DOLBY LABORATORIES, INC., 10-Q filed on 2/2/2024
Quarterly Report
v3.24.0.1
Cover - shares
 3 Months Ended
Dec. 29, 2023
Jan. 26, 2024
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Dec. 29, 2023  
Document Transition Report false  
Entity File Number 001-32431  
Entity Registrant Name DOLBY LABORATORIES, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 90-0199783  
Entity Address, Address Line One 1275 Market Street  
Entity Address, City or Town San Francisco  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94103-1410  
City Area Code 415  
Local Phone Number 558-0200  
Title of 12(b) Security Class A common stock, $0.001 par value  
Trading Symbol DLB  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0001308547  
Current Fiscal Year End Date --09-27  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Class A Common Stock [Member]    
Entity Common Stock, Shares Outstanding (shares)   59,493,054
Class B Common Stock [Member]    
Entity Common Stock, Shares Outstanding (shares)   36,085,779
v3.24.0.1
Interim Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 29, 2023
Sep. 29, 2023
Current assets:    
Cash and cash equivalents $ 656,816 $ 745,364
Restricted cash 51,842 72,602
Short-term investments 140,823 139,148
Accounts receivable, net of allowance for credit losses of $7,428 and $9,683 293,228 262,245
Contract assets, net of allowance for credit losses of $108 and $138 217,559 182,130
Inventories, net 37,568 35,623
Prepaid expenses and other current assets 53,519 50,692
Total current assets 1,451,355 1,487,804
Long-term investments 92,876 97,812
Property, plant, and equipment, net 479,321 481,581
Operating lease right-of-use assets 38,001 40,199
Intangible assets, net 159,894 167,427
Goodwill 410,435 408,409
Other non-current assets 96,980 94,674
Deferred taxes 206,667 201,860
Total assets 2,935,529 2,979,766
Current liabilities:    
Accounts payable 14,395 20,925
Accrued liabilities 327,186 351,399
Income taxes payable 6,189 4,769
Contract liabilities 33,404 31,505
Operating lease liabilities 12,922 13,628
Total current liabilities 394,096 422,226
Non-current contract liabilities 36,994 39,997
Non-current operating lease liabilities 34,319 37,020
Other non-current liabilities 107,810 108,339
Total liabilities 573,219 607,582
Stockholders’ equity:    
Retained earnings 2,367,182 2,391,990
Accumulated other comprehensive loss (21,428) (36,984)
Total stockholders’ equity – Dolby Laboratories, Inc. 2,345,848 2,355,100
Noncontrolling interest 16,462 17,084
Total stockholders’ equity 2,362,310 2,372,184
Total liabilities and stockholders’ equity 2,935,529 2,979,766
Class A, $0.001 par value, one vote per share, 500,000,000 shares authorized: 59,765,465 shares issued and outstanding at December 29, 2023 and 59,673,633 at September 29, 2023    
Stockholders’ equity:    
Common stock 53 53
Class B, $0.001 par value, ten votes per share, 500,000,000 shares authorized: 36,085,779 shares issued and outstanding at December 29, 2023 and 36,085,779 at September 29, 2023    
Stockholders’ equity:    
Common stock $ 41 $ 41
v3.24.0.1
Interim Condensed Consolidated Balance Sheets (Parenthetical)
$ in Thousands
Dec. 29, 2023
USD ($)
vote
$ / shares
shares
Sep. 29, 2023
USD ($)
vote
shares
Allowance for doubtful accounts | $ $ 7,428 $ 9,683
Contract assets, allowance for credit losses | $ $ 108 $ 138
Class A Common Stock [Member]    
Common stock, par value (usd per share) | $ / shares $ 0.001  
Common stock voting right per share (votes per share) | vote 1  
Common stock, shares authorized (shares) 500,000,000 500,000,000
Common stock, shares issued (shares) 59,765,465 59,673,633
Common stock, shares outstanding (shares) 59,765,465 59,673,633
Class B Common Stock [Member]    
Common stock, par value (usd per share) | $ / shares $ 0.001  
Common stock voting right per share (votes per share) | vote 10 10
Common stock, shares authorized (shares) 500,000,000 500,000,000
Common stock, shares issued (shares) 36,085,779 36,085,779
Common stock, shares outstanding (shares) 36,085,779 36,085,779
v3.24.0.1
Interim Condensed Consolidated Statements Of Operations - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Revenue:    
Revenue $ 315,574 $ 334,921
Total revenue 315,574 334,921
Cost of revenue:    
Total cost of revenue 32,060 34,450
Gross profit 283,514 300,471
Operating expenses:    
Research and development 67,033 64,450
Sales and marketing 79,003 82,205
General and administrative 65,166 59,972
Restructuring charges 6,091 (244)
Total operating expenses 217,293 206,383
Operating income 66,221 94,088
Other income/(expense):    
Interest income/(expense), net 9,187 4,797
Other income, net 5,425 1,097
Total other income 14,612 5,894
Income before income taxes 80,833 99,982
Provision for income taxes (13,252) (20,534)
Net income including noncontrolling interest 67,581 79,448
Less: net income attributable to noncontrolling interest (600) (73)
Net income attributable to Dolby Laboratories, Inc. $ 66,981 $ 79,375
Net income per share:    
Basic (in usd per share) $ 0.70 $ 0.83
Diluted (in usd per share) $ 0.69 $ 0.82
Weighted-average shares outstanding:    
Basic (in shares) 95,376 95,905
Diluted (in shares) 97,439 97,047
Cash dividend declared per common share (in dollars per share) $ 0.30 $ 0.27
Cash dividend paid per common share (in dollars per share) $ 0.30 $ 0.27
Licensing    
Revenue:    
Revenue $ 293,767 $ 308,011
Cost of revenue:    
Cost of revenue 15,736 13,359
Products and services    
Revenue:    
Revenue 21,807 26,910
Cost of revenue:    
Cost of revenue $ 16,324 $ 21,091
v3.24.0.1
Interim Condensed Consolidated Statements Of Operations (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Related party rent expense:    
Included in net income attributable to noncontrolling interest $ 71 $ 71
v3.24.0.1
Interim Condensed Consolidated Statements of Comprehensive Income Statement - USD ($)
$ in Thousands
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Statement of Comprehensive Income [Abstract]    
Net income including noncontrolling interest $ 67,581 $ 79,448
Other comprehensive income:    
Currency translation adjustments gains, net of tax benefit/(expense) of $0 and $0 11,649 14,381
Unrealized gains on investments, net of tax benefit of $12 and $37 1,956 1,356
Unrealized gains on cash flow hedges, net of tax benefit/(expense) of ($684) and $156 2,091 4,332
Other Comprehensive Income (Loss), Net of Tax 15,696 20,069
Comprehensive income 83,277 99,517
Less: comprehensive (income) attributable to controlling interest (740) (376)
Comprehensive income attributable to Dolby Laboratories, Inc. $ 82,537 $ 99,141
v3.24.0.1
Interim Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Statement of Comprehensive Income [Abstract]    
Currency translation adjustment, tax $ 0 $ 0
Unrealized gain (loss) on investments, tax (12) (37)
Unrealized gains on cash flow hedges, tax $ 684 $ (156)
v3.24.0.1
Interim Condensed Consolidated Statements Of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Additional Paid-In Capital
Class A Common Stock [Member]
Retained Earnings
Accumulated Other Comprehensive Loss
Total Stockholders' Equity - Dolby Laboratories, Inc.
Noncontrolling Interest
Beginning balance (in shares) at Sep. 30, 2022   94,000            
Beginning balance at Sep. 30, 2022 $ 2,251,020   $ 0   $ 2,297,730 $ (51,641) $ 2,246,183 $ 4,837
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 79,448       79,375   79,375 73
Other comprehensive income, net of tax 20,069         19,766 19,766 303
Distributions to noncontrolling interest (266)             266
Stock-based compensation expense 31,240   31,240       31,240  
Capitalized stock-based compensation expense 341   341       341  
Repurchase of common stock (in shares)   (1,000)            
Repurchase of common stock (49,412)   (17,533)   (31,878)   (49,412)  
Cash dividends declared and paid on common stock (25,869)       (25,869)   (25,869)  
Common stock issued under employee stock plans 10,954 $ 2 10,952       10,954  
Tax withholdings on vesting of restricted stock (25,000)     $ (25,000)     (25,000)  
Ending balance (in shares) at Dec. 30, 2022   95,000            
Ending balance at Dec. 30, 2022 2,292,525   0   2,319,358 (31,875) 2,287,578 4,947
Beginning balance (in shares) at Sep. 29, 2023   94,000            
Beginning balance at Sep. 29, 2023 2,372,184   0   2,391,990 (36,984) 2,355,100 17,084
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 67,581       66,981   66,981 600
Other comprehensive income, net of tax 15,696         15,556 15,556 140
Distributions to noncontrolling interest (1,047)             1,047
Stock-based compensation expense 31,894   31,894       31,894  
Capitalized stock-based compensation expense $ 95   95       95  
Repurchase of common stock (in shares) (967,789) (1,000)            
Repurchase of common stock $ (80,002)   (16,087)   (63,914)   (80,002)  
Cash dividends declared and paid on common stock (28,552)       (28,552)   (28,552)  
Common stock issued under employee stock plans 18,301 $ 1 18,300       18,301  
Tax withholdings on vesting of restricted stock (34,562)     $ (34,562)     (34,562)  
Deconsolidation of subsidiary 0       677   677 (677)
Equity issued in connection with business combination 722   360       360 362
Ending balance (in shares) at Dec. 29, 2023   94,000            
Ending balance at Dec. 29, 2023 $ 2,362,310   $ 0   $ 2,367,182 $ (21,428) $ 2,345,848 $ 16,462
v3.24.0.1
Interim Condensed Consolidated Statements Of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Operating activities:    
Net income including noncontrolling interest $ 67,581 $ 79,448
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 17,872 19,155
Stock-based compensation 31,894 31,240
Amortization of operating lease right-of-use assets 3,088 3,207
Amortization of premium on investments (895) 81
Benefit from credit losses (2,101) (1,030)
Deferred income taxes (5,397) (8,255)
Other non-cash items affecting net income (1,745) (3,467)
Changes in operating assets and liabilities:    
Accounts receivable, net (28,935) (45,153)
Contract assets, net (35,400) (39,843)
Inventories (9,297) (501)
Operating lease right-of-use assets 570 1,690
Prepaid expenses and other assets 5,866 2,168
Accounts payable and accrued liabilities (31,993) 5,765
Income taxes, net 6,184 15,292
Contract liabilities (1,116) 3,277
Operating lease liabilities (4,264) (5,430)
Other non-current liabilities (3,503) (1,249)
Net cash provided by operating activities 8,409 56,395
Investing activities:    
Purchases of marketable securities (35,753) (72,790)
Proceeds from sales of marketable securities 1,226 51,782
Proceeds from maturities of marketable securities 41,259 56,525
Purchases of property, plant, and equipment (6,099) (7,217)
Net cash provided by investing activities 633 28,300
Financing activities:    
Proceeds from issuance of common stock 18,301 10,954
Repurchase of common stock (80,002) (49,412)
Payment of cash dividend (28,552) (25,869)
Distribution to noncontrolling interest (1,047) (266)
Shares repurchased for tax withholdings on vesting of restricted stock (34,562) (25,000)
Equity issued in connection with business combination 722 0
Payment Of Deferred Consideration For Prior Business Combination 0 (500)
Net cash used in financing activities (125,140) (90,093)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash 6,790 8,504
Net increase/(decrease) in cash, cash equivalents, and restricted cash (109,308) 3,106
Cash, cash equivalents, and restricted cash at beginning of period 817,966 628,371
Cash, cash equivalents, and restricted cash at end of period 708,658 631,477
Supplemental disclosure:    
Cash paid for income taxes, net of refunds received 11,759 12,626
Non-cash investing activities and financing activities:    
Change in property, plant, and equipment purchased, unpaid at period-end $ 1,073 $ 499
v3.24.0.1
Basis Of Presentation
 3 Months Ended
Dec. 29, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis Of Presentation Basis of Presentation
Unaudited Interim Condensed Consolidated Financial Statements
We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with U.S. GAAP, and with SEC rules and regulations, which allow for certain information and footnote disclosures that are normally included in annual financial statements prepared in accordance with U.S. GAAP to be condensed or omitted. In our opinion, these unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements for the fiscal year ended September 29, 2023 and include all adjustments necessary for fair presentation. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with our consolidated financial statements for the fiscal year ended September 29, 2023, which are included in our Annual Report on Form 10-K filed with the SEC.
The results for the fiscal quarter ended December 29, 2023 are not necessarily indicative of the results to be expected for any subsequent quarterly or annual financial period, including the fiscal year ending September 27, 2024.
Principles of Consolidation
The unaudited interim condensed consolidated financial statements include the accounts of Dolby Laboratories, Inc. and our wholly-owned and majority-owned subsidiaries. In addition, we have consolidated the financial results of jointly owned affiliated companies in which our principal stockholder or other entities have a noncontrolling interest. We report these noncontrolling interests as a separate line in our unaudited interim condensed consolidated statements of operations as net income attributable to noncontrolling interest and in our unaudited interim condensed consolidated balance sheets as a noncontrolling interest. We eliminate all intercompany accounts and transactions upon consolidation.
Operating Segments
Since we operate as a single reportable segment, all required financial segment information is included in our unaudited interim condensed consolidated financial statements. This reflects the fact that our CODM, our CEO, evaluates our financial information and resources, and assesses the performance of these resources on a consolidated basis.
Use of Estimates
The preparation of our financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported and disclosed in our unaudited interim condensed consolidated financial statements and accompanying notes.
Significant items subject to such estimates and assumptions include estimated shipments by our licensees for which we are owed a sales-based royalty. These estimates involve the use of historical data and judgment for several key attributes including industry estimates of expected shipments, the percentage of markets using our technologies, and average sale prices. Our estimates of royalty-based revenue also take into consideration the macroeconomic effect of global events that may impact our licensees' supply chain activities as well as demand for shipments.
Additional significant items subject to such estimates and assumptions include ESPs for performance obligations within revenue arrangements; allowance for credit losses for accounts receivable; carrying values of inventories and certain PP&E, goodwill and intangible assets; fair values of investments; accrued liabilities including unrecognized tax benefits, deferred income tax assets and liabilities, and contingent liabilities; and stock-based compensation. Actual results could differ from our estimates.
Fiscal Year
Our fiscal year is a 52 or 53 week period ending on the last Friday in September. The fiscal periods presented herein include the 13 week period ended December 29, 2023 and December 30, 2022. Our fiscal years ending September 27, 2024 (fiscal 2024) and September 29, 2023 (fiscal 2023) each consist of 52 weeks.
v3.24.0.1
Summary Of Significant Accounting Policies
 3 Months Ended
Dec. 29, 2023
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, accounts receivable, and contract assets. We maintain cash, cash equivalents, and investments with multiple financial institutions that have high credit standing, and that we believe are financially sound and have minimal credit risk exposure, although at times our balances may exceed the applicable insurance coverage limits. We monitor and manage the overall counterparty credit risk exposure of our cash balances to individual financial institutions on an ongoing basis. Our investment portfolio consists of investment-grade securities diversified amongst security types, industries, and issuers. All of our securities are held in custody by large national financial institutions. Our investment policy limits the amount of credit exposure to a maximum of 5% of our total portfolio to any one issuer, except for the U.S. Treasury, and we believe no significant concentration risk exists with respect to these investments. We also mitigate counterparty risk through entering into derivative contracts with high-credit-quality financial institutions. Actual or potential defaults of one or more financial institutions could impact our results of operations or financial position, and make it challenging to find alternative qualified counterparties.
The majority of our licensing revenue is generated from customers outside of the United States ("U.S."). We manage the credit risk posed by non-U.S. customers by performing regular evaluations of the creditworthiness of our licensing customers and recognize revenue in accordance with US GAAP.
Recently Issued Accounting Standards
Standards Not Yet Effective
Segment Reporting. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances the disclosures required for operating segments by requiring disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, among other expanded disclosures. This standard will be effective for annual periods beginning September 28, 2024 and interim periods beginning September 27, 2025, with early adoption permitted, and will be applied retrospectively to all periods presented in the financial statements. We are currently in the process of evaluating the impact of the standard's adoption on our unaudited interim condensed consolidated financial statements.
Income Taxes. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires further enhancement of income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This standard is effective for Dolby beginning September 27, 2025 on a prospective basis, but early adoption is permitted. We are currently in the process of evaluating the impact of the standard's adoption on our unaudited interim condensed consolidated financial statements.
v3.24.0.1
Revenue Recognition
 3 Months Ended
Dec. 29, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
We enter into revenue arrangements with our customers to license technologies, trademarks and patents for sound and imaging solutions, and to sell products and services. We recognize revenue when we satisfy a performance obligation by transferring control over the use of a license, product, or service to a customer.
A. Identification of the Contract or Contracts with Customers
We generally determine that a contract with a customer exists upon the execution of an agreement and after consideration of collectability, which could include an evaluation of the customer's payment history, the existence of a standby letter-of-credit between the customer’s financial institution and our financial institution, public financial information, and other factors. At contract inception, we also evaluate whether two or more non-standard agreements with a customer should be combined and accounted for as a single contract.
B. Identification of Performance Obligations in a Contract
We generate revenue principally from the following sources, which represent performance obligations in our contracts with customers:
•Licensing.   We license our technologies, including patents, to a range of customers who incorporate them into their products for enhanced audio and imaging functionality across broadcast, mobile, CE, PC, gaming, and other markets.
•Product Sales. We design and provide audio and imaging products for the cinema, television, broadcast, and entertainment industries.
•Services.   We provide various services to support theatrical and television production for cinema exhibition, broadcast, and home entertainment, including equipment training, mixing room alignment, equalization, as well as audio, color and light image calibration. We also offer solutions through our platform Dolby.co to companies building real-time digital experiences that increase audience engagement. Our solution provides the capability to stream high quality audiovisual content in ultra-low latency which reduces the delay between the action and the viewer.
