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. 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 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 Share-Based Compensation. During the first quarter of fiscal 2018, we adopted 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. Upon adoption, excess tax benefits or deficiencies from stock-based awards are recorded as a component of the income tax provision, whereas they previously were recorded as additional paid-in capital. In the year-to-date periods ended September 28, 2018 , we recognized an excess tax benefit of $13.4 million related to stock-based awards in the provision for income taxes. We elected to continue to account for forfeitures based on an estimate of expected forfeitu |
Composition Of Certain Financia
Composition Of Certain Financial Statement Captions | 12 Months Ended |
Sep. 28, 2018 | |
Composition Of Certain Financial Statement Captions [Abstract] | |
Composition Of Certain Financial Statement Captions | Composition of Certain Financial Statement Captions The following tables present detailed information from our consolidated balance sheets as of September 28, 2018 and September 29, 2017 (amounts displayed in thousands, except as otherwise noted). Accounts Receivable Accounts Receivable, Net September 28, September 29, Trade accounts receivable $ 101,945 $ 62,305 Accounts receivable from patent administration program licensees 40,558 14,412 Accounts receivable, gross 142,503 76,717 Less: allowance for doubtful accounts (5,352 ) (2,967 ) Total $ 137,151 $ 73,750 Allowance for Doubtful Accounts Beginning Balance Charged to G&A Deductions Ending Balance For fiscal year ended: September 30, 2016 $ 1,542 $ 1,017 $ (189 ) $ 2,370 September 29, 2017 2,370 924 (327 ) 2,967 September 28, 2018 2,967 2,507 (122 ) 5,352 Inventories Inventories September 28, September 29, Raw materials $ 6,095 $ 6,812 Work in process 4,044 4,954 Finished goods 16,067 13,285 Total $ 26,206 $ 25,051 Inventories are stated at the lower of cost and net realizable value. Inventory with a consumption period expected to exceed twelve months is recorded within other non-current assets in our consolidated balance sheets. We have included $2.6 million and $1.8 million of raw materials inventory within other non-current assets in our consolidated balance sheets as of September 28, 2018 and September 29, 2017 , 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 28, September 29, Prepaid expenses $ 18,508 $ 16,681 Other current assets 14,265 11,383 Income tax receivable 2,436 2,444 Total $ 35,209 $ 30,508 Accrued Liabilities Accrued Liabilities September 28, September 29, Accrued royalties $ 2,430 $ 2,274 Amounts payable to patent administration program partners 53,942 49,141 Accrued compensation and benefits 84,491 92,277 Accrued professional fees 9,749 5,530 Unpaid PP&E additions 13,956 10,096 Other accrued liabilities 59,026 47,716 Total $ 223,594 $ 207,034 Other Non-Current Liabilities Other Non-Current Liabilities September 28, September 29, Supplemental retirement plan obligations $ 3,388 $ 2,928 Non-current tax liabilities 129,253 91,013 Other liabilities 18,319 13,573 Total $ 150,960 $ 107,514 Refer to Note 10 “ Income Taxes ” for additional information related to tax liabilities. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 28, 2018 | |
Fair Value Disclosures [Abstract] | |
Investments and Fair Value Measurements | Investments & Fair Value Measurements We use cash holdings to purchase investment grade securities diversified among security types, industries, and issuers. All of our investment securities are measured at fair value, and are recorded within cash equivalents and both short-term and long-term investments in our consolidated balance sheets. With the exception of our mutual fund investments held in our SERP and classified as trading securities, all of our investments are classified as AFS securities. Our investment securities primarily consist of government bonds, certificates of deposit, municipal debt securities, corporate bonds, U.S. agency securities, and commercial paper. In addition, our cash and cash equivalents also consist of highly-liquid money market funds. Consistent with our investment policy, none of our municipal debt investments are supported by letters of credit or standby purchase agreements. Our cash and investment portfolio consisted of the following (in thousands): September 28, Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 905,660 $ 905,660 $ 905,660 Cash equivalents: Commercial paper 5,058 — — 5,058 5,058 Corporate bonds 1,005 — 1,005 1,005 Money market funds 3,301 3,301 3,301 Municipal debt securities 545 (1 ) 544 544 Government bonds 2,495 — 2,495 2,495 Cash and cash equivalents 918,064 — (1 ) 918,063 911,456 6,607 — Short-term investments: Certificate of deposit (1) 12,875 14 12,889 12,889 U.S. agency securities 11,997 (135 ) 11,862 11,862 Government bonds 7,970 — (15 ) 7,955 7,955 Commercial paper 4,276 — — 4,276 4,276 Corporate bonds 111,245 50 (494 ) 110,801 110,801 Municipal debt securities 30,475 (120 ) 30,355 30,355 Short-term investments 178,838 64 (764 ) 178,138 7,955 170,183 — Long-term investments: U.S. agency securities 9,791 (166 ) 9,625 9,625 Government bonds 15,966 (317 ) 15,649 15,649 Corporate bonds 146,561 33 (1,810 ) 144,784 144,784 Municipal debt securities 17,235 (112 ) 17,123 17,123 Other long-term investments (2) 355 246 601 246 Long-term investments 189,908 279 (2,405 ) 187,782 15,895 171,532 — Total cash, cash equivalents, and investments $ 1,286,810 $ 343 $ (3,170 ) $ 1,283,983 $ 935,306 $ 348,322 $ — Investments held in supplemental retirement plan: Assets 3,486 3,486 3,486 Included in prepaid expenses and other current assets & other non-current assets Liabilities 3,486 3,486 3,486 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 28, 2018 are classified within long-term investments. (2) Other long-term investments as of September 28, 2018 include a marketable equity security of $0.2 million , and other investments that are not carried at fair value including an equity method investment of $0.4 million . During fiscal 2018, we recorded write-off charges to reduce the carrying value of two cost method equity investments to zero in recognition of an other-than-temporary impairment for each investment. September 29, Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 623,244 $ 623,244 Cash equivalents: Commercial paper 1,223 — — 1,223 1,223 Money market funds 2,550 — — 2,550 2,550 Cash and cash equivalents 627,017 — — 627,017 2,550 1,223 — Short-term investments: Certificate of deposit (1) 17,236 9 (1 ) 17,244 17,244 U.S. agency securities 9,518 — (20 ) 9,498 9,498 Government bonds 2,034 — (6 ) 2,028 2,028 Commercial paper 15,160 2 (1 ) 15,161 15,161 Corporate bonds 174,750 54 (163 ) 174,641 174,641 Municipal debt securities 29,178 16 (9 ) 29,185 29,185 Short-term investments 247,876 81 (200 ) 247,757 2,028 245,729 — Long-term investments: Certificate of deposit (1) 22,940 5 (6 ) 22,939 22,939 U.S. agency securities 21,779 — (178 ) 21,601 21,601 Government bonds 17,839 — (107 ) 17,732 17,732 Corporate bonds 218,857 327 (537 ) 218,647 218,647 Municipal debt securities 28,913 29 (25 ) 28,917 28,917 Other long-term investments (2) 4,171 357 — 4,528 357 — Long-term investments 314,499 718 (853 ) 314,364 18,089 292,104 — Total cash, cash equivalents, and investments $ 1,189,392 $ 799 $ (1,053 ) $ 1,189,138 $ 22,667 $ 539,056 $ — Investments held in supplemental retirement plan: Assets 3,026 3,026 3,026 Included in prepaid expenses and other current assets & other non-current assets Liabilities 3,026 3,026 3,026 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 29, 2017 are classified within long-term investments. (2) Other long-term investments as of September 29, 2017 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 $0.6 million and two cost method equity investments of $3.0 million and $0.5 million . During fiscal 2017, we recorded a write-off charge to reduce the carrying value of a cost method equity investment to zero in recognition of an other-than-temporary impairment. 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 28, 2018 : Asset Type Primary Source Update Frequency Fair Value Methodology Secondary Source Level 1 Money Market Funds ICE (Intercontinental Exchange) Daily $1 per share Not Applicable U.S. Government Bonds ICE (Intercontinental Exchange) Daily Market Prices Bloomberg Level 2 Certificates of Deposit ICE (Intercontinental Exchange) Monthly Market Prices Bloomberg Commercial Paper U.S. Bank Pricing Unit Daily Matrix Pricing Not Applicable Corporate Bonds ICE (Intercontinental Exchange) Daily Institutional Bond Quotes - evaluations based on various market and industry inputs Bloomberg Municipal Debt Securities Standard & Poor's Daily Evaluations based on various market and industry inputs ICE (Intercontinental Exchange) & U.S. Agency Securities ICE (Intercontinental Exchange) Daily Institutional Bond Quotes - evaluations based on various market and industry inputs Bloomberg Int'l Government Bonds ICE (Intercontinental Exchange) Daily Evaluations based on various market factors Bloomberg 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 28, 2018 and September 29, 2017 (in thousands): September 28, 2018 September 29, 2017 Less Than 12 Months Greater Than 12 Months Less Than 12 Months Greater Than 12 Months Investment Type Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Certificate of deposit $ — $ — $ — $ — $ 19,750 $ (6 ) $ — $ — U.S. agency securities — — 21,486 (302 ) 19,713 (91 ) 11,386 (108 ) Government bonds 16,633 (332 ) — — 15,029 (64 ) 4,729 (49 ) Commercial paper 5,737 (1 ) — — 4,292 (1 ) — — Corporate bonds 143,051 (1,680 ) 52,162 (624 ) 125,890 (251 ) 109,806 (449 ) Municipal debt securities 41,058 (191 ) 6,965 (41 ) 26,749 (24 ) 3,625 (10 ) Total $ 206,479 $ (2,204 ) $ 80,613 $ (967 ) $ 211,423 $ (437 ) $ 129,546 $ (616 ) Although we had certain securities that were in an unrealized loss position as of September 28, 2018 , 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 28, 2018 or September 29, 2017 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 28, 2018 and September 29, 2017 , which are recorded within cash equivalents and both short and long-term investments in our consolidated balance sheets (in thousands): September 28, 2018 September 29, 2017 Range of maturity Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ 191,241 $ 190,541 $ 251,649 $ 251,530 Due in 1 to 2 years 122,131 120,545 213,555 213,154 Due in 2 to 3 years 67,423 66,637 96,773 96,682 Total $ 380,795 $ 377,723 $ 561,977 $ 561,366 |
Property, Plant & Equipment
Property, Plant & Equipment | 12 Months Ended |
Sep. 28, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant, & Equipment PP&E are recorded at cost, with depreciation expense included in cost of licensing, cost of products, cost of services, R&D, S&M, and G&A expenses in our consolidated statements of operations. Depreciation expense was $54.8 million , $53.4 million , and $52.0 million in fiscal 2018 , 2017 , and 2016 , respectively. As of September 28, 2018 and September 29, 2017 , PP&E consisted of the following (in thousands): Property, Plant, & Equipment September 28, September 29, Land $ 43,342 $ 43,364 Buildings and building improvements 283,474 281,196 Leasehold improvements 66,866 65,034 Machinery and equipment 111,603 98,437 Computer equipment and software 194,079 173,341 Furniture and fixtures 30,556 28,118 Equipment provided under operating leases 139,201 97,456 Construction-in-progress 7,342 3,673 Property, plant, and equipment, gross 876,463 790,619 Less: accumulated depreciation (362,281 ) (305,344 ) Property, plant, & equipment, net $ 514,182 $ 485,275 |
Goodwill & Intangible Assets
Goodwill & Intangible Assets | 12 Months Ended |
Sep. 28, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill & Intangible Assets Goodwill The following table outlines changes to the carrying amount of goodwill (in thousands): Goodwill Balance at September 30, 2016 $ 309,616 Translation adjustments 1,471 Balance at September 29, 2017 $ 311,087 Acquired goodwill 18,394 Translation adjustments (1,499 ) Balance at September 28, 2018 $ 327,982 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 28, 2018 September 29, 2017 Intangible Assets, Net Cost Accumulated Amortization Net Cost Accumulated Amortization Net Acquired patents and technology $ 319,082 $ (152,775 ) $ 166,307 $ 299,707 $ (128,986 ) $ 170,721 Customer relationships 58,342 (41,012 ) 17,330 56,843 (38,368 ) 18,475 Other intangibles 22,742 (22,360 ) 382 22,742 (22,290 ) 452 Total $ 400,166 $ (216,147 ) $ 184,019 $ 379,292 $ (189,644 ) $ 189,648 During fiscal 2018 and 2017 , we purchased various patents and developed technology for purchase consideration of $21.0 million and $5.3 million , and upon acquisition, these intangible assets had a weighted-average useful life of 10.5 years and 18.0 years, respectively. These acquisitions facilitate our R&D efforts, technologies and potential product offerings. 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 $26.5 million , $30.9 million , and $33.2 million in fiscal 2018 , 2017 and 2016 , respectively. As of September 28, 2018 , expected amortization expense of our intangible assets in future periods was as follows (in thousands): Fiscal Year Amortization Expense 2019 $ 27,696 2020 27,233 2021 27,206 2022 24,542 2023 21,198 Thereafter 56,144 Total $ 184,019 |
Stockholders' Equity And Stock-
Stockholders' Equity And Stock-Based Compensation | 12 Months Ended |
Sep. 28, 2018 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |
Stockholders' Equity And Stock-Based Compensation | . Stockholders' Equity & Stock-Based Compensation We provide stock-based awards as a form of compensation for employees, officers and directors. We have issued stock-based awards in the form of stock options and 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 28, 2018 , we had authorized 500,000,000 Class A shares and 500,000,000 Class B shares. At September 28, 2018 , we had 63,978,752 shares of Class A common stock and 39,261,035 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 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 incentive stock options, non-qualified stock options, restricted stock, RSUs, stock appreciation rights, deferred stock units, performance units, performance bonus awards, and performance shares. A total of 46.0 million shares of our Class A common stock is authorized for issuance under the 2005 Stock Plan. For awards granted prior to February 2011, any shares subject to an award with a per share price less than the fair market value of our Class A common stock on the date of grant and any shares subject to an outstanding RSU award will be counted against the authorized share reserve as two shares for every one share subject to the award, and if returned to the 2005 Stock Plan, such shares will be counted as two shares for every one share returned. For those awards granted from February 2011 onward, any shares subject to an award with a per share price less than the fair market value of our Class A common stock on the date of grant and any shares subject to an outstanding RSU award will be counted against the authorized share reserve as 1.6 shares for every one share subject to the award, and if returned to the 2005 Stock Plan, such shares will be counted as 1.6 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 4 years , with equal annual cliff-vesting and expire on the earlier of 10 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. In fiscal 2016, we began granting PSOs to our executive officers with shares of our Class A common stock underlying such options. The contractual term for the PSOs is seven years, with vesting contingent upon market-based performance conditions, representing the achievement of specified Dolby annualized TSR targets at the end of a three-year measurement period following the date of grant. If the minimum conditions are met, the PSOs earned will cliff vest on the third anniversary of the grant date, upon certification of achievement of the performance conditions by our Compensation Committee. Anywhere from 0% to 125% of the shares subject to a PSO may vest based on achievement of the performance conditions at the end of the three-year performance period. In valuing the PSOs which will be recognized as compensation cost, we used a Monte Carlo valuation model. Aside from the use of an expected term for the PSOs commensurate with their shorter contractual term, the nature of the valuation inputs used in the Monte Carlo valuation model were consistent with those used to value our non-performance based options granted under the 2005 Plan. Compensation cost is being amortized on a straight-line basis over the requisite service period. On December 15, 2017, we granted PSOs to our executive officers exercisable for an aggregate of 264,000 shares at the target award amount, which would be exercisable up to an aggregate of 330,000 shares at 125% of the target award amount. On December 15, 2016, we granted PSOs to our executive officers exercisable for an aggregate of 276,199 shares at the target award amount, which would be exercisable for an aggregate of up to 345,248 shares at 125% of the target award amount. On December 15, 2015, we granted PSOs to our executive officers exercisable for an aggregate of 335,699 shares at the target award amount, which would be exercisable for an aggregate of up to 419,623 shares at 125% of the target award amount. As of September 28, 2018 , PSOs exercisable for an aggregate of 784,898 shares at the target award amount, which would be exercisable for an aggregate of up to 981,121 shares at 125% of the target award amount, were outstanding. 