Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Mar. 28, 2025

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in the accumulated balances during the period, and includes information regarding the manner in which the reclassifications out of AOCI into earnings affect our unaudited interim condensed consolidated statements of operations (in thousands):


	Fiscal Quarter Ended March 28, 2025								Fiscal Year-To-Date Ended March 28, 2025
	Investment Securities		Cash Flow Hedges		Currency Translation Adjustments		Total		Investment Securities		Cash Flow Hedges		Currency Translation Adjustments		Total
Beginning Balance	$	218	$	(1,668)	$	(34,092)	$	(35,542)	$	(83)	$	—	$	(19,104)	$	(19,187)
Other comprehensive income/(loss) before reclassifications:
Unrealized gains/(losses)	(282)		1,941		—		1,659		(147)		207		—		60
Foreign currency translation gains/(losses) (1)	—		—		6,479		6,479		—		—		(8,509)		(8,509)
Income tax effect - expense(3)	(166)		—		—		(166)		—		—		—		—
Net of tax	(448)		1,941		6,479		7,972		(147)		207		(8,509)		(8,449)
Amounts reclassified from AOCI into earnings:
Realized gains/(losses) (2)	139		(636)		—		(497)		139		(560)		—		(421)
Income tax effect - benefit (3)	—		89		—		89		—		79		—		79
Net of tax	139		(547)		—		(408)		139		(481)		—		(342)
Net current-period other comprehensive income/(loss)	(309)		1,394		6,479		7,564		(8)		(274)		(8,509)		(8,791)
Ending Balance	$	(91)	$	(274)	$	(27,613)	$	(27,978)	$	(91)	$	(274)	$	(27,613)	$	(27,978)


	Fiscal Quarter Ended March 29, 2024								Fiscal Year-To-Date Ended March 29, 2024
	Investment Securities		Cash Flow Hedges		Currency Translation Adjustments		Total		Investment Securities		Cash Flow Hedges		Currency Translation Adjustments		Total
Beginning Balance	$	(902)	$	1,894	$	(22,420)	$	(21,428)	$	(2,858)	$	(197)	$	(33,929)	$	(36,984)
Other comprehensive income/(loss) before reclassifications:
Unrealized gains/(losses)	(295)		(2,425)		—		(2,720)		1,716		162		—		1,878
Foreign currency translation gains/(losses) (1)	—		—		(6,204)		(6,204)		—		—		5,305		5,305
Income tax effect - benefit/(expense) (3)	—		467		—		467		—		(181)		—		(181)
Net of tax	(295)		(1,958)		(6,204)		(8,457)		1,716		(19)		5,305		7,002
Amounts reclassified from AOCI into earnings:
Realized gains (2)	119		841		—		960		52		1,029		—		1,081
Income tax effect - benefit/(expense) (3)	(8)		(135)		—		(143)		4		(171)		—		(167)
Net of tax	111		706		—		817		56		858		—		914
Net current-period other comprehensive income/(loss)	(184)		(1,252)		(6,204)		(7,640)		1,772		839		5,305		7,916
Ending Balance	$	(1,086)	$	642	$	(28,624)	$	(29,068)	$	(1,086)	$	642	$	(28,624)	$	(29,068)

(1)The foreign currency translation gains during the second quarter of fiscal 2025 and during the fiscal year-to-date period ended March 29, 2024 were primarily due to the strengthening of other foreign currencies as compared to the U.S. dollar. The foreign currency translation losses during the fiscal year-to-date period ended March 28, 2025 and during the second quarter of fiscal 2024 were primarily due to the weakening of other foreign currencies as compared to the U.S. dollar.

(2)Realized gains or losses, if any, from the sale of our AFS investment securities or from foreign currency translation adjustments are included within other income/(expense), net in our unaudited interim condensed consolidated statements of operations. Realized gains or losses on foreign currency contracts designated as cash flow hedges are included in operating expenses in the unaudited interim condensed consolidated statements of operations.

(3)The income tax benefit or expense is included within provision for income taxes in our unaudited interim condensed consolidated statements of operations.

Dolby Laboratories, Inc. 10-Q