•PCS. We provide PCS for products sold and for equipment leased, and we support the implementation of our licensing technologies in our licensees’ products.
•Equipment Leases. We collaborate with established cinema exhibitors to offer Dolby Cinema, a branded premium cinema offering for movie audiences by leasing equipment and licensing our IP.
•Licensing Administration Fees. We generate administrative fees for managing patent pools on behalf of third party patent owners through our subsidiary, Via Licensing Alliance LLC ("Via LA").
Some of our revenue arrangements include multiple performance obligations, such as hardware, software, support and maintenance, and extended warranty services. We evaluate whether promised products and services are distinct performance obligations.
The majority of our arrangements with multiple performance obligations pertain to our digital cinema server and processor sales that include the following distinct performance obligations to which we allocate portions of the transaction price based on their stand-alone selling price:
•Digital cinema server hardware and embedded software, which is dependent on and interrelated with the hardware. Accordingly, the hardware and embedded software represent a single performance obligation.
•The right to support and maintenance, which is included with the purchase of the digital cinema server hardware, is a distinct performance obligation.
•The right to receive commissioning services is a distinct performance obligation within the sale of the Dolby Atmos Cinema Processor. These services consist of the review of venue designs specifying proposed speaker placement as well as calibration services performed for installed speakers to ensure optimal playback.
C. Determination of Transaction Price for Performance Obligations in a Contract
After identifying the distinct performance obligations, we determine the transaction price in accordance with the terms of the underlying executed contract which may include variable consideration such as discounts, rebates, refunds, rights of returns, and incentives. We assess and update, if necessary, the amount of variable consideration to which we are entitled for each reporting period. At the end of each reporting period, we estimate and accrue a liability for returns and adjustments as a reduction to revenue based on several factors, including past returns history.
With the exception of our sales-based royalties, we evaluate whether a significant financing component exists when we recognize revenue in advance of customer payments that occur over time. For example, some of our licensing arrangements include payment terms greater than one year from when we transfer control of our IP to a licensee and the receipt of the final payment for that IP. If a significant financing component exists, we classify a portion of the transaction price as interest income, instead of recognizing all of the transaction price as revenue. We do not adjust the transaction price for the effects of financing if, at contract inception, the period between the transfer of control to a customer and final payment is expected to be one year or less.
D. Allocation of Transaction Price to Distinct Performance Obligations in a Contract
For our sales-based royalties where the license is the predominant item to which the royalties relate, we present all revenue as licensing.
For revenue arrangements that include multiple performance obligations, we determine the stand-alone selling price for each distinct performance obligation based on the actual selling prices made to customers. If the performance obligation is not sold separately, we estimate the stand-alone selling price. We do so by considering market conditions such as competitor pricing strategies, customer specific information and industry technology lifecycles, internal conditions such as cost and pricing practices, or applying the residual approach method when the selling price of the good, most commonly a license, is highly variable or uncertain.
Once the transaction price, including any variable consideration, has been determined, we allocate the transaction price to the performance obligations identified in the contract and recognize revenue as or when control is transferred for each distinct performance obligation.
E. Revenue Recognition as Control is Transferred to a Customer
We generate our licensing revenue by licensing our technologies and patents to various types of licensees, such as chip manufacturers ("implementation licensees"), consumer product manufacturers, software vendors, and communications service providers. Our revenue recognition policies for each of these arrangements are summarized below.
Initial fees from implementation licensees. Implementation licensees incorporate our technologies into their chipsets that, once approved by Dolby, are available for purchase by OEMs for use in end-user products. Implementation licensees only pay us a nominal initial fee on contract execution as consideration for the ongoing services that we provide to assist in their implementation process. Revenue from these initial fees is recognized ratably over the contractual term as a component of licensing revenue.
Sales-based licensing fees. In our royalty bearing licensing agreements with OEMs, control is transferred upon the later of contract execution or the contract’s effective date. We apply the royalty exception, which requires that we recognize sales-based royalties when the sales occur based on our estimates. These estimates involve the use of historical data and judgment for several key attributes including industry estimates of expected shipments, the percentage of markets using our technologies, and average sale prices. Generally, our estimates represent the current period’s shipments to which we expect our licensees to submit royalty statements within the following two quarters. Upon receipt of royalty statements from the licensees with the actual reporting of sales-based royalties that we estimated previously, we record a favorable or unfavorable adjustment based on the difference, if any, between estimated and actual sales. In the first quarter of fiscal 2024, we recorded a favorable adjustment of approximately $1 million, which was primarily related to shipments that occurred in the prior two quarters.
Fixed and guaranteed licensing fees.   In certain cases, our arrangements require the licensee to pay fixed, non-refundable fees. In these cases, control is transferred and fees are recognized upon the later of contract execution or the effective date. Additionally and separate from initial fees from implementation licensees, our sales- and usage-based licensing agreements include a nominal fee, which is also recognized at a point in time in which control of the IP has been transferred. Revenue from these arrangements is included as a component of licensing revenue.
Recoveries.   Through compliance efforts, we identify misreported licensed activity related to non-current periods. We may record a favorable or unfavorable revenue adjustment in connection with the findings from these compliance efforts generally upon resolution with the licensee through agreement of the findings, or upon receipt of the licensee’s correction statement. Revenue from these arrangements is included as a component of licensing revenue.
We undertake activities aimed at identifying potential unauthorized uses of our technologies, which, when successful, result in the recognition of revenue. Recoveries stem from third parties who agree to remit payments to us based on past use of our technology. In these scenarios, a legally binding contract did not exist at the time of use of our technology, and therefore, we recognize revenue recoveries upon execution of the agreement as that is the point in time at which a contract exists and control is transferred. This revenue is classified as licensing revenue.
In general, we classify legal costs associated with activities aimed at identifying potential unauthorized uses of our technologies, auditing existing licensees, and on occasion, pursuing litigation as S&M in our unaudited interim condensed consolidated statements of operations.
We recognize licensing revenue gross of withholding taxes, which our licensees remit directly to their local tax authorities, and for which we receive a partial foreign tax credit in our income tax provision.
In addition to our licensing arrangements, we also enter into arrangements to deliver products and services.
Product Sales.   Revenue from the sale of products is recognized when the customer obtains control of the promised good or service, which is generally upon shipment. Payments are generally made within 90 days of sale.
Services.   We provide various services, such as engineering services related to movie soundtrack print mastering, equipment training and maintenance, mixing room alignment, equalization, and image calibration, which we bill on a fixed fee and time and materials basis. Most of these services are of a short duration and are recognized as control of the performance obligations are transferred which is when the related services are performed.
Cloud Services. We provide access to audio and video APIs through our developer platform as well as cloud encoding services, generally, on either a consumption or subscription basis. Revenue related to cloud services provided on a consumption basis is recognized when the customer utilizes the services, based on the quantity of services consumed. Revenue related to cloud services provided on a subscription basis is recognized ratably over the contract term as the customer receives and consumes the benefits of the cloud services.
Collaborative Arrangements.   We collaborate with established cinema exhibitors to offer Dolby Cinema, a branded premium cinema offering for movie audiences. Under such collaborations, Dolby and the exhibitor are both active participants, and share the risks and rewards associated with the business. Accordingly, these collaborations are governed by revenue sharing arrangements under which Dolby receives revenue based on box office receipts, reported to Dolby by exhibitor partners on a monthly or quarterly basis, our proprietary designs and trademarks as well as for the use of our equipment at the exhibitor's venue. The use of our product solution meets the definition of a lease, and for the related portion of Dolby's share of revenue, we apply ASC 842, Leases, and recognize revenue based on monthly box office reports from exhibitors. Our revenue share is recognized as licensing revenue in our unaudited interim condensed consolidated statements of operations.
In addition, we also enter into hybrid agreements where a portion of our revenue share involves guaranteed payments, which in some cases result in classifying the arrangement as a sales-type lease. In such arrangements, we consider control to transfer at the point in time to which we have installed and tested the equipment, at which point we record such guaranteed payments as product revenue.
Licensing Administration Fee. We generate administrative fees for managing patent pools on behalf of third party patent owners through our subsidiary, Via LA. As an agent to licensors in the patent pool, Via LA receives a share of the sales-based royalty that the patent pool licensors earn from licensees. As such, we apply the sales-based royalty exception as the service provided is directly related to the patent pool licensors’ provision of IP, which results in recognition based on estimates of the licensee’s quarter shipments that use the pool’s patents. In addition to sales-based royalties, Via LA also has contracts where the fees are fixed. The revenue share Via LA receives from licensors on fixed fee contracts is recognized over the term in which we are providing services associated with the fixed fee contract. We recognize our administrative fees net of the consideration paid to the patent licensors in the pool as licensing revenue.
Deferred revenue, which is a component of contract liabilities, represents amounts that are ultimately expected to be recognized as revenue, but for which we have yet to satisfy the performance obligation. As of December 29, 2023, we had $70.4 million of remaining performance obligations, 39% of which we expect to recognize as revenue in fiscal 2024, 23% in fiscal 2025, and the balance of 38% in fiscal years beyond 2025.
F.Disaggregation of Revenue
The following table presents a summary of the composition of our revenue for all periods presented (in thousands, except percentage amounts):
Fiscal Quarter Ended
RevenueDecember 29, 2023December 30, 2022
Licensing$293,767 93 %$308,011 92 %
Products and services21,807 7 %26,910 8 %
Total revenue$315,574 100 %$334,921 100 %
The following table presents the composition of our licensing revenue for all periods presented (in thousands, except percentage amounts):
Fiscal Quarter Ended
MarketDecember 29, 2023December 30, 2022
Broadcast$112,416 38 %$117,334 38 %
Mobile35,287 12 %64,286 21 %
CE53,220 18 %55,083 18 %
PC29,679 10 %24,286 8 %
Other63,165 22 %47,022 15 %
Total licensing revenue$293,767 100 %$308,011 100 %
We license our technologies in approximately 70 countries, and our licensees distribute products that incorporate our technologies throughout the world. We generate the majority of our revenue from outside the U.S. Geographic data for our licensing revenue is based on the location of our licensees’ headquarters, products revenue is based on the destination to which we ship our products, and services revenue is based on the location where services are performed. The following table presents the composition of our revenue by geographic location for all periods presented (in thousands, except percentage amounts):
Fiscal Quarter Ended
Geographic LocationDecember 29, 2023December 30, 2022
United States$115,185 37 %$100,262 30 %
International200,389 63 %234,659 70 %
Total revenue$315,574 100 %$334,921 100 %
G. Contract Balances
Our contract assets represent rights to consideration from licensees for the use of our IP that we have estimated in a given period in the absence of receiving actual royalty statements from licensees. These estimates reflect our best judgment at that time, and are developed using a number of inputs, including historical data, industry estimates of expected shipments, anticipated sales price and performance, and third party data supporting the percentage of markets using our technologies. In the event that our estimates differ from actual amounts reported, we record an adjustment in the quarter in which the royalty statement is received, which is typically the quarter following our estimate. Actual amounts reported are typically paid within 60 days following the end of the quarter of shipment. The main drivers for change in the contract assets account are variances in quarterly estimates, and to a lesser degree, timing of receipt of actual royalty statements.
Our contract liabilities consist of advance payments and billings in advance of performance and deferred revenue that is typically satisfied within one year. The non-current portion of contract liabilities is separately disclosed in our unaudited interim condensed consolidated balance sheets. We present the net contract asset or liability when we have both contract assets and contract liabilities for a single contract. We recognized $12.2 million in the first quarter of fiscal 2024 from prior period deferred revenue.
The following table presents a summary of the balances to which contract assets and liabilities related to revenue are recorded for all periods presented (in thousands, except percentage amounts):
December 29, 2023September 29, 2023Change ($)Change (%)
Accounts receivable, net$293,228 $262,245 $30,983 12 %
Contract assets, net217,559 182,130 35,429 19 %
Contract liabilities - current33,404 31,505 1,899 6 %
Contract liabilities - non-current36,994 39,997 (3,003)(8)%
v3.24.0.1
Composition Of Certain Financial Statement Captions
 3 Months Ended
Dec. 29, 2023
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 unaudited interim condensed consolidated balance sheets as of December 29, 2023 and September 29, 2023 (in thousands).
Accounts Receivable and Contract Assets
December 29,
2023		September 29,
2023
Trade accounts receivable$111,027 $137,820 
Accounts receivable from patent administration program licensees189,629 134,108 
Contract assets217,667 182,268 
Accounts receivable and contract assets, gross518,323 454,196 
Less: allowance for credit losses on accounts receivable and contract assets(7,536)(9,821)
Total accounts receivable and contract assets, net$510,787 $444,375 
Accounts receivable as of December 29, 2023 and September 29, 2023, respectively, includes unbilled accounts receivable balances of $132.9 million and $150.4 million, related to amounts that are contractually owed. The unbilled balance represents our unconditional right to consideration related to fixed fee contracts which we are entitled to as a result of satisfying, or partially satisfying, performance obligations, as well as Via LA's unconditional right to consideration related to its patent administration programs.
Allowance for Credit LossesBeginning BalanceCharges/(Credits) 
to S&M and G&A		Additions/(Deductions)Ending Balance
For fiscal year-to-date period ended:
September 29, 2023$14,405 $(793)$(2,643)$10,969 
December 29, 202310,969 (2,101)(233)8,635 
Allowance for credit losses includes the provision for estimated credit losses on our sales-type leases, which was not material as of December 29, 2023 and September 29, 2023.
Inventories
December 29,
2023		September 29,
2023
Raw materials$4,375 $6,203 
Work in process5,321 3,972 
Finished goods27,872 25,448 
Total inventories$37,568 $35,623 
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 unaudited interim condensed consolidated balance sheets. We have included $13.8 million and $8.1 million of inventory within non-current assets as of December 29, 2023 and September 29, 2023, respectively. Based on anticipated inventory consumption rates, and aside from existing write-downs due to excess inventory, we do not believe that material risk of obsolescence exists prior to ultimate sale.
Prepaid Expenses and Other Current Assets
December 29,
2023		September 29,
2023
Prepaid expenses$27,699 $24,435 
Other current assets25,820 26,257 
Total prepaid expenses and other current assets$53,519 $50,692 
Accrued Liabilities
December 29,
2023		September 29,
2023
Amounts payable to patent administration program partners$171,639 $150,509 
Accrued compensation and benefits79,384 118,728 
Accrued professional fees17,131 18,632 
Unpaid property, plant, and equipment additions18,116 18,002 
Accrued customer refunds3,479 3,878 
Accrued market development funds4,436 5,010 
Other accrued liabilities33,001 36,640 
Total accrued liabilities$327,186 $351,399 
Other Non-Current Liabilities
December 29,
2023		September 29,
2023
Supplemental retirement plan obligations$4,385 $4,302 
Non-current tax liabilities (1)
77,165 74,482 
Other liabilities26,260 29,555 
Total other non-current liabilities$107,810 $108,339 
(1)        Refer to Note 12 "Income Taxes" for additional information related to our tax liabilities.
v3.24.0.1
Investments & Fair Value Measurements
 3 Months Ended
Dec. 29, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]  
Investments & Fair Value Measurements Investments and Fair Value Measurements
We use cash holdings to purchase investment-grade securities diversified among security types, industries, and issuers. All of our investments in debt securities are measured at fair value, and are recorded within cash equivalents and both short-term and long-term investments in our unaudited interim condensed consolidated balance sheets. With the exception of our mutual fund investments held in our SERP and classified as trading securities and our other long-term investments, all of our investments are classified as AFS securities. Derivative contracts are used to hedge currency risk, and these are carried at fair value and classified as other assets and other liabilities.
Our investments in debt securities consist of corporate bonds, government bonds, municipal debt securities, commercial paper, and U.S. agency securities. In addition, our cash and cash equivalents also consist of highly-liquid money market funds and government bonds. Consistent with our investment policy, none of our municipal debt investments are supported by letters of credit or standby purchase agreements. Our cash and investment portfolio consisted of the following (in thousands):
December 29, 2023
CostUnrealizedEstimated Fair Value
GainsLossesTotalLevel 1Level 2Level 3
Cash and cash equivalents:
Cash$643,276 $— $— $643,276 $643,276 $— $— 
Cash equivalents:
Money market funds3,557 — — 3,557 3,557 — — 
Government Bonds9,979 4 — 9,983 9,983 — — 
Cash and cash equivalents656,812 4 — 656,816 656,816 — — 
Short-term investments:
U.S. agency securities3,892 1 — 3,893 — 3,893 — 
Government bonds43,998 19 (503)43,514 40,904 2,610 — 
Commercial paper9,513 5 — 9,518 — 9,518 — 
Corporate bonds68,503 30 (276)68,257 — 68,257 — 
Municipal debt securities15,749 2 (110)15,641 — 15,641 — 
Short-term investments141,655 57 (889)140,823 40,904 99,919 — 
Long-term investments:
Government bonds31,168 82 (194)31,056 31,056 — — 
Corporate bonds38,068 212 (196)38,084 — 38,084 — 
Municipal debt securities11,792 62 (40)11,814 — 11,814 — 
Other investments (1)
11,922 — — 11,922 — — — 
Long-term investments92,950 356 (430)92,876 31,056 49,898 — 
Total cash, cash equivalents, and investments$891,417 $417 $(1,319)$890,515 $728,776 $149,817 $— 
Investments held in supplemental retirement plan:
Assets$4,483 $— $— $4,483 $4,483 $— $— 
Included in prepaid expenses and other current assets and other non-current assets
Liabilities$4,483 $— $— $4,483 $4,483 $— $— 
Included in accrued liabilities and other non-current liabilities
Currency derivatives as hedge instruments:
Assets: Included in other current assets$— $2,829 $— $2,829 $— $2,829 $— 
(1)Other investments as of December 29, 2023 is primarily comprised of an equity method investment of $6.5 million and an equity security without a readily determinable fair value, valued at $5.0 million. The equity method investment is measured at cost minus impairment, if any, adjusted for our proportionate share of the investee's net income or loss. Our share of the equity method investee's net income or loss is included in other income/(expense), net on the unaudited interim condensed consolidated statements of operations. Our share of the equity method investee's net income was $3.3 million in the first quarter of fiscal 2024 and was not material in the first quarter of fiscal 2023.
