Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Oct. 31, 2013 | Dec. 12, 2013 | 1-May-13 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'CIENA CORP | ' | ' |
Entity Central Index Key | '0000936395 | ' | ' |
Current Fiscal Year End Date | '--10-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Oct-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 103,708,240 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $1.10 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $346,487 | $642,444 |
Short-term investments | 124,979 | 50,057 |
Accounts receivable, net | 488,578 | 345,496 |
Inventories | 249,103 | 260,098 |
Prepaid expenses and other | 186,655 | 117,595 |
Total current assets | 1,395,802 | 1,415,690 |
Long-term investments | 15,031 | 0 |
Equipment, furniture and fixtures, net | 119,729 | 123,580 |
Other intangible assets, net | 185,828 | 257,137 |
Other long-term assets | 86,380 | 84,736 |
Total assets | 1,802,770 | 1,881,143 |
Current liabilities: | ' | ' |
Accounts payable | 254,849 | 179,704 |
Accrued liabilities | 271,656 | 209,540 |
Deferred revenue | 88,550 | 79,516 |
Convertible notes payable | 0 | 216,210 |
Total current liabilities | 615,055 | 684,970 |
Long-term deferred revenue | 23,620 | 27,560 |
Other long-term obligations | 34,753 | 31,779 |
Long-term convertible notes payable | 1,212,019 | 1,225,806 |
Total liabilities | 1,885,447 | 1,970,115 |
Commitments and contingencies | ' | ' |
Stockholders’ equity (deficit): | ' | ' |
Preferred stock — par value $0.01; 20,000,000 shares authorized; zero shares issued and outstanding | 0 | 0 |
Common stock — par value $0.01; 290,000,000 shares authorized; 100,601,792 and 103,705,709 shares issued and outstanding | 1,037 | 1,006 |
Additional paid-in capital | 5,893,880 | 5,797,765 |
Accumulated other comprehensive loss | -7,774 | -3,354 |
Accumulated deficit | -5,969,820 | -5,884,389 |
Total stockholders’ equity (deficit) | -82,677 | -88,972 |
Total liabilities and stockholders’ equity (deficit) | $1,802,770 | $1,881,143 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
Stockholders' Equity Attributable to Parent [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized, (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 290,000,000 | 290,000,000 |
Common stock, shares issued (in shares) | 103,705,709 | 100,601,792 |
Common stock, shares outstanding (in shares) | 103,705,709 | 100,601,792 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Revenue: | ' | ' | ' |
Products | $1,680,125 | $1,454,991 | $1,406,532 |
Services | 402,421 | 378,932 | 335,438 |
Total revenue | 2,082,546 | 1,833,923 | 1,741,970 |
Cost of goods sold: | ' | ' | ' |
Products | 967,510 | 868,805 | 825,969 |
Services | 249,861 | 240,894 | 206,855 |
Total cost of goods sold | 1,217,371 | 1,109,699 | 1,032,824 |
Gross profit | 865,175 | 724,224 | 709,146 |
Operating expenses: | ' | ' | ' |
Research and development | 383,408 | 364,179 | 379,862 |
Selling and marketing | 304,170 | 266,338 | 251,990 |
General and administrative | 122,432 | 114,002 | 126,242 |
Acquisition and integration costs | 0 | 0 | 42,088 |
Amortization of intangible assets | 49,771 | 51,697 | 69,665 |
Restructuring costs | 7,169 | 7,854 | 5,781 |
Change in fair value of contingent consideration | 0 | 0 | -3,289 |
Total operating expenses | 866,950 | 804,070 | 872,339 |
Loss from operations | -1,775 | -79,846 | -163,193 |
Interest and other income (loss), net | -5,744 | -15,200 | 6,022 |
Interest expense | -44,042 | -39,653 | -37,926 |
Gain on cost method investments | 0 | 0 | 7,249 |
Loss on extinguishment of debt | -28,630 | 0 | 0 |
Loss before income taxes | -80,191 | -134,699 | -187,848 |
Provision for income taxes | 5,240 | 9,322 | 7,673 |
Net loss | ($85,431) | ($144,021) | ($195,521) |
Basic net loss per common share (in dollars per share) | ($0.83) | ($1.45) | ($2.04) |
Diluted net loss per potential common share (in dollars per share) | ($0.83) | ($1.45) | ($2.04) |
Weighted average basic common shares outstanding (in shares) | 102,350 | 99,341 | 95,854 |
Weighted average dilutive potential common shares outstanding (in shares) | 102,350 | 99,341 | 95,854 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) Statement (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net loss | ($85,431) | ($144,021) | ($195,521) |
Change in unrealized gain (loss) on available-for-sale securities, net of tax | -14 | -166 | 393 |
Change in unrealized gain (loss) on foreign currency forward contracts, net of tax | -310 | 49 | 0 |
Change in accumulated translation adjustments | -4,096 | -3,268 | -1,424 |
Total comprehensive loss | ($89,851) | ($147,406) | ($196,552) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (Deficit) (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
In Thousands, except Share data, unless otherwise specified | |||||
Beginning Balance Value at Oct. 31, 2010 | $159,293 | $941 | $5,702,137 | $1,062 | ($5,544,847) |
Beginning Balance Shares at Oct. 31, 2010 | ' | 94,060,300 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net loss | -195,521 | ' | ' | ' | -195,521 |
Comprehensive loss | -1,031 | ' | ' | -1,031 | ' |
Issuance of shares from employee equity plans (shares) | 411,000 | 3,380,136 | ' | ' | ' |
Issuance of shares from employee equity plans | 13,202 | 33 | 13,169 | ' | ' |
Share-based compensation expense | 37,930 | ' | 37,930 | ' | ' |
Ending Balance Value at Oct. 31, 2011 | 13,873 | 974 | 5,753,236 | 31 | -5,740,368 |
Ending Balance Shares at Oct. 31, 2011 | ' | 97,440,436 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net loss | -144,021 | ' | ' | ' | -144,021 |
Comprehensive loss | -3,385 | ' | ' | -3,385 | ' |
Issuance of shares from employee equity plans (shares) | 56,000 | 3,161,356 | ' | ' | ' |
Issuance of shares from employee equity plans | 12,167 | 32 | 12,135 | ' | ' |
Share-based compensation expense | 32,394 | ' | 32,394 | ' | ' |
Ending Balance Value at Oct. 31, 2012 | -88,972 | 1,006 | 5,797,765 | -3,354 | -5,884,389 |
Ending Balance Shares at Oct. 31, 2012 | 100,601,792 | 100,601,792 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net loss | -85,431 | ' | ' | ' | -85,431 |
Comprehensive loss | -4,420 | ' | ' | -4,420 | ' |
Equity component of convertible notes payable issued | 43,131 | ' | 43,131 | ' | ' |
Equity component of deferred debt issuance costs | -603 | ' | -603 | ' | ' |
Issuance of shares from employee equity plans (shares) | 246,000 | 3,103,917 | ' | ' | ' |
Issuance of shares from employee equity plans | 15,898 | 31 | 15,867 | ' | ' |
Share-based compensation expense | 37,720 | ' | 37,720 | ' | ' |
Ending Balance Value at Oct. 31, 2013 | ($82,677) | $1,037 | $5,893,880 | ($7,774) | ($5,969,820) |
Ending Balance Shares at Oct. 31, 2013 | 103,705,709 | 103,705,709 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net loss | ($85,431) | ($144,021) | ($195,521) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' | ' |
Loss on extinguishment of debt | 28,630 | 0 | 0 |
Gain on cost method investments | 0 | 0 | -7,249 |
Depreciation of equipment, furniture and fixtures, and amortization of leasehold improvements | 55,699 | 59,099 | 60,154 |
Share-based compensation costs | 37,720 | 32,394 | 37,930 |
Amortization of intangible assets | 71,308 | 74,497 | 95,927 |
Provision for inventory excess and obsolescence | 19,938 | 23,438 | 17,334 |
Provision for warranty | 24,558 | 33,418 | 18,451 |
Other | 9,023 | 13,722 | 2,741 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | -145,421 | 70,366 | -75,623 |
Inventories | -8,943 | -53,460 | 14,209 |
Prepaid expenses and other | -82,809 | 1,748 | -18,302 |
Accounts payable, accruals and other obligations | 115,312 | 12,610 | -59,285 |
Deferred revenue | 5,094 | -16,722 | 18,749 |
Net cash provided by (used in) operating activities | 44,678 | 107,089 | -90,485 |
Cash flows used in investing activities: | ' | ' | ' |
Payments for equipment, furniture, fixtures and intellectual property | -43,814 | -48,098 | -52,367 |
Restricted cash | 2,338 | 35,597 | 10,751 |
Purchase of available for sale securities | -184,864 | 0 | -49,892 |
Proceeds from maturities of available for sale securities | 95,479 | 0 | 0 |
Proceeds from sale of cost method investment | 0 | 524 | 6,544 |
Receipt of contingent consideration related to business acquisition | 0 | 0 | 16,394 |
Net cash used in investing activities | -130,861 | -11,977 | -68,570 |
Cash flows from financing activities: | ' | ' | ' |
Payment of capital lease obligations | -3,335 | -1,895 | 0 |
Payment of long term debt | -216,210 | 0 | 0 |
Payment of debt and equity issuance costs | -3,692 | -2,332 | 0 |
Proceeds from issuance of common stock | 15,898 | 12,167 | 13,202 |
Net cash provided by (used in) financing activities | -207,339 | 7,940 | 13,202 |
Effect of exchange rate changes on cash and cash equivalents | -2,435 | -2,504 | -938 |
Net increase (decrease) in cash and cash equivalents | -295,957 | 100,548 | -146,791 |
Cash and cash equivalents at beginning of period | 642,444 | 541,896 | 688,687 |
Cash and cash equivalents at end of period | 346,487 | 642,444 | 541,896 |
Supplemental disclosure of cash flow information | ' | ' | ' |
Cash paid during the period for interest | 32,397 | 33,511 | 32,931 |
Cash paid during the period for income taxes, net | 10,679 | 9,603 | 3,204 |
Non-cash investing and financing activities | ' | ' | ' |
Purchase of equipment in accounts payable | 6,191 | 5,202 | 6,431 |
Debt issuance costs in accrued liabilities | 0 | 319 | 0 |
Fixed assets acquired under capital leases | $2,538 | $6,736 | $1,106 |
Ciena_Corporation_and_Signific
Ciena Corporation and Significant Accounting Policies and Estimates | 12 Months Ended | |
Oct. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
CIENA CORPORATION AND SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES | ' | |
CIENA CORPORATION AND SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES | ||
Description of Business | ||
