<SEC-DOCUMENT>0001171843-19-000606.txt : 20190130
<SEC-HEADER>0001171843-19-000606.hdr.sgml : 20190130
<ACCEPTANCE-DATETIME>20190130161516
ACCESSION NUMBER:		0001171843-19-000606
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20190130
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20190130
DATE AS OF CHANGE:		20190130

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Dolby Laboratories, Inc.
		CENTRAL INDEX KEY:			0001308547
		STANDARD INDUSTRIAL CLASSIFICATION:	PATENT OWNERS & LESSORS [6794]
		IRS NUMBER:				900199783
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0924

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32431
		FILM NUMBER:		19552107

	BUSINESS ADDRESS:	
		STREET 1:		1275 MARKET STREET
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94103
		BUSINESS PHONE:		415 558 0200

	MAIL ADDRESS:	
		STREET 1:		1275 MARKET STREET
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94103
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k_013019.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<html><head><title></title></head><body><div style="margin-top: 3pt; margin-bottom: 12pt;"><div style="font-size: 1pt; border-top: Black 2.5pt solid; border-bottom: Black 1.1pt solid; width: 100%;"><font style="font-size: 10pt;">&#160;</font></div></div><p style="text-align: center;"><font style="font-size: 14pt;"><strong>UNITED STATES</strong><br /><strong>SECURITIES AND EXCHANGE COMMISSION</strong><br /><strong>Washington, D.C. 20549</strong><br />_____________________</font></p><p style="text-transform: uppercase; text-align: center;"><font style="font-size: 14pt;"><strong>Form 8-K</strong><br />_____________________</font></p><p style="text-align: center;"><font style="font-size: 12pt;"><strong>CURRENT REPORT</strong></font></p><p style="text-align: center;"><font style="font-size: 12pt;"><strong>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</strong></font></p><p align="center"><font style="font-size: 10pt;">Date of Report (Date of earliest event Reported): <!--January 30, 2019-->January 30, 2019 &#160;</font></p><p align="center"><font style="font-size: 12pt;"><strong>DOLBY LABORATORIES, INC.</strong></font><br /><font style="font-size: 10pt;">(Exact Name of Registrant as Specified in Charter)</font></p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td align="center" width="33%"><font style="font-size: 10pt;"><strong>Delaware</strong></font></td><td align="center" width="34%"><font style="font-size: 10pt;"><strong>001-32431</strong></font></td><td align="center" width="33%"><font style="font-size: 10pt;"><strong>90-0199783</strong></font></td></tr><tr valign="top"><td align="center" width="33%"><font style="font-size: 10pt;">(State or Other Jurisdiction of Incorporation)</font></td><td align="center" width="34%"><font style="font-size: 10pt;">(Commission File Number)</font></td><td align="center" width="33%"><font style="font-size: 10pt;">(I.R.S. Employer Identification Number)</font></td></tr></table><p><font style="font-size: 10pt;">&#160;</font></p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="bottom"><td align="center" width="50%"><font style="font-size: 10pt;"><strong>1275 Market Street, San Francisco, CA 94103-1410</strong><!--UNITED STATES --></font></td></tr><tr valign="top"><td align="center" width="50%"><font style="font-size: 10pt;">(Address of Principal Executive Offices) (Zip Code)</font></td></tr></table><p align="center"><font style="font-size: 10pt;"><strong>(415) 558-0200</strong><br />(Registrant's telephone number, including area code)</font></p><p align="center"><font style="font-size: 10pt;"><strong>Not Applicable</strong><br />(Former name or former address, if changed since last report)</font></p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td colspan="3"><font style="font-size: 10pt;">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:<br /><br /></font></td></tr><tr valign="top"><td width="21"><font style="font-size: 10pt;">&#160;</font></td><td width="40"><font style="font-size: 10pt;">[  ]</font></td><td nowrap="nowrap"><font style="font-size: 10pt;">&#160;&#160;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></td></tr><tr valign="top"><td width="21"><font style="font-size: 10pt;">&#160;</font></td><td width="40"><font style="font-size: 10pt;">[  ]</font></td><td nowrap="nowrap"><font style="font-size: 10pt;">&#160;&#160;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></td></tr><tr valign="top"><td width="21"><font style="font-size: 10pt;">&#160;</font></td><td width="40"><font style="font-size: 10pt;">[  ]</font></td><td nowrap="nowrap"><font style="font-size: 10pt;">&#160;&#160;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></td></tr><tr valign="top"><td width="21"><font style="font-size: 10pt;">&#160;</font></td><td width="40"><font style="font-size: 10pt;">[  ]</font></td><td nowrap="nowrap"><font style="font-size: 10pt;">&#160;&#160;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></td></tr></table><p style="font-size: 10pt; margin: 0pt;">&#160;</p><p style="font-size: 10pt; margin: 0pt;">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR &sect;230.405) or Rule&#160;12b-2&#160;of the Securities Exchange Act of 1934 (17 CFR&#160;&sect;240.12b-2).&#160;Emerging growth company [&#160;&#160; ]</p><p style="font-size: 10pt; margin: 0pt;">&#160;</p><p style="font-size: 10pt; margin: 0pt;">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [&#160;&#160; ]</p><div style="margin-top: 12pt; margin-bottom: 3pt;"><div style="font-size: 1pt; border-top: Black 1.1pt solid; border-bottom: Black 2.5pt solid; width: 100%;"><font style="font-size: 10pt;">&#160;</font></div>&#160;</div><hr style="page-break-after: always;" noshade="noshade" /><p><font style="font-size: 10pt;">  <strong>Section 2 Financial Information</strong></font></p><p><font style="font-size: 10pt;"><strong>Item 2.02. Results of Operations and Financial Condition.</strong></font></p><p><font style="font-size: 10pt;">
 <p align="justify" style="margin-left:0in; text-indent:0.5in; margin-right:0in;">The following information is intended to be furnished under Item 2.02 of Form 8-K, &#8220;Results of Operations and Financial Condition.&#8221; This information shall not be deemed &#8220;filed&#8221; for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. </p>     <p align="justify" style="margin-left:0in; text-indent:0.5in; margin-right:0in;">On January 30, 2019, Dolby Laboratories, Inc. (the &#8220;Company&#8221;) issued a press release announcing its financial results for its fiscal quarter ended December 28, 2018. The full text of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference (the &#8220;Earnings Release&#8221;). &#160;As previously disclosed, the Company adopted Accounting Standards Codification Topic 606, <i>Revenue from Contracts with Customers</i> ("ASC 606") in the first quarter of fiscal 2019.&#160; The results and the financial outlook in the Earnings Release are presented in accordance with ASC 606.&#160; The Company adopted ASC 606 using the full retrospective transition method; therefore all prior periods are also presented in accordance with ASC 606. Included at the end of the Earnings Release are financial results for fiscal 2017, fiscal 2018, and the four quarters of fiscal 2018, as adjusted in accordance with ASC 606.</p> </font></p><p><font style="font-size: 10pt;"><strong>Section 8 Other Events</strong></font></p><p><font style="font-size: 10pt;"><strong>Item 8.01. Other Events.</strong></font></p><p><font style="font-size: 10pt;">
 <p style="margin-left:0in; margin-right:0in;"><em><font style="color:black;">Declaration of Dividend</font></em></p>  <p align="justify" style="margin-left:0in; text-indent:0.5in; margin-right:0in;">On January 30, 2019, the Company announced a cash dividend of $0.19 per share of Class A and Class B Common Stock, payable on February 21, 2019 to stockholders of record as of the close of business on February 12, 2019. &#160;</p>  <p style="margin-left:0in; margin-right:0in;"><em><font style="color:black;">Disclosure Channels to Disseminate Information</font></em></p>  <p align="justify" style="margin-left:0in; text-indent:0.5in; margin-right:0in;">The Company disseminates information to the public about the Company, its products, services and other matters through various channels, including the Company&#8217;s website (www.dolby.com), investor relations website (http://investor.dolby.com), SEC filings, press releases, public conference calls and webcasts, in order to achieve broad, non-exclusionary distribution of information to the public.&#160; The Company encourages investors and others to review the information it makes public through these channels, as such information could be deemed to be material information.</p> </font></p><p><font style="font-size: 10pt;"><strong>Section 9 Financial Statements and Exhibits</strong></font></p><p><font style="font-size: 10pt;"><strong>Item 9.01. Financial Statements and Exhibits.</strong></font></p><p><font style="font-size: 10pt;">