September 29, 2023
CostUnrealizedEstimated Fair Value
GainsLossesTotalLevel 1Level 2Level 3
Cash and cash equivalents:
Cash$602,288 $— $— $602,288 $602,288 $— $— 
Cash equivalents:
Commercial paper1,514 — — 1,514 — 1,514 — 
Money market funds139,831 — — 139,831 139,831 — — 
Government Bonds1,731 — — 1,731 1,731 — — 
Cash and cash equivalents745,364 — — 745,364 743,850 1,514 — 
Short-term investments:
Certificate of deposit530 — — 530 — 530 — 
U.S. agency securities5,956 1 (7)5,950 — 5,950 — 
Government bonds50,220 3 (384)49,839 46,246 3,593 — 
Commercial paper5,843 — (3)5,840 — 5,840 — 
Corporate bonds61,803 — (431)61,372 — 61,372 — 
Municipal debt securities15,801 — (184)15,617 — 15,617 — 
Short-term investments140,153 4 (1,009)139,148 46,246 92,902 — 
Long-term investments:
Government bonds33,227 — (1,046)32,181 32,181 — — 
Corporate bonds39,057 6 (589)38,474 — 38,474 — 
Municipal debt securities16,137 — (224)15,913 — 15,913 — 
Other investments (1)
11,244 — — 11,244 — — — 
Long-term investments99,665 6 (1,859)97,812 32,181 54,387 — 
Total cash, cash equivalents, and investments$985,182 $10 $(2,868)$982,324 $822,277 $148,803 $— 
Investments held in supplemental retirement plan:
Assets$4,400 $— $— $4,400 $4,400 $— $— 
Included in prepaid expenses and other current assets and other non-current assets
Liabilities$4,400 $— $— $4,400 $4,400 $— $— 
Included in accrued liabilities and other non-current liabilities
Currency derivatives as hedge instruments:
Assets: Included in other current assets$— $144 $— $144 $— $144 $— 
Assets: included in other non-current assets— 2 — 2 — 2 — 
Liabilities: Included in other accrued liabilities— — (618)(618)— (618)— 
Liabilities: Included in other non-current liabilities— — (24)(24)— (24)— 
(1)Other investments as of September 29, 2023 is comprised of an equity method investment of $5.9 million and an equity security without a readily determinable fair value, valued at $5.0 million.
Fair Value Hierarchy.    Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. We minimize the use of unobservable inputs and use observable market data, if available, when determining fair value. We classify our inputs to measure fair value using the following three-level hierarchy:
Level 1: Quoted prices in active markets at the measurement date for identical assets and liabilities. We base the fair value of our Level 1 financial instruments, which are traded in active markets, using quoted market prices for identical instruments.
Level 2: Prices may be based upon quoted prices in active markets or inputs not quoted on active markets but are corroborated by market data. We obtain the fair value of our Level 2 financial instruments from a professional pricing service, which may use quoted market prices for identical or comparable instruments, or model driven valuations using observable market data or inputs corroborated by observable market data. To validate the fair value determination provided by our primary pricing service, we perform quality controls over values received which include comparing our pricing service provider’s assessment of the fair values of our investment securities against the fair values of our investment securities obtained from another independent source, reviewing the pricing movement in the context of overall market trends, and reviewing trading information from our investment managers. In addition, we
assess the inputs and methods used in determining the fair value in order to determine the classification of securities in the fair value hierarchy. The fair value of the currency derivatives are calculated from market spot rates, forward rates, interest rates, and credit ratings at the end of the period.
Level 3: Unobservable inputs are used when little or no market data is available and reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.
Securities In Gross Unrealized Loss Position.    We periodically evaluate our investments for impairment by comparing the fair value with the cost basis for each of our investment securities. The unrealized losses on our AFS securities were primarily the result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. The following table presents the gross unrealized losses and fair value for those AFS securities that were in an unrealized loss position for less than twelve months and for greater than twelve months as of December 29, 2023 and September 29, 2023 (in thousands):
December 29, 2023September 29, 2023
Less Than 12 MonthsGreater Than 12 MonthsLess Than 12 MonthsGreater Than 12 Months
Investment TypeFair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. agency securities$— $— $— $— $853 $(7)$— $— 
Government bonds12,250 (67)30,457 (629)26,756 (247)40,235 (1,183)
Commercial paper— — — — 5,840 (3)— — 
Corporate bonds36,002 (137)19,546 (335)79,846 (461)14,634 (558)
Municipal debt securities8,222 (52)6,246 (98)23,365 (203)8,166 (206)
Total$56,474 $(256)$56,249 $(1,062)$136,660 $(921)$63,035 $(1,947)
Although we had certain securities that were in an unrealized loss position as of December 29, 2023 and September 29, 2023, we expect to recover the full carrying value of these 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 December 29, 2023 and September 29, 2023, which are recorded within cash equivalents and both short and long-term investments in our unaudited interim condensed consolidated balance sheets (in thousands):
December 29, 2023September 29, 2023
Range of maturityAmortized CostFair ValueAmortized CostFair Value
Due within 1 year$171,054 $170,477 $283,229 $282,225 
Due in 1 to 2 years45,231 44,735 67,679 66,075 
Due in 2 to 5 years19,933 20,105 20,743 20,493 
Total$236,218 $235,317 $371,651 $368,793 
v3.24.0.1
Property, Plant and Equipment
 3 Months Ended
Dec. 29, 2023
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Property, Plant, and Equipment
PP&E are recorded at cost, with depreciation expense included in cost of licensing, cost of products and services, R&D, S&M, and G&A expenses in our unaudited interim condensed consolidated statements of operations.
As of December 29, 2023 and September 29, 2023, PP&E consisted of the following (in thousands):
Property, Plant, and EquipmentDecember 29,
2023		September 29,
2023
Land$41,959 $41,902 
Buildings and building improvements288,199 287,799 
Leasehold improvements81,985 79,988 
Machinery and equipment153,976 152,675 
Computer equipment and software235,778 233,224 
Furniture and fixtures33,046 32,629 
Equipment provided under operating leases216,592 211,910 
Construction-in-progress19,804 18,327 
Property, plant, and equipment, gross1,071,339 1,058,454 
Less: accumulated depreciation(592,018)(576,873)
Property, plant, and equipment, net$479,321 $481,581 
v3.24.0.1
Leases
 3 Months Ended
Dec. 29, 2023
Leases [Abstract]  
Leases Leases
As Lessee
As a lessee, we enter into contracts to access and utilize office space, including those payable to our principal stockholder and portions attributable to the noncontrolling interests in our consolidated subsidiaries. The following table presents the maturity analysis of lease liabilities (in thousands):
December 29, 2023
Operating Leases
Remainder of Fiscal 2024$13,226 
Fiscal 202512,861 
Fiscal 20268,253 
Fiscal 20276,229 
Fiscal 20285,991 
Thereafter11,358 
Total undiscounted lease payments57,918 
Less: imputed interest(10,677)
Total lease liabilities$47,241 
As Lessor
As a lessor, we lease our Dolby Cinema product solution to exhibitors. The terms of these leases are typically 10 years. Lease components consist of fixed payments and/or variable lease payments based on contracted percentages of revenue. Generally, leases do not grant any right to the lessee to purchase the underlying asset at the end of the lease term. Dolby Cinema lease arrangements have options to extend the lease term at expiration by increments ranging from 1 to 5 years.
Assets provided under an operating lease are carried at cost within property, plant, and equipment, net on the unaudited interim condensed consolidated balance sheets, and depreciated over the useful life of the asset using the straight-line method. Fixed operating lease payments are recognized on a straight-line basis over the lease term to revenue. Variable lease payments received under our Dolby Cinema operating leases are computed as shares of lessees' box office revenue and recognized to revenue in the period that box office sales occur. Lease incentive payments we make to lessees are amortized as a reduction in revenue over the lease term. The components of lease income were as follows (in thousands):
Fiscal Quarter Ended
December 29, 2023December 30, 2022
Operating Lease Income
Variable operating lease income$6,315 $6,328 
Fixed operating lease income812 747 
If a lease is classified as a sales-type lease, the carrying amount of the asset is derecognized from property, plant, and equipment, net, and a net investment in the lease is recorded. The net investment in the lease is measured at commencement date as the sum of the lease receivable and the estimated residual value of the equipment. The unguaranteed residual value of the equipment is determined as the estimated carrying value of the asset at the end of the lease term had the asset been depreciated on a straight-line basis. The unguaranteed residual value of sales-type leases was $1.0 million and $1.0 million as of December 29, 2023 and September 29, 2023, respectively. Selling profit or loss arising from a sales-type lease is recorded at lease commencement and presented on a gross basis. Over the term of the lease, we recognize interest income on the net investment in the lease, and variable lease payments, which are not included in the net investment in the lease. The variable lease payments are not material.
The following table presents the maturity analysis of fixed lease payments due to Dolby (in thousands):
December 29, 2023
Operating LeasesSales-Type Leases
Remainder of Fiscal 2024$990 $620 
Fiscal 20251,110 620 
Fiscal 2026931 220 
Fiscal 2027— 220 
Fiscal 2028— 220 
Total undiscounted cash flows$3,031 1,900 
Less: Carrying value of lease receivables(621)
Difference$1,279 
Leases Leases
As Lessee
As a lessee, we enter into contracts to access and utilize office space, including those payable to our principal stockholder and portions attributable to the noncontrolling interests in our consolidated subsidiaries. The following table presents the maturity analysis of lease liabilities (in thousands):
December 29, 2023
Operating Leases
Remainder of Fiscal 2024$13,226 
Fiscal 202512,861 
Fiscal 20268,253 
Fiscal 20276,229 
Fiscal 20285,991 
Thereafter11,358 
Total undiscounted lease payments57,918 
Less: imputed interest(10,677)
Total lease liabilities$47,241 
As Lessor
As a lessor, we lease our Dolby Cinema product solution to exhibitors. The terms of these leases are typically 10 years. Lease components consist of fixed payments and/or variable lease payments based on contracted percentages of revenue. Generally, leases do not grant any right to the lessee to purchase the underlying asset at the end of the lease term. Dolby Cinema lease arrangements have options to extend the lease term at expiration by increments ranging from 1 to 5 years.
Assets provided under an operating lease are carried at cost within property, plant, and equipment, net on the unaudited interim condensed consolidated balance sheets, and depreciated over the useful life of the asset using the straight-line method. Fixed operating lease payments are recognized on a straight-line basis over the lease term to revenue. Variable lease payments received under our Dolby Cinema operating leases are computed as shares of lessees' box office revenue and recognized to revenue in the period that box office sales occur. Lease incentive payments we make to lessees are amortized as a reduction in revenue over the lease term. The components of lease income were as follows (in thousands):
Fiscal Quarter Ended
December 29, 2023December 30, 2022
Operating Lease Income
Variable operating lease income$6,315 $6,328 
Fixed operating lease income812 747 
If a lease is classified as a sales-type lease, the carrying amount of the asset is derecognized from property, plant, and equipment, net, and a net investment in the lease is recorded. The net investment in the lease is measured at commencement date as the sum of the lease receivable and the estimated residual value of the equipment. The unguaranteed residual value of the equipment is determined as the estimated carrying value of the asset at the end of the lease term had the asset been depreciated on a straight-line basis. The unguaranteed residual value of sales-type leases was $1.0 million and $1.0 million as of December 29, 2023 and September 29, 2023, respectively. Selling profit or loss arising from a sales-type lease is recorded at lease commencement and presented on a gross basis. Over the term of the lease, we recognize interest income on the net investment in the lease, and variable lease payments, which are not included in the net investment in the lease. The variable lease payments are not material.
The following table presents the maturity analysis of fixed lease payments due to Dolby (in thousands):
December 29, 2023
Operating LeasesSales-Type Leases
Remainder of Fiscal 2024$990 $620 
Fiscal 20251,110 620 
Fiscal 2026931 220 
Fiscal 2027— 220 
Fiscal 2028— 220 
Total undiscounted cash flows$3,031 1,900 
Less: Carrying value of lease receivables(621)
Difference$1,279 
v3.24.0.1
Goodwill and Intangible Assets
 3 Months Ended
Dec. 29, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
The following table outlines changes to the carrying amount of goodwill (in thousands):
 Goodwill
Balance at September 29, 2023$408,409 
Translation adjustments2,026 
Balance at December 29, 2023$410,435 
Intangible Assets
Intangible assets are stated at their original cost less accumulated amortization, and principally consist of acquired patents, technology, customer relationships and contracts, and trademarks. Intangible assets subject to amortization consisted of the following (in thousands):
 December 29, 2023September 29, 2023
Intangible Assets, NetCostAccumulated
Amortization		NetCostAccumulated
Amortization		Net
Acquired patents and technology$351,096 $(276,316)$74,780 $350,406 $(270,750)$79,656 
Customer relationships148,817 (63,723)85,094 148,794 (61,049)87,745 
Other intangible assets22,811 (22,791)20 22,781 (22,755)26 
Total$522,724 $(362,830)$159,894 $521,981 $(354,554)$167,427 
There were no purchases of intangible assets during the first quarter of fiscal 2024 and during the first quarter of fiscal 2023.
Amortization expense for our intangible assets is included in cost of licensing, cost of products and services, R&D, S&M, and G&A expenses in our unaudited interim condensed consolidated statements of operations. Amortization expense was $7.5 million and $6.3 million in the first quarter of fiscal 2024 and 2023, respectively. As of December 29, 2023, expected amortization expense of our intangible assets in future fiscal periods was as follows (in thousands):
Fiscal Year Amortization Expense
Remainder of 2024$22,569 
202515,812 
202615,293 
202714,773 
202814,614 
Thereafter76,833 
Total$159,894 
v3.24.0.1
Stockholders' Equity And Stock-Based Compensation
 3 Months Ended
Dec. 29, 2023
Stockholders' Equity And Stock-Based Compensation [Abstract]  
Stockholders' Equity And Stock-Based Compensation Stockholders' Equity and Stock-Based Compensation
We provide stock-based awards as a form of compensation for employees, officers, and directors. We issue 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. As of December 29, 2023, we had authorized 500,000,000 Class A shares and 500,000,000 Class B shares. As of December 29, 2023, we had 59,765,465 shares of Class A common stock and 36,085,779 shares of Class B common stock issued and outstanding. Holders of our Class A and Class B common stock have identical rights, except that holders of our Class A common stock are entitled to one vote per share and holders of our Class B common stock are entitled to ten votes per share. Shares of Class B common stock can be converted to shares of Class A common stock at any time at the option of the stockholder and automatically convert upon sale or transfer, except for certain transfers specified in our amended and restated certificate of incorporation.
Stock Incentive Plans
Our 2020 Stock Plan originally was adopted by our Board of Directors and shareholders in 2005 (when the 2020 Stock Plan was called the 2005 Stock Plan). Our stockholders last approved amendments to the 2020 Stock Plan at our 2023 annual meeting of stockholders. Our 2020 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 64.0 million shares of our Class A common stock have been authorized for issuance under the 2020 Stock Plan in total since inception of the plan. 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 2020 Stock Plan, such shares will be counted as 1.6 shares for every one share returned.
Stock Options.    Stock options are granted at fair market value on the date of grant. Options generally vest over four years, with 25% of the options 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 2020 Stock Plan. Our 2020 Stock Plan also allows us to grant stock awards which vest based on the satisfaction of specific performance criteria.
Performance-Based Stock Options.    From fiscal 2016 through fiscal 2019, we granted PSOs to certain officers with shares of our Class A common stock underlying such options. The contractual term for the PSOs was 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. Anywhere from 0% to 125% of the shares subject to a PSO vested based on achievement of the performance conditions at the end of the three-year performance period.
In valuing the PSOs, which are 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 2020 Stock Plan. Compensation cost is being amortized on a straight-line basis over the requisite service period.
As of December 29, 2023, an aggregate of 249,228 shares of PSOs were exercisable and outstanding.
The following table summarizes information about stock options, including PSOs, issued under our 2020 Stock Plan:
SharesWeighted-Average
Exercise Price		Weighted-Average
Remaining
Contractual Life
Aggregate
Intrinsic
Value (1)
 (in thousands) (in years)(in thousands)
Options outstanding as of September 29, 20233,720 $66.13 
Grants271 87.49 
Exercises(203)52.25 
Forfeitures and cancellations(1)53.72 
Options outstanding as of December 29, 20233,787 68.45 5.29$70,079 
Options vested and expected to vest as of December 29, 20233,625 68.11 5.2069,672 
Options exercisable as of December 29, 20232,913 $64.43 4.4465,763 
(1)Aggregate intrinsic value is based on the closing stock price of our Class A common stock on December 29, 2023 of $86.18 and excludes the impact of options that were not in-the-money.
Restricted Stock Units.    In fiscal 2008, we began granting RSUs to certain directors, officers and employees. RSU awards granted to employees and officers generally vest over four years, with cliff-vesting. Awards granted to ongoing non-employee directors generally vest over approximately one year. Awards granted to new non-employee 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. 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 adjusted fair market value of our Class A common stock on the date of grant, discounted to account for dividend payments forgone during the vesting period, and is recognized on a straight-line basis over the requisite service period. Certain grants may have other vesting conditions or other award terms as approved by the Compensation Committee of our Board of Directors. Our 2020 Stock Plan also allows us to grant RSUs that vest based on the satisfaction of specific performance criteria.