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 29, 2017 8,741 $ 38.65 Grants 1,420 62.34 Exercises (2,473 ) 37.33 Forfeitures and cancellations (390 ) 40.58 Options outstanding at September 28, 2018 7,298 43.61 6.6 $ 192,397 Options vested and expected to vest at September 28, 2018 6,911 43.06 6.6 185,978 Options exercisable at September 28, 2018 3,889 $ 37.88 5.7 124,812 (1) Aggregate intrinsic value is based on the closing price of our Class A common stock on September 28, 2018 of $69.97 and excludes the impact of options that were not in-the-money. Restricted Stock Units. Beginning in fiscal 2008, we began granting RSUs to certain directors, officers and employees under our 2005 Stock Plan. Awards granted to employees and officers generally vest over four years , with equal annual cliff-vesting. Awards granted to directors prior to November 2010 generally vest over three years , with equal annual cliff-vesting. Awards granted after November 2010 and prior to fiscal 2014 to new directors vest over approximately two years , with 50% vesting per year, while awards granted from November 2010 onward to ongoing directors generally vest over approximately one year . Awards granted to new directors from fiscal 2014 onward vest on the earlier of the first anniversary of the award’s date of grant, or the day immediately preceding the date of the next annual meeting of stockholders that occurs after the award’s date of grant. Our 2005 Stock Plan also allows us to grant RSUs that vest based on the satisfaction of specific performance criteria, although no such awards had been granted as of September 28, 2018 . 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 29, 2017 2,839 $ 44.38 Granted 1,341 62.84 Vested (1,045 ) 40.77 Forfeitures (329 ) 44.62 Non-vested at September 28, 2018 2,806 $ 54.52 The fair value as of the respective vesting dates of RSUs were as follows (in thousands): Fiscal Year Ended September 28, September 29, September 30, Restricted stock units - vest date fair value $ 64,755 $ 51,985 $ 40,283 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 28, September 29, September 30, Expected term (in years) 5.06 5.13 5.24 Risk-free interest rate 2.2 % 2.1 % 1.7 % Expected stock price volatility 22.6 % 27.4 % 29.8 % Dividend yield 1.1 % 1.1 % 1.4 % 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 28, September 29, September 30, Stock options granted - weighted-average grant date fair value $ 13.19 $ 11.39 $ 8.49 Stock options exercised - intrinsic value 63,973 28,544 27,485 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 annual forfeiture rates used for awards granted were 9.91% , 10.16% and 10.49% in fiscal 2018 , 2017 , and 2016 , 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 28, September 29, September 30, Stock options $ 21,083 $ 18,630 $ 21,311 Restricted stock units 46,162 43,171 42,201 Employee stock purchase plan 4,004 3,542 3,473 Total stock-based compensation 71,249 65,343 66,985 Estimated benefit from income taxes (12,595 ) (18,959 ) (19,627 ) Total stock-based compensation, net of tax $ 58,654 $ 46,384 $ 47,358 Expense - By Income Statement Classification Fiscal Year Ended Compensation Expense - By Classification September 28, September 29, September 30, Cost of products $ 1,009 $ 946 $ 859 Cost of services 565 512 547 Research and development 19,515 18,497 17,771 Sales and marketing 24,997 26,175 27,579 General and administrative 25,163 19,213 20,229 Total stock-based compensation 71,249 65,343 66,985 Estimated benefit from income taxes (12,595 ) (18,959 ) (19,627 ) Total stock-based compensation, net of tax $ 58,654 $ 46,384 $ 47,358 The tax benefit that we recognize from shares issued under our ESPP is excluded from the tables above. This benefit was as follows (in thousands): Fiscal Year Ended September 28, September 29, September 30, Tax benefit - shares issued under ESPP $ 577 $ 802 $ 550 Unrecognized Compensation Expense. At September 28, 2018 , total unrecognized compensation expense associated with employee stock options expected to vest was approximately $26.8 million , which is expected to be recognized over a weighted-average period of 2.2 years. At September 28, 2018 , total unrecognized compensation expense associated with RSUs expected to vest was approximately $98.2 million , which is expected to be recognized over a weighted-average period of 2.4 years. Common Stock Repurchase Program In November 2009, we announced a stock repurchase program ("program"), providing up to $250.0 million to be used for the repurchase 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 28, 2018 (in thousands): Authorization Period Authorization Amount Fiscal 2010: November 2009 $ 250,000 Fiscal 2010: July 2010 300,000 Fiscal 2011: July 2011 250,000 Fiscal 2012: February 2012 100,000 Fiscal 2015: October 2014 200,000 Fiscal 2017: January 2017 200,000 Fiscal 2018: July 2018 350,000 Total $ 1,650,000 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 28, 2018 , the remaining authorization to purchase additional shares is approximately $351.5 million . The following table provides information regarding share repurchase activity under the program in fiscal 2018 : Quarterly Repurchase Activity Shares Repurchased Cost (1) Average Price Paid Per Share (2) (in thousands) Q1 - Quarter ended December 29, 2017 493,884 $ 29,999 $ 60.73 Q2 - Quarter ended March 30, 2018 77,705 5,001 64.33 Q3 - Quarter ended June 29, 2018 896,689 55,480 61.86 Q4 - Quarter ended September 28, 2018 912,822 59,990 65.71 Total 2,381,100 $ 150,470 (1) Cost of share repurchases includes the price paid per share and applicable commissions. (2) Average price paid per share excludes commission costs. Dividend Program The following table summarizes dividends declared under the program during fiscal 2018 : Fiscal Period Announcement Date Record Date Payment Date Cash Dividend Per Common Share Dividend Payment Fiscal 2018 Q1 - Quarter ended December 29, 2017 January 24, 2018 February 5, 2018 February 14, 2018 $ 0.16 $16.6 million Q2 - Quarter ended March 30, 2018 April 24, 2018 May 7, 2018 May 16, 2018 $ 0.16 $16.7 million Q3 - Quarter ended June 29, 2018 July 24, 2018 August 6, 2018 August 14, 2018 $ 0.16 $16.6 million Q4 - Quarter ended September 28, 2018 October 24, 2018 November 5, 2018 November 14, 2018 $ 0.19 $19.6 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. 28, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 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, both of which 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 foreign currency translation adjustments relate to the translation of assets and liabilities denominated in non-U.S. dollar functional currencies. 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 28, 2018 Fiscal Year Ended September 29, 2017 Investment Securities Currency Translation Adjustments Total Investment Securities Currency Translation Adjustments Total Beginning Balance $ (377 ) $ (7,376 ) $ (7,753 ) $ 742 $ (10,939 ) $ (10,197 ) Other comprehensive income before reclassifications: Unrealized gains/(losses) - investment securities (2,213 ) — (2,213 ) (1,062 ) (1,062 ) Foreign currency translation gains/(losses) (1) — (5,614 ) (5,614 ) 4,184 4,184 Income tax effect - benefit/(expense) — 106 106 12 (621 ) (609 ) Net of tax (2,213 ) (5,508 ) (7,721 ) (1,050 ) 3,563 2,513 Amounts reclassified from AOCI into earnings: Realized gains/(losses) - investment securities (1) (447 ) (447 ) (95 ) (95 ) Income tax effect - benefit/(expense) (2) 89 89 26 26 Net of tax (358 ) — (358 ) (69 ) — (69 ) Net current-period other comprehensive income/(loss) (2,571 ) (5,508 ) (8,079 ) (1,119 ) 3,563 2,444 Ending Balance $ (2,948 ) $ (12,884 ) $ (15,832 ) $ (377 ) $ (7,376 ) $ (7,753 ) (1) Realized gains or losses, if any, from the sale of our AFS investment securities or from foreign currency translation adjustments are included within other income/expense, net in our consolidated statements of operations. (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. 28, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic EPS is computed by dividing net income attributable to Dolby Laboratories, Inc. by the number of weighted-average shares of Class A and Class B common stock outstanding during the period. Through application of the treasury stock method, diluted EPS is computed in the same manner, except that the number of weighted-average shares outstanding is increased by the number of potentially dilutive shares from employee incentive plans during the period. Potentially dilutive shares include the hypothetical number of shares issued under the assumed exercise of outstanding stock options and vesting of outstanding RSUs. 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 28, September 29, September 30, 2016 Numerator: Net income attributable to Dolby Laboratories, Inc. $ 122,246 $ 201,802 $ 185,860 Denominator: Weighted-average shares outstanding—basic 103,377 101,784 100,717 Potential common shares from options to purchase common stock 2,370 1,098 1,013 Potential common shares from restricted stock units 1,231 404 694 Weighted-average shares outstanding—diluted 106,978 103,286 102,424 Net income per share attributable to Dolby Laboratories, Inc.: Basic $ 1.18 $ 1.98 $ 1.85 Diluted $ 1.14 $ 1.95 $ 1.81 Antidilutive awards excluded from calculation: Stock options 1,043 160 2,971 Restricted stock units 6 — 30 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management's best assessment of estimated current and future taxes to be paid. We are subject to income taxes in both the U.S. and numerous foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax expense. Tax Act Enacted in 2017 On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act. The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate income tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on accumulated earnings of foreign subsidiaries; (3) implementing a modified territorial tax system and how foreign earnings are subject to U.S. tax; (4) capitalizing specific R&D expenses which are amortized over five to 15 years; and (5) eliminating the domestic manufacturing deduction. Consistent with applicable Securities and Exchange Commission (“SEC”) guidance, we made a reasonable estimate of the accounting impact of the Tax Act. We recorded a total provisional amount of $121.4 million in our fiscal 2018 income tax provision as follows: • Remeasurement of net deferred tax assets: The Tax Act reduces the corporate tax rate from 35 percent to 21 percent, which results in an estimated net decrease of $49.6 million in our net deferred tax asset balance. While we are able to make a reasonable estimate of the impact of the reduced corporate tax rate on our net deferred tax asset balances, our deferred taxes may be affected by changes in our interpretations and assumptions, as well as additional guidance on the interpretation of the Tax Act. • Deemed Repatriation Transition Tax: The Deemed Repatriation Transition Tax ("Transition Tax") is a one time tax on the accumulated earnings of our foreign subsidiaries. To determine the amount of the Transition Tax, we must determine, in addition to other factors, the amount of post-1986 earnings and profits of the relevant subsidiaries as of December 31, 2017, as well as the amount of foreign income taxes paid on such earnings and profits. The portion of earnings and profits comprised of cash and other specified assets is taxed at a rate of 15.5 percent and any remaining amount of earnings and profits is taxed at a rate of eight percent. We made a reasonable estimate of the Transition Tax and recorded a liability for a provisional Transition Tax obligation of $71.8 million which the Tax Act allows us to pay in installments over a period of eight years. This provisional estimate will be updated when additional information regarding our accumulated earnings and profit and non-U.S. income taxes paid becomes available. Other significant provisions that are effective beginning in our fiscal year 2019 include: a modified territorial tax system, an incremental tax on excessive payments to foreign related parties, and a minimum tax on certain low taxed foreign earnings ("minimum foreign tax"). Under GAAP, we are allowed to make an accounting policy election to either (1) treat the future taxes due as a current period expense or (2) factor such amounts into our measurement of deferred taxes. We have yet to make the policy election, therefore its impact has not been reflected in our fiscal year 2018 financial statements. The final transitional impacts of the Tax Act may differ from our current estimate, due to, among other things, changes in interpretations of the Tax Act, any legislative actions to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, and any updates or changes to estimates we have utilized to calculate the transition impacts. The SEC has issued rules that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. We currently anticipate finalizing and recording any resulting adjustments by the end of our quarter ending December 28, 2018. 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 28, September 29, September 30, United States $ 75,689 $ 28,221 $ 37,223 Foreign 237,178 228,423 198,681 Total $ 312,867 $ 256,644 $ 235,904 Fiscal Year Ended September 28, September 29, September 30, Current: Federal $ 40,624 $ 30,719 $ 19,226 State 333 610 521 Foreign 59,383 55,531 52,492 Total current 100,340 86,860 72,239 Deferred: Federal 71,988 (27,345 ) (19,540 ) State 18,243 (4,596 ) (3,451 ) Foreign (509 ) (702 ) 254 Total deferred 89,722 (32,643 ) (22,737 ) Provision for income taxes $ 190,062 $ 54,217 $ 49,502 Repatriation of Undistributed Foreign Earnings As a result of the Tax Act, foreign accumulated earnings that were subject to the mandatory Transition Tax as of December 31, 2017, can be repatriated to the U.S. without incurring further U.S. federal tax. The Tax Act moves towards a modified territorial tax system through the provision of a 100% dividend received deduction for the foreign-source portions of dividends received from controlled foreign subsidiaries. As a result, we continue to evaluate the indefinite reinvestment assertions with regards to unremitted earnings for certain of our foreign subsidiaries. During the fiscal year, we repatriated $450 million of foreign subsidiary earnings which were exempt from foreign withholding tax. Future repatriation of cash and other property held by our foreign subsidiaries will generally not be subject to U.S. federal tax. As of September 28, 2018, the total undistributed earnings of our non-U.S. subsidiaries were approximately $526 million. Historically, we have asserted our intention to indefinitely reinvest a portion of the undistributed earnings of certain foreign subsidiaries. However, we have reevaluated our historical assertion as a result of the Tax Act and determined that we no longer consider a vast majority of these earnings to be indefinitely reinvested. As such, we have recorded an immaterial provisional estimate of U.S. state income tax liability on those undistributed foreign earnings. The unrecognized deferred tax liability on the portion of the undistributed earnings considered indefinitely reinvested is not material. 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 28, September 29, September 30, Withholding taxes $ 50,313 $ 48,012 $ 45,151 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. A summary of the tax effects of the temporary differences were as follows (in thousands): Fiscal Year Ended September 28, September 29, Deferred income tax assets: Investments $ 2,215 $ 2,327 Inventories 4,070 6,821 Net operating loss 2,174 2,806 Accrued expenses 12,573 19,732 Stock-based compensation 15,601 26,970 Revenue recognition 33,464 53,843 Depreciation and amortization 16,078 52,876 Research and development credits 21,302 15,504 Foreign tax credits 9,345 10,140 Translation adjustment — 625 Other 3,335 6,696 Total gross deferred income tax assets 120,157 198,340 Less: valuation allowance (16,256 ) — Total deferred income tax assets 103,901 198,340 Deferred income tax liabilities: Intangibles (2,831 ) (2,277 ) International earnings — (4,855 ) Unrealized gain on investments — (293 ) Deferred income tax assets, net (non-current) $ 101,070 $ 190,915 NOL and Tax Credit Carryforwards At September 28, 2018 , the NOL carried forward for California tax purposes was $5.8 million and will expire in fiscal 2029 if unused. Additionally, we had total foreign NOL carryforwards of $8.6 million as of September 28, 2018 , an amount which is not subject to expiration. At September 28, 2018 , we also had foreign tax credit and federal R&D tax credit carryforwards of $6.9 million and $4.9 million , respectively, which will expire between fiscal 2025 and fiscal 2035, and California and foreign R&D tax credits of $24.1 million and $1.8 million , respectively, which will be carried forward indefinitely. Establishment of Valuation Allowance In fiscal 2018, a $16.3 million valuation allowance was established for California R&D credit carryforwards for which ultimate realization of its future benefits is uncertain. 