Ciena Corporation (“Ciena” or the “Company”) is a provider of communications networking equipment, software and services that support the transport, switching, aggregation and management of voice, video and data traffic. Ciena’s Converged Packet Optical, Packet Networking and Optical Transport products are used, individually or as part of an integrated solution, in networks operated by communications service providers, cable operators, governments and enterprises around the globe. Ciena is a network specialist targeting the transition of disparate, legacy communications networks to converged, next-generation architectures, better able to handle increased traffic and to deliver more efficiently a broader mix of high-bandwidth communications services. Ciena’s products, along with its embedded network element software and unified service and transport management, enable service providers to deliver critical enterprise and consumer-oriented communication services efficiently and cost-effectively. Ciena’s principal executive offices are located at 7035 Ridge Road, Hanover, Maryland 21076. | ||
Principles of Consolidation | ||
The accompanying consolidated financial statements include the accounts of Ciena and its wholly owned subsidiaries. All material inter-company accounts and transactions have been eliminated in consolidation. | ||
Fiscal Year | ||
Ciena has a 52 or 53 week fiscal year, which ends on the Saturday nearest to the last day of October in each year (October 29, 2011, November 3, 2012, and November 2, 2013 for the periods reported). Fiscal 2011 and fiscal 2013 each consisted of a 52-week fiscal year and fiscal 2012 consisted of a 53-week fiscal year. For purposes of financial statement presentation, each fiscal year is described as having ended on October 31. | ||
Use of Estimates | ||
The preparation of the financial statements and related disclosures in conformity with accounting principles generally | ||
accepted in the United States requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used for selling prices for multiple element arrangements, shared-based compensation, convertible notes payable valuations, bad debts, valuation of inventories and investments, recoverability of intangible assets, other long-lived assets, income taxes, warranty obligations, restructuring liabilities, derivatives, contingencies and litigation. Ciena bases its estimates on historical experience and assumptions that it believes are reasonable. Actual results may differ materially from management’s estimates. | ||
Cash and Cash Equivalents | ||
Ciena considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Restricted cash collateralizing letters of credit is included in other current assets and other long-term assets depending upon the duration of the restriction. | ||
Investments | ||
Ciena's investments are classified as available-for-sale and are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income (loss). Ciena recognizes losses when it determines that declines in the fair value of its investments, below their cost basis, are other-than-temporary. In determining whether a decline in fair value is other-than-temporary, Ciena considers various factors including market price (when available), investment ratings, the financial condition and near-term prospects of the investee, the length of time and the extent to which the fair value has been less than Ciena's cost basis, and its intent and ability to hold the investment until maturity or for a period of time sufficient to allow for any anticipated recovery in market value. Ciena considers all marketable debt securities that it expects to convert to cash within one year or less to be short-term investments. All others are considered long-term investments. | ||
Inventories | ||
Inventories are stated at the lower of cost or market, with cost computed using standard cost, which approximates actual cost, on a first-in, first-out basis. Ciena records a provision for excess and obsolete inventory when an impairment has been identified. | ||
Segment Reporting | ||
Ciena's chief operating decision maker, its chief executive officer, evaluates the company's performance and allocates resources based on multiple factors, including measures of segment profit (loss). Operating segments are defined as components of an enterprise that engage in business activities that may earn revenue and incur expense, for which discrete financial information is available, and for which such information is evaluated regularly by the chief operating decision maker for purposes of allocating resources and assessing performance. During the first quarter of fiscal 2013, Ciena reorganized its internal organizational structure and the management of its business into the following operating segments: (i) Converged Packet Optical, (ii) Packet Networking, (iii) Optical Transport, and (iv) Software and Services. See Note 18 below. | ||
Long-lived Assets | ||
Long-lived assets include: equipment, furniture and fixtures; intangible assets; and maintenance spares. Ciena tests long-lived assets for impairment whenever triggering events or changes in circumstances indicate that the asset's carrying amount is not recoverable from its undiscounted cash flows. An impairment loss is measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value. Ciena's long-lived assets are assigned to asset groups which represent the lowest level for which cash flows can be identified. | ||
Equipment, Furniture and Fixtures and Internal Use Software | ||
Equipment, furniture and fixtures are recorded at cost. Depreciation and amortization are computed using the straight-line method over useful lives of two to five years for equipment, furniture and fixtures and the shorter of useful life or lease term for leasehold improvements. | ||
Qualifying internal use software and website development costs incurred during the application development stage, which consist primarily of outside services and purchased software license costs, are capitalized and amortized straight-line over the estimated useful lives of two to five years. | ||
Intangible Assets | ||
Ciena has recorded finite-lived intangible assets as a result of several acquisitions. Finite-lived intangible assets are carried at cost less accumulated amortization. Amortization is computed using the straight-line method over the expected economic lives of the respective assets, up to seven years, which approximates the use of intangible assets. | ||
Maintenance Spares | ||
Maintenance spares are recorded at cost. Spares usage cost is expensed ratably over four years. | ||
Concentrations | ||
Substantially all of Ciena's cash and cash equivalents are maintained at a small number of major U.S. financial institutions. The majority of Ciena's cash equivalents consist of money market funds. Deposits held with banks may exceed the amount of insurance provided on such deposits. Because these deposits generally may be redeemed upon demand, management believes that they bear minimal risk. | ||
Historically, a significant percentage of Ciena's revenue has been concentrated among sales to a small number of large communications service providers. Consolidation among Ciena's customers has increased this concentration. Consequently, Ciena's accounts receivable are concentrated among these customers. See Note 18 below. | ||
Additionally, Ciena's access to certain materials or components is dependent upon sole or limited source suppliers. The inability of any of these suppliers to fulfill Ciena's supply requirements, or significant changes in supply cost, could affect future results. Ciena relies on a small number of contract manufacturers to perform the majority of the manufacturing for its products. If Ciena cannot effectively manage these manufacturers and forecast future demand, or if these manufacturers fail to deliver products or components on time, Ciena's business and results of operations may suffer. | ||
Revenue Recognition | ||
Ciena recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the price to the buyer is fixed or determinable; and collectibility is reasonably assured. Customer purchase agreements and customer purchase orders are generally used to determine the existence of an arrangement. Shipping documents and evidence of customer acceptance, when applicable, are used to verify delivery or services rendered. Ciena assesses whether the price is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. Ciena assesses collectibility based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer's payment history. Revenue for maintenance services is generally deferred and recognized ratably over the period during which the services are performed. Shipping and handling fees billed to customers are included in revenue, with the associated expenses included in product cost of goods sold. | ||
Ciena applies the percentage-of-completion method to long-term arrangements where it is required to undertake significant production, customizations or modification engineering, and reasonable and reliable estimates of revenue and cost are available. Utilizing the percentage-of-completion method, Ciena recognizes revenue based on the ratio of actual costs incurred to date to total estimated costs expected to be incurred. In instances that do not meet the percentage-of-completion method criteria, recognition of revenue is deferred until there are no uncertainties regarding customer acceptance. Unbilled percentage- of-completion revenues recognized are accumulated in the contracts in progress account included in accounts receivable, net. Billings in excess of revenues recognized to date on these contracts are recorded within deferred revenue. | ||
Software revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectibility is probable. In instances where final acceptance criteria of the software is specified by the customer, revenue is deferred until there are no uncertainties regarding customer acceptance. | ||