Performance-Based Restricted Stock Units.    In fiscal 2020, we began granting PSUs to certain officers with shares of our Class A common stock underlying such awards. The terms of the PSU Agreement adopted in the first quarter fiscal 2020 provide for the grant of PSUs to certain officers contingent on Dolby's achievement of annualized TSR targets measured against a comparator index over a three-year performance period following the date of grant. Anywhere from 0% to 200% of eligible restricted stock units may vest based on achievement of the performance conditions at the end of the three-year performance period. The value of the PSUs, which is recognized as compensation cost, is calculated using a Monte Carlo valuation model. Compensation cost is being amortized on a straight-line basis over the requisite service period. Certain grants may have other vesting conditions or other award terms as approved by the Compensation Committee of our Board of Directors.
The following table summarizes information on PSUs granted to our officers that have not vested as of December 29, 2023:
Aggregate Shares GrantedPotential Shares at Vest Date (at 200% of Target)
December 15, 202160,301 120,602 
December 15, 202290,613 181,226 
December 15, 202377,283 154,566 
On December 16, 2019, we granted PSUs to our executive officers for an aggregate of 62,000 shares, which vested in December 2022 at 81% of the target award amount. On December 15, 2020, we granted PSUs to our executive officers for an aggregate of 66,138 shares, which vested in December 2023 at 80% of the target award amount. As of December 29, 2023, PSUs which would vest for an aggregate of 228,197 shares at the target award amount (456,394 shares at 200% of the target award amount) were outstanding.
The following table summarizes information about RSUs, including PSUs, issued under our 2020 Stock Plan:
SharesWeighted-Average
Grant Date
Fair Value 
 (in thousands)
Non-vested as of September 29, 20233,747 $78.62 
Granted1,590 84.24 
Vested(1,120)78.58 
Forfeitures(190)81.37 
Non-vested as of December 29, 20234,027 $80.72 
Employee Stock Purchase Plan.    Our ESPP originally was adopted by our Board of Directors and shareholders in 2005. Our stockholders last approved amendments to the ESPP at our 2023 annual meeting of stockholders. The ESPP 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 NYSE on the first day of the offering period and the last day of the purchase period. 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. A total of 5.5 million shares of our Class A common stock have been authorized for issuance under the ESPP since inception of the plan.
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 U.S. 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. The expected volatility has historically been determined using a blended combination of historical and implied volatility, but is currently being determined using historical volatility only. Historical volatility is representative of the historical trends in our stock price for periods preceding the measurement date for a period that is commensurate with the expected term. Implied volatility is based upon externally traded option contracts of our Class A common stock.
Dividend Yield.    The dividend yield is based on our anticipated dividend payout over the expected term of our option awards. Dividend declarations and the establishment of future record and payment dates are subject to the Board of Directors’ continuing determination that the dividend policy is in the best interests of our stockholders. The dividend policy may be changed or canceled at the discretion of the Board of Directors at any time.
The weighted-average assumptions used in the determination of the fair value of our stock options were as follows:
 Fiscal Quarter Ended
 December 29,
2023		December 30,
2022
Expected term (in years)4.864.82
Risk-free interest rate3.9 %3.6 %
Expected stock price volatility29.4 %29.4 %
Dividend yield1.4 %1.6 %
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 unaudited interim condensed consolidated statements of operations. The selection of applicable estimated forfeiture rates is based on an evaluation of trends in our historical forfeiture data with consideration for other potential driving factors. If in subsequent periods actual forfeitures significantly differ from our initial estimates, we will revise such estimates accordingly.
The following two tables separately present stock-based compensation expense both by award type and classification in our unaudited interim condensed consolidated statements of operations (in thousands):
Expense - By Award Type
 Fiscal Quarter Ended
 December 29,
2023		December 30,
2022
Compensation expense
Stock options$2,125 $2,405 
Restricted stock units (1) (2)
29,016 27,552 
Employee stock purchase plan753 1,283 
Total stock-based compensation31,894 31,240 
Estimated benefit from income taxes(4,999)(4,702)
Total stock-based compensation, net of tax$26,895 $26,538 
(1)Stock-based compensation expense incurred by restricted stock units includes expense from PSUs.
(2)Excludes $0.1 million and $0.3 million of capitalized stock-based compensation related to internal-use software in the first quarter of fiscal 2024 and in the first quarter of fiscal 2023, respectively.
Expense - By Income Statement Line Item Classification
 Fiscal Quarter Ended
 December 29,
2023		December 30,
2022
Compensation expense
Cost of products and services$410 $503 
Research and development10,106 10,676 
Sales and marketing10,481 10,727 
General and administrative10,897 9,334 
Total stock-based compensation31,894 31,240 
Estimated benefit from income taxes(4,999)(4,702)
Total stock-based compensation, net of tax$26,895 $26,538 
The tax benefit that we recognize from shares issued under our ESPP is excluded from the tables above. The tax benefit recognized was not material in the first quarters of fiscal 2024 and fiscal 2023.
Unrecognized Compensation Expense.    As of December 29, 2023, total unrecognized compensation expense associated with employee stock options expected to vest was approximately $15.1 million, which is expected to be recognized over a weighted-average period of 2.9 years. As of December 29, 2023, total unrecognized
compensation expense associated with RSUs expected to vest was approximately $263.7 million, which is expected to be recognized over a weighted-average period of 2.9 years.
Common Stock Repurchase Program
In November 2009, we announced a stock repurchase program, providing 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 December 29, 2023 (in thousands):
Date of AuthorizationAuthorization Amount
Fiscal 2010: November 2009$250,000 
Fiscal 2010: July 2010300,000 
Fiscal 2011: July 2011250,000 
Fiscal 2012: February 2012100,000 
Fiscal 2015: October 2014200,000 
Fiscal 2017: January 2017200,000 
Fiscal 2018: July 2018350,000 
Fiscal 2019: July 2019350,000 
Fiscal 2021: July 2021350,000 
Fiscal 2022: February 2022250,000 
Fiscal 2022: August 2022350,000 
Total$2,950,000 
Stock repurchases under the program may be made through open market transactions, negotiated purchases, or otherwise, at times and in amounts that we consider appropriate. The timing of repurchases and the number of shares repurchased depend upon a variety of factors, including price, regulatory requirements, the rate of dilution from our equity compensation plans, and other market conditions. The program does not have a specified expiration date, and can be limited, suspended, or terminated at our discretion at any time without prior notice. Shares repurchased under the program will be returned to the status of authorized but unissued shares of Class A common stock. As of December 29, 2023, the remaining authorization to purchase additional shares was $131.6 million.
The following table provides information regarding share repurchase activity under the program during fiscal 2024:
Quarterly Repurchase ActivityShares
Repurchased
Cost (1)
Average Price Paid Per Share (2)
(in thousands)
Q1 - Quarter ended December 29, 2023967,789 $80,002 $82.66 
Total967,789 $80,002 
(1)Cost of share repurchases includes the price paid per share, and excludes commission costs.
(2)Average price paid per share excludes commission costs.
Dividend Program
The following table summarizes dividends declared under the program during fiscal 2024:
Fiscal PeriodAnnouncement DateRecord DatePayment DateCash Dividend Per Common ShareDividend Payment
Q1 - Quarter ended December 29, 2023February 1, 2024February 13, 2024February 22, 2024$0.30 $28.8 million
(1)
(1)The dividend payment amount for the dividend declared in the first quarter of fiscal 2024 is estimated based on the number of shares of our Class A and Class B common stock that we estimate will be outstanding as of the Record Date.
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Accumulated Other Comprehensive Income
 3 Months Ended
Dec. 29, 2023
Equity [Abstract]  
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Loss
Other comprehensive income/loss consists of three components: unrealized gains or losses on our AFS marketable investment securities, gains and losses on derivatives in cash flow hedge relationships not yet recognized in earnings, and the gains and losses from the translation of assets and liabilities denominated in non-U.S. dollar functional currencies. Until realized and reported as a component of net income, these comprehensive income items accumulate and are included within accumulated other comprehensive loss, a subsection within stockholders’ equity in our unaudited interim condensed consolidated balance sheets. Unrealized gains and losses on our investment securities are reclassified from AOCI into earnings when realized upon sale, and are determined based on specific identification of securities sold. Unrealized gains and losses on our cash flow hedges are reclassified from AOCI into earnings when the hedged operating expenses are recognized, which is also when the gains and losses are realized.
The following table summarizes the changes in the accumulated balances during the period, and includes information regarding the manner in which the reclassifications out of AOCI into earnings affect our unaudited interim condensed consolidated statements of operations (in thousands):
Fiscal Quarter Ended
December 29, 2023
Investment SecuritiesCash Flow HedgesCurrency Translation AdjustmentsTotal
Beginning Balance$(2,858)$(197)$(33,929)$(36,984)
Other comprehensive income before reclassifications:
Unrealized gains2,011 2,587 — 4,598 
Foreign currency translation gains (1)
— — 11,509 11,509 
Income tax effect - expense— (648)— (648)
Net of tax2,011 1,939 11,509 15,459 
Amounts reclassified from AOCI into earnings:
Realized gains/(losses) (2)
(67)188 — 121 
Income tax effect - benefit/(expense) (3)
12 (36)— (24)
Net of tax(55)152 — 97 
Net current-period other comprehensive income1,956 2,091 11,509 15,556 
Ending Balance$(902)$1,894 $(22,420)$(21,428)
Fiscal Quarter Ended
December 30, 2022
Investment SecuritiesCash Flow HedgesCurrency Translation AdjustmentsTotal
Beginning Balance$(5,986)$(4,483)$(41,172)$(51,641)
Other comprehensive income before reclassifications:
Unrealized gains1,532 5,180 — 6,712 
Foreign currency translation gains (1)
— — 14,078 14,078 
Net of tax1,532 5,180 14,078 20,790 
Amounts reclassified from AOCI into earnings:
Realized losses (2)
(213)(1,004)— (1,217)
Income tax effect - benefit (3)
37 156 — 193 
Net of tax(176)(848)— (1,024)
Net current-period other comprehensive income1,356 4,332 14,078 19,766 
Ending Balance$(4,630)$(151)$(27,094)$(31,875)
(1)The foreign currency translation gains during the first quarter of fiscal 2024 and during the first quarter of fiscal 2023 were primarily due to the strengthening of other foreign currencies as compared to the U.S. dollar.
(2)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 unaudited interim condensed consolidated statements of operations. Realized gains or losses on foreign currency contracts designated as cash flow hedges are included in operating expenses in the unaudited interim condensed consolidated statements of operations.
(3)The income tax benefit or expense is included within provision for income taxes in our unaudited interim condensed consolidated statements of operations.
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Earnings Per Share
 3 Months Ended
Dec. 29, 2023
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
Basic EPS is computed by dividing net income attributable to Dolby Laboratories, Inc. by the number of weighted-average shares of Class A and Class B common stock outstanding during the period. Through application of the treasury stock method, diluted EPS is computed in the same manner, except that the number of weighted-average shares outstanding is increased by the number of potentially dilutive shares from employee incentive plans during the period.
Basic and diluted EPS are computed independently for each fiscal quarter and year-to-date period, which involves the use of different weighted-average share count figures relating to quarterly and annual periods. As a result, and after factoring the effect of rounding to the nearest cent per share, the sum of all four quarter-to-date EPS figures may not equal year-to-date EPS.
Potentially dilutive shares represent the hypothetical number of incremental shares issuable under the assumed exercise of outstanding stock options (both vested and unvested) and vesting of outstanding RSUs. The calculation of dilutive shares outstanding excludes securities that would have an antidilutive effect on 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 Quarter Ended
 December 29,
2023		December 30,
2022
Numerator:
Net income attributable to Dolby Laboratories, Inc.$66,981 $79,375 
Denominator:
Weighted-average shares outstanding—basic95,376 95,905 
Potential common shares from options to purchase common stock755 533 
Potential common shares from restricted stock units1,289 566 
Potential common shares from employee stock purchase plan19 43 
Weighted-average shares outstanding—diluted97,439 97,047 
Net income per share attributable to Dolby Laboratories, Inc.:
Basic$0.70 $0.83 
Diluted$0.69 $0.82 
Antidilutive awards excluded from calculation:
Stock options1,042 1,509 
Restricted stock units36 350 
Employee stock purchase plan95 10 
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Income Taxes
 3 Months Ended
Dec. 29, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our income tax expense, deferred tax assets and liabilities, and unrecognized tax benefits reflect management's best assessment of estimated current and future liabilities. We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax expense.
Unrecognized Tax Benefits
As of December 29, 2023, the total amount of gross unrecognized tax benefits was $78.3 million, of which $49.0 million, if recognized, would reduce our effective tax rate. As of September 29, 2023, the total amount of gross unrecognized tax benefits was $76.3 million, of which $47.2 million, if recognized, would reduce our effective tax rate. The first quarter of fiscal 2024 increase was primarily due to current year reserves for transfer pricing and interest accruals. Our liability for unrecognized tax benefits is classified within other non-current liabilities in our unaudited interim condensed consolidated balance sheets.
Effective Tax Rate
Each period, the combination of multiple different factors can impact our effective tax rate. These factors include both recurring items such as tax rates and the relative amount of income earned in foreign jurisdictions, as well as discrete items that may occur in, but are not necessarily consistent between periods.
Our effective tax rate in the first quarter of fiscal 2024 was 16.4% or a tax expense of $13.3 million and our effective tax rate in the first quarter of fiscal 2023 was 20.5% or a tax expense of $20.5 million. The decrease in our effective tax rate was primarily due to tax benefits related to settlement of stock-based awards and the mix of earnings favoring jurisdictions with lower tax rates.
On December 11, 2023, the IRS announced in a notice that taxpayers can temporarily apply the regulations in effect prior to 2022 related to U.S. federal foreign tax credits. This relief applies to foreign taxes paid or accrued in our fiscal 2024.
Compared to the Federal statutory rate of 21%, our effective tax rate for the first quarter of fiscal 2024 was lower primarily due to the mix of earnings favoring jurisdictions with lower tax rates and tax benefits related to settlement of stock-based awards.
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Restructuring
 3 Months Ended
Dec. 29, 2023
Restructuring Charges [Abstract]  
Restructuring Restructuring
Restructuring charges recorded in our unaudited interim condensed consolidated statements of operations represent costs associated with separate individual restructuring plans implemented in various fiscal periods. Costs arising from these actions, including fluctuations in related balances between fiscal periods, are based on the nature of activities under the various plans.
Fiscal 2023 Restructuring Events.    In September 2023, we initiated a restructuring plan with the purpose of focusing our resources on our highest strategic priorities. In continuation with this plan, we recorded expense of $7.4 million in the first quarter of fiscal 2024 in severance and other related benefits offered to approximately 70 impacted employees. Cash payment of the severance and other termination benefits is expected to be completed by the second half of fiscal 2024.
The table presented below summarizes the changes in our restructuring accruals (in thousands):
SeveranceLeased facility exit costs and other costs and adjustmentsTotal
Balance at September 30, 2022$5,781 $— $5,781 
Restructuring charges23,943 23,118 47,061 
Cash payments and adjustments(9,372)(16,225)(25,597)
Non-cash adjustment for leased facility exit costs— (6,893)(6,893)
Balance at September 29, 2023$20,352 $— $20,352 
Restructuring charges7,376 (1,285)6,091 
Cash payments and adjustments(9,625)1,285 (8,340)
Balance at December 29, 2023$18,103 $— $18,103 
The fiscal 2023 activities primarily related to our fiscal 2023 restructuring plans with the purpose of focusing our resources on our highest strategic priorities and to reduce our cost structure through improved utilization of our global infrastructure.
Accruals for restructuring charges/(credits) incurred for the restructuring plan described above are included within accrued liabilities in our unaudited interim condensed consolidated balance sheets, while restructuring charges are included within restructuring charges in our unaudited interim condensed consolidated statements of operations.
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Legal Matters
 3 Months Ended
Dec. 29, 2023
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. On a quarterly basis, we evaluate based on the known facts and circumstances whether a potential loss or range of losses is considered probable and reasonably estimable in accordance with U.S. GAAP. We record a provision for a liability relating to these legal proceedings when a loss is both probable and the amount of the loss can be reasonably estimated. Legal costs associated with these legal proceedings are expensed as incurred.
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 unaudited interim condensed consolidated financial statements, any such amounts are either immaterial, or it is not probable that a potential loss has been incurred or the amount of loss cannot be reasonably estimated.
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Commitments And Contingencies
 3 Months Ended
Dec. 29, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments And Contingencies Commitments and Contingencies
In the ordinary course of business, we enter into contractual agreements with third parties that include non-cancelable payment obligations, for which we are liable in future periods. These arrangements can include terms binding us to minimum payments and/or penalties if we terminate the agreement for any reason other than an event of default as described by the agreement. The following table presents a summary of our contractual obligations and commitments as of December 29, 2023 (in thousands):
 Payments Due By Fiscal Period
Remainder of Fiscal
2024		Fiscal
2025		Fiscal
2026		Fiscal
2027		Fiscal
2028		ThereafterTotal
Naming rights$8,684 $13,126 $13,472 $8,534 $8,642 $35,674 $88,132 
Purchase obligations22,890 4,916 1,196 — — — 29,002 
Donation commitments1,009 116 116 86 86 404 1,817 
Total$32,583 $18,158 $14,784 $8,620 $8,728 $36,078 $118,951 
Naming Rights.    We are party to agreements for naming rights of certain facilities, most significantly for naming rights and related benefits with respect to the Dolby Theatre in Hollywood, California, the location of the Academy Awards®. The term of this agreement is 20 years, over which we will make payments on a semi-annual basis until fiscal 2032. Our ongoing annual payment obligations are conditioned in part on the Academy Awards being held and broadcast from the Dolby Theatre. Our payment obligations may be suspended or reduced in certain circumstances, including the protracted closure of the Dolby Theatre. We also hold the naming rights to Dolby Live at the Park MGM in Las Vegas, Nevada. Dolby Live is a fully integrated performance venue offering live concerts in Dolby Atmos.