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 28, September 29, September 30, Federal statutory rate 24.6 % 35.0 % 35.0 % State income taxes, net of federal effect 0.7 0.7 0.7 Stock-based compensation expense rate (3.2 ) 1.4 1.5 Research and development tax credits (2.8 ) (3.7 ) (5.2 ) Tax exempt interest — (0.1 ) (0.1 ) U.S. manufacturing tax incentives (0.2 ) (0.8 ) (1.1 ) Foreign rate differential (3.9 ) (11.7 ) (9.5 ) Audit settlements — (0.6 ) (2.3 ) Tax Act 38.8 — — Establishment of Valuation Allowance 5.2 — — Other 1.5 0.9 2.0 Effective tax rate 60.7 % 21.1 % 21.0 % Our effective tax rate was 60.7% in fiscal 2018 , compared with our blended federal statutory rate of 24.6% (as a result of the change from 35% to 21% during the year), and with our effective tax rate in fiscal 2017 of 21.1% . The increase in our effective tax rate reflects the impact from the Tax Act, most notably the remeasurement of net deferred tax assets and the Transition Tax on the accumulated earnings of our foreign subsidiaries, the establishment of a valuation allowance against California tax credits, and reduced by excess benefit related to stock-based awards. Our effective tax rate was 21.0% in fiscal 2016 and was 21.1% in fiscal 2017 . The effective tax rate in fiscal 2017 compared to fiscal 2016 reflects a benefit from a higher proportion of our overall earnings being attributable to lower tax-rate jurisdictions, offset by reduced benefits from both federal R&D tax credits and lower settlements from prior years' state audits. Uncertain Tax Positions As of September 28, 2018 , the total amount of gross unrecognized tax benefits was $102.0 million , of which $96.9 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 $1.9 million as a result of the expiration of certain statute of limitations. Aggregate changes in the balance of gross unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands): Fiscal Year Ended September 28, September 29, September 30, Beginning Balance $ 98,665 $ 75,168 $ 65,161 Gross increases - tax positions taken during prior years — 308 4,343 Gross decreases - tax positions taken during prior years (2,209 ) — — Gross increases - tax positions taken during current year 9,580 26,724 26,585 Gross decreases - settlements with tax authorities during current year (130 ) (1,101 ) (20,086 ) Lapse of statute of limitations (3,897 ) (2,434 ) (835 ) Ending Balance $ 102,009 $ 98,665 $ 75,168 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 year 2018 , our current tax provision was increased by interest expense of $3.0 million , while in fiscal year 2017 , our current tax provision was increased by interest expense of $1.8 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 28, 2018 and September 29, 2017 were as follows (in thousands): Fiscal Year Ended September 28, September 29, Accrued interest $ 6,778 $ 3,733 Accrued penalties 42 55 Total $ 6,820 $ 3,788 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. We are currently under audit by the State of New York for fiscal years 2014 and 2015 and Spain for fiscal years 2012 through 2015. In the U.S federal jurisdiction, other major states, and major foreign jurisdictions, the fiscal years subsequent to 2013, 2013, and 2011, 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 inconsistent with management’s expectations, we may be required to adjust our tax provision for income taxes in the period such resolution occurs. |
Restructuring
Restructuring | 12 Months Ended |
Sep. 28, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring | Restructuring Restructuring charges recorded in our statements of operations represent costs associated with separate individual restructuring plans implemented in various fiscal periods. 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 2017 Restructuring Plan. In September 2017, we implemented a plan to reduce certain activities in order to reallocate those resources towards higher priority investment areas. As a result, we recorded $12.9 million in restructuring costs during fiscal 2017, representing severance and other related benefits offered to approximately 80 employees that were affected by this action. The table presented below summarizes changes in restructuring accruals under this plan (in thousands): Severance and associated costs Restructuring charges $ 12,856 Cash payments (168 ) Non-cash and other adjustments — Balance at September 29, 2017 $ 12,688 Restructuring charges 23 Cash payments (12,005 ) Non-cash and other adjustments (582 ) Balance at September 28, 2018 $ 124 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 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 $ — |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Sep. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments & Contingencies In the ordinary course of business, we enter into contractual agreements with third parties that include non-cancelable payment obligations, for which we are liable in future periods. These arrangements can include terms binding us to minimum payments and/or penalties if we terminate the agreement for any reason other than an event of default as described by the agreement. The following table presents a summary of our contractual obligations and commitments as of September 28, 2018 (in thousands): Payments Due By Fiscal Period Fiscal Fiscal Fiscal Fiscal Fiscal Thereafter Total Naming rights $ 7,811 $ 7,909 $ 8,008 $ 8,108 $ 8,209 $ 78,656 $ 118,701 Operating leases 17,117 14,371 11,522 9,967 9,240 19,928 82,145 Purchase obligations 58,449 22,844 477 333 — — 82,103 Donation commitments 8,275 297 97 97 97 761 9,624 Total $ 91,652 $ 45,421 $ 20,104 $ 18,505 $ 17,546 $ 99,345 $ 292,573 Naming Rights. We are party to an agreement for naming rights and related benefits with respect to the Dolby Theatre in Hollywood, California, the location of the Academy Awards®. The term of the agreement is 20 years, over which we will make payments on a semi-annual basis until fiscal 2032. Our payment obligations are conditioned in part on the Academy Awards being held and broadcast from the Dolby Theatre. Operating Leases. Operating lease payments represent our commitments for future minimum rent made under non-cancelable 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 28, September 29, September 30, Total rent expense $ 17,161 $ 15,091 $ 13,288 Purchase Obligations. Purchase obligations primarily consist of our commitments made under agreements to purchase goods and services related to Dolby Cinema and for purposes that include IT and telecommunications, marketing and professional services, and manufacturing and other R&D activities. Donation Commitments. O ur donation commitments relate to non-cancelable obligations to the Museum of the Academy of Motion Picture Arts and Sciences in Los Angeles, California, and the Smithsonian Institution in Washington, DC. Our commitment to the Museum of the Academy of Motion Picture Arts and Sciences is for 15 years from its expected opening date in fiscal 2019 , and the Smithsonian Institution is for the next 5 years. Both donation commitments consist of the installation of imaging and audio products in its theaters and providing maintenance services in exchange for various marketing, branding, and publicity benefits. Purchase Obligations. Purchase obligations primarily consist of our commitments made under agreements to purchase goods and services related to Dolby Cinema and for purposes that include IT and telecommunications, marketing and professional services, and manufacturing and other R&D activities. Indemnification Clauses. On a limited basis, our contractual agreements will contain a clause under which we agree to provide indemnification to the counterparty, most commonly to licensees in connection with licensing arrangements that include our IP. We have also entered into indemnification agreements with our officers, directors, and certain employees, and our certificate of incorporation and bylaws contain similar indemnification obligations. Additionally, and although not a contractual requirement, we have at times elected to defend our licensees from third party IP infringement claims. Since the terms and conditions of our contractual indemnification clauses do not explicitly specify our obligations, we are unable to reasonably estimate the maximum potential exposure for which we could be liable. Furthermore, we have not historically made any payments in connection with any such obligation and believe there to be a remote likelihood that any potential exposure in future periods would be of a material amount. As a result, no amounts have been accrued in our consolidated financial statements with respect to the contingent aspect of these indemnities. |
Business Combinations
Business Combinations | 12 Months Ended |
Sep. 28, 2018 | |
Business Combinations [Abstract] | |
Business Combination | Business Combinations On September 19, 2018 ("acquisition date"), we completed an asset purchase with a privately held technology company that offers enterprise media encoding and cloud-based media workflow management services to customers. We believe that these technologies will further enhance our existing capabilities, as well as future initiatives. We completed the acquisition for a gross purchase price of $19.28 million . Pursuant to the purchase agreement, $3.0 million of the total purchase consideration is being held by us for a period of eighteen months following the closing of the acquisition. This holdback amount has been recorded as a non-current liability on our Consolidated Balance Sheet as of September 28, 2018. We have completed a preliminary purchase price allocation and the balance sheet reflects the preliminary fair value estimates of the intangible assets and goodwill acquired. These estimates are subject to change within the measurement period which will not exceed one year from the acquisition date. |
Operating Segments and Geograph
Operating Segments and Geographic Data | 12 Months Ended |
Sep. 28, 2018 | |
Segments, Geographical Areas [Abstract] | |
Operating Segments and Geographic Data | 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. During the fiscal quarter ended December 30, 2016, we reorganized certain aspects of our internal business infrastructure primarily to integrate and align sales support more directly with our business units. Following the reorganization, we reassessed our business units and concluded that the composition of our reportable segments remains unchanged and that we continue to operate as a single reportable segment. This reflects the fact that our CODM continues to evaluate our financial information and resources, and continues to assess the performance of these resources, on a consolidated basis. All required financial segment information is therefore included in our consolidated financial statements. Geographic Information The methods 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 - United States & International Fiscal Year Ended Location September 28, September 29, September 30, United States $ 388,700 $ 373,264 $ 320,129 International 783,224 708,190 705,609 Total revenue $ 1,171,924 $ 1,081,454 $ 1,025,738 Revenue Concentration - Significant Individual Geographic Regions Fiscal Year Ended Location September 28, September 29, September 30, United States 33 % 35 % 31 % South Korea 19 % 16 % 17 % China 17 % 16 % 14 % Japan 12 % 12 % 12 % Europe 11 % 11 % 14 % Taiwan 3 % 4 % 4 % Other 5 % 6 % 8 % Total 100 % 100 % 100 % Long-lived tangible assets, net of accumulated depreciation, by geographic region were as follows (in thousands): Location September 28, September 29, United States $ 453,336 $ 439,023 International 60,846 46,252 Total long-lived tangible assets, net of accumulated depreciation $ 514,182 $ 485,275 |
Legal Matters
Legal Matters | 12 Months Ended |
Sep. 28, 2018 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Legal Matters | 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 estimate of any such potential losses. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 28, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 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 integral 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 28, 2018 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 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 . Related party rent expense included in operating expenses in our consolidated statements of operations were as follows (in thousands): Fiscal Year Ended September 28, September 29, September 30, Related party rent expense included in operating expenses $ 3,483 $ 3,142 $ 3,097 Distributions. Distributions made by the jointly-owned real estate entities to our principal stockholder were as follows (in thousands): Fiscal Year Ended September 28, September 29, September 30, Distributions to principal stockholder $ (1,022 ) $ (2,094 ) $ (214 ) |
Retirement Plans
Retirement Plans | 12 Months Ended |
Sep. 28, 2018 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Retirement Plans | 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 28, 2018 , 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 28, September 29, September 30, Retirement plan expenses $ 23,439 $ 22,035 $ 20,471 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Sep. 28, 2018 | |
Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data (unaudited) | . Selected Quarterly Financial Data The following table presents selected unaudited quarterly financial information from fiscal 2018 and 2017 (in thousands, except per share amounts): Fiscal Year 2018 Fiscal Year 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue: Licensing $ 258,016 $ 273,143 $ 286,325 $ 240,122 $ 232,699 $ 241,617 $ 278,106 $ 213,370 Products 24,933 22,665 26,265 20,689 28,211 20,713 22,569 23,797 Services 4,848 5,547 4,857 4,514 5,357 5,144 4,990 4,881 Total revenue 287,797 301,355 317,447 265,325 266,267 267,474 305,665 242,048 Cost of revenue 30,876 30,959 34,465 31,960 29,967 26,977 32,125 29,238 Gross margin 256,921 270,396 282,982 233,365 236,300 240,497 273,540 212,810 Income before taxes and controlling interest 84,834 89,483 96,590 41,960 67,656 66,194 96,303 26,491 Net income/(loss) attributable to Dolby Laboratories $ (81,622 ) $ 70,631 $ 83,145 $ 50,092 $ 53,374 $ 50,590 $ 76,043 $ 21,795 Earnings per share: Basic $ (0.80 ) $ 0.68 $ 0.80 $ 0.48 $ 0.53 $ 0.50 $ 0.75 $ 0.21 Diluted $ (0.80 ) $ 0.66 $ 0.78 $ 0.47 $ 0.51 $ 0.49 $ 0.73 $ 0.21 Weighted-average shares outstanding: Basic 102,552 103,771 103,836 103,349 101,483 101,787 101,905 101,959 Diluted 102,552 107,001 106,950 106,794 103,876 103,883 104,222 103,530 |
Basis Of Presentation (Policies
Basis Of Presentation (Policies) | 12 Months Ended |
Sep. 28, 2018 | |
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 28, 2018 (fiscal 2018 ) and September 29, 2017 (fiscal 2017 ). |
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 Accoun_2
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 28, 2018 | |
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. The majority of our licensing revenue is generated from customers outside of the U.S. We manage this risk by performing regular evaluations of the creditworthiness of our licensing customers. In fiscal 2018 , 2017 , and 2016 , we did not have any individual customers whose revenue exceeded 10% of our total revenue. |
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 government bonds. |
Restricted Cash | Restricted Cash Restricted cash on our consolidated balance sheets consists of cash contributed by Dolby and third-party licensors to Via Licensing Corporation, our wholly-owned subsidiary, that may only be used for licensor enforcement actions or licensee compliance activities related to certain Via-administered patent pools, as well as to disperse costs associated with any audit of Via Licensing Corporation for the Wideband Code Division Multiple Access (W-CDMA) patent pool |
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 maintain a provision for estimated losses on receivables resulting from our customers' inability to make required payments. In determining the provision, 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, geographic risk and the current business environment. Actual future losses from uncollectible accounts may differ from our estimates. |