Ciena limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or refund privileges. | ||
Revenue for multiple element arrangements is allocated to each unit of accounting based on the relative selling price of each delivered element, with revenue recognized for each delivered element when the revenue recognition criteria are met. Ciena determines the selling price for each deliverable based upon the selling price hierarchy for multiple-deliverable arrangements. Under this hierarchy, Ciena uses vendor-specific objective evidence ("VSOE") of selling price, if it exists, or third party evidence ("TPE") of selling price if VSOE does not exist. If neither VSOE nor TPE of selling price exists for a deliverable, Ciena uses its best estimate of selling price ("BESP") for that deliverable. | ||
VSOE, when determinable, is established based on Ciena's pricing and discounting practices for the specific product or service when sold separately. In determining whether VSOE exists, Ciena requires that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range. Ciena has been unable to establish TPE of selling price because its go-to-market strategy differs from that of others in its markets, and the extent of customization and differentiated features and functions varies among comparable products or services from its peers. Ciena determines BESP based upon management-approved pricing guidelines, which consider multiple factors including the type of product or service, gross margin objectives, competitive and market conditions, and the go-to-market strategy, all of which can affect pricing practices. | ||
Warranty Accruals | ||
Ciena provides for the estimated costs to fulfill customer warranty obligations upon recognition of the related revenue. Estimated warranty costs include estimates for material costs, technical support labor costs and associated overhead. Warranty is included in cost of goods sold and is determined based upon actual warranty cost experience, estimates of component failure rates and management's industry experience. Ciena's sales contracts do not permit the right of return of the product by the customer after the product has been accepted. | ||
Accounts Receivable, Net | ||
Ciena's allowance for doubtful accounts is based on its assessment, on a specific identification basis, of the collectibility of customer accounts. Ciena performs ongoing credit evaluations of its customers and generally has not required collateral or other forms of security from its customers. In determining the appropriate balance for Ciena's allowance for doubtful accounts, management considers each individual customer account receivable in order to determine collectibility. In doing so, management considers creditworthiness, payment history, account activity and communication with the customer. If a customer's financial condition changes, Ciena may be required to record an allowance for doubtful accounts, which would negatively affect its results of operations. | ||
Research and Development | ||
Ciena charges all research and development costs to expense as incurred. Types of expense incurred in research and development include employee compensation, cost of prototype equipment, consulting and third party services, depreciation, facility costs and information technology. | ||
Government Grants | ||
Ciena accounts for proceeds from government grants as a reduction of operating expense when there is reasonable assurance that Ciena has complied with the conditions attached to the grant and that the grant proceeds will be received. Grant benefits are recorded to the line item in the Consolidated Statement of Operations to which the grant activity relates. See Note 20 below. | ||
Advertising Costs | ||
Ciena expenses all advertising costs as incurred. | ||
Legal Costs | ||
Ciena expenses legal costs associated with litigation defense as incurred. | ||
Share-Based Compensation Expense | ||
Ciena measures and recognizes compensation expense for share-based awards based on estimated fair values on the date of grant. Ciena estimates the fair value of each option-based award on the date of grant using the Black-Scholes option-pricing model. This model is affected by Ciena's stock price as well as estimates regarding a number of variables, including expected stock price volatility over the expected term of the award and projected employee stock option exercise behaviors. Ciena estimates the fair value of each restricted stock unit based on the fair value of the underlying common stock on the date of grant. In each case, Ciena only recognizes expense to its Consolidated Statement of Operations for those options or shares that are expected ultimately to vest. Ciena recognizes the estimated fair value of performance-based awards, net of estimated forfeitures, as share-based expense over the performance period, using graded vesting, which considers each performance period or tranche separately, based upon its determination of whether it is probable that the performance targets will be achieved. At each reporting period, Ciena reassesses the probability of achieving the performance targets and the performance period required to meet those targets. Ciena uses the straight-line method to record expense for grants with only service-based vesting. See Note 17 below. | ||
Income Taxes | ||
Ciena accounts for income taxes using an asset and liability approach that recognizes deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases, and for operating loss and tax credit carryforwards. In estimating future tax consequences, Ciena considers all expected future events other than the enactment of changes in tax laws or rates. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | ||
In the ordinary course of business, transactions occur for which the ultimate outcome may be uncertain. In addition, tax authorities periodically audit Ciena's income tax returns. These audits examine significant tax filing positions, including the timing and amounts of deductions and the allocation of income tax expenses among tax jurisdictions. Ciena is currently under audit in India for 2007 through 2011 and in Canada for 2010 and 2011. Management does not expect the outcome of these audits to have a material adverse effect on Ciena's consolidated financial position, results of operations or cash flows. Ciena's major tax jurisdictions and the earliest open tax years are as follows: United States (2010), United Kingdom (2012), Canada (2009) and India (2007). However, limited adjustments can be made to Federal U.S. tax returns in earlier years in order to reduce net operating loss carryforwards. Ciena classifies interest and penalties related to uncertain tax positions as a component of income tax expense. All of the uncertain tax positions, if recognized, would decrease the effective income tax rate. | ||
Ciena has not provided for U.S. deferred income taxes on the cumulative unremitted earnings of its non-U.S. affiliates, as it plans to indefinitely reinvest cumulative unremitted foreign earnings outside the U.S. and it is not practicable to determine the unrecognized deferred income taxes. These cumulative unremitted foreign earnings relate to ongoing operations in foreign jurisdictions and will be used to fund foreign operations, capital expenditures and any expansion requirements. | ||
Ciena recognizes windfall tax benefits associated with the exercise of stock options or release of restricted stock units directly to stockholders' equity only when realized. A windfall tax benefit occurs when the actual tax benefit realized by Ciena upon an employee's disposition of a share-based award exceeds the deferred tax asset, if any, associated with the award that Ciena had recorded. When assessing whether a tax benefit relating to share-based compensation has been realized, Ciena follows the tax law “with-and-without” method. Under the with-and-without method, the windfall is considered realized and recognized for financial statement purposes only when an incremental benefit is provided after considering all other tax benefits including Ciena's net operating losses. The with-and-without method results in the windfall from share-based compensation awards always being effectively the last tax benefit to be considered. Consequently, the windfall attributable to share-based compensation will not be considered realized in instances where Ciena's net operating loss carryover (that is unrelated to windfalls) is sufficient to offset the current year's taxable income before considering the effects of current-year windfalls. | ||
Loss Contingencies | ||
Ciena is subject to the possibility of various losses arising in the ordinary course of business. These may relate to disputes, litigation and other legal actions. Ciena considers the likelihood of loss or the incurrence of a liability, as well as Ciena's ability to reasonably estimate the amount of loss, in determining loss contingencies. An estimated loss contingency is accrued when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Ciena regularly evaluates current information available to it in order to determine whether any accruals should be adjusted and whether new accruals are required. | ||
Fair Value of Financial Instruments | ||
The carrying value of Ciena's cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair market value due to the relatively short period of time to maturity. For information related to the fair value of Ciena's convertible notes, see Note 12 below. | ||
Fair value for the measurement of financial assets and liabilities is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Ciena utilizes a valuation hierarchy for disclosure of the inputs for fair value measurement. This hierarchy prioritizes the inputs into three broad levels as follows: | ||
• | Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities; | |
