v3.26.1
Legal Matters
9 Months Ended
Jun. 26, 2026
Loss Contingency, Information about Litigation Matters [Abstract]  
Legal Matters Legal Matters
From time to time, we are involved in various legal proceedings that occasionally arise in the normal course of business. These can include claims of alleged infringement of IP rights, commercial, employment, and other matters. In our opinion, resolution of these proceedings is not expected to have a material adverse impact on our operating results or financial condition. On a quarterly basis, we evaluate based on the known facts and circumstances whether a potential loss or range of losses is considered probable and reasonably estimable in accordance with U.S. GAAP. We record a provision for a liability relating to these legal proceedings when a loss is both probable and the amount of the loss can be reasonably estimated. Legal costs associated with these legal proceedings are expensed as incurred.
Given the unpredictable nature of legal proceedings, it is possible that an unfavorable resolution of one or more such proceedings could materially affect our future operating results or financial condition in a particular period, including as a result of required changes to our licensing terms, monetary penalties, and other potential consequences. However, based on the information known by us as of the date of this filing and the rules and regulations applicable to the preparation of our unaudited interim condensed consolidated financial statements, other than the litigation matter discussed below, any such amounts are either immaterial, or it is not probable that a potential loss has been incurred or the amount of loss cannot be reasonably estimated.
Litigation
During the fiscal year-to-date period ended June 26, 2026, we recognized a $34.5 million accrued liability related to an unfavorable judgment on litigation that we assumed as part of our acquisition of MPEG LA, L.L.C. in fiscal 2023. In connection with this business combination, the sellers provided indemnification for an unfavorable outcome of that litigation. Accordingly, we have recognized an indemnification asset of $34.5 million during the fiscal year-to-date period ended June 26, 2026, which we expect to be settled within two years. The liability has been included within accrued liabilities and the indemnification asset has been included within other non-current assets in the unaudited interim condensed consolidated financial statements.