 <p><strong>(d) Exhibits.</strong></p> <table style="border-collapse:collapse !important;;border-collapse: collapse; "><tr><td style="vertical-align: bottom ; "><font style="font-size:10pt;"><strong><u>Exhibit </u><br /><u>No.</u></strong></font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;"><strong><u>Description</u></strong></font></td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td></tr><tr><td style="vertical-align: bottom ; "><font style="font-size:10pt;"><font style="font-size:10pt;"><a href="exh_991.htm" rel="nofollow">99.1</a></font></font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;"><font style="font-size:10pt;"><a href="exh_991.htm" rel="nofollow">Press Release of Dolby Laboratories, Inc. dated January 30, 2019</a></font> </font></td></tr></table></font></p><p><font style="font-size: 10pt;"></font></p><p><font style="font-size: 10pt;"></font></p><hr style="page-break-after: always;" noshade="noshade" /><p align="center"><font style="font-size: 10pt;"><strong>SIGNATURE</strong></font></p><p><font style="font-size: 10pt;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td valign="top" width="49%"><font style="font-size: 10pt;">&#160;</font></td><td style="font-size: 12pt;" colspan="2" valign="top"><font style="font-size: 10pt;"><strong>DOLBY LABORATORIES, INC.</strong></font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;">&#160;</font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;"></font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">Date: January 30, 2019</font></td><td width="2%"><font style="font-size: 10pt;">By:&#160;</font></td><td style="text-decoration: underline;" width="49%"><font style="font-size: 10pt;">/s/ Lewis Chew&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;">Lewis Chew</font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;">Executive Vice President and Chief Financial Officer<br />(Principal Financial and Accounting Officer)</font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;"></font></td></tr></table><p /></body></html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exh_991.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"><html lang="en-US"><head><title>EdgarFiling</title><meta content="text/html; charset=windows-1252" ><meta name="GENERATOR" content="MSHTML 8.00.7601.18094" ></head><body bgcolor="#ffffff"><p style="text-align: right;"><strong>EXHIBIT 99.1</strong></p><p style="text-align: center;"><font style="font-size: 14pt;"><strong>Dolby Laboratories Reports First Quarter Fiscal 2019 Financial Results</strong></font></p><p style="text-align: center;"><strong></strong></p><p>
 <p align="left">SAN FRANCISCO, Jan.  30, 2019  (GLOBE NEWSWIRE) -- Dolby Laboratories, Inc. (NYSE:DLB) today announced the Company's financial results for the first quarter (Q1) of fiscal 2019. For the first quarter, Dolby reported total revenue of $302.4 million, compared to $299.5 million for the first quarter of fiscal 2018.<br ></p>  <p>&#8220;We&#8217;re off to a&#160;solid&#160;start to 2019,&#160;and we are excited that a growing number of consumers around the world are able to enjoy&#160;Dolby experiences,&#8221; said Kevin Yeaman, President and CEO, Dolby Laboratories. &#8220;Our momentum for Dolby Vision and Dolby Atmos was on&#160;strong&#160;display at CES, and we&#160;opened&#160;our first Dolby Cinema in the UK at the iconic Odeon Leicester Square.&#8221;&#160;</p>  <p>First quarter GAAP net income was $98.2 million, or $0.93 per diluted share, compared to GAAP net loss of $53.3 million, or $0.52 per diluted share, for the first quarter of fiscal 2018. On a non-GAAP basis, first quarter net income was $78.7 million, or $0.74 per diluted share, compared to non-GAAP net income of $95.4 million, or $0.90 per diluted share, for the first quarter of fiscal 2018. A complete listing of Dolby's non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.</p>  <p>As previously indicated, Dolby adopted Accounting Standards Codification Topic 606, <em>Revenue from Contracts with Customers</em> ("ASC 606") in the first quarter of fiscal 2019, and today&#8217;s announced results and the financial outlook are presented in accordance with that new revenue standard. Dolby adopted ASC 606 using the full retrospective transition method. Therefore, all prior periods are also presented in accordance with the new revenue standard. Included at the end of this press release are financial results for fiscal 2017, fiscal 2018, and the four quarters of fiscal 2018, as adjusted in accordance with ASC 606.</p>  <p><strong>Dividend</strong></p>  <p>Today, Dolby announced a cash dividend of $0.19 per share of Class A and Class B common stock, payable on February 21, 2019, to stockholders of record as of the close of business on February 12, 2019.</p>  <p><strong>Financial Outlook</strong></p>  <p><strong>Q2 Fiscal 2019</strong></p>  <p>Dolby is providing the following estimates for its second quarter (Q2) of fiscal 2019:</p>  <ul type="disc"><li>Total revenue will range from $325 million to $345 million</li></ul>  <ul type="disc"><li>Gross margin percentages will be approximately 88 percent on a GAAP basis and approximately 89 percent on a non-GAAP basis</li></ul>  <ul type="disc"><li>Operating expenses will be between $206 million and $210 million on a GAAP basis and between $186 million and $190 million on a non-GAAP basis</li></ul>  <ul type="disc"><li>Diluted earnings per share will be between $0.48 and $0.54 on a GAAP basis and between $0.81 and $0.87 on a non-GAAP basis</li></ul>  <ul type="disc"><li>Effective tax rate will be between 38 percent and 42 percent on a GAAP basis and between 19 percent and 21 percent on a non-GAAP basis</li></ul>  <p><strong>Fiscal Year 2019</strong></p>  <p>Dolby is providing the following estimates for its fiscal year 2019:</p>  <ul type="disc"><li>Total revenue will range from $1.24 billion to $1.28 billion</li></ul>  <ul type="disc"><li>Gross margin percentages will be approximately 87 percent on a GAAP basis and approximately 88 percent on a non-GAAP basis</li></ul>  <ul type="disc"><li>Operating expenses will range from $786 million to $796 million on a GAAP basis and from $705 million to $715 million on a non-GAAP basis</li></ul>  <ul type="disc"><li>Effective tax rate for the year will be between 13 percent and 15 percent on a GAAP basis and between 19 and 21 percent on a non-GAAP basis</li></ul>  <p><strong>Conference Call Information</strong></p>  <p>Members of Dolby management will lead a conference call open to all interested parties to discuss Q1 fiscal 2019 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Wednesday, January 30, 2019. Access to the teleconference will be available over the Internet from http://investor.dolby.com/event-calendar&#160;or by dialing 1-866-548-4713. International callers can access the conference call at 1-323-794-2093.</p>  <p>A replay of the call will be available from 5:00 p.m. PT on Wednesday, January 30, 2019, until 9:00 p.m. PT on Wednesday, February 6, 2019, by dialing 1-844-512-2921 (international callers can access the replay by dialing 1-412-317-6671) and entering the confirmation code 8636587. An archived version of the teleconference will also be available on the Dolby Laboratories website, http://investor.dolby.com/event-calendar.</p>  <p><strong>Non-GAAP Financial Information</strong></p>  <p>To supplement Dolby's financial statements presented on a GAAP basis, Dolby provides certain non-GAAP financial measures to provide investors with an additional tool to evaluate Dolby's operating results in a manner that focuses on what Dolby's management believes to be its ongoing business operations. Specifically, we exclude the following as adjustments from one or more of our non-GAAP financial measures:</p>  <p><em>Stock-based compensation expense</em>:&#160; Stock-based compensation, unlike cash-based compensation, utilizes subjective and complex assumptions in the methodologies used to value the various stock-based award types that we grant. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between our underlying operating results and those of other companies, we exclude stock-based compensation expense.</p>  <p><em>Amortization of acquisition-related intangibles</em>:&#160; We amortize intangible assets acquired in connection with acquisitions. These intangible assets consist of patents and technology, customer relationships, and other intangibles. We record amortization charges relating to these intangible assets in our GAAP financial statements, and we view these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of our acquisitions. As these amortization charges do not directly correlate to our operations during any particular period, and often remain unchanged between reporting periods, we exclude these charges to facilitate an evaluation of our current operating results and comparisons to our past operating performance.</p>  <p><em>Restructuring charges</em>:&#160; Restructuring charges are costs associated with a formal restructuring plan and primarily relate to employee severance benefits and asset impairments. We exclude restructuring costs, including any adjustments to charges recorded in prior periods, as we believe that these costs are not representative of our normal operating activities and therefore, excluding these amounts enables a more effective comparison to our past operating performance.</p>  <p><em>Income tax adjustments</em>:&#160; We believe that excluding the income tax effect of the aforementioned non-GAAP adjustments provides a more accurate view of our underlying operating results to management and investors.</p>  <p><em>Impact from Tax Reform</em>:&#160; The enactment of the U.S. Tax Cuts and Jobs Act (&#8220;Tax Reform&#8221;), and any related amendments or revisions, requires certain discrete and infrequent charges that are not representative of current operating results and therefore, excluding these amounts enables a more effective comparison to our past operating performance.</p>  <p>Using the aforementioned adjustments, Dolby provides various non-GAAP financial measures including, but not limited to: non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP effective tax rate. Dolby's management believes it is useful for itself and investors to review both GAAP and non-GAAP measures to assess the performance of Dolby's business. Dolby's management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above. Investors are also encouraged to review Dolby's GAAP financial statements as reported in its US Securities and Exchange Commission (SEC) filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on the Dolby Laboratories investor relations website, http://investor.dolby.com.</p>  <p><strong>Forward-Looking Statements</strong></p>  <p>Certain statements in this press release, including, but not limited to, statements relating to Dolby's expected financial results for Q2 fiscal 2019 and fiscal 2019, our ability to advance our long-term objectives and future dividend payments are "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those projected. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: risks associated with trends in the markets in which Dolby operates, including including the Broadcast, Consumer Electronics, Mobile, PC, Cinema, and Other Markets; the loss of, or reduction in sales by, a key customer or licensee&#894; pricing pressures&#894; risks associated with the rate at which OEMs include optical disc playback in Windows<sup>&#174;</sup> devices and the rate of consumer adoption of Windows operating systems&#894; risks that a shift from disc-based media to online media content could result in fewer devices with Dolby<sup>&#174;</sup> technologies&#894; risks associated with the effects of macroeconomic conditions, including trends in consumer spending&#894; risks relating to the expiration of patents&#894; the timing of Dolby's receipt of royalty reports and payments from its licensees, including back payments&#894; the impact of Tax Reform; timing of revenue recognition under licensing agreements and other contractual arrangements&#894; Dolby's ability to develop, maintain, and strengthen relationships with industry participants&#894; Dolby's ability to develop and deliver innovative technologies in response to new and growing markets&#894; competitive risks&#894; risks associated with conducting business in China and other countries that have historically limited recognition and enforcement of intellectual property and contractual rights&#894; risks associated with the health of the motion picture industry generally&#894; Dolby's ability to increase its revenue streams and to expand its business generally, and to expand its business beyond audio technologies to other technologies&#894; risks associated with acquiring and successfully integrating businesses or technologies&#894; and other risks detailed in Dolby's SEC filings and reports, including the risks identified under the section captioned "Risk Factors" in its most recent annual report on Form 10-K. Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.</p>  <p><strong>About Dolby Laboratories</strong></p>  <p>Dolby Laboratories (NYSE:DLB) is based in San Francisco with offices in over 20 countries around the globe. Dolby transforms the science of sight and sound into spectacular experiences. Through innovative research and engineering, we create breakthrough experiences for billions of people worldwide through a collaborative ecosystem spanning artists, businesses, and consumers. The experiences people have - in Dolby Vision, Dolby Atmos, Dolby Cinema, Dolby Voice, Dolby Dimension and Dolby Audio - revolutionize entertainment and communications at the cinema, on the go, in the home, and at work.</p>  <p>Dolby, Dolby Atmos, Dolby Audio, Dolby Cinema, Dolby Dimension, Dolby Vision, Dolby Voice, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories, Inc. in the United States and/or other countries. Other trademarks remain the property of their respective owners. DLB-F</p>  <p align="center"><strong><br ></strong></p>  <p align="center"><strong>DOLBY LABORATORIES, INC.</strong><br ><strong>INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</strong><br >(<em>in thousands, except per share amounts; unaudited</em>)</p> <table style="width:100%; border-collapse:collapse !important;;border-collapse: collapse; "><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">&#160;</td><td colspan="6" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Fiscal Quarter Ended</strong></td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: top ; "><strong>December 28,<br ></strong><strong>2018</strong></td><td colspan="3" style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: top ; "><strong>December 29,<br >2017</strong><br >(as adjusted)<strong>&#160;</strong></td></tr><tr><td style="vertical-align: bottom ; "><strong>Revenue:</strong></td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td></tr><tr><td style="max-width:66%; width:66%; min-width:66%;;vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Licensing</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="max-width:13%; width:13%; min-width:13%;;padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">260,279</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="max-width:13%; width:13%; min-width:13%;;padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">270,172</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Products and services</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">42,097</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">29,355</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Total revenue</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">302,376</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">299,527</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Cost of revenue:</strong></td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Cost of licensing</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">11,397</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">9,259</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Cost of products and services</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">27,232</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">21,634</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Total cost of revenue</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">38,629</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">30,893</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Gross margin</strong></td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">263,747</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">268,634</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Operating expenses:</strong></td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Research and development</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">58,647</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">56,444</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Sales and marketing</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">85,602</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">70,149</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">General and administrative</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">50,813</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">48,285</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Restructuring charges/(credits)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">14</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(197</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Total operating expenses</td><td colspan="2" style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">195,076</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">174,681</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Operating income</strong></td><td colspan="2" style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">68,671</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">93,953</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Other income/expense:</strong></td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Interest income</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">5,185</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">3,781</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Interest expense</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(45</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(35</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Other income/(expense), net</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">443</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(1,152</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Total other income</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">5,583</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">2,594</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Income before income taxes</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">74,254</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">96,547</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Provision for income tax (expense)/benefit</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">24,104</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(149,705</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom ; ">Net income/(loss) including controlling interest</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">98,358</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(53,158</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Less: net (income) attributable to controlling interest</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(139</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(144</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom ; "><strong>Net income/(loss) attributable to Dolby Laboratories, Inc.</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; "><strong>$</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>98,219</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; "><strong>$</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>(53,302</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; "><strong>)</strong></td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Net income/(loss) per share:</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Basic</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.96</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(0.52</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Diluted</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.93</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(0.52</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom ; ">Weighted-average shares outstanding:</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Basic</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">102,677</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">102,552</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Diluted</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">106,130</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">102,552</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="vertical-align: bottom ; ">&#160;</td><td colspan="2" style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="vertical-align: bottom ; ">&#160;</td></tr></table> <p align="center"><strong><br ></strong></p>  <p align="center"><strong>DOLBY LABORATORIES, INC.