• | Level 2 inputs are quoted prices for identical or similar assets or liabilities in less active markets or model-derived valuations in which significant inputs are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and | |
• | Level 3 inputs are unobservable inputs based on Ciena's assumptions used to measure assets and liabilities at fair value. | |
By distinguishing between inputs that are observable in the marketplace, and therefore more objective, and those that are unobservable and therefore more subjective, the hierarchy is designed to indicate the relative reliability of the fair value measurements. A financial asset's or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. | ||
Restructuring | ||
From time to time, Ciena takes actions to better align its workforce, facilities and operating costs with perceived market opportunities, business strategies and changes in market and business conditions. Generally accepted accounting principles("GAAP") require that a liability for the cost associated with an exit or disposal activity be recognized in the period in which the liability is incurred, except for one-time employee termination benefits related to a service period of more than 60 days, which are accrued over the service period. See Note 2 below. | ||
Foreign Currency | ||
Some of Ciena's foreign branch offices and subsidiaries use the U.S. dollar as their functional currency because Ciena, as the U.S. parent entity, exclusively funds the operations of these branch offices and subsidiaries. For those subsidiaries using the local currency as their functional currency, assets and liabilities are translated at exchange rates in effect at the balance sheet date, and the statement of operations is translated at a monthly average rate. Resulting translation adjustments are recorded directly to a separate component of stockholders' equity. Where the monetary assets and liabilities are transacted in a currency other than the entity's functional currency, re-measurement adjustments are recorded in interest and other income (loss), net on the Consolidated Statement of Operations. | ||
Derivatives | ||
Ciena's 4.0% convertible senior notes due March 15, 2015 (the "2015 Notes") include a redemption feature that is accounted for as a separate embedded derivative. The embedded redemption feature is recorded at fair value on a recurring basis, and these changes are included in interest and other income (loss), net on the Consolidated Statement of Operations. | ||
From time to time, Ciena uses foreign currency forward contracts to reduce variability in certain forecasted non-U.S.-dollar denominated cash flows. Generally, these derivatives have maturities of 12 months or less and are designated as cash flow hedges. At the inception of the cash flow hedge, and on an ongoing basis, Ciena assesses whether the forward contract has been effective in offsetting changes in cash flows attributable to the hedged risk during the hedging period. The effective portion of the derivative's net gain or loss is initially reported as a component of accumulated other comprehensive income (loss), and upon the occurrence of the forecasted transaction, is subsequently reclassified to the line item in the Consolidated Statement of Operations to which the hedged transaction relates. Any net gain or loss associated with the ineffectiveness of the hedging instrument is reported in interest and other income (loss), net. | ||
From time to time, Ciena uses foreign currency forwards to hedge certain balance sheet exposures. These forwards are not designated as hedges for accounting purposes, and any net gain or loss associated with these derivatives is reported in interest and other income (loss), net on the Consolidated Statement of Operations. See Note 11 below. | ||
Computation of Net Income (Loss) per Share | ||
Ciena calculates basic earnings per share ("EPS") by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes other potential dilutive shares that would be outstanding if securities or other contracts to issue common stock were exercised or converted into common stock. Ciena uses a dual presentation of basic and diluted EPS on the face of its income statement. A reconciliation of the numerator and denominator used for the basic and diluted EPS computations is set forth in Note 14 below. | ||
Software Development Costs | ||
Ciena develops software for sale to its customers. GAAP require the capitalization of certain software development costs that are incurred subsequent to the date technological feasibility is established and prior to the date the product is generally available for sale. The capitalized cost is then amortized straight-line over the estimated life of the product. Ciena defines technological feasibility as being attained at the time a working model is completed. To date, the period between Ciena achieving technological feasibility and the general availability of such software has been short, and software development costs qualifying for capitalization have been insignificant. Accordingly, Ciena has not capitalized any software development costs. | ||
Newly Issued Accounting Standards | ||
In May 2011, the Financial Accounting Standards Board ("FASB") issued an accounting standards update that amends current fair value measurement and disclosure guidance to converge with International Financial Reporting Standards ("IFRS"). This update provides improved comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with GAAP and IFRS. This guidance is effective for fiscal years and interim periods beginning after December 15, 2011. Ciena adopted this guidance in the first quarter of fiscal 2013. | ||
In June 2011, FASB issued an accounting standards update that requires an entity to present total comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements and eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. This guidance is effective for fiscal years and interim periods beginning after December 15, 2011. Ciena adopted this guidance in the first quarter of fiscal 2013. | ||
In February 2013, FASB issued an accounting standards update to require reclassification adjustments from other comprehensive income to be presented either in the financial statements or in the notes to the financial statements. This accounting standard update will be effective for Ciena beginning in the first quarter of fiscal 2014, at which time Ciena will include the required disclosures. |
Restructuring_Costs
Restructuring Costs | 12 Months Ended | |||||||||||
Oct. 31, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
RESTRUCTURING COSTS | ' | |||||||||||
RESTRUCTURING COSTS | ||||||||||||
Ciena has undertaken a number of restructuring activities intended to reduce expense and better align its workforce and costs with market opportunities, product development and business strategies. The following table displays the activity and balances of the historical restructuring liability accounts for the fiscal years indicated (in thousands): | ||||||||||||
Workforce | Consolidation | Total | ||||||||||
reduction | of excess | |||||||||||
facilities | ||||||||||||
Balance at October 31, 2010 | $ | 1,576 | $ | 6,392 | $ | 7,968 | ||||||
Additional liability recorded | 6,627 | (a) | — | 6,627 | ||||||||
Adjustment to previous estimates | — | (846 | ) | (a) | (846 | ) | ||||||
Cash payments | (8,043 | ) | (2,253 | ) | (10,296 | ) | ||||||
Balance at October 31, 2011 | 160 | 3,293 | 3,453 | |||||||||
Additional liability recorded | 5,484 | (b) | 2,370 | (b) | 7,854 | |||||||
Cash payments | (4,195 | ) | (2,063 | ) | (6,258 | ) | ||||||
Balance at October 31, 2012 | 1,449 | 3,600 | 5,049 | |||||||||
Additional liability recorded | 5,041 | (c) | 2,128 | (c) | 7,169 | |||||||
Non-cash disposal | — | (747 | ) | (747 | ) | |||||||
Cash payments | (6,410 | ) | (3,045 | ) | (9,455 | ) | ||||||
Balance at October 31, 2013 | $ | 80 | $ | 1,936 | $ | 2,016 | ||||||
Current restructuring liabilities | $ | 80 | $ | 594 | $ | 674 | ||||||
Non-current restructuring liabilities | $ | — | $ | 1,342 | $ | 1,342 | ||||||
_________________________________ | ||||||||||||
(a) | During fiscal 2011, Ciena recorded a charge of $6.6 million of severance and other employee-related costs associated with a workforce reduction of approximately 150 employees. Ciena also recorded an adjustment of $0.8 million related to its previously restructured Acton, Massachusetts facility. | |||||||||||
(b) | During fiscal 2012, Ciena recorded a charge of $5.5 million of severance and other employee-related costs associated with a workforce reduction of approximately 135 employees. Ciena also recorded charges of $2.4 million related to its consolidation of several facilities in the Linthicum, Maryland area. | |||||||||||
(c) | During fiscal 2013, Ciena recorded a charge of $5.0 million of severance and other employee-related costs associated with a workforce reduction of approximately 100 employees. Ciena also recorded charges of $2.1 million related to its consolidation of several facilities primarily in the Linthicum, Maryland area. |
ShortTerm_and_LongTerm_Investm
Short-Term and Long-Term Investments | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
SHORT-TERM AND LONG-TERM INVESTMENTS | ' | |||||||||||||||
SHORT-TERM AND LONG-TERM INVESTMENTS | ||||||||||||||||
As of October 31, 2012, short-term investments were comprised of the following (in thousands): | ||||||||||||||||
October 31, 2012 | ||||||||||||||||
Amortized Cost | Gross Unrealized | Gross Unrealized | Estimated Fair | |||||||||||||
Gains | Losses | Value | ||||||||||||||
U.S. government obligations | ||||||||||||||||
Included in short-term investments | 49,987 | 70 | — | 50,057 | ||||||||||||
$ | 49,987 | $ | 70 | $ | — | $ | 50,057 | |||||||||
As of October 31, 2013, short-term and long-term investments are comprised of the following (in thousands): | ||||||||||||||||
October 31, 2013 | ||||||||||||||||