Inventories | Inventories Inventories are accounted for using the first-in, first-out method, and are valued to the lower of cost and 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 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. During the fiscal quarter ended December 30, 2016, we reorganized certain aspects of our internal business infrastructure primarily to integrate and align sales support more directly with our business units. In accordance with ASC Topic 350, we reviewed and reassigned our goodwill amongst our reporting units using a relative fair value allocation approach. Before doing so, we performed a “Step Zero” qualitative assessment during the quarter ended September 30, 2016 and determined that there was minimal risk of goodwill impairment in our pre-reorganization reporting units. Immediately after the reorganization, and related to our consolidated balance of goodwill of $307.1 million as of December 30, 2016, we initiated the "Step One" goodwill impairment assessment using a market approach and an income approach to value our reporting units. We completed this assessment as of March 31, 2017 and determined that there was no goodwill impairment. In addition, we completed our annual goodwill impairment assessment for fiscal 2018 in the fiscal quarter ended June 29, 2018 . We determined in our qualitative review that it is more likely than not that the fair value of our reporting units are substantially in excess of their respective carrying amounts. Accordingly, there was no impairment, and the "Step One" 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 multiple elements, 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, maintenance, and services. The fair value 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 of these ME arrangements that include 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 VSOE of fair value for the support element, revenue for the entire arrangement is bundled and recognized ratably over the support period. To the extent that the undelivered element is support within the context of a royalty usage based arrangement, and assuming all other revenue recognition criteria are met, we recognize the entire royalty fee as license revenue once reported. 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 in cases where an agreement has expired, 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 or extended payment 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 offer Dolby Cinema, a branded premium cinema experience 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, our proprietary designs and corporate branding as well as for the use of our equipment at the exhibitor’s venue. The use of our equipment meets the definition of a lease, and for the related portion of Dolby's share of revenue, we apply ASC 840, Leases, and recognize revenue upon receipt of quarterly box office reports from exhibitors, and on determining that collectability is probable. In general, revenues from collaboration arrangements are recognized 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, depreciation of our Dolby Cinema equipment provided under operating leases in collaborative arrangements, and direct fees incurred. 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 28, September 29, September 30, Advertising and promotional costs $ 49,519 $ 47,402 $ 44,221 |
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 losses were as follows (in thousands): Fiscal Year Ended September 28, September 29, September 30, Foreign currency transaction (losses) $ (823 ) $ (74 ) $ (474 ) 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 28, 2018 and September 29, 2017 , the outstanding derivative instruments had maturities of equal to or less than 31 days and 31 days, respectively, and the total notional amounts of outstanding contracts were $25.1 million and $24.5 million , respectively. The fair values of these contracts were nominal as of September 28, 2018 and September 29, 2017 , 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 we record a valuation allowance to reduce our deferred tax assets when it's more-likely-than-not that some portion or all of the deferred tax assets will not be realized. 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. The Tax Cuts and Jobs Act of 2017 ("the Tax Act"), provides an exemption from federal income taxes for distributions by foreign subsidiaries made after December 31, 2017 that were not subject to the transition tax. Therefore, we have provided for U.S. state income taxes and foreign withholding taxes on undistributed earnings of certain foreign subsidiaries to the extent such earnings are no longer considered to be indefinitely reinvested in the operations of those subsidiaries. We consider the earnings of certain foreign subsidiaries to be indefinitely reinvested 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. 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 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 Share-Based Compensation. During the first quarter of fiscal 2018, we adopted 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. Upon adoption, excess tax benefits or deficiencies from stock-based awards are recorded as a component of the income tax provision, whereas they previously were recorded as additional paid-in capital. In the year-to-date periods ended September 28, 2018 , we recognized an excess tax benefit of $13.4 million related to stock-based awards in the provision for income taxes. We elected to continue to account for forfeitures based on an estimate of expected forfeitures, rather than to account for forfeitures as they occur. Additionally, we adopted the aspects of the guidance affecting the cash flow presentation retrospectively, which results in a reclassification of excess tax benefits from financing activities to operating activities in the consolidated statements of cash flows. Standards Not Yet Adopted Revenue Recognition. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The new standard defines a five-step approach for recognizing revenue, which may require a company to use more judgment and make more estimates than under the current guidance. The new standard requires an entity to recognize as revenue the amount it expects to be entitled for the transfer of promised goods or services to customers, to capitalize certain direct costs associated with revenues and contract acquisition costs, and to provide expanded disclosures. We have evaluated the impact of adopting Topic 606 on all of our revenue streams and believe that the following are the most significant changes that are expected to occur: • Estimating variable consideration, including royalty-based revenue for which we will record revenue earned from our licensees’ shipments in the same period in which those shipments occurred, rather than recognizing our revenue in the quarter in which licensees report to us, which is typically in the quarter after those shipments have occurred; • Specified performance obligations for which we have not historically had VSOE and which resulted in the deferral of revenue balances may accelerate revenue recognition as VSOE for the undelivered elements is no longer required to separately recognize revenue for the delivered elements; • For certain transactions that have minimum commitment or fixed fee terms, recognizing licensing revenues on contract execution instead of as payments become due; • Recording a one-time adjustment to retained earnings to reflect the cumulative impact of the changes noted above for the periods prior to adoption. The new standard became effective for Dolby on September 29, 2018, being the beginning of our first quarter of fiscal 2019. We are adopting Topic 606 using the full retrospective method whereby the standard is applied to all periods presented as if it had been applied historically. Although we are still evaluating the impact of adopting Topic 606 on all of our revenue streams for fiscal 2018 and 2017, our preliminary determination is that fiscal 2018 revenue as recast under Topic 606 will be lower than the amount of revenue we reported under Topic 605 mostly due to revenue that is expected to shift back into previous periods and, to a lesser extent, the impact of certain contract modifications. We expect to complete our procedures and finalize the recast of our fiscal 2018 and 2017 revenues in the first half of fiscal 2019. The above-mentioned changes may also result in changes to our reported income tax expense in the prior recast reporting period. In preparation for reporting financial results under Topic 606, we have implemented key system functionalities and will continue to address the impact of the new standard and its expanded disclosure requirements on our policies, processes, and controls. Leases. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , 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 most leases. 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. Topic 842 must be applied using a modified retrospective approach. Upon adoption, we will recognize a lease liability and right-of-use asset for each of our lease arrangements. We anticipate adoption of the standard will not have a material impact on our consolidated income statements. We plan to elect the practice expedients upon transition that will retain the lease classification and initial direct costs for any leases that exist prior to adoption of the standard. We will not reassess whether any contracts entered into prior to adoption are leases. We are in the process of evaluating our existing lease contracts and implementing changes to our systems. ASU 2016-02 is effective for Dolby beginning September 28, 2019, and we do not currently plan to early adopt. Income Taxes: Comprehensive Income. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act ("Tax Act"). In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act and requires entities to provide certain disclosures regarding stranded tax effects. The ASU is effective for Dolby beginning September 28, 2019, and we do not currently plan to early adopt. We are currently evaluating the timing and impact of the standard on our consolidated financial statements. Collaborative Arrangements. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 , which clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, ASU 2018-18 precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. This guidance will be effective for Dolby beginning September 29, 2020, and we do not currently plan to early adopt. We do not believe that this guidance will have a material impact on our consolidated financial position, results of operation and cash flows. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 28, 2018 | |
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 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 28, September 29, September 30, Advertising and promotional costs $ 49,519 $ 47,402 $ 44,221 |
Schedule of Foreign Currency Translation Gains (Losses) | These losses were as follows (in thousands): Fiscal Year Ended September 28, September 29, September 30, Foreign currency transaction (losses) $ (823 ) $ (74 ) $ (474 ) |
Composition Of Certain Financ_2
Composition Of Certain Financial Statement Captions (Tables) | 12 Months Ended |
Sep. 28, 2018 | |
Composition Of Certain Financial Statement Captions [Abstract] | |
Schedule Of Accounts Receivable | Accounts Receivable, Net September 28, September 29, Trade accounts receivable $ 101,945 $ 62,305 Accounts receivable from patent administration program licensees 40,558 14,412 Accounts receivable, gross 142,503 76,717 Less: allowance for doubtful accounts (5,352 ) (2,967 ) Total $ 137,151 $ 73,750 |
Schedule Of Allowance For Doubtful Accounts | Allowance for Doubtful Accounts Beginning Balance Charged to G&A Deductions Ending Balance For fiscal year ended: September 30, 2016 $ 1,542 $ 1,017 $ (189 ) $ 2,370 September 29, 2017 2,370 924 (327 ) 2,967 September 28, 2018 2,967 2,507 (122 ) 5,352 |
Schedule Of Inventories | Inventories Inventories September 28, September 29, Raw materials $ 6,095 $ 6,812 Work in process 4,044 4,954 Finished goods 16,067 13,285 Total $ 26,206 $ 25,051 |
Schedule Of Prepaid Expenses And Other Current Assets | Prepaid Expenses And Other Current Assets September 28, September 29, Prepaid expenses $ 18,508 $ 16,681 Other current assets 14,265 11,383 Income tax receivable 2,436 2,444 Total $ 35,209 $ 30,508 |
Schedule Of Accrued Liabilities | Accrued Liabilities September 28, September 29, Accrued royalties $ 2,430 $ 2,274 Amounts payable to patent administration program partners 53,942 49,141 Accrued compensation and benefits 84,491 92,277 Accrued professional fees 9,749 5,530 Unpaid PP&E additions 13,956 10,096 Other accrued liabilities 59,026 47,716 Total $ 223,594 $ 207,034 |
Schedule Of Other Non-Current Liabilities | Other Non-Current Liabilities September 28, September 29, Supplemental retirement plan obligations $ 3,388 $ 2,928 Non-current tax liabilities 129,253 91,013 Other liabilities 18,319 13,573 Total $ 150,960 $ 107,514 |
Investments and Fair Value Meas
Investments and Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 28, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured on Recurring Basis | Our cash and investment portfolio consisted of the following (in thousands): September 28, Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 905,660 $ 905,660 $ 905,660 Cash equivalents: Commercial paper 5,058 — — 5,058 5,058 Corporate bonds 1,005 — 1,005 1,005 Money market funds 3,301 3,301 3,301 Municipal debt securities 545 (1 ) 544 544 Government bonds 2,495 — 2,495 2,495 Cash and cash equivalents 918,064 — (1 ) 918,063 911,456 6,607 — Short-term investments: Certificate of deposit (1) 12,875 14 12,889 12,889 U.S. agency securities 11,997 (135 ) 11,862 11,862 Government bonds 7,970 — (15 ) 7,955 7,955 Commercial paper 4,276 — — 4,276 4,276 Corporate bonds 111,245 50 (494 ) 110,801 110,801 Municipal debt securities 30,475 (120 ) 30,355 30,355 Short-term investments 178,838 64 (764 ) 178,138 7,955 170,183 — Long-term investments: U.S. agency securities 9,791 (166 ) 9,625 9,625 Government bonds 15,966 (317 ) 15,649 15,649 Corporate bonds 146,561 33 (1,810 ) 144,784 144,784 Municipal debt securities 17,235 (112 ) 17,123 17,123 Other long-term investments (2) 355 246 601 246 Long-term investments 189,908 279 (2,405 ) 187,782 15,895 171,532 — Total cash, cash equivalents, and investments $ 1,286,810 $ 343 $ (3,170 ) $ 1,283,983 $ 935,306 $ 348,322 $ — Investments held in supplemental retirement plan: Assets 3,486 3,486 3,486 Included in prepaid expenses and other current assets & other non-current assets Liabilities 3,486 3,486 3,486 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 28, 2018 are classified within long-term investments. (2) Other long-term investments as of September 28, 2018 include a marketable equity security of $0.2 million , and other investments that are not carried at fair value including an equity method investment of $0.4 million . During fiscal 2018, we recorded write-off charges to reduce the carrying value of two cost method equity investments to zero in recognition of an other-than-temporary impairment for each investment. September 29, Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 623,244 $ 623,244 Cash equivalents: Commercial paper 1,223 — — 1,223 1,223 Money market funds 2,550 — — 2,550 2,550 Cash and cash equivalents 627,017 — — 627,017 2,550 1,223 — Short-term investments: Certificate of deposit (1) 17,236 9 (1 ) 17,244 17,244 U.S. agency securities 9,518 — (20 ) 9,498 9,498 Government bonds 2,034 — (6 ) 2,028 2,028 Commercial paper 15,160 2 (1 ) 15,161 15,161 Corporate bonds 174,750 54 (163 ) 174,641 174,641 Municipal debt securities 29,178 16 (9 ) 29,185 29,185 Short-term investments 247,876 81 (200 ) 247,757 2,028 245,729 — Long-term investments: Certificate of deposit (1) 22,940 5 (6 ) 22,939 22,939 U.S. agency securities 21,779 — (178 ) 21,601 21,601 Government bonds 17,839 — (107 ) 17,732 17,732 Corporate bonds 218,857 327 (537 ) 218,647 218,647 Municipal debt securities 28,913 29 (25 ) 28,917 28,917 Other long-term investments (2) 4,171 357 — 4,528 357 — Long-term investments 314,499 718 (853 ) 314,364 18,089 292,104 — Total cash, cash equivalents, and investments $ 1,189,392 $ 799 $ (1,053 ) $ 1,189,138 $ 22,667 $ 539,056 $ — Investments held in supplemental retirement plan: Assets 3,026 3,026 3,026 Included in prepaid expenses and other current assets & other non-current assets Liabilities 3,026 3,026 3,026 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 29, 2017 are classified within long-term investments. (2) Other long-term investments as of September 29, 2017 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 $0.6 million and two cost method equity investments of $3.0 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 28, 2018 and September 29, 2017 (in thousands): September 28, 2018 September 29, 2017 Less Than 12 Months Greater Than 12 Months Less Than 12 Months Greater Than 12 Months Investment Type Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Certificate of deposit $ — $ — $ — $ — $ 19,750 $ (6 ) $ — $ — U.S. agency securities — — 21,486 (302 ) 19,713 (91 ) 11,386 (108 ) Government bonds 16,633 (332 ) — — 15,029 (64 ) 4,729 (49 ) Commercial paper 5,737 (1 ) — — 4,292 (1 ) — — Corporate bonds 143,051 (1,680 ) 52,162 (624 ) 125,890 (251 ) 109,806 (449 ) Municipal debt securities 41,058 (191 ) 6,965 (41 ) 26,749 (24 ) 3,625 (10 ) Total $ 206,479 $ (2,204 ) $ 80,613 $ (967 ) $ 211,423 $ (437 ) $ 129,546 $ (616 ) |