</strong><br ><strong>INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS</strong><br >(<em>in thousands; unaudited</em>)</p> <table style="width:100%; border-collapse:collapse !important;;border-collapse: collapse; "><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="border-bottom: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: top ; "><strong>&#160; December 28,<br > &#160;2018</strong><strong>&#160;</strong></td><td colspan="3" style="border-bottom: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: top ; "><strong>September 28,<br >2018</strong><br >(as adjusted)<strong>&#160;</strong></td></tr><tr><td style="vertical-align: bottom ; "><strong>ASSETS</strong></td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Current assets:</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td></tr><tr><td style="max-width:66%; width:66%; min-width:66%;;vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Cash and cash equivalents</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="max-width:13%; width:13%; min-width:13%;;padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">790,787</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="max-width:13%; width:13%; min-width:13%;;padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">918,063</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Restricted cash</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">8,999</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">7,187</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Short-term investments</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">175,557</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">178,138</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Accounts receivable, net</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">181,614</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">200,933</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Contract assets</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">199,480</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">165,959</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Inventories</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">27,765</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">26,206</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Prepaid expenses and other current assets</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">39,601</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">34,890</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Total current assets</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1,423,803</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1,531,376</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Long-term investments</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">201,428</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">187,782</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Property, plant, and equipment, net</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">523,193</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">514,182</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Goodwill and Intangible assets, net</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">516,332</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">512,001</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Deferred taxes</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">107,313</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">74,766</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Other non-current assets</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">50,991</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">42,280</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Total assets</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; "><strong>$</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>2,823,060</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; "><strong>$</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>2,862,387</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>LIABILITIES AND STOCKHOLDERS&#8217; EQUITY</strong></td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Current liabilities:</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Accounts payable</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">9,811</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">21,922</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Accrued liabilities</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">265,091</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">272,967</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Income taxes payable</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">121</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">2,680</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Contract liabilities</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">19,562</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">20,502</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Total current liabilities</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">294,585</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">318,071</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Non-current contract liabilities</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">23,115</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">22,853</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Other non-current liabilities</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">156,406</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">150,960</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Total liabilities</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">474,106</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">491,884</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Stockholders&#8217; equity:</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Class&#160;A common stock</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">60</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">61</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Class B common stock</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">41</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">41</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Additional paid-in capital</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#8212;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">66,127</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Retained earnings</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">2,361,843</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">2,313,539</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Accumulated other comprehensive (loss)</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(18,639</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(15,832</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom ; ">Total stockholders&#8217; equity &#8211; Dolby Laboratories, Inc.</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">2,343,305</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">2,363,936</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Controlling interest</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">5,649</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">6,567</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Total stockholders&#8217; equity</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">2,348,954</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">2,370,503</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Total liabilities and stockholders&#8217; equity</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; "><strong>$</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>2,823,060</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; "><strong>$</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>2,862,387</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td style="vertical-align: bottom ; ">&#160;</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="vertical-align: bottom ; ">&#160;</td><td style="vertical-align: bottom ; ">&#160;</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="vertical-align: bottom ; ">&#160;</td></tr></table> <p align="center"><strong><br ></strong></p>  <p align="center"><strong>DOLBY LABORATORIES, INC.