Amortized Cost | Gross Unrealized | Gross Unrealized | Estimated Fair | |||||||||||||
Gains | Losses | Value | ||||||||||||||
U.S. government obligations | ||||||||||||||||
Included in short-term investments | $ | 99,974 | $ | 11 | $ | — | $ | 99,985 | ||||||||
Included in long-term investments | 14,996 | 35 | — | 15,031 | ||||||||||||
$ | 114,970 | $ | 46 | $ | — | $ | 115,016 | |||||||||
Commercial paper | ||||||||||||||||
Included in short-term investments | $ | 24,994 | $ | — | $ | — | $ | 24,994 | ||||||||
$ | 24,994 | $ | — | $ | — | $ | 24,994 | |||||||||
The following table summarizes the legal maturities of debt investments at October 31, 2013: | ||||||||||||||||
October 31, 2013 | ||||||||||||||||
Amortized Cost | Estimated Fair | |||||||||||||||
Value | ||||||||||||||||
Less than one year | $ | 124,968 | $ | 124,979 | ||||||||||||
Due in 1-2 years | 14,996 | 15,031 | ||||||||||||||
$ | 139,964 | $ | 140,010 | |||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
As of the date indicated, the following table summarizes the fair value of assets that are recorded at fair value on a recurring basis (in thousands): | ||||||||||||||||
October 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Money market funds | 404,288 | $ | — | $ | — | $ | 404,288 | |||||||||
U.S. government obligations | — | 50,057 | — | 50,057 | ||||||||||||
Commercial paper | — | 14,998 | — | 14,998 | ||||||||||||
Foreign currency forward contracts | — | 79 | — | 79 | ||||||||||||
Embedded redemption feature | — | — | 420 | 420 | ||||||||||||
Total assets measured at fair value | $ | 404,288 | $ | 65,134 | $ | 420 | $ | 469,842 | ||||||||
October 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | 254,330 | $ | — | $ | — | $ | 254,330 | ||||||||
U.S. government obligations | — | 115,016 | — | 115,016 | ||||||||||||
Commercial paper | — | 44,991 | — | 44,991 | ||||||||||||
Embedded redemption feature | — | — | 2,740 | 2,740 | ||||||||||||
Total assets measured at fair value | $ | 254,330 | $ | 160,007 | $ | 2,740 | $ | 417,077 | ||||||||
Liabilities | ||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 442 | $ | — | $ | 442 | ||||||||
Total liabilities measured at fair value | $ | — | $ | 442 | $ | — | $ | 442 | ||||||||
As of the dates indicated, the assets and liabilities above were presented on Ciena’s Consolidated Balance Sheet as follows (in thousands): | ||||||||||||||||
October 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 400,415 | $ | 14,998 | $ | — | $ | 415,413 | ||||||||
Short-term investments | — | 50,057 | — | 50,057 | ||||||||||||
Prepaid expenses and other | 2,030 | 79 | — | 2,109 | ||||||||||||
Other long-term assets | 1,843 | — | 420 | 2,263 | ||||||||||||
Total assets measured at fair value | $ | 404,288 | $ | 65,134 | $ | 420 | $ | 469,842 | ||||||||
October 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 252,241 | $ | 19,997 | $ | — | $ | 272,238 | ||||||||
Short-term investments | — | 124,979 | — | 124,979 | ||||||||||||
Prepaid expenses and other | 52 | — | — | 52 | ||||||||||||
Long-term investments | — | 15,031 | — | 15,031 | ||||||||||||
Other long-term assets | 2,037 | — | 2,740 | 4,777 | ||||||||||||
Total assets measured at fair value | $ | 254,330 | $ | 160,007 | $ | 2,740 | $ | 417,077 | ||||||||
Liabilities | ||||||||||||||||
Accrued liabilities | $ | — | $ | 442 | $ | — | 442 | |||||||||
Total liabilities measured at fair value | $ | — | $ | 442 | $ | — | $ | 442 | ||||||||
Ciena’s Level 3 assets included in other long-term assets reflect an embedded redemption feature contained within Ciena’s 4.0% convertible senior notes. See Note 12 below. The embedded redemption feature is bifurcated from Ciena’s 4.0% convertible senior notes using the “with-and-without” approach. As such, the total value of the embedded redemption feature is calculated as the difference between the value of the 4.0% convertible senior notes (the “Hybrid Instrument”) and the value of an identical instrument without the embedded redemption feature (the “Host Instrument”). Both the Host Instrument and the Hybrid Instrument are valued using a modified binomial model. The modified binomial model utilizes a risk free interest rate, an implied volatility of Ciena’s stock, the recovery rates of bonds and the implied default intensity of the 4.0% convertible senior notes. | ||||||||||||||||
As of the dates indicated, the following table sets forth, in thousands, the reconciliation of changes in Level 3 assets recorded at fair value: | ||||||||||||||||
Level 3 | ||||||||||||||||
Balance at October 31, 2012 | $ | 420 | ||||||||||||||
Issuances | — | |||||||||||||||
Settlements | (630 | ) | ||||||||||||||
Changes in unrealized gain | 2,950 | |||||||||||||||
Transfers into Level 3 | — | |||||||||||||||
Transfers out of Level 3 | — | |||||||||||||||
Balance at October 31, 2013 | $ | 2,740 | ||||||||||||||
Accounts_Receivable
Accounts Receivable | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||
ACCOUNTS RECEIVABLE | ' | ||||||||||||||||
ACCOUNTS RECEIVABLE | |||||||||||||||||
As of October 31, 2012, no single customer accounted for greater than 10% of net accounts receivable. As of October 31, 2013, two customers accounted for greater than 10% of net accounts receivable, and in the aggregate accounted for 22.5% of net accounts receivable. Ciena has not historically experienced a significant amount of bad debt expense. The following table summarizes the activity in Ciena’s allowance for doubtful accounts for the fiscal years indicated (in thousands): | |||||||||||||||||
Year ended | Balance at beginning | Net | Balance at end of | ||||||||||||||
October 31, | of period | Provisions | Deductions | period | |||||||||||||
2011 | $ | 117 | $ | 1,696 | $ | 1,112 | $ | 701 | |||||||||
2012 | $ | 701 | $ | 1,647 | $ | 848 | $ | 1,500 | |||||||||
2013 | $ | 1,500 | $ | 2,339 | $ | 1,884 | $ | 1,955 | |||||||||
Inventories
Inventories | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Inventory Disclosure [Abstract] | ' | ||||||||||||||||
INVENTORIES | ' | ||||||||||||||||
INVENTORIES | |||||||||||||||||
As of the dates indicated, inventories are comprised of the following (in thousands): | |||||||||||||||||
October 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Raw materials | $ | 39,678 | $ | 53,274 | |||||||||||||
Work-in-process | 10,736 | 7,773 | |||||||||||||||
Finished goods | 178,210 | 153,855 | |||||||||||||||
Deferred cost of goods sold | 71,484 | 75,764 | |||||||||||||||
300,108 | 290,666 | ||||||||||||||||
Provision for excess and obsolescence | (40,010 | ) | (41,563 | ) | |||||||||||||
$ | 260,098 | $ | 249,103 | ||||||||||||||
Ciena writes down its inventory for estimated obsolescence or unmarketable inventory by an amount equal to the difference between the cost of inventory and the estimated net realizable value based on assumptions about future demand and market conditions. During fiscal 2011, recorded provisions for inventory reserves were primarily related to changes in forecasted sales for certain products. During fiscal 2012 and fiscal 2013, recorded provisions for inventory reserves were primarily related to engineering design changes and the discontinuance of certain parts and components used in the manufacture of our Optical Transport and Converged Packet Optical products. Deductions from the provision for excess and obsolete inventory relate to disposal activities. | |||||||||||||||||
The following table summarizes the activity in Ciena’s reserve for excess and obsolete inventory for the fiscal years indicated (in thousands): | |||||||||||||||||
Balance at | |||||||||||||||||
Year ended | beginning of | Balance at | |||||||||||||||
October 31, | period | Provisions | Disposals | end of period | |||||||||||||
2011 | $ | 30,767 | $ | 17,334 | $ | 16,330 | $ | 31,771 | |||||||||
2012 | $ | 31,771 | $ | 23,438 | $ | 15,199 | $ | 40,010 | |||||||||
2013 | $ | 40,010 | $ | 19,938 | $ | 18,385 | $ | 41,563 | |||||||||
Prepaid_Expenses_and_Other
Prepaid Expenses and Other | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
PREPAID EXPENSES AND OTHER | ' | |||||||
PREPAID EXPENSES AND OTHER | ||||||||
As of the dates indicated, prepaid expenses and other are comprised of the following (in thousands): | ||||||||
October 31, | ||||||||
2012 | 2013 | |||||||
Prepaid VAT and other taxes | $ | 37,806 | $ | 101,072 | ||||
Deferred deployment expense | 19,449 | 23,190 | ||||||
Product demonstration equipment, net | 33,144 | 33,382 | ||||||
Prepaid expenses | 16,477 | 16,963 | ||||||
Other non-trade receivables | 8,689 | 11,996 | ||||||
Restricted cash | 2,030 | 52 | ||||||
$ | 117,595 | $ | 186,655 | |||||
Depreciation of product demonstration equipment was $9.7 million, $7.8 million and $7.4 million for fiscal 2011, 2012 and 2013, respectively. |
Equipment_Furniture_and_Fixtur
Equipment, Furniture and Fixtures | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
EQUIPMENT, FURNITURE AND FIXTURES | ' | |||||||
EQUIPMENT, FURNITURE AND FIXTURES | ||||||||
As of the dates indicated, equipment, furniture and fixtures are comprised of the following (in thousands): | ||||||||
October 31, | ||||||||
2012 | 2013 | |||||||
Equipment, furniture and fixtures | $ | 422,118 | $ | 364,574 | ||||
Leasehold improvements | 61,493 | 46,247 | ||||||
483,611 | 410,821 | |||||||
Accumulated depreciation and amortization | (360,031 | ) | (291,092 | ) | ||||
$ | 123,580 | $ | 119,729 | |||||
During fiscal 2011, fiscal 2012 and fiscal 2013, Ciena recorded depreciation of equipment, furniture and fixtures, and amortization of leasehold improvements of $50.5 million, $51.3 million and $48.3 million, respectively. During fiscal 2013, in connection with the restructuring activities described above, Ciena disposed of equipment, furniture and fixtures with an original cost of $39.0 million and related accumulated depreciation of $38.3 million. |
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | |||||||||||||||||||||||