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 28, 2018 and September 29, 2017 , which are recorded within cash equivalents and both short and long-term investments in our consolidated balance sheets (in thousands): September 28, 2018 September 29, 2017 Range of maturity Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ 191,241 $ 190,541 $ 251,649 $ 251,530 Due in 1 to 2 years 122,131 120,545 213,555 213,154 Due in 2 to 3 years 67,423 66,637 96,773 96,682 Total $ 380,795 $ 377,723 $ 561,977 $ 561,366 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 12 Months Ended |
Sep. 28, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | As of September 28, 2018 and September 29, 2017 , PP&E consisted of the following (in thousands): Property, Plant, & Equipment September 28, September 29, Land $ 43,342 $ 43,364 Buildings and building improvements 283,474 281,196 Leasehold improvements 66,866 65,034 Machinery and equipment 111,603 98,437 Computer equipment and software 194,079 173,341 Furniture and fixtures 30,556 28,118 Equipment provided under operating leases 139,201 97,456 Construction-in-progress 7,342 3,673 Property, plant, and equipment, gross 876,463 790,619 Less: accumulated depreciation (362,281 ) (305,344 ) Property, plant, & equipment, net $ 514,182 $ 485,275 |
Goodwill & Intangible Assets (T
Goodwill & Intangible Assets (Tables) | 12 Months Ended |
Sep. 28, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table outlines changes to the carrying amount of goodwill (in thousands): Goodwill Balance at September 30, 2016 $ 309,616 Translation adjustments 1,471 Balance at September 29, 2017 $ 311,087 Acquired goodwill 18,394 Translation adjustments (1,499 ) Balance at September 28, 2018 $ 327,982 |
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 28, 2018 September 29, 2017 Intangible Assets, Net Cost Accumulated Amortization Net Cost Accumulated Amortization Net Acquired patents and technology $ 319,082 $ (152,775 ) $ 166,307 $ 299,707 $ (128,986 ) $ 170,721 Customer relationships 58,342 (41,012 ) 17,330 56,843 (38,368 ) 18,475 Other intangibles 22,742 (22,360 ) 382 22,742 (22,290 ) 452 Total $ 400,166 $ (216,147 ) $ 184,019 $ 379,292 $ (189,644 ) $ 189,648 |
Future Amortization Expense | As of September 28, 2018 , expected amortization expense of our intangible assets in future periods was as follows (in thousands): Fiscal Year Amortization Expense 2019 $ 27,696 2020 27,233 2021 27,206 2022 24,542 2023 21,198 Thereafter 56,144 Total $ 184,019 |
Stockholders' Equity And Stoc_2
Stockholders' Equity And Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 28, 2018 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |
Schedule of Treasury Stock Authorizations [Table Text Block] | The following table summarizes the initial amount of authorized repurchases as well as additional repurchases approved by our Board of Directors as of September 28, 2018 (in thousands): Authorization Period Authorization Amount Fiscal 2010: November 2009 $ 250,000 Fiscal 2010: July 2010 300,000 Fiscal 2011: July 2011 250,000 Fiscal 2012: February 2012 100,000 Fiscal 2015: October 2014 200,000 Fiscal 2017: January 2017 200,000 Fiscal 2018: July 2018 350,000 Total $ 1,650,000 |
Schedule Of Fair Value Of Stock-Based Awards Estimated Using Weighted-Average Assumptions | ime. The weighted-average assumptions used in the determination of the fair value of our stock options were as follows: Fiscal Year Ended September 28, September 29, September 30, Expected term (in years) 5.06 5.13 5.24 Risk-free interest rate 2.2 % 2.1 % 1.7 % Expected stock price volatility 22.6 % 27.4 % 29.8 % Dividend yield 1.1 % 1.1 % 1.4 % |
Summary Of Weighted-Average Fair Value Of Stock Options Granted And Total Intrinsic Value Of Stock Options Exercised | s: Fiscal Year Ended September 28, September 29, September 30, Expected term (in years) 5.06 5.13 5.24 Risk-free interest rate 2.2 % 2.1 % 1.7 % Expected stock price volatility 22.6 % 27.4 % 29.8 % Dividend yield 1.1 % 1.1 % 1.4 % 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 28, September 29, September 30, Stock options granted - weighted-average grant date fair value $ 13.19 $ 11.39 $ 8.49 Stock options exercised - intrinsic value 63,973 28,544 27,485 |
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 29, 2017 8,741 $ 38.65 Grants 1,420 62.34 Exercises (2,473 ) 37.33 Forfeitures and cancellations (390 ) 40.58 Options outstanding at September 28, 2018 7,298 43.61 6.6 $ 192,397 Options vested and expected to vest at September 28, 2018 6,911 43.06 6.6 185,978 Options exercisable at September 28, 2018 3,889 $ 37.88 5.7 124,812 |
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 29, 2017 2,839 $ 44.38 Granted 1,341 62.84 Vested (1,045 ) 40.77 Forfeitures (329 ) 44.62 Non-vested at September 28, 2018 2,806 $ 54.52 |
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 28, September 29, September 30, Restricted stock units - vest date fair value $ 64,755 $ 51,985 $ 40,283 |
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 28, September 29, September 30, Stock options $ 21,083 $ 18,630 $ 21,311 Restricted stock units 46,162 43,171 42,201 Employee stock purchase plan 4,004 3,542 3,473 Total stock-based compensation 71,249 65,343 66,985 Estimated benefit from income taxes (12,595 ) (18,959 ) (19,627 ) Total stock-based compensation, net of tax $ 58,654 $ 46,384 $ 47,358 |
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 28, September 29, September 30, Cost of products $ 1,009 $ 946 $ 859 Cost of services 565 512 547 Research and development 19,515 18,497 17,771 Sales and marketing 24,997 26,175 27,579 General and administrative 25,163 19,213 20,229 Total stock-based compensation 71,249 65,343 66,985 Estimated benefit from income taxes (12,595 ) (18,959 ) (19,627 ) Total stock-based compensation, net of tax $ 58,654 $ 46,384 $ 47,358 |
Schedule of Stock Repurchase Activity | y $351.5 million . The following table provides information regarding share repurchase activity under the program in fiscal 2018 : Quarterly Repurchase Activity Shares Repurchased Cost (1) Average Price Paid Per Share (2) (in thousands) Q1 - Quarter ended December 29, 2017 493,884 $ 29,999 $ 60.73 Q2 - Quarter ended March 30, 2018 77,705 5,001 64.33 Q3 - Quarter ended June 29, 2018 896,689 55,480 61.86 Q4 - Quarter ended September 28, 2018 912,822 59,990 65.71 Total 2,381,100 $ 150,470 (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] | on Fiscal Year Ended Compensation Expense - By Classification September 28, September 29, September 30, Cost of products $ 1,009 $ 946 $ 859 Cost of services 565 512 547 Research and development 19,515 18,497 17,771 Sales and marketing 24,997 26,175 27,579 General and administrative 25,163 19,213 20,229 Total stock-based compensation 71,249 65,343 66,985 Estimated benefit from income taxes (12,595 ) (18,959 ) (19,627 ) Total stock-based compensation, net of tax $ 58,654 $ 46,384 $ 47,358 The tax benefit that we recognize from shares issued under our ESPP is excluded from the tables above. This benefit was as follows (in thousands): Fiscal Year Ended September 28, September 29, September 30, Tax benefit - shares issued under ESPP $ 577 $ 802 $ 550 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Sep. 28, 2018 | |
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 28, 2018 Fiscal Year Ended September 29, 2017 Investment Securities Currency Translation Adjustments Total Investment Securities Currency Translation Adjustments Total Beginning Balance $ (377 ) $ (7,376 ) $ (7,753 ) $ 742 $ (10,939 ) $ (10,197 ) Other comprehensive income before reclassifications: Unrealized gains/(losses) - investment securities (2,213 ) — (2,213 ) (1,062 ) (1,062 ) Foreign currency translation gains/(losses) (1) — (5,614 ) (5,614 ) 4,184 4,184 Income tax effect - benefit/(expense) — 106 106 12 (621 ) (609 ) Net of tax (2,213 ) (5,508 ) (7,721 ) (1,050 ) 3,563 2,513 Amounts reclassified from AOCI into earnings: Realized gains/(losses) - investment securities (1) (447 ) (447 ) (95 ) (95 ) Income tax effect - benefit/(expense) (2) 89 89 26 26 Net of tax (358 ) — (358 ) (69 ) — (69 ) Net current-period other comprehensive income/(loss) (2,571 ) (5,508 ) (8,079 ) (1,119 ) 3,563 2,444 Ending Balance $ (2,948 ) $ (12,884 ) $ (15,832 ) $ (377 ) $ (7,376 ) $ (7,753 ) (1) Realized gains or losses, if any, from the sale of our AFS investment securities or from foreign currency translation adjustments are included within other income/expense, net in our consolidated statements of operations. (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. 28, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted EPS attributable to Dolby Laboratories, Inc. (in thousands, except per share amounts): Fiscal Year Ended September 28, September 29, September 30, 2016 Numerator: Net income attributable to Dolby Laboratories, Inc. $ 122,246 $ 201,802 $ 185,860 Denominator: Weighted-average shares outstanding—basic 103,377 101,784 100,717 Potential common shares from options to purchase common stock 2,370 1,098 1,013 Potential common shares from restricted stock units 1,231 404 694 Weighted-average shares outstanding—diluted 106,978 103,286 102,424 Net income per share attributable to Dolby Laboratories, Inc.: Basic $ 1.18 $ 1.98 $ 1.85 Diluted $ 1.14 $ 1.95 $ 1.81 Antidilutive awards excluded from calculation: Stock options 1,043 160 2,971 Restricted stock units 6 — 30 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
Components Of Income Before Provision For Income Taxes | 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 28, September 29, September 30, United States $ 75,689 $ 28,221 $ 37,223 Foreign 237,178 228,423 198,681 Total $ 312,867 $ 256,644 $ 235,904 |
Schedule Of Provision For Income Taxes | Fiscal Year Ended September 28, September 29, September 30, Current: Federal $ 40,624 $ 30,719 $ 19,226 State 333 610 521 Foreign 59,383 55,531 52,492 Total current 100,340 86,860 72,239 Deferred: Federal 71,988 (27,345 ) (19,540 ) State 18,243 (4,596 ) (3,451 ) Foreign (509 ) (702 ) 254 Total deferred 89,722 (32,643 ) (22,737 ) Provision for income taxes $ 190,062 $ 54,217 $ 49,502 |
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 28, September 29, September 30, Withholding taxes $ 50,313 $ 48,012 $ 45,151 |
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 28, September 29, Deferred income tax assets: Investments $ 2,215 $ 2,327 Inventories 4,070 6,821 Net operating loss 2,174 2,806 Accrued expenses 12,573 19,732 Stock-based compensation 15,601 26,970 Revenue recognition 33,464 53,843 Depreciation and amortization 16,078 52,876 Research and development credits 21,302 15,504 Foreign tax credits 9,345 10,140 Translation adjustment — 625 Other 3,335 6,696 Total gross deferred income tax assets 120,157 198,340 Less: valuation allowance (16,256 ) — Total deferred income tax assets 103,901 198,340 Deferred income tax liabilities: Intangibles (2,831 ) (2,277 ) International earnings — (4,855 ) Unrealized gain on investments — (293 ) Deferred income tax assets, net (non-current) $ 101,070 $ 190,915 |
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 28, September 29, September 30, Federal statutory rate 24.6 % 35.0 % 35.0 % State income taxes, net of federal effect 0.7 0.7 0.7 Stock-based compensation expense rate (3.2 ) 1.4 1.5 Research and development tax credits (2.8 ) (3.7 ) (5.2 ) Tax exempt interest — (0.1 ) (0.1 ) U.S. manufacturing tax incentives (0.2 ) (0.8 ) (1.1 ) Foreign rate differential (3.9 ) (11.7 ) (9.5 ) Audit settlements — (0.6 ) (2.3 ) Tax Act 38.8 — — Establishment of Valuation Allowance 5.2 — — Other 1.5 0.9 2.0 Effective tax rate 60.7 % 21.1 % 21.0 % |
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 28, September 29, September 30, Beginning Balance $ 98,665 $ 75,168 $ 65,161 Gross increases - tax positions taken during prior years — 308 4,343 Gross decreases - tax positions taken during prior years (2,209 ) — — Gross increases - tax positions taken during current year 9,580 26,724 26,585 Gross decreases - settlements with tax authorities during current year (130 ) (1,101 ) (20,086 ) Lapse of statute of limitations (3,897 ) (2,434 ) (835 ) Ending Balance $ 102,009 $ 98,665 $ 75,168 |
Schedule of Accrued Interest and Penalties on Unrecognized Tax Benefits | ur accrued interest and penalties on unrecognized tax benefits as of September 28, 2018 and September 29, 2017 were as follows (in thousands): Fiscal Year Ended September 28, September 29, Accrued interest $ 6,778 $ 3,733 Accrued penalties 42 55 Total $ 6,820 $ 3,788 W |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Sep. 28, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Costs | The table presented below summarizes changes in restructuring accruals under this plan, and reflects the completion of activity during 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 2017 Restructuring Plan. In September 2017, we implemented a plan to reduce certain activities in order to reallocate those resources towards higher priority investment areas. As a result, we recorded $12.9 million in restructuring costs during fiscal 2017, representing severance and other related benefits offered to approximately 80 employees that were affected by this action. The table presented below summarizes changes in restructuring accruals under this plan (in thousands): Severance and associated costs Restructuring charges $ 12,856 Cash payments (168 ) Non-cash and other adjustments — Balance at September 29, 2017 $ 12,688 Restructuring charges 23 Cash payments (12,005 ) Non-cash and other adjustments (582 ) Balance at September 28, 2018 $ 124 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Sep. 28, 2018 | |
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 28, 2018 (in thousands): Payments Due By Fiscal Period Fiscal Fiscal Fiscal Fiscal Fiscal Thereafter Total Naming rights $ 7,811 $ 7,909 $ 8,008 $ 8,108 $ 8,209 $ 78,656 $ 118,701 Operating leases 17,117 14,371 11,522 9,967 9,240 19,928 82,145 Purchase obligations 58,449 22,844 477 333 — — 82,103 Donation commitments 8,275 297 97 97 97 761 9,624 Total $ 91,652 $ 45,421 $ 20,104 $ 18,505 $ 17,546 $ 99,345 $ 292,573 |
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 28, September 29, September 30, Total rent expense $ 17,161 $ 15,091 $ 13,288 |
Operating Segments and Geogra_2
Operating Segments and Geographic Data (Tables) | 12 Months Ended |
Sep. 28, 2018 | |
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 - United States & International Fiscal Year Ended Location September 28, September 29, September 30, United States $ 388,700 $ 373,264 $ 320,129 International 783,224 708,190 705,609 Total revenue $ 1,171,924 $ 1,081,454 $ 1,025,738 |
Schedule Of Concentration Of Revenue From Individual Geographic Regions | Revenue Concentration - Significant Individual Geographic Regions Fiscal Year Ended Location September 28, September 29, September 30, United States 33 % 35 % 31 % South Korea 19 % 16 % 17 % China 17 % 16 % 14 % Japan 12 % 12 % 12 % Europe 11 % 11 % 14 % Taiwan 3 % 4 % 4 % Other 5 % 6 % 8 % 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 28, September 29, United States $ 453,336 $ 439,023 International 60,846 46,252 Total long-lived tangible assets, net of accumulated depreciation $ 514,182 $ 485,275 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Sep. 28, 2018 | |
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 28, 2018 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 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 . Related party rent expense included in operating expenses in our consolidated statements of operations were as follows (in thousands): Fiscal Year Ended September 28, September 29, September 30, Related party rent expense included in operating expenses $ 3,483 $ 3,142 $ 3,097 Distributions. Distributions made by the jointly-owned real estate entities to our principal stockholder were as follows (in thousands): Fiscal Year Ended September 28, September 29, September 30, Distributions to principal stockholder $ (1,022 ) $ (2,094 ) $ (214 ) |
Retirement Plans Retirement Pla
Retirement Plans Retirement Plans (Tables) | 12 Months Ended |
Sep. 28, 2018 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [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 28, September 29, September 30, Retirement plan expenses $ 23,439 $ 22,035 $ 20,471 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Sep. 28, 2018 | |
Quarterly Financial Data [Abstract] | |