</strong><br ><strong>INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</strong><br >(<em>in thousands; unaudited</em>)</p> <table style="width:100%; border-collapse:collapse !important;;border-collapse: collapse; "><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">&#160;</td><td colspan="6" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Fiscal Quarter Ended</strong></td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: top ; "><strong>&#160; December 28,<br > &#160;2018</strong></td><td colspan="3" style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: top ; "><strong>December 29,<br >2017</strong><br >(as adjusted)</td></tr><tr><td style="vertical-align: bottom ; "><strong>Operating activities:</strong></td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td></tr><tr><td style="max-width:66%; width:66%; min-width:66%;;vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Net income/(loss) including controlling interest</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="max-width:13%; width:13%; min-width:13%;;padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">98,358</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="max-width:13%; width:13%; min-width:13%;;padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(53,158</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Depreciation and amortization</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">20,029</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">19,882</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Stock-based compensation</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">21,482</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">18,684</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Amortization of premium on investments</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">309</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">742</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Provision for doubtful accounts</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1,605</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1,119</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Deferred income taxes</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(32,571</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">32,725</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Other non-cash items affecting net income</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">3,393</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">587</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Changes in operating assets and liabilities:</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 30.0px; vertical-align: bottom ; ">Accounts receivable</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">17,736</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(41,526</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 30.0px; vertical-align: bottom ; ">Contract assets</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(33,519</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(22,449</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 30.0px; vertical-align: bottom ; ">Inventories</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(2,709</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(1,491</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 30.0px; vertical-align: bottom ; ">Prepaid expenses and other assets</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(13,157</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(6,591</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 30.0px; vertical-align: bottom ; ">Accounts payable and other liabilities</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(26,332</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(33,006</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 30.0px; vertical-align: bottom ; ">Income taxes, net</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1,546</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">99,551</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 30.0px; vertical-align: bottom ; ">Contract liabilities</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(678</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1,984</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 30.0px; vertical-align: bottom ; ">Other non-current liabilities</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1,460</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">96</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Net cash provided by operating activities</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">56,952</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">17,149</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Investing activities:</strong></td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Purchases of investment securities</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(63,329</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(74,479</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Proceeds from sales of investment securities</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">32,582</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">28,383</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Proceeds from maturities of investment securities</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">19,785</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">49,476</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Purchases of PP&amp;E</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(18,539</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(19,275</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Purchase of intangible assets</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(12,065</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(11,198</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom ; ">Net cash used in investing activities</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(41,566</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(27,093</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Financing activities:</strong></td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Proceeds from issuance of common stock</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">14,272</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">41,463</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Repurchase of common stock</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(112,545</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(29,993</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Payment of cash dividend</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(19,573</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(16,377</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Distribution to controlling interest</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(906</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(1,021</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Shares repurchased for tax withholdings on vesting of restricted stock</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(19,679</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(15,346</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom ; ">Net cash used in financing activities</td><td colspan="2" style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(138,431</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(21,274</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(2,419</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">870</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Net decrease in cash, cash equivalents, and restricted cash</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(125,464</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(30,348</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom ; ">Cash, cash equivalents, and restricted cash at beginning of period</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">925,250</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">634,368</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Cash, cash equivalents, and restricted cash at end of period</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; "><strong>$</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>799,786</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; "><strong>$</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>604,020</strong></td><td style="border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr></table> <p><br ></p> <table style="width:100%; border-collapse:collapse !important;;border-collapse: collapse; "><tr><td colspan="7" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr><tr><td colspan="7" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>GAAP to Non-GAAP Reconciliations</strong></td></tr><tr><td colspan="7" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><em>(in millions, except per share data); unaudited</em></td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td></tr><tr><td colspan="7" style="vertical-align: bottom ; ">The following tables present Dolby's GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the first quarter of fiscal 2019 and 2018:</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Net income:</strong></td><td colspan="6" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Fiscal Quarter Ended</strong></td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: top ; "><strong>December 28,<br > &#160;2018</strong></td><td colspan="3" style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: top ; "><strong>December 29,<br >2017</strong><br >(as adjusted)</td></tr><tr><td style="max-width:66%; width:66%; min-width:66%;;vertical-align: bottom ; ">GAAP net income/(loss)</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="max-width:13%; width:13%; min-width:13%;;border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">98.2</td><td style="max-width:2%; width:2%; min-width:2%;;border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="max-width:13%; width:13%; min-width:13%;;padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(53.3)</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Stock-based compensation</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">21.5</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">18.7</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Amortization of acquisition-related intangibles</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1.8</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1.9</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Restructuring credits, net</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#8212;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(0.2)</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Impact