Dolby Laboratories presents a positive liquidation recovery posture as of March 27, 2026, driven primarily by its liquid asset base. Applying standard liquidation haircuts: cash and equivalents of $594.3M recover at 100% ($594M); accounts receivable net of $391.3M recovers at 90-95% (~$352-372M); inventory of $31.9M recovers at 60% (~$19M); PP&E net of $461.8M (gross $1.07B, accumulated depreciation $609M) recovers at 50-70% (~$231-323M). Finite-lived intangibles net of $389.7M and goodwill of $529.7M receive 0% recovery under the liquidation lens, representing the single largest value destruction — $919M in book assets that return nothing to equity on wind-down. Long-term investments of $81.2M (primarily equity method investments at $69.5M) are illiquid minority stakes; recoverable value is uncertain but likely below book. Restricted cash of $79.5M recovers at 100% subject to release conditions. Total liability stack of $622.4M is held at face value. The credit facility (Bank of America revolving facility) is reported as currently undrawn. No long-term debt on balance sheet. Operating lease obligations total $49.7M (current $9.9M, non-current $39.8M) and remain as face-value liabilities in a wind-down. Deferred revenue of $62.9M ($38.8M current, $24.1M non-current) extinguishes without cash payout in liquidation. Other non-current liabilities of $83.8M (including post-retirement obligations of $5.3M and sundry of $30.2M) stay at face. Compared to the prior filing (Q1 FY2026, period end December 26, 2025), AR increased materially from $331.1M to $391.3M — the filing attributes this to timing of collections, not credit deterioration, though the allowance for doubtful accounts grew slightly and credit loss expense in G&A increased $1.7M. Cash declined from $701.9M to $594.3M, driven by $135M in share repurchases and $68.7M in dividends YTD against $147.3M operating cash flow (itself down sharply from $281.7M in the prior-year comparable period). Goodwill was essentially flat at $529.7M. Restructuring reserve of $7.3M represents a remaining cash liability from the September 2025 restructuring plan. The filing discusses $37M in intangible asset purchases in the YTD investing period; this incremental spend adds to the intangible asset pool that receives zero recovery under the liquidation lens. Filing discusses the OBBBA tax law changes and Pillar 2 in MD&A but does not separately XBRL-tag the potential deferred tax liability impact; the deferred tax asset of $209.3M is the largest non-cash asset after intangibles and goodwill and would likely be significantly impaired in a wind-down scenario.
▼ Community Notes