Schedule Of Selected Quarterly Financial Data | The following table presents selected unaudited quarterly financial information from fiscal 2018 and 2017 (in thousands, except per share amounts): Fiscal Year 2018 Fiscal Year 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue: Licensing $ 258,016 $ 273,143 $ 286,325 $ 240,122 $ 232,699 $ 241,617 $ 278,106 $ 213,370 Products 24,933 22,665 26,265 20,689 28,211 20,713 22,569 23,797 Services 4,848 5,547 4,857 4,514 5,357 5,144 4,990 4,881 Total revenue 287,797 301,355 317,447 265,325 266,267 267,474 305,665 242,048 Cost of revenue 30,876 30,959 34,465 31,960 29,967 26,977 32,125 29,238 Gross margin 256,921 270,396 282,982 233,365 236,300 240,497 273,540 212,810 Income before taxes and controlling interest 84,834 89,483 96,590 41,960 67,656 66,194 96,303 26,491 Net income/(loss) attributable to Dolby Laboratories $ (81,622 ) $ 70,631 $ 83,145 $ 50,092 $ 53,374 $ 50,590 $ 76,043 $ 21,795 Earnings per share: Basic $ (0.80 ) $ 0.68 $ 0.80 $ 0.48 $ 0.53 $ 0.50 $ 0.75 $ 0.21 Diluted $ (0.80 ) $ 0.66 $ 0.78 $ 0.47 $ 0.51 $ 0.49 $ 0.73 $ 0.21 Weighted-average shares outstanding: Basic 102,552 103,771 103,836 103,349 101,483 101,787 101,905 101,959 Diluted 102,552 107,001 106,950 106,794 103,876 103,883 104,222 103,530 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Amount | $ 13,400 | ||
Maximum credit exposure (percent) | 5.00% | ||
Advertising expense | $ 49,519 | $ 47,402 | $ 44,221 |
Transaction and re-measurement gains/losses | $ (823) | (74) | $ (474) |
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 | $ 25,100 | $ 24,500 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Schedule Of Property, Plant, And Equipment, Estimated Useful Life) (Details) | 12 Months Ended |
Sep. 28, 2018 | |
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 |
Maximum [Member] | Cinema equipment provided under operating leases [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 15 years |
Composition Of Certain Financ_3
Composition Of Certain Financial Statement Captions (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2018 | Sep. 29, 2017 | |
Composition Of Certain Financial Statement Captions [Line Items] | ||
Raw materials | $ 6,095 | $ 6,812 |
Document Period End Date | Sep. 28, 2018 | |
Other Noncurrent Assets [Member] | ||
Composition Of Certain Financial Statement Captions [Line Items] | ||
Raw materials | $ 2,600 | $ 1,800 |
Composition Of Certain Financ_4
Composition Of Certain Financial Statement Captions (Schedule Of Accounts Receivable) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2018 | Sep. 29, 2017 | |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Document Period End Date | Sep. 28, 2018 | |
Trade accounts receivable | $ 101,945 | $ 62,305 |
Accounts receivable from patent administration program partners | 40,558 | 14,412 |
Accounts Receivable, Gross | 142,503 | 76,717 |
Less: allowance for doubtful accounts | (5,352) | (2,967) |
Accounts Receivable, Net | $ 137,151 | $ 73,750 |
Composition Of Certain Financ_5
Composition Of Certain Financial Statement Captions (Schedule Of Allowance For Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Composition Of Certain Financial Statement Captions [Abstract] | |||
Document Period End Date | Sep. 28, 2018 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Fiscal Year | $ 2,967 | $ 2,370 | $ 1,542 |
Charged to Operations | 2,507 | 924 | 1,017 |
Deductions | (122) | (327) | (189) |
Balance at End of Fiscal Year | $ 5,352 | $ 2,967 | $ 2,370 |
Composition Of Certain Financ_6
Composition Of Certain Financial Statement Captions (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2018 | Sep. 29, 2017 | |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Document Period End Date | Sep. 28, 2018 | |
Raw materials | $ 6,095 | $ 6,812 |
Work in process | 4,044 | 4,954 |
Finished goods | 16,067 | 13,285 |
Inventories | $ 26,206 | $ 25,051 |
Composition Of Certain Financ_7
Composition Of Certain Financial Statement Captions (Schedule Of Prepaid Expenses And Other Current Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2018 | Sep. 29, 2017 | |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Document Period End Date | Sep. 28, 2018 | |
Prepaid assets | $ 18,508 | $ 16,681 |
Other current assets | 14,265 | 11,383 |
Income tax receivable | 2,436 | 2,444 |
Prepaid expenses and other current assets | $ 35,209 | $ 30,508 |
Composition Of Certain Financ_8
Composition Of Certain Financial Statement Captions (Schedule Of Accrued Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2018 | Sep. 29, 2017 | |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Document Period End Date | Sep. 28, 2018 | |
Accrual for Unpaid, Property, Plant and Equipment Additions | $ 13,956 | $ 10,096 |
Accrued royalties | 2,430 | 2,274 |
Amounts payable to joint licensing program partners | 53,942 | 49,141 |
Accrued compensation and benefits | 84,491 | 92,277 |
Accrued professional fees | 9,749 | 5,530 |
Other accrued liabilities | 59,026 | 47,716 |
Accrued liabilities | $ 223,594 | $ 207,034 |
Composition Of Certain Financ_9
Composition Of Certain Financial Statement Captions (Schedule Of Other Non-Current Liabilities) (Details) - USD ($) $ in Thousands | Sep. 28, 2018 | Sep. 29, 2017 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Supplemental retirement plan obligations | $ 3,388 | $ 2,928 |
Non-current tax liabilities | 129,253 | 91,013 |
Other liabilities | 18,319 | 13,573 |
Other non-current liabilities | $ 150,960 | $ 107,514 |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Schedule Of Financial Assets Carried At Fair Value) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2018 | Sep. 29, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | $ 918,064 | $ 627,017 |
Short-term investments, cost | 380,795 | 561,977 |
Short-term investments, unrealized losses | (1) | |
Short term investments, total | 377,723 | 561,366 |
Long-term investments, unrealized gains | 0 | |
Long-term investments, total | 314,364 | |
Total cash, cash equivalents, and investments, cost | 1,286,810 | 1,189,392 |
Total cash, cash equivalents, and investments, unrealized gains | 343 | 799 |
Total cash, cash equivalents, and investments, unrealized losses | (3,170) | (1,053) |
Total cash, cash equivalents, and investments, total | 1,283,983 | 1,189,138 |
Assets | 918,063 | 627,017 |
Other long-term Investments | 187,782 | 314,364 |
Government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 2,495 | 2,034 |
Short-term investments, unrealized gains | 0 | |
Short-term investments, unrealized losses | (6) | |
Short term investments, total | 2,495 | 2,028 |
Long-term investments, cost | 17,839 | |
Long-term investments, unrealized gains | 0 | |
Long-term investments, unrealized losses | ||
Long-term investments, total | 17,732 | |
U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, cost | 21,779 | |
Long-term investments, total | 21,601 | |
Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 5,058 | 1,223 |
Short-term investments, cost | 15,160 | |
Short-term investments, unrealized gains | 2 | |
Short-term investments, unrealized losses | (1) | |
Short term investments, total | 15,161 | |
Long-term investments, unrealized losses | 0 | |
Total cash, cash equivalents, and investments, cost | 5,737 | 4,292 |
Total cash, cash equivalents, and investments, unrealized gains | 1 | 1 |
Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 174,750 | |
Short-term investments, unrealized gains | 54 | |
Short-term investments, unrealized losses | (163) | |
Short term investments, total | 174,641 | |
Long-term investments, cost | 218,857 | |
Long-term investments, total | 218,647 | |
Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 544 | |
Short-term investments, cost | 29,178 | |
Short-term investments, unrealized gains | 16 | |
Short-term investments, unrealized losses | (9) | |
Short term investments, total | 29,185 | |
Long-term investments, cost | 28,913 | |
Long-term investments, total | 28,917 | |
Total cash, cash equivalents, and investments, cost | 41,058 | 26,749 |
Other long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost Method Investment, Fair Value Measurement Adjustment | 200 | 400 |
Long-term investments, cost | 4,171 | |
Long-term investments, total | 4,528 | |
Long-term investments | 400 | 600 |
Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 247,876 | |
Short-term investments, unrealized gains | 81 | |
Short-term investments, unrealized losses | (200) | |
Short term investments, total | 247,757 | |
Long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, cost | 314,499 | |
Long-term investments, unrealized gains | 718 | |
Long-term investments, unrealized losses | (853) | |
Certificates of Deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, unrealized gains | 9 | |
Short-term investments, unrealized losses | (1) | |
Short term investments, total | 17,244 | |
Long-term investments, cost | 22,940 | |
Long-term investments, total | 22,939 | |
U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, unrealized gains | 0 | |
Short-term investments, unrealized losses | (135) | (20) |
Short term investments, total | 11,862 | 9,498 |
Cash | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 905,660 | 623,244 |
Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 3,301 | 2,550 |
Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 0 | |
Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 545 | |
Short-term investments, unrealized losses | (1) | |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 911,456 | 2,550 |
Short-term investments | 2,028 | |
Long-term investments | 18,089 | |
Assets | 935,306 | 22,667 |
Level 1 | Government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 2,495 | |
Long-term investments | 17,732 | |
Level 1 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments | ||
Level 1 | Other long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments | 357 | |
Level 1 | Investments held in supplemental retirement plan: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 3,486 | 3,026 |
Liabilities | 3,486 | 3,026 |
Level 1 | Cash | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 905,660 | |
Level 1 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 3,301 | 2,550 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 6,607 | 1,223 |
Short-term investments | 245,729 | |
Long-term investments | 292,104 | |
Assets | 348,322 | 539,056 |
Level 2 | Government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | ||
Level 2 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments | 21,601 | |
Level 2 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 5,058 | 1,223 |
Short-term investments | 15,161 | |
Level 2 | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 1,005 | |
Short-term investments | 174,641 | |
Long-term investments | 218,647 | |
Level 2 | Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 544 | |
Short-term investments | 29,185 | |
Long-term investments | 28,917 | |
Level 2 | Certificates of Deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 17,244 | |
Long-term investments | 22,939 | |
Level 2 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 11,862 | 9,498 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Cost Method Investment 1 [Member] | Other long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term Investments | 3,000 | |
Cost Method Investment 2 [Member] | Other long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other long-term Investments | 500 | |
Long-term investments | Government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, cost | 15,966 | |
Long-term investments, unrealized gains | 0 | |
Long-term investments, unrealized losses | (317) | (107) |
Long-term investments, total | 15,649 | |
Long-term investments | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, cost | 9,791 | |
Long-term investments, unrealized gains | 0 | |
Long-term investments, unrealized losses | (166) | (178) |
Long-term investments, total | 9,625 | |
Long-term investments | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, cost | 146,561 | |
Long-term investments, unrealized gains | 33 | 327 |
Long-term investments, unrealized losses | (1,810) | (537) |
Long-term investments, total | 144,784 | |
Long-term investments | Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, cost | 17,235 | |
Long-term investments, unrealized gains | 29 | |
Long-term investments, unrealized losses | (112) | (25) |
Long-term investments, total | 17,123 | |
Long-term investments | Other long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, cost | 355 | |
Long-term investments, unrealized gains | 246 | 357 |
Long-term investments, unrealized losses | 0 | |
Long-term investments, total | 601 | |
Long-term investments | Long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, cost | 189,908 | |
Long-term investments, unrealized gains | 279 | |
Long-term investments, unrealized losses | (2,405) | |
Long-term investments, total | 187,782 | |
Long-term investments | Certificates of Deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 5 | |
Long-term investments, unrealized losses | (6) | |
Long-term investments | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments | 15,895 | |
Long-term investments | Level 1 | Government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments | 15,649 | |
Long-term investments | Level 1 | Other long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments | 246 | |
Long-term investments | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments | 171,532 | |
Long-term investments | Level 2 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments | 9,625 | |
Long-term investments | Level 2 | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments | 144,784 | |
Long-term investments | Level 2 | Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments | 17,123 | |
Short-term investments | Government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 7,970 | |
Short-term investments, unrealized gains | 0 | |
Short-term investments, unrealized losses | (15) | |
Short term investments, total | 7,955 | |
Short-term investments | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 9,518 | |
Short-term investments | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 4,276 | |
Short-term investments, unrealized gains | 0 | |
Short-term investments, unrealized losses | 0 | |
Short term investments, total | 4,276 | |
Short-term investments | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 111,245 | |
Short-term investments, unrealized gains | 50 | |
Short-term investments, unrealized losses | (494) | |
Short term investments, total | 110,801 | |
Short-term investments | Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 30,475 | |
Short-term investments, unrealized gains | ||
Short-term investments, unrealized losses | (120) | |
Short term investments, total | 30,355 | |
Short-term investments | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 178,838 | |
Short-term investments, unrealized gains | 64 | |
Short-term investments, unrealized losses | (764) | |
Short term investments, total | 178,138 | |
Short-term investments | Certificates of Deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 12,875 | 17,236 |
Short-term investments, unrealized gains | 14 | |
Short-term investments, unrealized losses | ||
Short term investments, total | 12,889 | |
Short-term investments | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 11,997 | |
Short-term investments, unrealized gains | ||
Short-term investments | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 7,955 | |
Short-term investments | Level 1 | Government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 7,955 | $ 2,028 |
Short-term investments | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 170,183 | |
Short-term investments | Level 2 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 4,276 | |
Short-term investments | Level 2 | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 110,801 | |
Short-term investments | Level 2 | Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 30,355 | |
Short-term investments | Level 2 | Certificates of Deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | $ 12,889 |
Investments and Fair Value Me_3
Investments and Fair Value Measurements (Unrealized Loss Position) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2018 | Sep. 29, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | $ 918,064 | $ 627,017 |
Long-term investments, unrealized gains | 0 | |
Short-term investments, cost | 380,795 | 561,977 |
Available-for-sale Debt Securities, Gross Unrealized Loss | $ 1 | |
Document Period End Date | Sep. 28, 2018 | |
Short term investments, total | $ 377,723 | 561,366 |
Fair Value | 206,479 | 211,423 |
Gross Unrealized Losses | (2,204) | (437) |
Greater than 12 months, Fair Value | 80,613 | 129,546 |
Greater than 12 months, Gross Unrealized Losses | (967) | (616) |
Investment Owned, at Cost | 1,286,810 | 1,189,392 |
Investment Owned, Unrecognized Unrealized Appreciation | (343) | (799) |
Long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 718 | |
Available-for-sale Securities, Gross Unrealized Loss | 853 | |
Certificates of Deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Debt Securities, Gross Unrealized Loss | 1 | |
Short term investments, total | 17,244 | |
Fair Value | 0 | 19,750 |
Gross Unrealized Losses | 0 | (6) |
