Stockholders' Equity

6 Months Ended

Mar. 30, 2012

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Common Stock Repurchase Program

In November 2009 we announced a stock repurchase program, providing for the repurchase of up to $250.0 million of our Class A common stock. Our board of directors approved an additional $300.0 million for our stock repurchase program in July 2010, $250.0 million in July 2011, and $100.0 million in February 2012, for a total authorization of up to $900.0 million in stock repurchases. Stock repurchases under this 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 programs, and other market conditions. We may limit, suspend, or terminate the stock repurchase program at any time without prior notice. This program does not have a specified expiration date. Shares repurchased under the program will be returned to the status of authorized but unissued shares of Class A common stock. As of March 30, 2012, the remaining authorization to purchase additional shares is $380.2 million.

Stock repurchase activity under the stock repurchase program during the fiscal year-to-date period ended March 30, 2012 is summarized as follows:

	Shares Repurchased	Cost (in thousands) (1)		Average Price Paid per Share (2)
Repurchase activity for the fiscal quarter ended December 30, 2011	885,969	$	26,068	$	29.41
Repurchase activity for the fiscal quarter ended March 30, 2012	1,575,891	$	60,081	$	38.11
Total	2,461,860	$	86,149

(1) Cost of share repurchases includes the price paid per share and applicable commissions.

(2) Excludes commission costs.

Comprehensive Income

The components of comprehensive income were as follows:

	Fiscal Quarter Ended						Fiscal Year-to-Date Ended
	April 1, 2011			March 30, 2012			April 1, 2011			March 30, 2012
	(in thousands)
Net income including controlling interest	$	82,482		$	88,317		$	169,247		$	161,683
Other comprehensive income:
Foreign currency translation adjustment, net of tax	2,237			1,934			3,344			1,557
Unrealized losses on available-for-sale securities, net of tax	220			306			(656		)	192
Comprehensive income	84,939			90,557			171,935			163,432
Less: comprehensive income attributable to controlling interest	(555		)	(415		)	(933		)	(556		)
Comprehensive income attributable to Dolby Laboratories, Inc.	$	84,384		$	90,142		$	171,002		$	162,876

Accumulated Other Comprehensive Income

Accumulated other comprehensive income consists of the following:

	September 30, 2011		March 30, 2012
	(in thousands)
Accumulated foreign currency translation gains, net of tax of ($2,653) at September 30, 2011 and ($3,026) at March 30, 2012	$	6,834	8,239
Accumulated unrealized gains on available-for-sale securities, net of tax of ($387) at September 30, 2011 and ($496) at March 30, 2012	699		891
Total accumulated other comprehensive income	$	7,533	9,130

Stockholders' Equity and Controlling Interest

The following tables present the changes in total stockholders’ equity attributable to Dolby Laboratories, Inc. and the controlling interest:

	Dolby Laboratories, Inc.			Controlling Interest		Total
	(in thousands)
Balance at September 24, 2010	$	1,473,737		$	20,942	$	1,494,679
Net income	168,448			799		169,247
Translation adjustments, net of taxes of ($301)	3,210			134		3,344
Unrealized losses on available-for-sale securities, net of taxes of $406	(656		)	—		(656		)
Stock-based compensation expense	22,111			—		22,111
Repurchase of common stock	(75,124		)	—		(75,124		)
Tax benefit from the exercise of stock options and vesting of restricted stock units	11,320			—		11,320
Common stock issued under employee stock plans, net of shares withheld for taxes	15,215			—		15,215
Balance at April 1, 2011	$	1,618,261		$	21,875	$	1,640,136

	Dolby Laboratories, Inc.			Controlling Interest			Total
	(in thousands)
Balance at September 30, 2011	$	1,663,513		$	21,837		$	1,685,350
Net income	161,279			404			161,683
Distributions to controlling interest	—			(13		)	(13		)
Translation adjustments, net of taxes of ($373)	1,405			152			1,557
Unrealized losses on available-for-sale securities, net of taxes of ($109)	192			—			192
Stock-based compensation expense	23,536			—			23,536
Repurchase of common stock	(86,149		)	—			(86,149		)
Tax benefit from the exercise of stock options and vesting of restricted stock units	(2,513		)	—			(2,513		)
Common stock issued under employee stock plans, net of shares withheld for taxes	3,524			—			3,524
Balance at March 30, 2012	$	1,764,787		$	22,380		$	1,787,167