of Tax Reform</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(36.0)</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">137.6</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Income tax adjustments</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(6.8)</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(9.3)</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Non-GAAP net income</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">78.7</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">95.4</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">GAAP diluted earnings per share</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.93</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(0.52)</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Non-GAAP diluted earnings per share</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.74</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.90</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">GAAP diluted shares</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">106</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">103</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Dilutive equity awards</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#8212;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">3</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Shares used in computing Non-GAAP diluted earnings per share</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">106</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">106</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td colspan="7" style="vertical-align: bottom ; ">The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial amounts for the second quarter of fiscal 2019 and fiscal year 2019 included in this release:</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Gross margin:</strong></td><td colspan="3" style="border-bottom: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Q2 2019</strong></td><td colspan="3" style="border-bottom: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Fiscal 2019</strong></td></tr><tr><td style="vertical-align: bottom ; ">GAAP gross margin</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">88%</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">87%</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Stock-based compensation</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.2%</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.2%</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Amortization of acquisition-related intangibles</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.8%</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.8%</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Non-GAAP gross margin</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">89%<br ></td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">88%</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Operating expenses:</strong></td><td colspan="3" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Q2 2019</strong></td><td colspan="3" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Fiscal 2019</strong></td></tr><tr><td style="vertical-align: bottom ; ">GAAP operating expenses (low - high end of range)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">$206 - $210</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">$786 - $796</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Stock-based compensation</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(19.0)</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(77.0)</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Amortization of acquisition-related intangibles</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(1.0)</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(4.0)</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Non-GAAP operating expenses (low - high end of range)</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">$186 - $190</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">$705 - $715</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Effective tax rate:</strong></td><td colspan="3" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Q2 2019</strong></td><td colspan="3" style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Fiscal 2019</strong></td></tr><tr><td style="vertical-align: bottom ; ">GAAP effective tax rate (low - high end of range)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">38% - 42%</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">13% - 15%</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Stock-based compensation (low - high end of range)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1% - 2%</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1% - 2%</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Amortization of acquisition-related intangibles (low - high end of range)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(1%) - 0%</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(1%) - 0%</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Income tax adjustments (low - high end of range)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(19%) - (23%)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; border-bottom: solid black 1pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; border-bottom: solid black 1pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">4% - 6%</td><td style="padding-left: 0 ; padding-right: 0 ; border-bottom: solid black 1pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Non-GAAP effective tax rate (low - high end of range)</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">19% - 21%</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">19% - 21%</td><td style="border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Diluted earnings per share:</strong></td><td colspan="6" style="padding-left: 0 ; padding-right: 0 ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Q2 2019</strong></td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Low</strong></td><td colspan="3" style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>High</strong></td></tr><tr><td style="vertical-align: bottom ; ">GAAP diluted earnings per share</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.48</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.54</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Stock-based compensation</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.19</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.19</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Amortization of acquisition-related intangibles</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.02</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.02</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Income tax adjustments</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.12</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.12</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Non-GAAP diluted earnings per share</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.81</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.87</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Shares used in computing diluted earnings per share</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">106</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">106</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="2" style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr></table> <p><br ></p>  <p align="center"><strong>Revenue Standard Adoption</strong></p>  <p>In the first quarter of fiscal 2019 we adopted Accounting Standards Codification Topic 606, <em>Revenue from Contracts with Customers</em> (&#8220;ASC 606&#8221;), the new revenue recognition standard. ASC 606 replaces existing revenue recognition rules with a comprehensive revenue measurement and recognition standard. The Company adopted the new revenue standard utilizing the full retrospective method. Under this method, the new revenue standard is applied retrospectively to each prior period reported.<br ></p>  <p>The following tables contain summarized financial information adjusted to reflect the adoption of ASC 606.</p>  <p align="center"><strong><br ></strong></p>  <p align="center"><strong>DOLBY LABORATORIES, INC.</strong><br ><strong>INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</strong><br >(<em>in thousands, except per share amounts; unaudited</em>)</p> <table style="width:100%; border-collapse:collapse !important;;border-collapse: collapse; "><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="18" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>As adjusted to reflect ASC 606</strong></td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="12" style="border-top: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Fiscal Quarter Ended</strong></td><td colspan="6" style="border-top: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Fiscal Year Ended</strong></td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>December 29,<br >2017</strong></td><td colspan="3" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>March 30,<br >2018</strong></td><td colspan="3" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>June 29,<br >2018</strong></td><td colspan="3" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>September 28,<br >2018</strong></td><td colspan="3" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>September 28,<br >2018</strong></td><td colspan="3" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>September 29,<br >2017</strong></td></tr><tr><td style="vertical-align: bottom ; "><strong>Revenue:</strong></td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td></tr><tr><td