Greater than 12 months, Fair Value | 0 | 0 |
Greater than 12 months, Gross Unrealized Losses | 0 | 0 |
U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 19,713 |
Gross Unrealized Losses | 0 | (91) |
Greater than 12 months, Fair Value | 21,486 | 11,386 |
Greater than 12 months, Gross Unrealized Losses | (302) | (108) |
Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 174,750 | |
Available-for-sale Debt Securities, Gross Unrealized Loss | 163 | |
Short term investments, total | 174,641 | |
Fair Value | 143,051 | 125,890 |
Gross Unrealized Losses | (1,680) | (251) |
Greater than 12 months, Fair Value | 52,162 | 109,806 |
Greater than 12 months, Gross Unrealized Losses | (624) | (449) |
Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 544 | |
Short-term investments, cost | 29,178 | |
Available-for-sale Debt Securities, Gross Unrealized Loss | 9 | |
Short term investments, total | 29,185 | |
Gross Unrealized Losses | (191) | (24) |
Greater than 12 months, Fair Value | 6,965 | 3,625 |
Greater than 12 months, Gross Unrealized Losses | (41) | (10) |
Investment Owned, at Cost | 41,058 | 26,749 |
Government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 0 | |
Short-term investments, cost | 2,495 | 2,034 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 6 | |
Available-for-sale Securities, Gross Unrealized Loss | ||
Short term investments, total | 2,495 | 2,028 |
Fair Value | 16,633 | 15,029 |
Gross Unrealized Losses | (332) | (64) |
Greater than 12 months, Fair Value | 0 | 4,729 |
Greater than 12 months, Gross Unrealized Losses | 0 | (49) |
Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 5,058 | 1,223 |
Short-term investments, cost | 15,160 | |
Available-for-sale Debt Securities, Gross Unrealized Loss | 1 | |
Available-for-sale Securities, Gross Unrealized Loss | 0 | |
Short term investments, total | 15,161 | |
Greater than 12 months, Fair Value | 0 | 0 |
Greater than 12 months, Gross Unrealized Losses | 0 | 0 |
Investment Owned, at Cost | 5,737 | 4,292 |
Investment Owned, Unrecognized Unrealized Appreciation | (1) | (1) |
Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 1,005 | |
Available-for-sale Debt Securities, Gross Unrealized Loss | 0 | |
Short-term investments | Certificates of Deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 12,875 | 17,236 |
Available-for-sale Debt Securities, Gross Unrealized Loss | ||
Short term investments, total | 12,889 | |
Short-term investments | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 9,518 | |
Short-term investments | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 111,245 | |
Available-for-sale Debt Securities, Gross Unrealized Loss | 494 | |
Short term investments, total | 110,801 | |
Short-term investments | Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 30,475 | |
Available-for-sale Debt Securities, Gross Unrealized Loss | 120 | |
Short term investments, total | 30,355 | |
Short-term investments | Government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 7,970 | |
Available-for-sale Debt Securities, Gross Unrealized Loss | 15 | |
Short term investments, total | 7,955 | |
Short-term investments | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 4,276 | |
Available-for-sale Debt Securities, Gross Unrealized Loss | 0 | |
Short term investments, total | 4,276 | |
Long-term investments | Long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 279 | |
Available-for-sale Securities, Gross Unrealized Loss | 2,405 | |
Long-term investments | Certificates of Deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 5 | |
Available-for-sale Securities, Gross Unrealized Loss | 6 | |
Long-term investments | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 0 | |
Available-for-sale Securities, Gross Unrealized Loss | 166 | 178 |
Long-term investments | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 33 | 327 |
Available-for-sale Securities, Gross Unrealized Loss | 1,810 | 537 |
Long-term investments | Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 29 | |
Available-for-sale Securities, Gross Unrealized Loss | 112 | 25 |
Long-term investments | Government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 0 | |
Available-for-sale Securities, Gross Unrealized Loss | $ 317 | $ 107 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements Investments and Fair Value Measurements (Investment Maturities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2018 | Sep. 29, 2017 | |
Fair Value Disclosures [Abstract] | ||
Document Period End Date | Sep. 28, 2018 | |
Amortized Cost | ||
Due within 1 year | $ 191,241 | $ 251,649 |
Due in 1 to 2 years | 122,131 | 213,555 |
Due in 2 to 3 years | 67,423 | 96,773 |
Total | 380,795 | 561,977 |
Fair Value | ||
Due within 1 year | 190,541 | 251,530 |
Due in 1 to 2 years | 120,545 | 213,154 |
Due in 2 to 3 years | 66,637 | 96,682 |
Total | $ 377,723 | $ 561,366 |
Property, Plant & Equipment (De
Property, Plant & Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 876,463 | $ 790,619 | |
Less: accumulated depreciation | (362,281) | (305,344) | |
Property, Plant And Equipment, Net | 514,182 | 485,275 | |
Depreciation | 54,800 | 53,400 | $ 52,000 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 43,342 | 43,364 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 283,474 | 281,196 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 66,866 | 65,034 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 111,603 | 98,437 | |
Computer Systems and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 194,079 | 173,341 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 30,556 | 28,118 | |
Cinema equipment provided under operating leases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 139,201 | 97,456 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 7,342 | $ 3,673 |
Goodwill & Intangible Assets (D
Goodwill & Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Acquired During Period | $ 18,394 | ||
Goodwill [Roll Forward] | |||
Goodwill | 311,087 | $ 309,616 | |
Goodwill, Translation and Purchase Accounting Adjustments | (1,499) | 1,471 | |
Goodwill | 327,982 | 311,087 | $ 309,616 |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | 400,166 | 379,292 | |
Accumulated Amortization | (216,147) | (189,644) | |
Net | 184,019 | 189,648 | |
Payments to acquire intangible assets | 12,543 | 5,250 | 121,020 |
Amortization of intangible assets | 26,500 | 30,900 | $ 33,200 |
Acquired patents and technology | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | 319,082 | 299,707 | |
Accumulated Amortization | (152,775) | (128,986) | |
Net | 166,307 | 170,721 | |
Payments to acquire intangible assets | $ 21,000 | $ 5,300 | |
Weighted-average useful life | 10 years 6 months | 18 years | |
Customer relationships | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | $ 58,342 | $ 56,843 | |
Accumulated Amortization | (41,012) | (38,368) | |
Net | 17,330 | 18,475 | |
Other intangibles | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | 22,742 | 22,742 | |
Accumulated Amortization | (22,360) | (22,290) | |
Net | $ 382 | $ 452 |
Goodwill & Intangible Assets -
Goodwill & Intangible Assets - Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 28, 2018 | Sep. 29, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,016 | $ 27,696 | |
2,017 | 27,233 | |
2,018 | 27,206 | |
2,019 | 24,542 | |
2,020 | 21,198 | |
Thereafter | 56,144 | |
Net | $ 184,019 | $ 189,648 |
Stockholders' Equity And Stoc_3
Stockholders' Equity And Stock-Based Compensation (Narrative) (Details) - USD ($) | Jul. 24, 2018 | Apr. 24, 2018 | Jan. 24, 2018 | Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | Sep. 28, 2012 | Oct. 31, 2010 | Mar. 28, 2014 | Jul. 25, 2018 | Jan. 25, 2017 | 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 | 9.91% | 10.16% | 10.49% | |||||||||||||
Options granted under the plan | 1,420,000 | |||||||||||||||
Options outstanding to purchase | 8,741,000 | |||||||||||||||
Recognized tax benefit from the exercise of ISO and ESPP | $ 577,000 | $ 802,000 | $ 550,000 | |||||||||||||
Percentage of vesting per year | 50.00% | |||||||||||||||
Share based compensation expense | 71,249,000 | 65,343,000 | 66,985,000 | |||||||||||||
Fair value of restricted stock units vested | $ 64,755,000 | 51,985,000 | 40,283,000 | |||||||||||||
Year end stock price | $ 69.97 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,341,000 | |||||||||||||||
Employee stock options expected to be recognized over a weighted-average period | 6 years 6 months 21 days | |||||||||||||||
Allocated Share-based Compensation Expense | $ 71,249,000 | $ 65,343,000 | $ 66,985,000 | |||||||||||||
Stock authorized for repurchase | 1,650,000,000 | $ 250,000,000 | ||||||||||||||
Remaining authorization to purchase additional shares | $ 351,500,000 | |||||||||||||||
Common stock, dividends declared (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.67 | $ 0.58 | $ 0.50 | ||||||||||
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) | 63,978,752 | 59,281,837 | ||||||||||||||
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) | 39,261,035 | 42,873,597 | ||||||||||||||
2005 Stock Plan. [Member] | Class A Common Stock [Member] | ||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||
Shares authorized under plan | 46,000,000 | |||||||||||||||
Options outstanding to purchase | 7,298,000 | |||||||||||||||
Weighted Average Remaining Contractual Life, Options outstanding | 6 years 7 months 18 days | |||||||||||||||
Options vested and exercisable | 3,889,000 | |||||||||||||||
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 | $ 350,000,000 | $ 200,000,000 | $ 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 | $ 26,800,000 | |||||||||||||||
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 | ||||||||||||||
Restricted Stock Units [Member] | ||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||
Share based compensation expense | $ 46,162,000 | $ 43,171,000 | $ 42,201,000 | |||||||||||||
Stock options expected to vest | $ 98,200,000 | |||||||||||||||
Employee stock options expected to be recognized over a weighted-average period | 2 years 5 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 |
Stockholders' Equity And Stoc_4
Stockholders' Equity And Stock-Based Compensation (Summary Of Stock Options Issued To Officers, Directors, And Employees Under 2000 Stock Incentive Plan And 2005 Stock Plan) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 15, 2016 | Dec. 15, 2015 | Sep. 28, 2018 | Sep. 28, 2012 |
Shares | ||||
Options outstanding at September 29, 2017 | 8,741,000 | |||
Grants | 1,420,000 | |||
Exercises | (2,473,000) | |||
Forfeitures and cancellations | (390,000) | |||
Options vested and expected to vest at September 28, 2018 | 6,911,000 | |||
Weighted-Average Exercise Price | ||||
Options outstanding at September 29, 2017 | $ 38.65 | |||
Grants | 62.34 | |||
Exercises | 37.33 | |||
Forfeitures and cancellations | 40.58 | |||
Options outstanding at September 28, 2018 | 43.61 | |||
Options vested and expected to vest at September 28, 2018 | 43.06 | |||
Options exercisable at September 28, 2018 | $ 37.88 | |||
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 | 6 years 6 months 21 days | |||
Weighted Average Remaining Contractual Life, Options exercisable | 5 years 8 months 13 days | |||
Aggregate Intrinsic Value, Options outstanding | $ 192,397 | |||
Aggregate Intrinsic Value, Options vested and expected to vest | 185,978 | |||
Aggregate Intrinsic Value, Options exercisable | $ 124,812 | |||
Year End Stock Price | $ 69.97 | |||
Two Thousand Five Stock Plan Member | Common Class A [Member] | ||||
Shares | ||||
Options outstanding at September 28, 2018 | 7,298,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Weighted Average Remaining Contractual Life, Options outstanding | 6 years 7 months 18 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 3,889,000 | |||
Awards Granted Under 2005 Stock Plan Prior To February 2011 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Terms for issuance of stock | 2 | |||
Awards Granted Under 2005 Stock Plan From February 2011 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Terms for issuance of stock | 1.6 | |||
Employee Stock Option [Member] | Options Granted From June 2008 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Options maximum vesting period, months | 4 years | 36 months | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Becoming Exercisable | 25.00% | |||
Employee Stock Option [Member] | Options Granted Prior To June 2008 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Options expiration period | 10 years | |||
Performance-Based Stock Options [Member] | Awarded Fiscal 2017 [Member] | Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 276,199 | |||
Shares | ||||
Options outstanding at September 28, 2018 | 784,898 | |||
Performance-Based Stock Options [Member] | Awarded Fiscal 2016 [Member] | Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 335,699 |
Stockholders' Equity And Stoc_5
Stockholders' Equity And Stock-Based Compensation (Summary Of Restricted Stock Units Issued To Officers, Directors, And Employees Under 2005 Stock Incentive Plan) (Details) shares in Thousands | 12 Months Ended |
Sep. 28, 2018$ / sharesshares | |
Shares | |
Non-vested at September 29, 2017 | shares | 2,839 |
Granted | shares | 1,341 |
Vested | shares | (1,045) |
Forfeitures | shares | (329) |
Non-vested at September 28, 2018 | shares | 2,806 |
Weighted-Average Grant Date Fair Value | |
Non-vested at September 29, 2017 | $ / shares | $ 44.38 |
Granted | $ / shares | 62.84 |
Vested | $ / shares | 40.77 |
Forfeitures | $ / shares | 44.62 |
Non-vested at September 28, 2018 | $ / shares | $ 54.52 |
Stockholders' Equity And Stoc_6
Stockholders' Equity And Stock-Based Compensation (RSU Vest Date Fair Value) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |||
Restricted stock units - vest date fair value | $ 64,755 | $ 51,985 | $ 40,283 |
Stockholders' Equity And Stoc_7
Stockholders' Equity And Stock-Based Compensation (Schedule Of Fair Value Of Stock-Based Awards Estimated Using Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |||
Document Period End Date | Sep. 28, 2018 | ||
Expected life (in years) | 5 years 23 days | 5 years 1 month 17 days | 5 years 2 months 27 days |
Risk-free interest rate | 2.20% | 2.10% | 1.70% |
Expected stock price volatility | 22.60% | 27.40% | 29.80% |
Dividend yield | 1.10% | 1.10% | 1.40% |
Stockholders' Equity And Stoc_8
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. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |||
Document Period End Date | Sep. 28, 2018 | ||
Weighted-average fair value at date of grant | $ 13.19 | $ 11.39 | $ 8.49 |
Intrinsic value of options exercised | $ 63,973 | $ 28,544 | $ 27,485 |
Stockholders' Equity And Stoc_9
Stockholders' Equity And Stock-Based Compensation (Forfeiture Rates) (Details) | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |||
Estimated forfeiture rate, percent | 9.91% | 10.16% | 10.49% |
Stockholders' Equity And Sto_10
Stockholders' Equity And Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense By Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||
Document Period End Date | Sep. 28, 2018 | ||
Allocated Share-based Compensation Expense | $ 71,249 | $ 65,343 | $ 66,985 |
Share based compensation expense | 71,249 | 65,343 | 66,985 |
Benefit from income taxes | (12,595) | (18,959) | (19,627) |
Recognized tax benefit from the exercise of ISO and ESPP | 577 | 802 | 550 |
Allocated Share-based Compensation Expense, Net of Tax | 58,654 | 46,384 | 47,358 |
Stock Option [Member] | |||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||
Share based compensation expense | 21,083 | 18,630 | 21,311 |
Restricted Stock Units [Member] | |||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||
Share based compensation expense | 46,162 | 43,171 | 42,201 |
Employee Stock Purchase Plan [Member] | |||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||
Share based compensation expense | $ 4,004 | $ 3,542 | $ 3,473 |
Stockholders' Equity And Sto_11
Stockholders' Equity And Stock-Based Compensation (Schedule of Stock-Based Compensation By Classification) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Document Period End Date | Sep. 28, 2018 | ||
Recognized tax benefit from the exercise of ISO and ESPP | $ 577 | $ 802 | $ 550 |
Stock-based compensation expense | 71,249 | 65,343 | 66,985 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 12,595 | 18,959 | 19,627 |
Allocated Share-based Compensation Expense, Net of Tax | 58,654 | 46,384 | 47,358 |
Cost of products [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,009 | 946 | 859 |
Cost of services [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 565 | 512 | 547 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 19,515 | 18,497 | 17,771 |
Sales and marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 24,997 | 26,175 | 27,579 |
General and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 25,163 | $ 19,213 | $ 20,229 |
Stockholders' Equity And Sto_12