INTANGIBLE ASSETS | ' | |||||||||||||||||||||||
INTANGIBLE ASSETS | ||||||||||||||||||||||||
As of the dates indicated, intangible assets are comprised of the following (in thousands): | ||||||||||||||||||||||||
October 31, | ||||||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Intangible | Amortization | Intangible | Intangible | Amortization | Intangible | |||||||||||||||||||
Developed technology | $ | 417,833 | $ | (279,195 | ) | $ | 138,638 | $ | 417,833 | $ | (321,645 | ) | $ | 96,188 | ||||||||||
Patents and licenses | 46,538 | (45,566 | ) | 972 | 46,538 | (45,744 | ) | 794 | ||||||||||||||||
Customer relationships, covenants not to compete, outstanding purchase orders and contracts | 323,573 | (206,046 | ) | 117,527 | 323,573 | (234,727 | ) | 88,846 | ||||||||||||||||
Total intangible assets | $ | 787,944 | $ | (530,807 | ) | $ | 257,137 | $ | 787,944 | $ | (602,116 | ) | $ | 185,828 | ||||||||||
The aggregate amortization expense of intangible assets was $95.9 million, $74.5 million and $71.3 million for fiscal 2011, fiscal 2012 and fiscal 2013, respectively. Expected future amortization of intangible assets for the fiscal years indicated is as follows (in thousands): | ||||||||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||||||||
2014 | $ | 57,151 | ||||||||||||||||||||||
2015 | 52,879 | |||||||||||||||||||||||
2016 | 52,879 | |||||||||||||||||||||||
2017 | 22,783 | |||||||||||||||||||||||
2018 | 136 | |||||||||||||||||||||||
$ | 185,828 | |||||||||||||||||||||||
Other_Balance_Sheet_Details
Other Balance Sheet Details | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | ' | ||||||||||||||||
OTHER BALANCE SHEET DETAILS | ' | ||||||||||||||||
OTHER BALANCE SHEET DETAILS | |||||||||||||||||
As of the dates indicated, other long-term assets are comprised of the following (in thousands): | |||||||||||||||||
October 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Maintenance spares inventory, net | $ | 57,548 | $ | 61,305 | |||||||||||||
Deferred debt issuance costs, net | 20,575 | 15,677 | |||||||||||||||
Embedded redemption feature | 420 | 2,740 | |||||||||||||||
Restricted cash | 2,413 | 2,053 | |||||||||||||||
Other | 3,780 | 4,605 | |||||||||||||||
$ | 84,736 | $ | 86,380 | ||||||||||||||
Deferred debt issuance costs are amortized using the straight line method which approximates the effect of the effective interest rate method through the maturity of the related debt. Amortization of debt issuance costs related to our convertible notes payable and the Credit Facility, which is included in interest expense, was $5.3 million, $5.3 million and $5.4 million for fiscal 2011, fiscal 2012 and fiscal 2013, respectively. | |||||||||||||||||
As of the dates indicated, accrued liabilities are comprised of the following (in thousands): | |||||||||||||||||
October 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Warranty | $ | 55,132 | $ | 56,303 | |||||||||||||
Compensation, payroll related tax and benefits | 48,885 | 98,770 | |||||||||||||||
Vacation | 29,581 | 32,118 | |||||||||||||||
Current restructuring liabilities | 3,516 | 674 | |||||||||||||||
Interest payable | 4,404 | 6,186 | |||||||||||||||
Other | 68,022 | 77,605 | |||||||||||||||
$ | 209,540 | $ | 271,656 | ||||||||||||||
The following table summarizes the activity in Ciena’s accrued warranty for the fiscal years indicated (in thousands): | |||||||||||||||||
Year ended | Beginning | Balance at end | |||||||||||||||
October 31, | Balance | Provisions | Settlements | of period | |||||||||||||
2011 | $ | 54,372 | $ | 18,451 | $ | 25,541 | $ | 47,282 | |||||||||
2012 | $ | 47,282 | $ | 33,418 | $ | 25,568 | $ | 55,132 | |||||||||
2013 | $ | 55,132 | $ | 24,558 | $ | 23,387 | $ | 56,303 | |||||||||
As a result of acquisition and integration activities, Ciena consolidated certain support operations and processes during fiscal 2011, resulting in a reduction in costs to service future warranty obligations. As a result of the lower than expected costs, Ciena reduced its warranty liability by $6.9 million, which had the effect of reducing the provisions in the table above. The increase in fiscal 2012 warranty provision was driven primarily by sales that included longer-term support obligations and technical support requirements from additional geographies. The decrease in fiscal 2013 warranty provision was primarily due to lower failure rates. | |||||||||||||||||
As of the dates indicated, deferred revenue is comprised of the following (in thousands): | |||||||||||||||||
October 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Products | $ | 29,279 | $ | 36,671 | |||||||||||||
Services | 77,797 | 75,499 | |||||||||||||||
107,076 | 112,170 | ||||||||||||||||
Less current portion | (79,516 | ) | (88,550 | ) | |||||||||||||
Long-term deferred revenue | $ | 27,560 | $ | 23,620 | |||||||||||||
Foreign_Currency_Forward_Contr
Foreign Currency Forward Contracts | 12 Months Ended |
Oct. 31, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
FOREIGN CURRENCY FORWARD CONTRACTS | ' |
FOREIGN CURRENCY FORWARD CONTRACTS | |
As of October 31, 2013, Ciena had forward contracts to reduce the variability in its Canadian Dollar and Indian Rupee denominated expense, which expense principally relates to research and development activities. These derivative contracts have been designated as cash flow hedges. During fiscal 2013, in order to hedge certain balance sheet exposures, Ciena entered into forward contracts to sell Brazilian Real and buy an equivalent U.S. Dollar amount. These derivative contracts have not been designated as hedges. Ciena's foreign currency forward contracts are immaterial for separate financial statement presentation. |
Convertible_Notes_Payable
Convertible Notes Payable | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
CONVERTIBLE NOTES PAYABLE | ' | |||||||||||||||
CONVERTIBLE NOTES PAYABLE | ||||||||||||||||
Outstanding Convertible Notes Payable | ||||||||||||||||
Ciena has four issuances of convertible notes payable outstanding. The notes are senior unsecured obligations of Ciena and rank equally with all of Ciena’s other existing and future senior unsecured debt. The indentures governing Ciena’s notes provide for customary events of default which include (subject in certain cases to customary grace and cure periods), among others, the following: nonpayment of principal or interest; breach of covenants or other agreements in the indenture; defaults in or failure to pay certain other indebtedness; and certain events of bankruptcy or insolvency. Generally, if an event of default occurs and is continuing, the trustee or the holders of at least 25% in aggregate principal amount of the notes may declare the principal of, accrued interest on, and premium, if any, on all the notes immediately due and payable. Under the indentures, if Ciena undergoes a “fundamental change” (as that term is defined in the indenture governing the notes to include certain change in control transactions), holders of notes will have the right, subject to certain exemptions, to require Ciena to purchase for cash any or all of their notes at a price equal to the principal amount, plus accrued interest. If the holder elects to convert his or her notes in connection with a specified fundamental change Ciena will be required to, in certain circumstances, increase the applicable conversion rate, depending on the price paid per share for Ciena common stock and the effective date of the fundamental change transaction. | ||||||||||||||||
0.25% Convertible Senior Notes due May 1, 2013 | ||||||||||||||||
The remaining $216.2 million in principal amount outstanding on these notes was paid at maturity during the second quarter of fiscal 2013 and the notes are no longer outstanding. | ||||||||||||||||
4.0% Convertible Senior Notes, due March 15, 2015 | ||||||||||||||||
On March 15, 2010, Ciena completed a private placement of 4.0% convertible senior notes due March 15, 2015, in aggregate principal amount of $375.0 million. Interest is payable on the notes on March 15 and September 15 of each year, beginning on September 15, 2010. | ||||||||||||||||
On December 27, 2012, Ciena issued $187.5 million in aggregate principal amount of 4.0% Convertible Senior Notes due 2020 (the “2020 Notes”) in separate private offerings in exchange for $187.5 million in aggregate principal amount of the then outstanding 2015 Notes (the “Exchange Transactions”). The Exchange Transactions resulted in the retirement of outstanding 2015 Notes with a carrying value of $187.9 million, the write-off of unamortized debt issuance costs of $2.3 million, and settlement of $0.6 million relating to the redemption feature on the 2015 Notes accounted for as a separate embedded derivative. The 2020 Notes offered in the Exchange Transactions had a fair value of $213.6 million, which resulted in a loss on extinguishment of debt of $28.6 million in the first quarter of fiscal 2013. Ciena does not expect the Exchange Transactions to affect its taxes from continuing operations, as the company continues to provide a valuation allowance against its deferred tax assets. | ||||||||||||||||