style="max-width:22%; width:22%; min-width:22%;;vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Licensing</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="max-width:10%; width:10%; min-width:10%;;padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">270,172</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="max-width:10%; width:10%; min-width:10%;;padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">272,135</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="max-width:10%; width:10%; min-width:10%;;padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">183,771</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="max-width:10%; width:10%; min-width:10%;;padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">214,699</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="max-width:10%; width:10%; min-width:10%;;padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">940,777</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="max-width:10%; width:10%; min-width:10%;;padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">965,864</td><td style="max-width:2%; width:2%; min-width:2%;;padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Products and services</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">29,355</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">27,587</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">31,009</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">25,871</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">113,822</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">114,311</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Total revenue</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">299,527</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">299,722</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">214,780</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">240,570</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1,054,599</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1,080,175</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Cost of revenue:</strong></td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Cost of licensing</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">9,259</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">10,610</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">12,111</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">10,604</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">42,584</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">39,329</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Cost of products and services</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">21,634</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">20,417</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">22,272</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">20,656</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">84,979</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">79,200</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Total cost of revenue</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">30,893</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">31,027</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">34,383</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">31,260</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">127,563</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">118,529</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Gross margin</strong></td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">268,634</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">268,695</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">180,397</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">209,310</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">927,036</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">961,646</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Operating expenses:</strong></td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Research and development</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">56,444</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">59,493</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">60,357</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">60,500</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">236,794</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">233,312</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Sales and marketing</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">70,149</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">74,019</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">79,834</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">85,760</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">309,762</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">296,661</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">General and administrative</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">48,285</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">50,747</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">47,893</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">50,497</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">197,422</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">171,686</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Restructuring charges/(credits)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(197</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(167</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(82</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#8212;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(446</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">12,856</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Total operating expenses</strong></td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">174,681</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">184,092</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">188,002</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">196,757</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">743,532</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">714,515</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Operating income</strong></td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">93,953</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">84,603</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(7,605</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">12,553</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">183,504</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">247,131</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; "><strong>Other income/expense:</strong></td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Interest income</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">3,781</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">3,892</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">5,488</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">5,809</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">18,970</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">9,577</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Interest expense</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(35</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(29</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(87</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(47</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(198</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(127</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Other income/(expense), net</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(1,152</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(684</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(3,603</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(464</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(5,903</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(1,438</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom ; "><strong>Total other income/expense</strong></td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">2,594</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">3,179</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1,798</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">5,298</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">12,869</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">8,012</td><td style="border-top: solid black 1pt ; border-bottom: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Income/(loss) before income taxes</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">96,547</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">87,782</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(5,807</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">17,851</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">196,373</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">255,143</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Provision for income tax (expense)/benefit</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(149,705</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(22,433</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">9,067</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">9,001</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(154,070</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(48,039</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom ; ">Net income/(loss) including controlling interest</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(53,158</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">65,349</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">3,260</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">26,852</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">42,303</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">207,104</td><td style="border-top: solid black 1pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Less: net (income) attributable to controlling interest</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(144</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(134</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(143</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(138</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(559</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(625</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td></tr><tr><td style="vertical-align: bottom ; "><strong>Net income/(loss) attributable to Dolby Laboratories Inc.