Stockholders' Equity And Stock-Based Compensation (Stock Repurchase) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | Jul. 25, 2018 | Jan. 25, 2017 | 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 | $ 1,650,000 | $ 1,650,000 | $ 250,000 | |||||||||||
Shares repurchased (in shares) | 912,822 | 896,689 | 77,705 | 493,884 | 2,381,100 | |||||||||
Cost | $ 59,990 | $ 55,480 | $ 5,001 | $ 29,999 | $ 150,470 | $ 100,000 | $ 100,854 | |||||||
Average Price Paid per Share (in dollars per share) | $ 65.71 | $ 61.86 | $ 64.33 | $ 60.73 | $ 65.71 | |||||||||
Additional Stock Approved [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 350,000 | $ 200,000 | $ 200,000 | $ 100,000 | $ 250,000 | $ 300,000 |
Stockholders' Equity And Sto_13
Stockholders' Equity And Stock-Based Compensation Stockholders' Equity And Stock- Based Compensation - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 24, 2018 | Jul. 24, 2018 | Apr. 24, 2018 | Jan. 24, 2018 | Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 |
Dividends Payable [Line Items] | |||||||
Cash dividend declared per common share | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.67 | $ 0.58 | $ 0.50 | |
Dividends | $ 16.6 | $ 16.7 | $ 16.6 | ||||
Subsequent Event [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Cash dividend declared per common share | $ 0.19 | ||||||
Dividends | $ 19.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, Beginning Of Period | $ (7,753) | $ (10,197) | |
Income Tax Effect - Benefit/(Expense) | 106 | (609) | |
Net of tax | (7,721) | 2,513 | |
Realized (Gains) - Investment Securities | [1] | (447) | 95 |
Income Tax Effect - Expense | [2] | 89 | (26) |
Net Of Tax | (358) | (69) | |
Net current-period other comprehensive income/(loss) | (8,079) | 2,444 | |
Balance, End Of Period | (15,832) | (7,753) | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, Beginning Of Period | (377) | 742 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (2,213) | (1,062) | |
Income Tax Effect - Benefit/(Expense) | 0 | 12 | |
Net of tax | (2,213) | (1,050) | |
Realized (Gains) - Investment Securities | (447) | (95) | |
Income Tax Effect - Expense | 89 | 26 | |
Net Of Tax | (358) | (69) | |
Net current-period other comprehensive income/(loss) | (2,571) | (1,119) | |
Balance, End Of Period | (2,948) | (377) | |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, Beginning Of Period | (7,376) | (10,939) | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | [1] | (5,614) | 4,184 |
Income Tax Effect - Benefit/(Expense) | (106) | (621) | |
Net of tax | (5,508) | 3,563 | |
Net current-period other comprehensive income/(loss) | (5,508) | 3,563 | |
Balance, End Of Period | $ (12,884) | $ (7,376) | |
[1] | Realized gains or losses, if any, from the sale of our AFS investment securities or from foreign currency translation adjustments are included within other income/expense, net in our consolidated statements of operations | ||
[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. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Net income attributable to Dolby Laboratories, Inc. | $ 50,092 | $ 83,145 | $ 70,631 | $ (81,622) | $ 21,795 | $ 76,043 | $ 50,590 | $ 53,374 | $ 122,246 | $ 201,802 | $ 185,860 |
Weighted Average Number of Shares Outstanding, Basic | 103,349 | 103,836 | 103,771 | 102,552 | 101,959 | 101,905 | 101,787 | 101,483 | 103,377 | 101,784 | 100,717 |
Potential common shares from options to purchase Class A and Class B common stock | 2,370 | 1,098 | 1,013 | ||||||||
Potential common shares from restricted stock units | 1,231 | 404 | 694 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 106,794 | 106,950 | 107,001 | 102,552 | 103,530 | 104,222 | 103,883 | 103,876 | 106,978 | 103,286 | 102,424 |
Basic (usd per share) | $ 0.48 | $ 0.80 | $ 0.68 | $ (0.80) | $ 0.21 | $ 0.75 | $ 0.50 | $ 0.53 | $ 1.18 | $ 1.98 | $ 1.85 |
Net income per share attributable to Dolby Laboratories, Inc. - Diluted | $ 0.47 | $ 0.78 | $ 0.66 | $ (0.80) | $ 0.21 | $ 0.73 | $ 0.49 | $ 0.51 | $ 1.14 | $ 1.95 | $ 1.81 |
Employee Stock Option [Member] | |||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Anti-dilutive securities, excluded from calculations | 1,043 | 160 | 2,971 | ||||||||
Restricted Stock Units [Member] | |||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Anti-dilutive securities, excluded from calculations | 6 | 0 | 30 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | Sep. 25, 2015 | |
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryovers for California tax purposes | $ 5,800 | |||
Effective tax rate | 60.70% | 21.10% | 21.00% | |
Unrecognized tax benefits, gross | $ 102,009 | $ 98,665 | $ 75,168 | $ 65,161 |
Unrecognized tax benefits if recognized, would affect our effective tax rate | 96,900 | |||
Estimated decrease in unrecognized tax benefits due to lapse in statute of limitations | 1,900 | |||
Increase in interest expense for current tax provision | 3,000 | $ 1,800 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 8,600 | |||
Deferred Tax Assets, Tax Credit Carryforwards, Research | 4,900 | |||
Foreign Tax Credit Carryforward [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 6,900 | |||
California Research Tax Credit Carryforward [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 24,100 | |||
Research Tax Credit Carryforward [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | $ 1,800 |
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. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Document Period End Date | Sep. 28, 2018 | ||||||||||
U.S. | $ 75,689 | $ 28,221 | $ 37,223 | ||||||||
Foreign | 237,178 | 228,423 | 198,681 | ||||||||
Income before income taxes | $ 41,960 | $ 96,590 | $ 89,483 | $ 84,834 | $ 26,491 | $ 96,303 | $ 66,194 | $ 67,656 | $ 312,867 | $ 256,644 | $ 235,904 |
Income Taxes (Schedule Of Provi
Income Taxes (Schedule Of Provision For Income Taxes ) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Current: | |||
Federal | $ 40,624 | $ 30,719 | $ 19,226 |
State | 333 | 610 | 521 |
Foreign | 59,383 | 55,531 | 52,492 |
Total current | 100,340 | 86,860 | 72,239 |
Deferred: | |||
Federal | 71,988 | (27,345) | (19,540) |
State | 18,243 | (4,596) | (3,451) |
Foreign | (509) | (702) | 254 |
Total deferred | 89,722 | (32,643) | (22,737) |
Provision for income taxes | $ 190,062 | $ 54,217 | $ 49,502 |
Income Taxes (Withholding Taxes
Income Taxes (Withholding Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Document Period End Date | Sep. 28, 2018 | ||
Withholding taxes | $ 50,313 | $ 48,012 | $ 45,151 |
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 | 12 Months Ended | |
Sep. 28, 2018 | Sep. 29, 2017 | |
Income Tax Disclosure [Abstract] | ||
Document Period End Date | Sep. 28, 2018 | |
Investments | $ 2,215 | $ 2,327 |
Inventories | 4,070 | 6,821 |
Net operating loss | 2,174 | 2,806 |
Accrued expenses | 12,573 | 19,732 |
Stock-based compensation | 15,601 | 26,970 |
Revenue recognition | 33,464 | 53,843 |
Depreciation and amortization | 16,078 | 52,876 |
Research and development credits | 21,302 | 15,504 |
Foreign tax credits | 9,345 | 10,140 |
Deferred Tax Assets, Unrealized Currency Losses | 0 | 625 |
Other | 3,335 | 6,696 |
Total gross deferred income tax assets | 120,157 | 198,340 |
Less: valuation allowance | (16,256) | 0 |
Total deferred income tax assets | 103,901 | 198,340 |
Intangibles | (2,831) | (2,277) |
International earnings | 0 | (4,855) |
Unrealized gain on investments | 0 | (293) |
Deferred income tax assets, net | 101,070 | $ 190,915 |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 8,600 | |
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. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | Sep. 25, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory rate | 24.60% | 35.00% | 35.00% | |
State income taxes, net of federal effect | 0.70% | 0.70% | 0.70% | |
Stock-based compensation expense rate | (3.20%) | 1.40% | 1.50% | |
Research and development tax credits | (2.80%) | (3.70%) | (5.20%) | |
Tax exempt interest | (0.00%) | (0.10%) | (0.10%) | |
U.S. manufacturing tax incentives | (0.20%) | (0.80%) | (1.10%) | |
Foreign rate differential | (3.90%) | (11.70%) | (9.50%) | |
Audit settlements | 0.00% | (0.60%) | (2.30%) | |
Tax Act | 38.80% | 0.00% | 0.00% | |
Establishment of Valuation Allowance | 5.20% | 0.00% | 0.00% | |
Other | 1.50% | 0.90% | 2.00% | |
Effective tax rate | 60.70% | 21.10% | 21.00% | |
Unrecognized Tax Benefits | $ 102,009 | $ 98,665 | $ 75,168 | $ 65,161 |
Unrecognized tax benefits if recognized, would affect our effective tax rate | $ 96,900 |
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. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Document Period End Date | Sep. 28, 2018 | ||
Unrecognized tax benefits if recognized, would affect our effective tax rate | $ 96,900 | ||
Estimated decrease in unrecognized tax benefits due to lapse in statute of limitations | 1,900 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits, Beginning Balance | 98,665 | $ 75,168 | $ 65,161 |
Increases in balances related to tax positions taken during prior years | 0 | 308 | 4,343 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (2,209) | 0 | 0 |
Increases in balances related to tax positions taken during the current year | 9,580 | 26,724 | 26,585 |
Settlements | (130) | (1,101) | (20,086) |
Lapse of statute of limitations | (3,897) | (2,434) | (835) |
Unrecognized Tax Benefits, Ending Balance | $ 102,009 | $ 98,665 | $ 75,168 |
Income Taxes (Interest and Pena
Income Taxes (Interest and Penalties on Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2018 | Sep. 29, 2017 | |
Income Tax Disclosure [Abstract] | ||
Document Period End Date | Sep. 28, 2018 | |
Accrued interest | $ 6,778 | $ 3,733 |
Accrued penalties | 42 | 55 |
Total | $ 6,820 | $ 3,788 |
Restructuring (Details)
Restructuring (Details) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018USD ($)employee | Sep. 29, 2017USD ($) | Sep. 30, 2016USD ($)employee | |
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | $ 446 | $ (12,856) | $ (1,233) |
2016 Restructuring Plan [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 0 | ||
Restructuring charges | (1,294) | ||
Cash payments | (1,233) | ||
Non-cash charges | (61) | ||
Restructuring reserve, ending balance | $ 0 | ||
2013 Restructuring Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of positions eliminated | employee | 30 | ||
2017 Restructuring Plan [Member] [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of positions eliminated | employee | 80 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 12,688 | ||
Restructuring charges | (12,856) | ||
Cash payments | (168) | ||
Non-cash charges | 0 | ||
Restructuring reserve, ending balance | $ 12,688 |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | Sep. 28, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Term of agreement | 20 years | |||
Total rent expense | $ 17,161 | $ 15,091 | $ 13,288 |
Commitments And Contingencies_3
Commitments And Contingencies (Schedule Of Contractual Obligations And Commitments) (Details) $ in Thousands | Sep. 28, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Naming rights, Fiscal 2017 | $ 7,811 |
Naming rights, Fiscal 2018 | 7,909 |
Naming rights, Fiscal 2019 | 8,008 |
Naming rights, Fiscal 2020 | 8,108 |
Naming rights, Fiscal 2021 | 8,209 |
Naming rights, Thereafter | 78,656 |
Naming rights, Total | 118,701 |
Donation commitments | |
Donation commitments, Fiscal 2017 | 8,275 |
Donation commitments, Fiscal 2018 | 297 |
Donation commitments, Fiscal 2019 | 97 |
Donation commitments, Fiscal 2020 | 97 |
Donation commitments, Fiscal 2021 | 97 |
Donation commitments, Thereafter | 761 |
Donation commitments, Total | 9,624 |
Operating leases | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 17,117 |
Operating Leases, Future Minimum Payments, Due in Two Years | 14,371 |
Operating Leases, Future Minimum Payments, Due in Three Years | 11,522 |
Operating Leases, Future Minimum Payments, Due in Four Years | 9,967 |
Operating Leases, Future Minimum Payments, Due in Five Years | 9,240 |
Operating Leases, Future Minimum Payments, Due Thereafter | 19,928 |
Operating Leases, Future Minimum Payments Due | 82,145 |
Purchase obligations | |
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | 58,449 |
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 22,844 |
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 477 |
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 333 |
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 0 |
Unrecorded Unconditional Purchase Obligation, Due after Five Years | 0 |
Unrecorded Unconditional Purchase Obligation | 82,103 |
Total | |
Total, due in Fiscal 2017 | 91,652 |
Total, due in Fiscal 2018 | 45,421 |
Total, due in Fiscal 2019 | 20,104 |
Total, due in Fiscal 2020 | 18,505 |
Total, due in Fiscal 2021 | 17,546 |
Total, due Thereafter | 99,345 |
Total due | $ 292,573 |
Operating Segments and Geogra_3
Operating Segments and Geographic Data (Revenue By Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Document Period End Date | Sep. 28, 2018 | ||||||||||
Total revenue | $ 265,325 | $ 317,447 | $ 301,355 | $ 287,797 | $ 242,048 | $ 305,665 | $ 267,474 | $ 266,267 | $ 1,171,924 | $ 1,081,454 | $ 1,025,738 |
U.S. [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenue | 388,700 | 373,264 | 320,129 | ||||||||
International [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenue | $ 783,224 | $ 708,190 | $ 705,609 |
Operating Segments and Geogra_4
Operating Segments and Geographic Data (Schedule Of Concentration Of Revenue From Individual Geographic Regions) (Details) | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Revenue From External Customer [Line Items] | |||
Document Period End Date | Sep. 28, 2018 | ||
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 | 33.00% | 35.00% | 31.00% |
South Korea [Member] | |||
Revenue From External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 19.00% | 16.00% | 17.00% |
China [Member] | |||
Revenue From External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 17.00% | 16.00% | 14.00% |
Japan [Member] | |||
Revenue From External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 12.00% | 12.00% | 12.00% |
Europe [Member] | |||
Revenue From External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 11.00% | 11.00% | 14.00% |
Taiwan [Member] | |||
Revenue From External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 3.00% | 4.00% | 4.00% |
Other [Member] | |||
Revenue From External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 5.00% | 6.00% | 8.00% |
Operating Segments and Geogra_5
Operating Segments and Geographic Data (Schedule Of Long-Lived Assets, Net Of Accumulated Depreciation, By Geographic Region) (Details) - USD ($) $ in Thousands | Sep. 28, 2018 | Sep. 29, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets, net of accumulated depreciation | $ 514,182 | $ 485,275 |
U.S. [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 453,336 | 439,023 |
International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 60,846 | $ 46,252 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Related party rent expense | $ 3,483 | $ 3,142 | $ 3,097 |
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% |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |||
Document Period End Date | Sep. 28, 2018 | ||
Retirement plan expenses | $ 23,439 | $ 22,035 | $ 20,471 |
Selected Quarterly Financial _3
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. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 | |
Quarterly Financial Data [Abstract] | |||||||||||
Licensing | $ 240,122 | $ 286,325 | $ 273,143 | $ 258,016 | $ 213,370 | $ 278,106 | $ 241,617 | $ 232,699 | $ 1,057,606 | $ 965,792 | $ 917,032 |
Products | 20,689 | 26,265 | 22,665 | 24,933 | 23,797 | 22,569 | 20,713 | 28,211 | 94,552 | 95,290 | 90,543 |
Services | 4,514 | 4,857 | 5,547 | 4,848 | 4,881 | 4,990 | 5,144 | 5,357 | 19,766 | 20,372 | 18,163 |
Total revenue | 265,325 | 317,447 | 301,355 | 287,797 | 242,048 | 305,665 | 267,474 | 266,267 | 1,171,924 | 1,081,454 | 1,025,738 |
Cost of revenue | 31,960 | 34,465 | 30,959 | 30,876 | 29,238 | 32,125 | 26,977 | 29,967 | 128,260 | 118,307 | 108,982 |
Gross margin | 233,365 | 282,982 | 270,396 | 256,921 | 212,810 | 273,540 | 240,497 | 236,300 | 1,043,664 | 963,147 | 916,756 |
Income before taxes and controlling interest | 41,960 | 96,590 | 89,483 | 84,834 | 26,491 | 96,303 | 66,194 | 67,656 | 312,867 | 256,644 | 235,904 |
Net income attributable to Dolby Laboratories, Inc. | $ 50,092 | $ 83,145 | $ 70,631 | $ (81,622) | $ 21,795 | $ 76,043 | $ 50,590 | $ 53,374 | $ 122,246 | $ 201,802 | $ 185,860 |
Net Income Per Share: | |||||||||||
Basic (usd per share) | $ 0.48 | $ 0.80 | $ 0.68 | $ (0.80) | $ 0.21 | $ 0.75 | $ 0.50 | $ 0.53 | $ 1.18 | $ 1.98 | $ 1.85 |
Diluted (usd per share) | $ 0.47 | $ 0.78 | $ 0.66 | $ (0.80) | $ 0.21 | $ 0.73 | $ 0.49 | $ 0.51 | $ 1.14 | $ 1.95 | $ 1.81 |
Weighted-average shares outstanding: | |||||||||||
Basic (shares) | 103,349 | 103,836 | 103,771 | 102,552 | 101,959 | 101,905 | 101,787 | 101,483 | 103,377 | 101,784 | 100,717 |
Diluted (shares) | 106,794 | 106,950 | 107,001 | 102,552 | 103,530 | 104,222 | 103,883 | 103,876 | 106,978 | 103,286 | 102,424 |