Operating Segments and Geographic Information
Operating Segments
We operate as a single reportable segment. We derive the majority of our revenue from licensing audio and video technology to electronics manufacturers, and a lesser portion of our revenue by offering premium audio and video technologies to cinema exhibitors. Our CODM is our Chief Executive Officer, who reviews financial information presented on a consolidated basis to assess performance and allocate resources. Our CODM uses consolidated net income, as reported on the consolidated statements of operations, as the primary measure of segment profit or loss by comparing actual results to the prior year comparative results and any internally and externally set expectations. Our CODM does not assess segment performance or make operating decisions using asset or liability information.
The following table presents selected financial information and significant segment expenses for the periods presented (in thousands):
Fiscal Year Ended
September 26,
2025
September 27,
2024
September 29,
2023
Total revenue $1,349,130 $1,273,721 $1,299,744 
Less:
Cost of licensing (1)
56,907 64,314 64,642 
Cost of products and services (1) (2)
71,681 69,441 82,731 
Research and development expense (1) (2)
223,292 225,449 231,798 
Sales and marketing expense (1) (2)
314,466 291,508 311,189 
General and administrative expense (1) (2)
235,254 222,922 218,028 
Restructuring charges15,007 6,384 47,061 
Stock-based compensation128,514 119,825 118,486 
Amortization of acquisition-related intangibles40,856 15,552 10,056 
Interest (income)/expense, net(15,376)(34,077)(28,086)
Equity method investees’ net income(24,065)(14,212)(5,145)
Other income, net (1) (3)
(891)(5,864)(1,069)
Income tax expense46,993 48,163 48,409 
Net income including noncontrolling interest256,492 264,316 201,644 
Less: Net income attributable to noncontrolling interest(1,474)(2,491)(988)
Net income attributable to Dolby Laboratories, Inc.$255,018 $261,825 $200,656 
(1)Excludes amortization of acquisition-related intangibles presented separately.
(2)Excludes stock-based compensation expense presented separately.
(3)Excludes our proportional share of net income in our equity method investees presented separately.
Geographic Information
The methods to determine revenue by geographic region for each of the three categories included within total revenue in our consolidated statements of operations are described within the table presented below.    
Revenue CategoryBasis For Determining Geographic Location
   LicensingRegion in which our licensees’ headquarters are located
   ProductsDestination to which our products are shipped
   ServicesLocation in which the relevant services are performed
The following tables present selected information regarding total revenue by geographic location (amounts presented in thousands).
Revenue Composition—U.S. and International
Fiscal Year Ended
LocationSeptember 26,
2025
September 27,
2024
September 29,
2023
United States$496,990 $450,265 $466,030 
International852,140 823,456 833,714 
Total revenue$1,349,130 $1,273,721 $1,299,744 
Revenue Concentration—Significant Individual Geographic Regions
Fiscal Year Ended
LocationSeptember 26,
2025
September 27,
2024
September 29,
2023
United States37 %35 %36 %
South Korea12 %13 %14 %
China26 %22 %22 %
Japan%%%
Europe%12 %10 %
Other%10 %%
Total100 %100 %100 %
Long-lived tangible assets, net of accumulated depreciation, by geographic region were as follows (in thousands):
LocationSeptember 26,
2025
September 27,
2024
United States$374,683 $385,155 
International95,925 93,954 
Total long-lived tangible assets, net of accumulated depreciation$470,608 $479,109 

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 Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.