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 information technology and telecommunications, marketing and professional services, and manufacturing and other R&D activities. Also included in purchase obligations are non-cancelable commitments to contract manufacturers, including potentially variable obligations related to inventory based on demand forecasts we provide to the contract manufacturers.
Donation Commitments.    Our donation commitments relate to non-cancelable obligations that consist of maintenance services and installation of imaging and audio products in exchange for various marketing, branding, and publicity benefits. These donation agreements either transfer title of our audio and imaging products to the donee or offer use of the products free of charge for a specified period of time via a leasing arrangement. The recipients of these donations participate in or promote the cinema and entertainment industry, and our commitments vary in length, lasting up to 15 years.
Indemnification Clauses.    On a limited basis, our contractual agreements contain a clause under which we agree to provide indemnification to the counterparty, most commonly to licensees in connection with licensing arrangements that include our IP. We have also entered into indemnification agreements with our officers, directors, and certain employees, and our certificate of incorporation and bylaws contain similar indemnification obligations. Additionally, and although not a contractual requirement, we have at times elected to defend our licensees from third
party IP infringement claims. Since the terms and conditions of our contractual indemnification clauses do not explicitly specify our obligations, we are unable to reasonably estimate the maximum potential exposure for which we could be liable.
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Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Pay vs Performance Disclosure    
Net income attributable to Dolby Laboratories, Inc. $ 66,981 $ 79,375
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Insider Trading Arrangements
 3 Months Ended
Dec. 29, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
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Summary Of Significant Accounting Policies (Policy)
 3 Months Ended
Dec. 29, 2023
Accounting Policies [Abstract]  
Principles of Consolidation
Principles of Consolidation
The unaudited interim condensed consolidated financial statements include the accounts of Dolby Laboratories, Inc. and our wholly-owned and majority-owned subsidiaries. In addition, we have consolidated the financial results of jointly owned affiliated companies in which our principal stockholder or other entities have a noncontrolling interest. We report these noncontrolling interests as a separate line in our unaudited interim condensed consolidated statements of operations as net income attributable to noncontrolling interest and in our unaudited interim condensed consolidated balance sheets as a noncontrolling interest. We eliminate all intercompany accounts and transactions upon consolidation.
Operating Segments
Operating Segments
Since we operate as a single reportable segment, all required financial segment information is included in our unaudited interim condensed consolidated financial statements. This reflects the fact that our CODM, our CEO, evaluates our financial information and resources, and assesses the performance of these resources on a consolidated basis.
Use of Estimates
Use of Estimates
The preparation of our financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported and disclosed in our unaudited interim condensed consolidated financial statements and accompanying notes.
Significant items subject to such estimates and assumptions include estimated shipments by our licensees for which we are owed a sales-based royalty. These estimates involve the use of historical data and judgment for several key attributes including industry estimates of expected shipments, the percentage of markets using our technologies, and average sale prices. Our estimates of royalty-based revenue also take into consideration the macroeconomic effect of global events that may impact our licensees' supply chain activities as well as demand for shipments.
Additional significant items subject to such estimates and assumptions include ESPs for performance obligations within revenue arrangements; allowance for credit losses for accounts receivable; carrying values of inventories and certain PP&E, goodwill and intangible assets; fair values of investments; accrued liabilities including unrecognized tax benefits, deferred income tax assets and liabilities, and contingent liabilities; and stock-based compensation. Actual results could differ from our estimates.
Fiscal Year
Fiscal Year
Our fiscal year is a 52 or 53 week period ending on the last Friday in September. The fiscal periods presented herein include the 13 week period ended December 29, 2023 and December 30, 2022. Our fiscal years ending September 27, 2024 (fiscal 2024) and September 29, 2023 (fiscal 2023) each consist of 52 weeks.
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, accounts receivable, and contract assets. We maintain cash, cash equivalents, and investments with multiple financial institutions that have high credit standing, and that we believe are financially sound and have minimal credit risk exposure, although at times our balances may exceed the applicable insurance coverage limits. We monitor and manage the overall counterparty credit risk exposure of our cash balances to individual financial institutions on an ongoing basis. Our investment portfolio consists of investment-grade securities diversified amongst security types, industries, and issuers. All of our securities are held in custody by large national financial institutions. Our investment policy limits the amount of credit exposure to a maximum of 5% of our total portfolio to any one issuer, except for the U.S. Treasury, and we believe no significant concentration risk exists with respect to these investments. We also mitigate counterparty risk through entering into derivative contracts with high-credit-quality financial institutions. Actual or potential defaults of one or more financial institutions could impact our results of operations or financial position, and make it challenging to find alternative qualified counterparties.
The majority of our licensing revenue is generated from customers outside of the United States ("U.S."). We manage the credit risk posed by non-U.S. customers by performing regular evaluations of the creditworthiness of our licensing customers and recognize revenue in accordance with US GAAP.
Recently Issued Accounting Policies
Recently Issued Accounting Standards
Standards Not Yet Effective
Segment Reporting. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances the disclosures required for operating segments by requiring disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, among other expanded disclosures. This standard will be effective for annual periods beginning September 28, 2024 and interim periods beginning September 27, 2025, with early adoption permitted, and will be applied retrospectively to all periods presented in the financial statements. We are currently in the process of evaluating the impact of the standard's adoption on our unaudited interim condensed consolidated financial statements.
Income Taxes. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires further enhancement of income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This standard is effective for Dolby beginning September 27, 2025 on a prospective basis, but early adoption is permitted. We are currently in the process of evaluating the impact of the standard's adoption on our unaudited interim condensed consolidated financial statements.
v3.24.0.1
Revenue Recognition (Tables)
 3 Months Ended
Dec. 29, 2023
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table presents a summary of the composition of our revenue for all periods presented (in thousands, except percentage amounts):
Fiscal Quarter Ended
RevenueDecember 29, 2023December 30, 2022
Licensing$293,767 93 %$308,011 92 %
Products and services21,807 7 %26,910 8 %
Total revenue$315,574 100 %$334,921 100 %
The following table presents the composition of our licensing revenue for all periods presented (in thousands, except percentage amounts):
Fiscal Quarter Ended
MarketDecember 29, 2023December 30, 2022
Broadcast$112,416 38 %$117,334 38 %
Mobile35,287 12 %64,286 21 %
CE53,220 18 %55,083 18 %
PC29,679 10 %24,286 8 %
Other63,165 22 %47,022 15 %
Total licensing revenue$293,767 100 %$308,011 100 %
We license our technologies in approximately 70 countries, and our licensees distribute products that incorporate our technologies throughout the world. We generate the majority of our revenue from outside the U.S. Geographic data for our licensing revenue is based on the location of our licensees’ headquarters, products revenue is based on the destination to which we ship our products, and services revenue is based on the location where services are performed. The following table presents the composition of our revenue by geographic location for all periods presented (in thousands, except percentage amounts):
Fiscal Quarter Ended
Geographic LocationDecember 29, 2023December 30, 2022
United States$115,185 37 %$100,262 30 %
International200,389 63 %234,659 70 %
Total revenue$315,574 100 %$334,921 100 %
Contract with Customer, Asset and Liability
The following table presents a summary of the balances to which contract assets and liabilities related to revenue are recorded for all periods presented (in thousands, except percentage amounts):
December 29, 2023September 29, 2023Change ($)Change (%)
Accounts receivable, net$293,228 $262,245 $30,983 12 %
Contract assets, net217,559 182,130 35,429 19 %
Contract liabilities - current33,404 31,505 1,899 6 %
Contract liabilities - non-current36,994 39,997 (3,003)(8)%
v3.24.0.1
Composition Of Certain Financial Statement Captions (Tables)
 3 Months Ended
Dec. 29, 2023
Composition Of Certain Financial Statement Captions [Abstract]  
Schedule Of Accounts Receivable
Accounts Receivable and Contract Assets
December 29,
2023		September 29,
2023
Trade accounts receivable$111,027 $137,820 
Accounts receivable from patent administration program licensees189,629 134,108 
Contract assets217,667 182,268 
Accounts receivable and contract assets, gross518,323 454,196 
Less: allowance for credit losses on accounts receivable and contract assets(7,536)(9,821)
Total accounts receivable and contract assets, net$510,787 $444,375 
Schedule Of Allowance For Credit Losses
Allowance for Credit LossesBeginning BalanceCharges/(Credits) 
to S&M and G&A		Additions/(Deductions)Ending Balance
For fiscal year-to-date period ended:
September 29, 2023$14,405 $(793)$(2,643)$10,969 
December 29, 202310,969 (2,101)(233)8,635 
Allowance for credit losses includes the provision for estimated credit losses on our sales-type leases, which was not material as of December 29, 2023 and September 29, 2023.
Schedule Of Inventories
Inventories
December 29,
2023		September 29,
2023
Raw materials$4,375 $6,203 
Work in process5,321 3,972 
Finished goods27,872 25,448 
Total inventories$37,568 $35,623 
Schedule Of Prepaid Expenses And Other Current Assets
Prepaid Expenses and Other Current Assets
December 29,
2023		September 29,
2023
Prepaid expenses$27,699 $24,435 
Other current assets25,820 26,257 
Total prepaid expenses and other current assets$53,519 $50,692 
Schedule Of Accrued Liabilities
Accrued Liabilities
December 29,
2023		September 29,
2023
Amounts payable to patent administration program partners$171,639 $150,509 
Accrued compensation and benefits79,384 118,728 
Accrued professional fees17,131 18,632 
Unpaid property, plant, and equipment additions18,116 18,002 
Accrued customer refunds3,479 3,878 
Accrued market development funds4,436 5,010 
Other accrued liabilities33,001 36,640 
Total accrued liabilities$327,186 $351,399 
Schedule Of Other Non-Current Liabilities
Other Non-Current Liabilities
December 29,
2023		September 29,
2023
Supplemental retirement plan obligations$4,385 $4,302 
Non-current tax liabilities (1)
77,165 74,482 
Other liabilities26,260 29,555 
Total other non-current liabilities$107,810 $108,339 
(1)        Refer to Note 12 "Income Taxes" for additional information related to our tax liabilities.
v3.24.0.1
Investments & Fair Value Measurements (Tables)
 3 Months Ended
Dec. 29, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]  
Schedule Of Financial Assets and Liabilities Carried At Fair Value
December 29, 2023
CostUnrealizedEstimated Fair Value
GainsLossesTotalLevel 1Level 2Level 3
Cash and cash equivalents:
Cash$643,276 $— $— $643,276 $643,276 $— $— 
Cash equivalents:
Money market funds3,557 — — 3,557 3,557 — — 
Government Bonds9,979 4 — 9,983 9,983 — — 
Cash and cash equivalents656,812 4 — 656,816 656,816 — — 
Short-term investments:
U.S. agency securities3,892 1 — 3,893 — 3,893 — 
Government bonds43,998 19 (503)43,514 40,904 2,610 — 
Commercial paper9,513 5 — 9,518 — 9,518 — 
Corporate bonds68,503 30 (276)68,257 — 68,257 — 
Municipal debt securities15,749 2 (110)15,641 — 15,641 — 
Short-term investments141,655 57 (889)140,823 40,904 99,919 — 
Long-term investments:
Government bonds31,168 82 (194)31,056 31,056 — — 
Corporate bonds38,068 212 (196)38,084 — 38,084 — 
Municipal debt securities11,792 62 (40)11,814 — 11,814 — 
Other investments (1)
11,922 — — 11,922 — — — 
Long-term investments92,950 356 (430)92,876 31,056 49,898 — 
Total cash, cash equivalents, and investments$891,417 $417 $(1,319)$890,515 $728,776 $149,817 $— 
Investments held in supplemental retirement plan:
Assets$4,483 $— $— $4,483 $4,483 $— $— 
Included in prepaid expenses and other current assets and other non-current assets
Liabilities$4,483 $— $— $4,483 $4,483 $— $— 
Included in accrued liabilities and other non-current liabilities
Currency derivatives as hedge instruments:
Assets: Included in other current assets$— $2,829 $— $2,829 $— $2,829 $— 
(1)Other investments as of December 29, 2023 is primarily comprised of an equity method investment of $6.5 million and an equity security without a readily determinable fair value, valued at $5.0 million. The equity method investment is measured at cost minus impairment, if any, adjusted for our proportionate share of the investee's net income or loss. Our share of the equity method investee's net income or loss is included in other income/(expense), net on the unaudited interim condensed consolidated statements of operations. Our share of the equity method investee's net income was $3.3 million in the first quarter of fiscal 2024 and was not material in the first quarter of fiscal 2023.
September 29, 2023
CostUnrealizedEstimated Fair Value
GainsLossesTotalLevel 1Level 2Level 3
Cash and cash equivalents:
Cash$602,288 $— $— $602,288 $602,288 $— $— 
Cash equivalents:
Commercial paper1,514 — — 1,514 — 1,514 — 
Money market funds139,831 — — 139,831 139,831 — — 
Government Bonds1,731 — — 1,731 1,731 — — 
Cash and cash equivalents745,364 — — 745,364 743,850 1,514 — 
Short-term investments:
Certificate of deposit530 — — 530 — 530 — 
U.S. agency securities5,956 1 (7)5,950 — 5,950 — 
Government bonds50,220 3 (384)49,839 46,246 3,593 — 
Commercial paper5,843 — (3)5,840 — 5,840 — 
Corporate bonds61,803 — (431)61,372 — 61,372 — 
Municipal debt securities15,801 — (184)15,617 — 15,617 — 
Short-term investments140,153 4 (1,009)139,148 46,246 92,902 — 
Long-term investments:
Government bonds33,227 — (1,046)32,181 32,181 — — 
Corporate bonds39,057 6 (589)38,474 — 38,474 — 
Municipal debt securities16,137 — (224)15,913 — 15,913 — 
Other investments (1)
11,244 — — 11,244 — — — 
Long-term investments99,665 6 (1,859)97,812 32,181 54,387 — 
Total cash, cash equivalents, and investments$985,182 $10 $(2,868)$982,324 $822,277 $148,803 $— 
Investments held in supplemental retirement plan:
Assets$4,400 $— $— $4,400 $4,400 $— $— 
Included in prepaid expenses and other current assets and other non-current assets
Liabilities$4,400 $— $— $4,400 $4,400 $— $— 
Included in accrued liabilities and other non-current liabilities
Currency derivatives as hedge instruments:
Assets: Included in other current assets$— $144 $— $144 $— $144 $— 
Assets: included in other non-current assets— 2 — 2 — 2 — 
Liabilities: Included in other accrued liabilities— — (618)(618)— (618)— 
Liabilities: Included in other non-current liabilities— — (24)(24)— (24)— 
(1)Other investments as of September 29, 2023 is comprised of an equity method investment of $5.9 million and an equity security without a readily determinable fair value, valued at $5.0 million.
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value The following table presents the gross unrealized losses and fair value for those AFS securities that were in an unrealized loss position for less than twelve months and for greater than twelve months as of December 29, 2023 and September 29, 2023 (in thousands):
December 29, 2023September 29, 2023
Less Than 12 MonthsGreater Than 12 MonthsLess Than 12 MonthsGreater Than 12 Months
Investment TypeFair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. agency securities$— $— $— $— $853 $(7)$— $— 
Government bonds12,250 (67)30,457 (629)26,756 (247)40,235 (1,183)
Commercial paper— — — — 5,840 (3)— — 
Corporate bonds36,002 (137)19,546 (335)79,846 (461)14,634 (558)
Municipal debt securities8,222 (52)6,246 (98)23,365 (203)8,166 (206)
Total$56,474 $(256)$56,249 $(1,062)$136,660 $(921)$63,035 $(1,947)
Debt Securities, Available-for-sale The following table summarizes the amortized cost and estimated fair value of the AFS securities within our investment portfolio based on stated maturities as of December 29, 2023 and September 29, 2023, which are recorded within cash equivalents and both short and long-term investments in our unaudited interim condensed consolidated balance sheets (in thousands):
December 29, 2023September 29, 2023
Range of maturityAmortized CostFair ValueAmortized CostFair Value
Due within 1 year$171,054 $170,477 $283,229 $282,225 
Due in 1 to 2 years45,231 44,735 67,679 66,075 
Due in 2 to 5 years19,933 20,105 20,743 20,493 
Total$236,218 $235,317 $371,651 $368,793 
v3.24.0.1
Property, Plant and Equipment (Tables)
 3 Months Ended
Dec. 29, 2023
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
PP&E are recorded at cost, with depreciation expense included in cost of licensing, cost of products and services, R&D, S&M, and G&A expenses in our unaudited interim condensed consolidated statements of operations.