At the election of the holder, the notes may be converted prior to maturity into shares of Ciena common stock at the initial conversion rate of 49.0557 shares per $1,000 in principal amount, which is equivalent to an initial conversion price of approximately $20.38 per share. The notes may be redeemed by Ciena on or after March 15, 2013 if the closing sale price of Ciena’s common stock for at least 20 trading days in any 30 consecutive trading day period ending on the date one day prior to the date of the notice of redemption exceeds 150% of the conversion price. Ciena may redeem the notes in whole or in part, at a redemption price in cash equal to the principal amount to be redeemed, plus accrued and unpaid interest, including any additional interest to, but excluding, the redemption date, plus a make-whole premium payment. The “make whole premium” payment will be made in cash and equal the present value of the remaining interest payments, to maturity, computed using a discount rate equal to 2.75%. The make-whole premium is paid to holders whether or not they convert the notes following Ciena’s issuance of a redemption notice. For accounting purposes, this redemption feature is an embedded derivative that is not clearly and closely related to the notes. Consequently, it was initially bifurcated from the indenture and separately recorded at its fair value as an asset with subsequent changes in fair value recorded through earnings. As of October 31, 2013, the fair value of the embedded redemption feature was $2.7 million and is included in other long-term assets on the Consolidated Balance Sheet. Changes in fair value of the embedded redemption feature in the amount of $3.0 million are reflected as interest and other income (loss), net in the Consolidated Statement of Operations during fiscal 2013. | ||||||||||||||||
The net proceeds from the original offering of the notes were $364.3 million after deducting the placement agents’ fees and other fees and expenses. Ciena used $243.8 million of this amount to fund its payment election to replace its contractual obligation to issue convertible notes to Nortel as part of the aggregate purchase price for the acquisition of the MEN Business. The remaining proceeds were used to reduce the cash on hand required to fund the aggregate purchase price of the MEN Business. | ||||||||||||||||
0.875% Convertible Senior Notes due June 15, 2017 | ||||||||||||||||
On June 11, 2007, Ciena completed a public offering of 0.875% convertible senior notes due June 15, 2017, in aggregate principal amount of $500.0 million. Interest is payable on June 15 and December 15 of each year, beginning on December 15, 2007. | ||||||||||||||||
At the election of the holder, the notes may be converted prior to maturity into shares of Ciena common stock at the initial conversion rate of 26.2154 shares per $1,000 in principal amount, which is equivalent to an initial conversion price of approximately $38.15 per share. The notes are not redeemable by Ciena prior to maturity. | ||||||||||||||||
Ciena used approximately $42.5 million of the net proceeds of this offering to purchase a call spread option on its common stock that is intended to limit exposure to potential dilution from conversion of the notes. See Note 15 below for a description of this call spread option. | ||||||||||||||||
3.75% Convertible Senior Notes, due October 15, 2018 | ||||||||||||||||
On October 18, 2010, Ciena completed a private placement of 3.75% convertible senior notes due October 15, 2018, in aggregate principal amount of $350.0 million. Interest is payable on the notes on April 15 and October 15 of each year, beginning on April 15, 2011. | ||||||||||||||||
At the election of the holder, the notes may be converted prior to maturity into shares of Ciena common stock at the initial conversion rate of 49.5872 shares per $1,000 in principal amount, which is equivalent to an initial conversion price of approximately $20.17 per share. | ||||||||||||||||
The net proceeds from the offering were approximately $340.4 million after deducting the placement agents’ fees and other fees and expenses. Ciena used $76.1 million of the net proceeds to effect the repurchase of its 0.25% convertible senior notes due 2013, which matured during fiscal 2013. | ||||||||||||||||
4.0% Convertible Senior Notes due December 15, 2020 | ||||||||||||||||
As described above, on December 27, 2012, Ciena issued $187.5 million in aggregate principal amount of 4.0% Convertible Senior Notes due 2020 (the “2020 Notes”) in separate private offerings in exchange for $187.5 million in aggregate principal amount of 2015 Notes above. | ||||||||||||||||
The 2020 Notes are senior unsecured obligations and rank equally with all of Ciena's other existing and future senior unsecured debt. The 2020 Notes pay interest from the date of issuance at a rate of 4.0% per year. The interest is payable semi-annually on June 15 and December 15, commencing on June 15, 2013. The principal amount of the 2020 Notes will also accrete at a rate of 1.85% per year commencing December 27, 2012, compounding on a semi-annual basis. The accreted portion of the principal payable at maturity does not bear interest and is not convertible into shares of Ciena's common stock. The 2020 Notes will mature on December 15, 2020. Consequently, in the event the 2020 Notes are converted, the accreted liability will extinguish without payment. | ||||||||||||||||
The 2020 Notes may be converted prior to maturity, at the option of the holder, into shares of Ciena's common stock at an initial conversion rate of 49.0557 shares of common stock per $1,000 in original principal amount, which is equal to an initial conversion price of $20.39 per share. In addition, Ciena may elect to convert the 2020 Notes in whole or in part at any time on or prior to December 15, 2020, if the daily volume weighted average price of the common stock equals or exceeds 130% of the conversion price then in effect for at least 20 trading days in any 30 consecutive trading day period. If Ciena elects to convert the 2020 Notes on or before maturity, the conversion rate will be adjusted to include an amount of additional shares, determined by reference to a make-whole table, payable in Ciena common stock, or its cash equivalent, at Ciena's election. An aggregate of 9,197,944 shares of Ciena common stock issuable upon conversion of the 2020 Notes has been reserved for issuance. | ||||||||||||||||
Upon certain fundamental changes, holders of the 2020 Notes have the option to require Ciena to purchase the 2020 Notes at a price equal to the accreted principal amount of the notes delivered for repurchase plus any accrued and unpaid interest on the original principal amount. Upon a holder's election to convert the 2020 Notes in connection with certain fundamental changes, the conversion rate will be adjusted to include an amount of additional shares, determined by reference to a make-whole table, payable in Ciena common stock, or its cash equivalent, at Ciena's election. | ||||||||||||||||
Accounting guidance issued by the FASB requires the issuer of convertible debt instruments with cash settlement features, including partial cash settlement, to account separately for the liability and equity components of the instrument. Under this guidance, the debt is recognized at the present value of its cash flows discounted using the issuer's nonconvertible debt borrowing rate at the time of issuance and the equity component is recognized as the difference between the proceeds from the issuance of the note and the fair value of the liability. The reduced carrying value on the convertible debt results in a debt discount that is accreted back to the convertible debt's principal amount through the recognition of non-cash interest expense over the expected life of the debt, which results in recognizing the interest expense on these borrowings at effective rates approximating what Ciena would have incurred had nonconvertible debt with otherwise similar terms been issued. | ||||||||||||||||
Because the additional make-whole shares can be settled in cash or common stock at Ciena's option, the debt and equity components were accounted for separately. Ciena measured the fair value of the debt component of the 2020 Notes using an effective interest rate of 7.0%. As a result, Ciena attributed $170.4 million of the fair value of the 2020 Notes to the debt component. The debt component was netted against the face value of the 2020 Notes to determine the debt discount. The debt discount will be accreted over the period from the date of issuance to the contractual maturity date, resulting in the recognition of non-cash interest expense. In addition, Ciena recorded $43.1 million within additional paid-in capital representing the equity component of the 2020 Notes. There was no net tax expense recorded due to Ciena’s full valuation allowance against its deferred tax assets. | ||||||||||||||||
The 2020 Notes were issued pursuant to an Indenture entered into as of December 27, 2012 (the “Indenture”) with The Bank of New York Mellon Trust Company, N.A., as trustee. The Indenture provides for customary events of default which include (subject in certain cases to customary grace and cure periods), among others, the following: nonpayment of principal (including accreted portion) or interest; breach of covenants or other agreements in the Indenture; defaults in failure to pay certain other indebtedness; and certain events of bankruptcy or insolvency. Generally, if an event of default occurs and is continuing under the Indenture, the trustee or the holders of at least 25% in aggregate original principal amount of the 2020 Notes then outstanding may declare the principal (including accreted portion), premium, if any, and accrued interest on all the 2020 Notes immediately due and payable. | ||||||||||||||||
The principal balance, unamortized discount and net carrying value of the liability and equity components of our 2020 notes were as follows as of October 31, 2013 | ||||||||||||||||
Liability Component | Equity Component | |||||||||||||||
Principal Balance | Unamortized Discount | Net Carrying Amount | Net Carrying Amount | |||||||||||||
4.0% Convertible Senior Notes due December 15, 2020 | $ | 190,456 | $ | 16,171 | $ | (174,285 | ) | $ | 43,131 | |||||||
The following table sets forth, in thousands, the carrying value and the estimated current fair value of Ciena’s outstanding convertible notes: | ||||||||||||||||
October 31, 2013 | ||||||||||||||||
Description | Carrying Value | Fair Value(2) | ||||||||||||||
4.0% Convertible Senior Notes, due March 15, 2015 (1) | 187,734 | 243,867 | ||||||||||||||
0.875% Convertible Senior Notes due June 15, 2017 | 500,000 | 519,375 | ||||||||||||||