</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; "><strong>$</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>(53,302</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; "><strong>)</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; "><strong>$</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>65,215</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; "><strong>$</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>3,117</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; "><strong>$</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>26,714</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; "><strong>$</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>41,744</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; "><strong>$</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>206,479</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Net income/(loss) per share:</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Basic</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(0.52</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.63</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.03</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.26</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.40</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">2.03</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Diluted</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">(0.52</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">)</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.61</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.03</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.25</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">0.39</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">$</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">2.00</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom ; ">Weighted-average shares outstanding:</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td colspan="3" style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Basic</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">102,552</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">103,771</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">103,836</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">103,349</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">103,377</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">101,784</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Diluted</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">102,552</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">107,001</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">106,950</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">106,794</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">106,978</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">103,286</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; vertical-align: bottom ; ">&#160;</td></tr></table> <p><br ></p>  <p>The following table presents the composition of our licensing revenue:</p> <table style="width:100%; border-collapse:collapse !important;;border-collapse: collapse; "><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="12" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>As adjusted to reflect ASC 606</strong></td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="8" style="border-top: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Fiscal Quarter Ended</strong></td><td colspan="4" style="border-top: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>Fiscal Year Ended</strong></td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td colspan="2" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>December 29,<br >2017</strong></td><td colspan="2" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>March 30,<br >2018</strong></td><td colspan="2" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>June 29,<br >2018</strong></td><td colspan="2" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>September 28,<br >2018</strong></td><td colspan="2" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>September 28,<br >2018</strong></td><td colspan="2" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>September 29,<br >2017</strong></td></tr><tr><td style="vertical-align: bottom ; "><strong>Market:</strong></td><td colspan="2" style="vertical-align: bottom ; ">&#160;</td><td colspan="2" style="vertical-align: bottom ; ">&#160;</td><td colspan="2" style="vertical-align: bottom ; ">&#160;</td><td colspan="2" style="vertical-align: bottom ; ">&#160;</td><td colspan="2" style="vertical-align: bottom ; ">&#160;</td><td colspan="2" style="vertical-align: bottom ; ">&#160;</td></tr><tr><td style="max-width:22%; width:22%; min-width:22%;;vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Broadcast</td><td style="max-width:11%; width:11%; min-width:11%;;text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">41</td><td style="max-width:2%; width:2%; min-width:2%;;text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="max-width:11%; width:11%; min-width:11%;;text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">33</td><td style="max-width:2%; width:2%; min-width:2%;;text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="max-width:11%; width:11%; min-width:11%;;text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">46</td><td style="max-width:2%; width:2%; min-width:2%;;text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="max-width:11%; width:11%; min-width:11%;;text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">48</td><td style="max-width:2%; width:2%; min-width:2%;;text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="max-width:11%; width:11%; min-width:11%;;text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">41</td><td style="max-width:2%; width:2%; min-width:2%;;text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="max-width:11%; width:11%; min-width:11%;;text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">44</td><td style="max-width:2%; width:2%; min-width:2%;;text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">PC</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">8</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">16</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">9</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">12</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">11</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">13</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Mobile</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">22</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">25</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">11</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">1</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">16</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">15</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">CE</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">14</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">14</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">15</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">19</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">15</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">13</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 20.0px; vertical-align: bottom ; ">Other</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">15</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">12</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">19</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">20</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">17</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">15</td><td style="text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">%</td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">Total revenue</td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>100</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; "><strong>%</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>100</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; "><strong>%</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>100</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; "><strong>%</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>100</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; "><strong>%</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>100</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; "><strong>%</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; "><strong>100</strong></td><td style="border-top: solid black 1pt ; border-bottom: double black 3pt ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; "><strong>%</strong></td></tr><tr><td style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="border-top: solid black 1pt ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr></table> <p><strong><br ></strong></p>  <p><strong>Investor Contact:</strong><br >Elena Carr<br >Dolby Laboratories<br >415-645-5583<br >investor@dolby.com</p>  <p><strong>Media Contact:</strong><br >Tony Carter<br >Dolby Laboratories<br >404-316-0201<br >tony.carter@dolby.com&#160;</p> </p><p ></p></body></html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