As of December 29, 2023 and September 29, 2023, PP&E consisted of the following (in thousands):
Property, Plant, and EquipmentDecember 29,
2023		September 29,
2023
Land$41,959 $41,902 
Buildings and building improvements288,199 287,799 
Leasehold improvements81,985 79,988 
Machinery and equipment153,976 152,675 
Computer equipment and software235,778 233,224 
Furniture and fixtures33,046 32,629 
Equipment provided under operating leases216,592 211,910 
Construction-in-progress19,804 18,327 
Property, plant, and equipment, gross1,071,339 1,058,454 
Less: accumulated depreciation(592,018)(576,873)
Property, plant, and equipment, net$479,321 $481,581 
v3.24.0.1
Leases (Tables)
 3 Months Ended
Dec. 29, 2023
Leases [Abstract]  
Maturities of Lessee Lease Liabilities after Adoption of 842 Schedule The following table presents the maturity analysis of lease liabilities (in thousands):
December 29, 2023
Operating Leases
Remainder of Fiscal 2024$13,226 
Fiscal 202512,861 
Fiscal 20268,253 
Fiscal 20276,229 
Fiscal 20285,991 
Thereafter11,358 
Total undiscounted lease payments57,918 
Less: imputed interest(10,677)
Total lease liabilities$47,241 
Lease Cost Components, Supplemental Cash Flow Information and Supplemental Balance Sheet Information Schedules The components of lease income were as follows (in thousands):
Fiscal Quarter Ended
December 29, 2023December 30, 2022
Operating Lease Income
Variable operating lease income$6,315 $6,328 
Fixed operating lease income812 747 
Maturities of Lessor Operating Lease Payments Schedule
The following table presents the maturity analysis of fixed lease payments due to Dolby (in thousands):
December 29, 2023
Operating LeasesSales-Type Leases
Remainder of Fiscal 2024$990 $620 
Fiscal 20251,110 620 
Fiscal 2026931 220 
Fiscal 2027— 220 
Fiscal 2028— 220 
Total undiscounted cash flows$3,031 1,900 
Less: Carrying value of lease receivables(621)
Difference$1,279 
Maturities of Lessor Sales-Type Lease Payments Schedule
The following table presents the maturity analysis of fixed lease payments due to Dolby (in thousands):
December 29, 2023
Operating LeasesSales-Type Leases
Remainder of Fiscal 2024$990 $620 
Fiscal 20251,110 620 
Fiscal 2026931 220 
Fiscal 2027— 220 
Fiscal 2028— 220 
Total undiscounted cash flows$3,031 1,900 
Less: Carrying value of lease receivables(621)
Difference$1,279 
v3.24.0.1
Goodwill and Intangible Assets (Tables)
 3 Months Ended
Dec. 29, 2023
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 29, 2023$408,409 
Translation adjustments2,026 
Balance at December 29, 2023$410,435 
Schedule of Finite-Lived Intangible Assets Intangible assets subject to amortization consisted of the following (in thousands):
 December 29, 2023September 29, 2023
Intangible Assets, NetCostAccumulated
Amortization		NetCostAccumulated
Amortization		Net
Acquired patents and technology$351,096 $(276,316)$74,780 $350,406 $(270,750)$79,656 
Customer relationships148,817 (63,723)85,094 148,794 (61,049)87,745 
Other intangible assets22,811 (22,791)20 22,781 (22,755)26 
Total$522,724 $(362,830)$159,894 $521,981 $(354,554)$167,427 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense As of December 29, 2023, expected amortization expense of our intangible assets in future fiscal periods was as follows (in thousands):
Fiscal Year Amortization Expense
Remainder of 2024$22,569 
202515,812 
202615,293 
202714,773 
202814,614 
Thereafter76,833 
Total$159,894 
v3.24.0.1
Stockholders' Equity And Stock-Based Compensation (Tables)
 3 Months Ended
Dec. 29, 2023
Stockholders' Equity And Stock-Based Compensation [Abstract]  
Summary Of Stock Options Issued To Officers, Directors, And Employees Under 2000 Stock Incentive Plan And 2005 Stock Plan
The following table summarizes information about stock options, including PSOs, issued under our 2020 Stock Plan:
SharesWeighted-Average
Exercise Price		Weighted-Average
Remaining
Contractual Life
Aggregate
Intrinsic
Value (1)
 (in thousands) (in years)(in thousands)
Options outstanding as of September 29, 20233,720 $66.13 
Grants271 87.49 
Exercises(203)52.25 
Forfeitures and cancellations(1)53.72 
Options outstanding as of December 29, 20233,787 68.45 5.29$70,079 
Options vested and expected to vest as of December 29, 20233,625 68.11 5.2069,672 
Options exercisable as of December 29, 20232,913 $64.43 4.4465,763 
(1)Aggregate intrinsic value is based on the closing stock price of our Class A common stock on December 29, 2023 of $86.18 and excludes the impact of options that were not in-the-money.
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award
The following table summarizes information on PSUs granted to our officers that have not vested as of December 29, 2023:
Aggregate Shares GrantedPotential Shares at Vest Date (at 200% of Target)
December 15, 202160,301 120,602 
December 15, 202290,613 181,226 
December 15, 202377,283 154,566 
Summary Of Restricted Stock Units Issued To Officers, Directors And Employees Under 2005 Stock Incentive Plan
The following table summarizes information about RSUs, including PSUs, issued under our 2020 Stock Plan:
SharesWeighted-Average
Grant Date
Fair Value 
 (in thousands)
Non-vested as of September 29, 20233,747 $78.62 
Granted1,590 84.24 
Vested(1,120)78.58 
Forfeitures(190)81.37 
Non-vested as of December 29, 20234,027 $80.72 
Schedule Of Fair Value Of Stock-Based Awards Estimated Using Weighted-Average Assumptions
The weighted-average assumptions used in the determination of the fair value of our stock options were as follows:
 Fiscal Quarter Ended
 December 29,
2023		December 30,
2022
Expected term (in years)4.864.82
Risk-free interest rate3.9 %3.6 %
Expected stock price volatility29.4 %29.4 %
Dividend yield1.4 %1.6 %
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
The following two tables separately present stock-based compensation expense both by award type and classification in our unaudited interim condensed consolidated statements of operations (in thousands):
Expense - By Award Type
 Fiscal Quarter Ended
 December 29,
2023		December 30,
2022
Compensation expense
Stock options$2,125 $2,405 
Restricted stock units (1) (2)
29,016 27,552 
Employee stock purchase plan753 1,283 
Total stock-based compensation31,894 31,240 
Estimated benefit from income taxes(4,999)(4,702)
Total stock-based compensation, net of tax$26,895 $26,538 
(1)Stock-based compensation expense incurred by restricted stock units includes expense from PSUs.
(2)Excludes $0.1 million and $0.3 million of capitalized stock-based compensation related to internal-use software in the first quarter of fiscal 2024 and in the first quarter of fiscal 2023, respectively.
Expense - By Income Statement Line Item Classification
 Fiscal Quarter Ended
 December 29,
2023		December 30,
2022
Compensation expense
Cost of products and services$410 $503 
Research and development10,106 10,676 
Sales and marketing10,481 10,727 
General and administrative10,897 9,334 
Total stock-based compensation31,894 31,240 
Estimated benefit from income taxes(4,999)(4,702)
Total stock-based compensation, net of tax$26,895 $26,538 
Schedule of Stock Repurchase Authorizations The following table summarizes the initial amount of authorized repurchases as well as additional repurchases approved by our Board of Directors as of December 29, 2023 (in thousands):
Date of AuthorizationAuthorization Amount
Fiscal 2010: November 2009$250,000 
Fiscal 2010: July 2010300,000 
Fiscal 2011: July 2011250,000 
Fiscal 2012: February 2012100,000 
Fiscal 2015: October 2014200,000 
Fiscal 2017: January 2017200,000 
Fiscal 2018: July 2018350,000 
Fiscal 2019: July 2019350,000 
Fiscal 2021: July 2021350,000 
Fiscal 2022: February 2022250,000 
Fiscal 2022: August 2022350,000 
Total$2,950,000 
Schedule of Stock Repurchase Activity
The following table provides information regarding share repurchase activity under the program during fiscal 2024:
Quarterly Repurchase ActivityShares
Repurchased
Cost (1)
Average Price Paid Per Share (2)
(in thousands)
Q1 - Quarter ended December 29, 2023967,789 $80,002 $82.66 
Total967,789 $80,002 
(1)Cost of share repurchases includes the price paid per share, and excludes commission costs.
(2)Average price paid per share excludes commission costs.
Dividends Declared
The following table summarizes dividends declared under the program during fiscal 2024:
Fiscal PeriodAnnouncement DateRecord DatePayment DateCash Dividend Per Common ShareDividend Payment
Q1 - Quarter ended December 29, 2023February 1, 2024February 13, 2024February 22, 2024$0.30 $28.8 million
(1)
(1)The dividend payment amount for the dividend declared in the first quarter of fiscal 2024 is estimated based on the number of shares of our Class A and Class B common stock that we estimate will be outstanding as of the Record Date.
v3.24.0.1
Accumulated Other Comprehensive Income (Tables)
 3 Months Ended
Dec. 29, 2023
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
The following table summarizes the changes in the accumulated balances during the period, and includes information regarding the manner in which the reclassifications out of AOCI into earnings affect our unaudited interim condensed consolidated statements of operations (in thousands):
Fiscal Quarter Ended
December 29, 2023
Investment SecuritiesCash Flow HedgesCurrency Translation AdjustmentsTotal
Beginning Balance$(2,858)$(197)$(33,929)$(36,984)
Other comprehensive income before reclassifications:
Unrealized gains2,011 2,587 — 4,598 
Foreign currency translation gains (1)
— — 11,509 11,509 
Income tax effect - expense— (648)— (648)
Net of tax2,011 1,939 11,509 15,459 
Amounts reclassified from AOCI into earnings:
Realized gains/(losses) (2)
(67)188 — 121 
Income tax effect - benefit/(expense) (3)
12 (36)— (24)
Net of tax(55)152 — 97 
Net current-period other comprehensive income1,956 2,091 11,509 15,556 
Ending Balance$(902)$1,894 $(22,420)$(21,428)
Fiscal Quarter Ended
December 30, 2022
Investment SecuritiesCash Flow HedgesCurrency Translation AdjustmentsTotal
Beginning Balance$(5,986)$(4,483)$(41,172)$(51,641)
Other comprehensive income before reclassifications:
Unrealized gains1,532 5,180 — 6,712 
Foreign currency translation gains (1)
— — 14,078 14,078 
Net of tax1,532 5,180 14,078 20,790 
Amounts reclassified from AOCI into earnings:
Realized losses (2)
(213)(1,004)— (1,217)
Income tax effect - benefit (3)
37 156 — 193 
Net of tax(176)(848)— (1,024)
Net current-period other comprehensive income1,356 4,332 14,078 19,766 
Ending Balance$(4,630)$(151)$(27,094)$(31,875)
(1)The foreign currency translation gains during the first quarter of fiscal 2024 and during the first quarter of fiscal 2023 were primarily due to the strengthening of other foreign currencies as compared to the U.S. dollar.
(2)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 unaudited interim condensed consolidated statements of operations. Realized gains or losses on foreign currency contracts designated as cash flow hedges are included in operating expenses in the unaudited interim condensed consolidated statements of operations.
(3)The income tax benefit or expense is included within provision for income taxes in our unaudited interim condensed consolidated statements of operations.
v3.24.0.1
Per Share Data (Tables)
 3 Months Ended
Dec. 29, 2023
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table sets forth the computation of basic and diluted EPS attributable to Dolby Laboratories, Inc. (in thousands, except per share amounts):
 Fiscal Quarter Ended
 December 29,
2023		December 30,
2022
Numerator:
Net income attributable to Dolby Laboratories, Inc.$66,981 $79,375 
Denominator:
Weighted-average shares outstanding—basic95,376 95,905 
Potential common shares from options to purchase common stock755 533 
Potential common shares from restricted stock units1,289 566 
Potential common shares from employee stock purchase plan19 43 
Weighted-average shares outstanding—diluted97,439 97,047 
Net income per share attributable to Dolby Laboratories, Inc.:
Basic$0.70 $0.83 
Diluted$0.69 $0.82 
Antidilutive awards excluded from calculation:
Stock options1,042 1,509 
Restricted stock units36 350 
Employee stock purchase plan95 10 
v3.24.0.1
Restructuring (Tables)
 3 Months Ended
Dec. 29, 2023
Restructuring Charges [Abstract]  
Restructuring and Related Costs he table presented below summarizes the changes in our restructuring accruals (in thousands):
SeveranceLeased facility exit costs and other costs and adjustmentsTotal
Balance at September 30, 2022$5,781 $— $5,781 
Restructuring charges23,943 23,118 47,061 
Cash payments and adjustments(9,372)(16,225)(25,597)
Non-cash adjustment for leased facility exit costs— (6,893)(6,893)
Balance at September 29, 2023$20,352 $— $20,352 
Restructuring charges7,376 (1,285)6,091 
Cash payments and adjustments(9,625)1,285 (8,340)
Balance at December 29, 2023$18,103 $— $18,103 
v3.24.0.1
Commitments And Contingencies (Tables)
 3 Months Ended
Dec. 29, 2023
Commitments and Contingencies Disclosure [Abstract]  
Schedule Of Contractual Obligations And Commitments The following table presents a summary of our contractual obligations and commitments as of December 29, 2023 (in thousands):
 Payments Due By Fiscal Period
Remainder of Fiscal
2024		Fiscal
2025		Fiscal
2026		Fiscal
2027		Fiscal
2028		ThereafterTotal
Naming rights$8,684 $13,126 $13,472 $8,534 $8,642 $35,674 $88,132 
Purchase obligations22,890 4,916 1,196 — — — 29,002 
Donation commitments1,009 116 116 86 86 404 1,817 
Total$32,583 $18,158 $14,784 $8,620 $8,728 $36,078 $118,951 
v3.24.0.1
Basis Of Presentation (Details)
 3 Months Ended
Dec. 29, 2023
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of Operating Segments 1
v3.24.0.1
Revenue Recognition (Narrative) (Details)
$ in Millions
 3 Months Ended
Dec. 29, 2023
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue adjustment $ 1.0
Remaining performance obligation 70.4
Revenue recognized $ 12.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-30  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percent 39.00%
Expected timing of satisfaction period 9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-09-28  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percent 23.00%
Expected timing of satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-09-27  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percent 38.00%
Expected timing of satisfaction period 1 year
v3.24.0.1
Revenue Recognition (Schedule of Disaggregation of Revenue) (Details)
$ in Thousands
 3 Months Ended
Dec. 29, 2023
USD ($)
country
Dec. 30, 2022
USD ($)
Revenue from External Customer [Line Items]    
Revenue from contract with customer $ 315,574 $ 334,921
Revenue from contract with customer, percent 100.00% 100.00%
Countries technologies are licensed in | country 70  
United States    
Revenue from External Customer [Line Items]    
Revenue from contract with customer $ 115,185 $ 100,262
Revenue from contract with customer, percent 37.00% 30.00%
International    
Revenue from External Customer [Line Items]    
Revenue from contract with customer $ 200,389 $ 234,659
Revenue from contract with customer, percent 63.00% 70.00%
Licensing    
Revenue from External Customer [Line Items]    
Revenue from contract with customer $ 293,767 $ 308,011
Revenue from contract with customer, percent 93.00% 92.00%
Revenue from contract with customer, licensing percent 100.00% 100.00%
Products and services    
Revenue from External Customer [Line Items]    
Revenue from contract with customer $ 21,807 $ 26,910
Revenue from contract with customer, percent 7.00% 8.00%
Broadcast    
Revenue from External Customer [Line Items]    
Revenue from contract with customer $ 112,416 $ 117,334
Revenue from contract with customer, licensing percent 38.00% 38.00%
Mobile    
Revenue from External Customer [Line Items]    
Revenue from contract with customer $ 35,287 $ 64,286
Revenue from contract with customer, licensing percent 12.00% 21.00%
CE    
Revenue from External Customer [Line Items]    
Revenue from contract with customer $ 53,220 $ 55,083
Revenue from contract with customer, licensing percent 18.00% 18.00%
PC    
Revenue from External Customer [Line Items]    
Revenue from contract with customer $ 29,679 $ 24,286
Revenue from contract with customer, licensing percent 10.00% 8.00%
Other    
Revenue from External Customer [Line Items]    
Revenue from contract with customer $ 63,165 $ 47,022
Revenue from contract with customer, licensing percent 22.00% 15.00%
v3.24.0.1
Revenue Recognition - Summary of Contract Assets and Liabilities (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 29, 2023
Sep. 29, 2023
Revenue from Contract with Customer [Abstract]    
Accounts receivable, net $ 293,228 $ 262,245
Contract assets, net 217,559 182,130
Contract liabilities 33,404 31,505
Non-current contract liabilities 36,994 $ 39,997
Change ($)    
Accounts receivable, net 30,983  
Contract assets, net 35,429  
Contract liabilities - current 1,899  
Contract liabilities - non-current $ (3,003)  
Change (%)    
Accounts receivable, net 12.00%  
Contract assets, net 19.00%  
Contract liabilities - current 6.00%  
Contract liabilities - non-current (8.00%)  
v3.24.0.1
Composition Of Certain Financial Statement Captions (Schedule Of Accounts Receivable) (Details) - USD ($)
$ in Thousands
Dec. 29, 2023
Sep. 29, 2023
Composition Of Certain Financial Statement Captions [Abstract]    
Trade accounts receivable $ 111,027 $ 137,820
Accounts receivable from patent administration program licensees 189,629 134,108
Contract assets 217,667 182,268
Accounts receivable and contract assets, gross 518,323 454,196
Less: allowance for credit losses on accounts receivable and contract assets (7,536) (9,821)
Total accounts receivable and contract assets, net $ 510,787 $ 444,375
v3.24.0.1
Composition Of Certain Financial Statement Captions (Schedule Of Allowance For Doubtful Accounts) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 29, 2023
Mar. 31, 2023
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]    
Beginning Balance $ 10,969 $ 14,405
Charges/(Credits)  to S&M and G&A (2,101) (793)
Additions/(Deductions) (233) $ (2,643)
Ending Balance $ 8,635  
v3.24.0.1
Composition Of Certain Financial Statement Captions (Schedule Of Inventories) (Details) - USD ($)
$ in Thousands
Dec. 29, 2023
Sep. 29, 2023
Composition Of Certain Financial Statement Captions [Abstract]    
Raw materials $ 4,375 $ 6,203
Work in process 5,321 3,972
Finished goods 27,872 25,448
Total inventories $ 37,568 $ 35,623
v3.24.0.1
Composition Of Certain Financial Statement Captions (Narrative) (Details) - USD ($)
$ in Thousands
Dec. 29, 2023
Sep. 29, 2023
Composition Of Certain Financial Statement Captions [Line Items]    
Unbilled Receivables, Current $ 132,900 $ 150,400
Raw materials 4,375 6,203
