Dolby Laboratories, Inc.DLB

Dolby Laboratories, Inc. Goodwill & Intangibles Disclosure

10-KFiled Nov 18, 20252 min read
Goodwill and Intangible Assets
Goodwill
The following table outlines changes to the carrying amount of goodwill (in thousands):
 Goodwill
Balance as of September 29, 2023$408,409 
Acquired goodwill (1)
120,667 
Translation adjustments4,132 
Balance as of September 27, 2024$533,208 
Translation adjustments1,757 
Measurement period adjustments(5,065)
Balance as of September 26, 2025$529,900 
(1)     Refer to Note 15 "Business Combinations" for additional information related to our acquired goodwill.
Intangible Assets
Intangible assets are stated at their original cost less accumulated amortization, and principally consist of acquired patents, technology, and customer relationships and contracts. Intangible assets subject to amortization consisted of the following (in thousands):
 September 26, 2025September 27, 2024
Intangible Assets, NetCostAccumulated
Amortization		NetCostAccumulated
Amortization		Net
Acquired patents and technology$587,743 $(324,507)$263,236 $579,768 $(293,389)$286,379 
Customer relationships221,007 (87,401)133,606 220,200 (72,374)147,826 
Other intangible assets23,171 (22,956)215 23,125 (22,816)309 
Total$831,921 $(434,864)$397,057 $823,093 $(388,579)$434,514 
During fiscal 2025, we purchased various patents for purchase consideration of $5.6 million and upon acquisition, these intangible assets had a weighted-average useful life of 14 years. During fiscal 2024, we acquired $274.2 million and $24.6 million of identifiable intangible assets in connection with the acquisitions of GE Licensing and THEO, respectively. Refer to Note 15 "Business Combinations" for additional information.
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 consolidated statements of operations. Amortization expense was $45.3 million, $33.2 million, and $28.6 million in fiscal 2025, fiscal 2024, and fiscal 2023, respectively. As of September 26, 2025, expected amortization expense of our intangible assets in future fiscal periods was as follows (in thousands):
Fiscal Year Amortization Expense
2026$44,751 
202744,051 
202842,014 
202941,889 
203040,567 
Thereafter183,785 
Total$397,057 

Historical Timeline

Fiscal YearFiled
2025Nov 18, 2025Showing above
2024Nov 19, 2024
2023Nov 17, 2023
2022Nov 18, 2022
2021Nov 17, 2021
2020Nov 16, 2020
2019Nov 25, 2019
2018Nov 15, 2018
2017Nov 16, 2017
2016Nov 18, 2016
2015Nov 24, 2015

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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