Other Noncurrent Assets [Member]    
Composition Of Certain Financial Statement Captions [Line Items]    
Raw materials $ 13,800 $ 8,100
v3.24.0.1
Composition Of Certain Financial Statement Captions (Schedule Of Prepaid Expenses And Other Current Assets) (Details) - USD ($)
$ in Thousands
Dec. 29, 2023
Sep. 29, 2023
Composition Of Certain Financial Statement Captions [Abstract]    
Prepaid expenses $ 27,699 $ 24,435
Other current assets 25,820 26,257
Total prepaid expenses and other current assets $ 53,519 $ 50,692
v3.24.0.1
Composition Of Certain Financial Statement Captions (Schedule Of Accrued Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 29, 2023
Sep. 29, 2023
Composition Of Certain Financial Statement Captions [Abstract]    
Amounts payable to patent administration program partners $ 171,639 $ 150,509
Accrued compensation and benefits 79,384 118,728
Accrued professional fees 17,131 18,632
Unpaid property, plant, and equipment additions 18,116 18,002
Accrued customer refunds 3,479 3,878
Accrued market development funds 4,436 5,010
Other accrued liabilities 33,001 36,640
Total accrued liabilities $ 327,186 $ 351,399
v3.24.0.1
Composition Of Certain Financial Statement Captions (Schedule Of Other Non-Current Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 29, 2023
Sep. 29, 2023
Composition Of Certain Financial Statement Captions [Abstract]    
Supplemental retirement plan obligations $ 4,385 $ 4,302
Non-current tax liabilities 77,165 74,482
Other liabilities 26,260 29,555
Total other non-current liabilities $ 107,810 $ 108,339
v3.24.0.1
Investments & Fair Value Measurements - Investment Portfolio (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Sep. 29, 2023
Cash and cash equivalents:      
Cash $ 656,812   $ 745,364
Cash, Unrealized Gains 4    
Cash and cash equivalents 656,816   745,364
Short-term investments:      
Total 235,317   368,793
Long-term investments:      
Cost 92,950   99,665
Unrealized Gains 356   6
Unrealized Losses 430   1,859
Total 92,876   97,812
Investment at Cost 891,417   985,182
Investment unrealized gain 417   10
Investment unrealized loss (1,319)   (2,868)
Cash Cash Equivalents And Investments Total $ 890,515   $ 982,324
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] Prepaid expenses and other current assets    
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration]     Other non-current assets
Equity Method Investments $ 6,500   $ 5,900
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration]     Accrued liabilities
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]     Other non-current liabilities
Net income 66,981 $ 79,375  
Equity Method Investment, Nonconsolidated Investee or Group of Investees      
Long-term investments:      
Net income 3,300 $ 0  
Derivative Financial Instruments, Liabilities, Current      
Long-term investments:      
Derivative Financial Instruments, Unrealized Gain     $ 0
Derivative Financial Instruments, Unrealized Loss     (618)
Derivative Liability, Current     (618)
Derivative Financial Instruments, Liabilities, Noncurrent      
Long-term investments:      
Derivative Financial Instruments, Unrealized Gain     0
Derivative Financial Instruments, Unrealized Loss     (24)
Derivative Liability, Noncurrent     (24)
Derivative Financial Instruments, Assets, Current      
Long-term investments:      
Derivative Asset, Current 2,829   144
Derivative Financial Instruments, Unrealized Gain 2,829   144
Derivative Financial Instruments, Unrealized Loss 0   0
Derivative Financial Instruments, Assets, Noncurrent      
Long-term investments:      
Derivative Asset, Noncurrent     2
Derivative Financial Instruments, Unrealized Gain     2
Derivative Financial Instruments, Unrealized Loss     0
Certificate of deposit      
Short-term investments:      
Cost     530
Unrealized Gains     0
Unrealized Losses     0
Total     530
US Government Agencies Short-term Debt Securities [Member]      
Short-term investments:      
Cost 3,892   5,956
Unrealized Gains 1   1
Unrealized Losses 0   (7)
Total 3,893   5,950
Government bonds      
Short-term investments:      
Cost 43,998   50,220
Unrealized Gains 19   3
Unrealized Losses (503)   (384)
Total 43,514   49,839
Long-term investments:      
Cost 31,168   33,227
Unrealized Gains 82   0
Unrealized Losses 194   1,046
Total 31,056   32,181
Commercial paper      
Short-term investments:      
Cost 9,513   5,843
Unrealized Gains 5   0
Unrealized Losses 0   (3)
Total 9,518   5,840
Corporate bonds      
Short-term investments:      
Cost 68,503   61,803
Unrealized Gains 30   0
Unrealized Losses (276)   (431)
Total 68,257   61,372
Long-term investments:      
Cost 38,068   39,057
Unrealized Gains 212   6
Unrealized Losses 196   589
Total 38,084   38,474
Municipal debt securities      
Short-term investments:      
Cost 15,749   15,801
Unrealized Gains 2   0
Unrealized Losses (110)   (184)
Total 15,641   15,617
Long-term investments:      
Cost 11,792   16,137
Unrealized Gains 62   0
Unrealized Losses 40   224
Total 11,814   15,913
Short-Term Investments      
Short-term investments:      
Cost 141,655   140,153
Unrealized Gains 57   4
Unrealized Losses (889)   (1,009)
Total 140,823   139,148
Other Long-term Investments      
Long-term investments:      
Cost 11,922   11,244
Unrealized Gains 0   0
Unrealized Losses 0   0
Total 11,922   11,244
Estimated Fair Value 5,000   5,000
Level 1      
Cash and cash equivalents:      
Estimated Fair Value 656,816   743,850
Short-term investments:      
Estimated Fair Value 40,904   46,246
Long-term investments:      
Estimated Fair Value 31,056   32,181
Assets 728,776   822,277
Derivative Liability, Current     0
Derivative Liability, Noncurrent     0
Level 1 | Derivative Financial Instruments, Assets, Current      
Long-term investments:      
Derivative Asset, Current 0   0
Level 1 | Derivative Financial Instruments, Assets, Noncurrent      
Long-term investments:      
Derivative Asset, Noncurrent     0
Level 1 | Certificate of deposit      
Short-term investments:      
Estimated Fair Value     0
Level 1 | US Government Agencies Short-term Debt Securities [Member]      
Short-term investments:      
Estimated Fair Value 0   0
Level 1 | Government bonds      
Short-term investments:      
Estimated Fair Value 40,904   46,246
Long-term investments:      
Estimated Fair Value 31,056   32,181
Level 1 | Commercial paper      
Short-term investments:      
Estimated Fair Value 0   0
Level 1 | Corporate bonds      
Short-term investments:      
Estimated Fair Value 0   0
Long-term investments:      
Estimated Fair Value 0   0
Level 1 | Municipal debt securities      
Short-term investments:      
Estimated Fair Value 0   0
Long-term investments:      
Estimated Fair Value 0   0
Level 1 | Other Long-term Investments      
Long-term investments:      
Estimated Fair Value 0   0
Level 1 | Investments Held In Supplemental Retirement Plan      
Long-term investments:      
Assets 4,483   4,400
Financial liabilities carried at fair value 4,483   4,400
Level 2      
Cash and cash equivalents:      
Estimated Fair Value 0   1,514
Short-term investments:      
Estimated Fair Value 99,919   92,902
Long-term investments:      
Estimated Fair Value 49,898   54,387
Assets 149,817   148,803
Derivative Liability, Current     (618)
Derivative Liability, Noncurrent     (24)
Level 2 | Derivative Financial Instruments, Assets, Current      
Long-term investments:      
Derivative Asset, Current 2,829   144
Level 2 | Derivative Financial Instruments, Assets, Noncurrent      
Long-term investments:      
Derivative Asset, Noncurrent     2
Level 2 | Certificate of deposit      
Short-term investments:      
Estimated Fair Value     530
Level 2 | US Government Agencies Short-term Debt Securities [Member]      
Short-term investments:      
Estimated Fair Value 3,893   5,950
Level 2 | Government bonds      
Short-term investments:      
Estimated Fair Value 2,610   3,593
Long-term investments:      
Estimated Fair Value 0   0
Level 2 | Commercial paper      
Short-term investments:      
Estimated Fair Value 9,518   5,840
Level 2 | Corporate bonds      
Short-term investments:      
Estimated Fair Value 68,257   61,372
Long-term investments:      
Estimated Fair Value 38,084   38,474
Level 2 | Municipal debt securities      
Short-term investments:      
Estimated Fair Value 15,641   15,617
Long-term investments:      
Estimated Fair Value 11,814   15,913
Level 2 | Other Long-term Investments      
Long-term investments:      
Estimated Fair Value 0   0
Level 2 | Investments Held In Supplemental Retirement Plan      
Long-term investments:      
Assets 0    
Financial liabilities carried at fair value 0    
Level 3      
Cash and cash equivalents:      
Estimated Fair Value 0   0
Short-term investments:      
Estimated Fair Value 0   0
Long-term investments:      
Estimated Fair Value 0   0
Assets 0   0
Derivative Liability, Current     0
Derivative Liability, Noncurrent     0
Level 3 | Derivative Financial Instruments, Assets, Current      
Long-term investments:      
Derivative Asset, Current 0   0
Level 3 | Derivative Financial Instruments, Assets, Noncurrent      
Long-term investments:      
Derivative Asset, Noncurrent     0
Level 3 | Certificate of deposit      
Short-term investments:      
Estimated Fair Value     0
Level 3 | US Government Agencies Short-term Debt Securities [Member]      
Short-term investments:      
Estimated Fair Value 0   0
Level 3 | Government bonds      
Short-term investments:      
Estimated Fair Value 0   0
Long-term investments:      
Estimated Fair Value 0   0
Level 3 | Commercial paper      
Short-term investments:      
Estimated Fair Value 0   0
Level 3 | Corporate bonds      
Short-term investments:      
Estimated Fair Value 0   0
Long-term investments:      
Estimated Fair Value 0   0
Level 3 | Municipal debt securities      
Short-term investments:      
Estimated Fair Value 0   0
Long-term investments:      
Estimated Fair Value 0   0
Level 3 | Other Long-term Investments      
Long-term investments:      
Estimated Fair Value 0   0
Level 3 | Investments Held In Supplemental Retirement Plan      
Long-term investments:      
Assets 0    
Financial liabilities carried at fair value 0    
Cash      
Cash and cash equivalents:      
Cash 643,276   602,288
Cash and cash equivalents 643,276   602,288
Cash | Level 1      
Cash and cash equivalents:      
Estimated Fair Value 643,276   602,288
Cash | Level 2      
Cash and cash equivalents:      
Estimated Fair Value 0   0
Cash | Level 3      
Cash and cash equivalents:      
Estimated Fair Value 0   0
Government bonds      
Cash and cash equivalents:      
Cash     1,731
Cash, Unrealized Gains 4    
Cash and cash equivalents 9,979   1,731
Estimated Fair Value 9,983    
Government bonds | Level 1      
Cash and cash equivalents:      
Estimated Fair Value 9,983   1,731
Government bonds | Level 2      
Cash and cash equivalents:      
Estimated Fair Value 0   0
Government bonds | Level 3      
Cash and cash equivalents:      
Estimated Fair Value     0
Money market funds      
Cash and cash equivalents:      
Cash 3,557   139,831
Cash and cash equivalents 3,557   139,831
Money market funds | Level 1      
Cash and cash equivalents:      
Estimated Fair Value 3,557   139,831
Money market funds | Level 2      
Cash and cash equivalents:      
Estimated Fair Value 0   0
Money market funds | Level 3      
Cash and cash equivalents:      
Estimated Fair Value $ 0   0
Commercial paper      
Cash and cash equivalents:      
Estimated Fair Value     $ 1,514
v3.24.0.1
Investments & Fair Value Measurements - Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Dec. 29, 2023
Sep. 29, 2023
Debt Securities, Available-for-Sale [Line Items]    
Less Than 12 Months, Fair Value $ 56,474 $ 136,660
Less Than 12 Months, Gross Unrealized Losses (256) (921)
12 Months or Greater, Fair Value 56,249 63,035
12 Months or Greater, Gross Unrealized Loss (1,062) (1,947)
U.S. agency securities    
Debt Securities, Available-for-Sale [Line Items]    
Less Than 12 Months, Fair Value 0 853
Less Than 12 Months, Gross Unrealized Losses 0 (7)
12 Months or Greater, Fair Value 0 0
12 Months or Greater, Gross Unrealized Loss 0 0
Government bonds    
Debt Securities, Available-for-Sale [Line Items]    
Less Than 12 Months, Fair Value 12,250 26,756
Less Than 12 Months, Gross Unrealized Losses (67) (247)
12 Months or Greater, Fair Value 30,457 40,235
12 Months or Greater, Gross Unrealized Loss (629) (1,183)
Commercial paper    
Debt Securities, Available-for-Sale [Line Items]    
Less Than 12 Months, Fair Value 0 5,840
Less Than 12 Months, Gross Unrealized Losses 0 (3)
12 Months or Greater, Fair Value 0 0
12 Months or Greater, Gross Unrealized Loss 0 0
Corporate bonds    
Debt Securities, Available-for-Sale [Line Items]    
Less Than 12 Months, Fair Value 36,002 79,846
Less Than 12 Months, Gross Unrealized Losses (137) (461)
12 Months or Greater, Fair Value 19,546 14,634
12 Months or Greater, Gross Unrealized Loss (335) (558)
Municipal debt securities    
Debt Securities, Available-for-Sale [Line Items]    
Less Than 12 Months, Fair Value 8,222 23,365
Less Than 12 Months, Gross Unrealized Losses (52) (203)
12 Months or Greater, Fair Value 6,246 8,166
12 Months or Greater, Gross Unrealized Loss $ (98) $ (206)
v3.24.0.1
Investments & Fair Value Measurements - AFS Maturities (Details) - USD ($)
$ in Thousands
Dec. 29, 2023
Sep. 29, 2023
Amortized Cost    
Due within 1 year $ 171,054 $ 283,229
Due in 1 to 2 years 45,231 67,679
Due in 2 to 5 years 19,933 20,743
Total 236,218 371,651
Fair Value    
Due within 1 year 170,477 282,225
Due in 1 to 2 years 44,735 66,075
Due in 2 to 5 years 20,105 20,493
Debt Securities, Available-for-sale $ 235,317 $ 368,793
v3.24.0.1
Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
Dec. 29, 2023
Sep. 29, 2023
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross $ 1,071,339 $ 1,058,454
Less: accumulated depreciation (592,018) (576,873)
Property, plant, and equipment, net 479,321 481,581
Land    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 41,959 41,902
Buildings and building improvements    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 288,199 287,799
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 81,985 79,988
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 153,976 152,675
Computer equipment and software    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 235,778 233,224
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 33,046 32,629
Equipment provided under operating leases    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 216,592 211,910
Construction-in-progress    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross $ 19,804 $ 18,327
v3.24.0.1
Leases (Maturities of Lessee Lease Liabilities Schedule) (Details)
$ in Thousands
Dec. 29, 2023
USD ($)
Operating Leases  
Remainder of Fiscal 2024 $ 13,226
Fiscal 2025 12,861
Fiscal 2026 8,253
Fiscal 2027 6,229
Fiscal 2028 5,991
Thereafter 11,358
Total undiscounted lease payments 57,918
Less: imputed interest (10,677)
Total lease liabilities $ 47,241
v3.24.0.1
Leases (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Sep. 29, 2023
Lessor, Lease, Description [Line Items]      
Variable operating lease income $ 6,315 $ 6,328  
Fixed operating lease income 812 $ 747  
Unguaranteed residual value of sales-type leases $ 1,000   $ 1,000
Minimum [Member]      
Lessor, Lease, Description [Line Items]      
Lessor lease renewal term 1 year    
Maximum [Member]      
Lessor, Lease, Description [Line Items]      
Lessor lease term 10 years    
Lessor lease renewal term 5 years    
v3.24.0.1
Leases (Maturities of Lessor Lease Payments Schedule) (Details)
$ in Thousands
Dec. 29, 2023
USD ($)
Operating Leases  
Remainder of Fiscal 2024 $ 990
Fiscal 2025 1,110
Fiscal 2026 931
Fiscal 2027 0
Fiscal 2028 0
Total undiscounted cash flows 3,031
Sales-Type Leases  
Remainder of Fiscal 2024 620
Fiscal 2025 620
Fiscal 2026 220
Fiscal 2027 220
Fiscal 2028 220
Total undiscounted cash flows 1,900
Less: Carrying value of lease receivables (621)
Difference $ 1,279
v3.24.0.1
Goodwill and Intangible Assets Goodwill Rollforward (Details)
$ in Thousands
 3 Months Ended
Dec. 29, 2023
USD ($)
Goodwill [Roll Forward]  
Balance at September 29, 2023 $ 408,409
Translation adjustments 2,026
Balance at September 29, 2023 $ 410,435
v3.24.0.1
Goodwill and Intangible Assets Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 29, 2023
Sep. 29, 2023
Finite-Lived Intangible Assets [Line Items]    
Cost $ 522,724 $ 521,981
Accumulated Amortization (362,830) (354,554)
Net 159,894 167,427
Acquired patents and technology    
Finite-Lived Intangible Assets [Line Items]    
Cost 351,096 350,406
Accumulated Amortization (276,316) (270,750)
Net 74,780 79,656
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Cost 148,817 148,794
Accumulated Amortization (63,723) (61,049)
Net 85,094 87,745
Other intangible assets    
Finite-Lived Intangible Assets [Line Items]    
Cost 22,811 22,781
Accumulated Amortization (22,791) (22,755)
Net $ 20 $ 26
v3.24.0.1
Goodwill and Intangible Assets Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 29, 2023
Sep. 29, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Remainder of 2024 $ 22,569  
2025 15,812  
2026 15,293  
2027 14,773  
2028 14,614  
Thereafter 76,833  
Net $ 159,894 $ 167,427
v3.24.0.1
Goodwill and Intangible Assets Intangible Assets, Additions (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
Amortization of Intangible Assets $ 7.5 $ 6.3
v3.24.0.1
Stockholders' Equity And Stock-Based Compensation (Narrative) (Details)
 1 Months Ended 3 Months Ended 41 Months Ended
Dec. 15, 2020
shares
Dec. 16, 2019
shares
Dec. 29, 2023
USD ($)
vote
shares
Dec. 30, 2022
Dec. 29, 2023
USD ($)
vote
shares
Mar. 28, 2014
Sep. 29, 2023
shares
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Shares, Granted (in shares)         1,590,000    
Vested in period (in shares)         1,120,000    
Options outstanding to purchase             3,720,000
Remaining authorization to purchase additional shares | $     $ 131,600,000   $ 131,600,000    
Stock options              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Stock options expected to vest | $     $ 15,100,000   $ 15,100,000    
Employee stock options expected to be recognized over a weighted-average period         2 years 10 months 24 days    
Performance-Based Stock Options [Member]              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period         7 years    
Compensation requisite measurement period         3 years    
Shares exercisable (in shares)     249,228   249,228    
Restricted stock units              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period         4 years    
Stock options expected to vest | $     $ 263,700,000   $ 263,700,000    
Employee stock options expected to be recognized over a weighted-average period         2 years 10 months 24 days    
Restricted stock units | Employees and Officers [Member]              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period         4 years    
Restricted stock units | Awards Granted Prior to November 2010 [Member] | Directors [Member]              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period           1 year  
Performance-Based Restricted Stock Units              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Compensation requisite measurement period         3 years    
Performance-Based Restricted Stock Units | Executive Officer              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Percentage of target award         200.00%    
Options outstanding to purchase     228,197   228,197    
Performance-Based Restricted Stock Units | Vesting Shares At 200% Of The Target Award Amount | Executive Officer              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Options outstanding to purchase     456,394   456,394    
Performance Shares | Executive Officer              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Shares, Granted (in shares) 66,138 62,000          
Award vesting rights, percentage     80.00% 81.00%      
Awards Granted Under 2005 Stock Plan From February 2011 [Member]              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Terms for issuance of stock (in shares)         1.6    
Employee stock purchase plan              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Percentage of compensation withheld by employees to purchase common stock         10.00%    
Discount from market price on purchase date         15.00%    
Class A Common Stock [Member]              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Common stock, shares authorized (shares)     500,000,000   500,000,000   500,000,000
Common stock, shares issued (shares)     59,765,465   59,765,465   59,673,633
Common stock, shares outstanding (shares)     59,765,465   59,765,465   59,673,633
Common stock, number of votes per share | vote     1   1    
Class A Common Stock [Member] | 2005 Stock Plan. [Member]              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Shares authorized under plan     64,000,000   64,000,000    
Options outstanding to purchase     3,787,000   3,787,000    
Class A Common Stock [Member] | Employee stock purchase plan              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Shares authorized under plan     5,500,000   5,500,000    
Maximum value of common stock available for eligible employees | $         $ 25,000    
Maximum number of common stock available for eligible employees (in shares)         1,000    
Purchase period         6 months    
Look back commencement period         1 year    
Class B Common Stock [Member]              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Common stock, shares authorized (shares)     500,000,000   500,000,000   500,000,000
Common stock, shares issued (shares)     36,085,779   36,085,779   36,085,779
Common stock, shares outstanding (shares)     36,085,779   36,085,779   36,085,779
Common stock, number of votes per share | vote     10   10    
Options Granted From June Two Thousand Eight Member | Stock options              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period         4 years    
Options Granted From June Two Thousand Eight Member | Stock options | One year anniversary date              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period         1 year    
Percentage of stock option becoming exercisable subjected to date of grant         25.00%    
Options Granted From June Two Thousand Eight Member | Stock options | Over 36 equally installment periods following one year anniversary date              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period         36 months    
Awards Granted After November 2010 Member [Member] | Restricted stock units              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period         1 year    
Minimum [Member] | Performance-Based Stock Options [Member]              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Percentage of target award         0.00%    
Minimum [Member] | Performance-Based Restricted Stock Units              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Percentage of target award         0.00%    
Minimum [Member] | Options Granted From June Two Thousand Eight Member | Stock options              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Options expiration period         3 months    
Maximum [Member] | Performance-Based Stock Options [Member]              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Percentage of target award         125.00%    
Maximum [Member] | Performance-Based Restricted Stock Units              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Percentage of target award         200.00%    
Maximum [Member] | Options Granted From June Two Thousand Eight Member | Stock options              
Stockholders' Equity And Stock-Based Compensation [Line Items]              
Options expiration period         10 years    
v3.24.0.1
Stockholders' Equity And Stock-Based Compensation (Summary Of Stock Options Issued To Officers, Directors, And Employees Under 2000 Stock Incentive Plan And 2005 Stock Plan) (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended
Dec. 29, 2023
USD ($)
$ / shares
shares
Shares  
Shares, Options outstanding at beginning of period (in shares) | shares 3,720,000
Shares, Grants (in shares) | shares 271,000
Shares, Exercises (in shares) | shares (203,000)
Shares, Forfeitures and cancellations (in shares) | shares (1,000)
Shares, Options vested and expected to vest (in shares) | shares 3,625,000
Weighted-Average Exercise Price  
Weighted Average Exercise Price, Options outstanding at beginning of period (in usd per share) | $ / shares $ 66.13
Weighted Average Exercise Price, Grants (in usd per share) | $ / shares 87.49
Weighted Average Exercise Price, Exercises (in usd per share) | $ / shares 52.25
Weighted Average Exercise Price, Forfeitures and cancellations (in usd per share) | $ / shares 53.72
Weighted Average Exercise Price, Options outstanding at end of period (in usd per share) | $ / shares 68.45
Weighted Average Exercise Price, Options vested and expected to vest (in usd per share) | $ / shares 68.11
Weighted Average Exercise Price, Options exercisable (in usd per share) | $ / shares $ 64.43
Weighted Average Remaining Contractual Life, Options vested and expected to vest at end of period 5 years 2 months 12 days
Weighted Average Remaining Contractual Life, Options exercisable 4 years 5 months 8 days
Aggregate Intrinsic Value, Options outstanding | $ $ 70,079
Aggregate Intrinsic Value, Options vested and expected to vest | $ 69,672
Aggregate Intrinsic Value, Options exercisable | $ $ 65,763
Year End Stock Price (in dollars per share) | $ / shares $ 86.18
2005 Stock Plan. [Member] | Class A Common Stock [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vested and exercisable (in shares) | shares 2,913,000
Weighted average remaining contractual life 5 years 3 months 14 days
Shares  
Shares, Options outstanding at end of period (in shares) | shares 3,787,000
Weighted-Average Exercise Price  
Weighted Average Remaining Contractual Life, Options outstanding 5 years 3 months 14 days
Performance-Based Stock Options [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares exercisable (in shares) | shares 249,228
v3.24.0.1
Stockholders' Equity And Stock-Based Compensation (Summary Of Information On Performance-Based Restricted Stock Units Granted To Executive Officers That Have Not Yet Vested) (Details) - Executive Officer - Performance-Based Restricted Stock Units - shares
 3 Months Ended
Dec. 15, 2023
Dec. 15, 2022
Dec. 15, 2021
Dec. 29, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Aggregate Shares Granted at Target Award (in shares) 77,283 90,613 60,301  
Percentage of target award       200.00%
Potential shares at vest date (in shares) 154,566 181,226 120,602  
v3.24.0.1
Stockholders' Equity And Stock-Based Compensation (Summary Of Restricted Stock Units Issued To Officers, Directors, And Employees Under 2005 Stock Incentive Plan) (Details)
shares in Thousands
 3 Months Ended
Dec. 29, 2023
$ / shares
shares
Shares  
Shares, Non-vested at beginning of period (in shares) | shares 3,747
Shares, Granted (in shares) | shares 1,590
Shares, Vested (in shares) | shares (1,120)
Shares, Forfeitures (in shares) | shares (190)
Shares, Non-vested at end of period (in shares) | shares 4,027
Weighted-Average Grant Date Fair Value   
Weighted Average Fair Value, Non-vested at beginning of period (in dollars per share) | $ / shares $ 78.62
Weighted Average Fair Value, Granted (in dollars per share) | $ / shares 84.24
Weighted Average Fair Value, Vested (in dollars per share) | $ / shares 78.58
Weighted Average Fair Value, Forfeitures (in dollars per share) | $ / shares 81.37
Weighted Average Fair Value, Non-vested at end of period (in dollars per share) | $ / shares $ 80.72
v3.24.0.1
Stockholders' Equity And Stock-Based Compensation (Schedule Of Fair Value Of Stock-Based Awards Estimated Using Weighted-Average Assumptions) (Details)
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Stockholders' Equity And Stock-Based Compensation [Abstract]    
Expected term (in years) 4 years 10 months 9 days 4 years 9 months 25 days
Risk-free interest rate 3.90% 3.60%
Expected stock price volatility 29.40% 29.40%
Dividend yield 1.40% 1.60%
v3.24.0.1
Stockholders' Equity And Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense By Plan) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Stockholders' Equity And Stock-Based Compensation [Line Items]    
Total stock-based compensation $ 31,894 $ 31,240
Estimated benefit from income taxes (4,999) (4,702)
Total stock-based compensation, net of tax 26,895 26,538
Stock options    
Stockholders' Equity And Stock-Based Compensation [Line Items]    
Total stock-based compensation 2,125 2,405
Restricted stock units    
Stockholders' Equity And Stock-Based Compensation [Line Items]    
Total stock-based compensation 29,016 27,552
Share-Based Payment Arrangement, Amount Capitalized 300  
Employee stock purchase plan    
Stockholders' Equity And Stock-Based Compensation [Line Items]    
Total stock-based compensation $ 753 $ 1,283
v3.24.0.1
Stockholders' Equity And Stock-Based Compensation (Schedule of Stock-Based Compensation By Classification) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Total stock-based compensation $ 31,894 $ 31,240
Estimated benefit from income taxes (4,999) (4,702)
Total stock-based compensation, net of tax 26,895 26,538
Cost of products and services    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Total stock-based compensation 410 503
Research and development    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Total stock-based compensation 10,106 10,676
Sales and marketing    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Total stock-based compensation 10,481 10,727
General and administrative    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Total stock-based compensation $ 10,897 $ 9,334
v3.24.0.1
Stockholders' Equity And Stock-Based Compensation (Stock Repurchase Authorizations) (Details) - USD ($)
$ in Thousands
Dec. 29, 2023
Aug. 31, 2022
Feb. 28, 2022
Jul. 29, 2021
Jul. 31, 2019
Jul. 25, 2018
Jan. 25, 2017
Oct. 31, 2014
Feb. 29, 2012
Jul. 31, 2011
Jul. 31, 2010
Nov. 30, 2009
Equity, Class of Treasury Stock [Line Items]                        
Authorization Amount $ 2,950,000                     $ 250,000
Additional Stock Approved [Member]                        
Equity, Class of Treasury Stock [Line Items]                        
Authorization Amount   $ 350,000 $ 250,000 $ 350,000 $ 350,000 $ 350,000 $ 200,000 $ 200,000 $ 100,000 $ 250,000 $ 300,000  
v3.24.0.1
Stockholders' Equity And Stock-Based Compensation (Stock Repurchase) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares repurchased (in shares) 967,789  
Payments for Repurchase of Common Stock $ 80,002 $ 49,412
Repurchase of common stock $ 80,002  
Stock Repurchase Plan [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares repurchased (in shares) 967,789  
Average Price Paid per Share (in dollars per share) $ 82.66  
v3.24.0.1
Stockholders' Equity and Stock-Based Compensation - Dividends (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Feb. 22, 2024
Feb. 01, 2024
Dec. 29, 2023
Dec. 30, 2022
Dividends Payable [Line Items]        
Cash dividend declared per common share (in dollars per share)     $ 0.30 $ 0.27
Subsequent Event        
Dividends Payable [Line Items]        
Cash dividend declared per common share (in dollars per share)   $ 0.30    
Dividend Payment $ 28.8      
v3.24.0.1
Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]    
Beginning Balance $ (36,984) $ (51,641)
Unrealized gains (losses) and Foreign currency translation gains (losses) 4,598 6,712
Income tax effect - benefit (648)  
Net of tax 15,459 20,790
Realized gains/(losses) 121 (1,217)
Income tax effect - benefit/(expense) (24) 193
Net of tax 97 (1,024)
Net current-period other comprehensive income 15,556 19,766
Ending Balance (21,428) (31,875)
Investment Securities    
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]    
Beginning Balance (2,858) (5,986)
Unrealized gains (losses) and Foreign currency translation gains (losses) 2,011 1,532
Income tax effect - benefit 0  
Net of tax 2,011 1,532
Realized gains/(losses) (67) (213)
Income tax effect - benefit/(expense) 12 37
Net of tax (55) (176)
Net current-period other comprehensive income 1,956 1,356
Ending Balance (902) (4,630)
Cash Flow Hedges    
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]    
Beginning Balance (197) (4,483)
Unrealized gains (losses) and Foreign currency translation gains (losses) 2,587 5,180
Income tax effect - benefit (648)  
Net of tax 1,939 5,180
Realized gains/(losses) 188 (1,004)
Income tax effect - benefit/(expense) (36) 156
Net of tax 152 (848)
Net current-period other comprehensive income 2,091 4,332
Ending Balance 1,894 (151)
Currency Translation Adjustments    
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]    
Beginning Balance (33,929) (41,172)
Unrealized gains (losses) and Foreign currency translation gains (losses) 11,509 14,078
Income tax effect - benefit 0  
Net of tax 11,509 14,078
Net current-period other comprehensive income 11,509 14,078
Ending Balance $ (22,420) $ (27,094)
v3.24.0.1
Per Share Data (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Schedule Of Earnings Per Share Basic And Diluted [Line Items]    
Net income attributable to Dolby Laboratories, Inc. $ 66,981 $ 79,375
Weighted average shares outstanding-basic (in shares) 95,376 95,905
Potential common shares from options to purchase common stock (in shares) 755 533
Potential common shares from restricted stock units (in shares) 1,289 566
Potential common shares from ESPP (in shares) 19 43
Weighted average shares outstanding-diluted (in shares) 97,439 97,047
Net income per share attributable to Dolby Laboratories, Inc. - Basic (in usd per share) $ 0.70 $ 0.83
Net income per share attributable to Dolby Laboratories, Inc. - Diluted (in usd per share) $ 0.69 $ 0.82
Stock options    
Schedule Of Earnings Per Share Basic And Diluted [Line Items]    
Anti-dilutive securities, excluded from calculations (in shares) 1,042 1,509
Restricted stock units    
Schedule Of Earnings Per Share Basic And Diluted [Line Items]    
Anti-dilutive securities, excluded from calculations (in shares) 36 350
Employee stock purchase plan    
Schedule Of Earnings Per Share Basic And Diluted [Line Items]    
Anti-dilutive securities, excluded from calculations (in shares) 95 10
v3.24.0.1
Income Taxes (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Sep. 29, 2023
Income Tax Disclosure [Abstract]      
Unrecognized tax benefits, gross $ 78,300   $ 76,300
Unrecognized tax benefits if recognized, would affect our effective tax rate $ 49,000   $ 47,200
Effective tax rate (as a percent) 16.40% 20.50%  
Provision (benefit) for income taxes $ 13,252 $ 20,534  
Federal tax rate 21.00%    
v3.24.0.1
Restructuring (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 29, 2023
Dec. 30, 2022
Sep. 29, 2023
Restructuring Reserve [Roll Forward]      
Restructuring reserve, beginning balance $ 20,352 $ 5,781 $ 5,781
Restructuring charges 6,091 (244) 47,061
Cash payments and adjustments (8,340)   (25,597)
Non-cash adjustment for leased facility exit costs     (6,893)
Restructuring reserve, ending balance 18,103   20,352
Severance      
Restructuring Reserve [Roll Forward]      
Restructuring reserve, beginning balance 20,352 5,781 5,781
Restructuring charges 7,376   23,943
Cash payments and adjustments (9,625)   (9,372)
Non-cash adjustment for leased facility exit costs     0
Restructuring reserve, ending balance 18,103   20,352
Leased facility exit costs and other costs and adjustments      
Restructuring Reserve [Roll Forward]      
Restructuring reserve, beginning balance 0 $ 0 0
Restructuring charges (1,285)   23,118
Cash payments and adjustments 1,285   (16,225)
Non-cash adjustment for leased facility exit costs     (6,893)
Restructuring reserve, ending balance $ 0   $ 0
v3.24.0.1
Commitments And Contingencies (Schedule Of Contractual Obligations And Commitments) (Details)
$ in Thousands
Dec. 29, 2023
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Remainder of Fiscal 2022 $ 8,684
Naming rights, Fiscal 2023 13,126
Naming rights, Fiscal 2024 13,472
Naming rights, Fiscal 2025 8,534
Naming rights, Fiscal 2026 8,642
Naming rights, Thereafter 35,674
Naming rights, Total 88,132
Purchase obligation, Remainder of 2022 22,890
Purchase obligation, Fiscal 2023 4,916
Purchase obligation, Fiscal 2024 1,196
Purchase Obligation, Fiscal 2025 0
Purchase obligation, Fiscal 2026 0
Purchase obligation, Thereafter 0
Purchase obligation, Total 29,002
Donation commitments, Remainder of Fiscal 2022 1,009
Donation commitments, Fiscal 2023 116
Donation commitments, Fiscal 2024 116
Donation commitments, Fiscal 2025 86
Donation commitments, Fiscal 2026 86
Donation commitments, Thereafter 404
Donation commitments, Total 1,817
Total, due in Remainder of Fiscal 2022 32,583
Total, due in Fiscal 2023 18,158
Total, due in Fiscal 2024 14,784
Total, due in Fiscal 2025 8,620
Total, due in Fiscal 2026 8,728
Total, due Thereafter 36,078
Total due $ 118,951
v3.24.0.1
Commitments And Contingencies (Narrative) (Details)
 3 Months Ended
Dec. 29, 2023
Naming Rights  
Other Commitments [Line Items]  
Term of agreement 20 years
Donation Commitments  
Other Commitments [Line Items]  
Term of agreement 15 years