3.75% Convertible Senior Notes, due October 15, 2018 | 350,000 | 497,656 | ||||||||||||||
4.0% Convertible Senior Notes, due December 15, 2020(3) | 174,285 | 271,500 | ||||||||||||||
$ | 1,212,019 | $ | 1,532,398 | |||||||||||||
_________________________________ | ||||||||||||||||
-1 | Includes unamortized bond premium related to embedded redemption feature. | |||||||||||||||
-2 | The convertible notes were categorized as Level 2 in the fair value hierarchy. Ciena estimates the fair value of its outstanding convertible notes using a market approach based on observable inputs, such as current market transactions involving comparable securities. | |||||||||||||||
-3 | Includes unamortized discount and accretion of principal. |
Credit_Facility
Credit Facility | 12 Months Ended |
Oct. 31, 2013 | |
Line of Credit Facility [Abstract] | ' |
CREDIT FACILITY | ' |
CREDIT FACILITY | |
During fiscal 2012, Ciena and certain of its subsidiaries, including Ciena Communications, Inc. and Ciena Canada, Inc. (with Ciena, collectively, the “Borrowers”), entered into asset-based lending (ABL) facility and executed an ABL Credit Agreement (the “Credit Agreement”) with the lenders party thereto, including Deutsche Bank AG New York Branch, as administrative agent and collateral agent (the “Agent”), Bank of America, N.A., as Syndication Agent, and Morgan Stanley Senior Funding, Inc. and Wells Fargo Bank, National Association, as Co-Documentation Agents. The Credit Agreement provides for a senior secured asset-based revolving credit facility of up to $150 million (the “Credit Facility”). Ciena has the option to increase the total commitment under the Credit Facility to $200 million, subject to certain conditions, including obtaining commitments from one or more lenders. The Credit Agreement provides that the entire amount of the Credit Facility is available for issuances of letters of credit, and allows for both swingline loans, and Canadian dollar denominated loans to Ciena's Canadian subsidiary (the “Canadian Borrower”) in an amount not to exceed $20 million. The Credit Facility matures on August 13, 2015, provided that it will mature early on December 15, 2014, if any of Ciena's 4.0% senior convertible notes due March 15, 2015 are then outstanding. Ciena principally expects to use the Credit Facility to support the issuance of letters of credit that arise in the ordinary course of its business and thereby to reduce its use of cash required to collateralize these instruments. As of October 31, 2013, letters of credit totaling $43.6 million were collateralized by the Credit Facility. There were no borrowings outstanding under the Credit Facility as of October 31, 2013. | |
Availability under the Credit Facility is based upon monthly (or weekly, in certain cases) borrowing base certifications valuing the Borrowers' eligible inventory and eligible accounts receivable, as reduced by certain reserves in effect from time to time. Outstanding borrowings under the Credit Facility accrue interest at floating rates plus an applicable margin ranging from 2.00% to 2.50% for LIBOR rate loans, and 1.00% to 1.50% for base rate loans. The commitment fee payable on the unused portion of the Credit Facility equals 0.50% or 0.375% based on utilization of the Credit Facility and Borrowers will pay customary letter of credit fees. | |
Ciena and Ciena Communications, Inc. also entered into a U.S. Guaranty in favor of the Agent, providing an unconditional guaranty of all amounts owing under the Credit Facility. Ciena Canada entered into a similar guaranty in favor of the Agent with respect to the Canadian Borrower's obligations. These agreements may require additional subsidiary guarantors in the future. In addition, Ciena, the other domestic Borrowers and the Agent entered into a Security Agreement and a Pledge Agreement in connection with the Credit Facility. Pursuant to the Security Agreement and Pledge Agreement, the obligations of Ciena and the other domestic Borrowers and the guarantees by the domestic guarantors are secured by first priority security interests (subject only to customary permitted liens and certain other permitted liens) in substantially all current assets of Ciena, the other domestic Borrowers and the domestic guarantors, such property consisting of accounts receivable, inventory, cash, deposit and securities accounts, chattel paper, promissory notes and payment intangibles and, to the extent evidencing or otherwise related to such property, all general intangibles, licenses, letter of credit rights, commercial tort claims, instruments, supporting obligations and documents. Pursuant to a Canadian Security Agreement entered into by and between Ciena Canada and the Agent, similar assets of the Canadian Borrower secure the obligations of the Canadian Borrower. | |
The Credit Agreement contains customary covenants that limit, absent lender approval, the ability of Ciena and certain of its affiliates to, among other things, pay cash dividends, incur debt, create liens and encumbrances, redeem or repurchase stock, enter into certain acquisition transactions or transactions with affiliates, merge, dissolve, repay certain indebtedness, change the nature of Ciena's business, make investments or dispose of assets. In some cases, these restrictions are subject to certain negotiated exceptions or permit Ciena to undertake otherwise restricted activities if it satisfies certain required conditions. In addition, Ciena will be required to maintain a minimum fixed charge coverage ratio of not less than 1.0 to 1.0 as of the end of any period of four fiscal quarters when excess availability under the Credit Facility is less than the greater of (i) 12.5% of availability or (ii) $15,000,000. Ciena is also required to maintain at all times at least $200 million in the aggregate of unrestricted cash and cash equivalents. | |
If (x) excess availability under the Credit Facility is less than the greater of (i) 12.5% of availability or (ii) $15,000,000 or (y) there exists an event of default, amounts in any of the Borrowers' or subsidiary guarantors' designated core deposit accounts will be transferred daily into a blocked account held by the Agent and applied to reduce outstanding amounts under the Credit Facility. | |
The Credit Agreement contains customary events of default including, among other things, failure to pay obligations when due, initiation of bankruptcy or insolvency proceedings, defaults on certain other indebtedness, change of control, incurrence of certain material judgments that are not stayed, satisfied, bonded or discharged within 30 days, certain ERISA events, invalidity of the credit documents, and violation of affirmative and negative covenants or breach of representations and warranties set forth in the Credit Agreement. Upon an event of default, the lenders may, subject to various customary cure rights, require the immediate payment of all amounts outstanding and foreclose on collateral. | |
During fiscal 2013, Ciena's subsidiary, Ciena Government Solutions, Inc. executed a joinder agreement becoming a party to the Credit Agreement and the related agreements described above. |
Earnings_Loss_Per_Share_Calcul
Earnings (Loss) Per Share Calculation | 12 Months Ended | |||||||||||
Oct. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
EARNINGS (LOSS) PER SHARE CALCULATION | ' | |||||||||||
EARNINGS (LOSS) PER SHARE CALCULATION | ||||||||||||
The following table (in thousands except per share amounts) is a reconciliation of the numerator and denominator of the basic net income (loss) per common share (“Basic EPS”) and the diluted net income (loss) per potential common share (“Diluted EPS”). Since the numerator reflects net losses for the fiscal years indicated, both Basic EPS and Diluted EPS are computed using the weighted average number of common shares outstanding. If the numerator reflected net income, Diluted EPS would also include, to the extent the effect is not anti-dilutive, the following: (i) shares issuable upon vesting of restricted stock units, (ii) shares issuable under Ciena's employee stock purchase plan and upon exercise of outstanding stock options, using the treasury stock method; and (iii) shares underlying Ciena's outstanding convertible notes. | ||||||||||||
Numerator | ||||||||||||
Year Ended October 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Net loss | $ | (195,521 | ) | $ | (144,021 | ) | $ | (85,431 | ) | |||
Denominator | ||||||||||||
Year Ended October 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Basic weighted average shares outstanding | 95,854 | 99,341 | 102,350 | |||||||||
Dilutive weighted average shares outstanding | 95,854 | 99,341 | 102,350 | |||||||||
EPS | ||||||||||||
Year Ended October 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Basic EPS | $ | (2.04 | ) | $ | (1.45 | ) | $ | (0.83 | ) | |||
Diluted EPS | $ | (2.04 | ) | $ | (1.45 | ) | $ | (0.83 | ) | |||
The following table summarizes the weighted average shares excluded from the calculation of the denominator for Diluted EPS due to their anti-dilutive effect for the fiscal years indicated (in thousands): | ||||||||||||
Year Ended October 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Shares underlying stock options and restricted stock units | 6,142 | 5,726 | 3,890 | |||||||||
0.25% Convertible Senior Notes due May 1, 2013 | 5,470 | 5,470 | 2,682 | |||||||||
4.0% Convertible Senior Notes due March 15, 2015 | 18,395 | 18,395 | 10,541 | |||||||||
0.875% Convertible Senior Notes due June 15, 2017 | 13,108 | 13,108 | 13,108 | |||||||||
3.75% Convertible Senior Notes due October 15, 2018 | 17,355 | 17,355 | 17,355 | |||||||||
4.0% Convertible Senior Notes due December 15, 2020 | — | — | 7,855 | |||||||||
Total excluded due to anti-dilutive effect | 60,470 | — | 60,054 | 55,431 | ||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Oct. 31, 2013 | |
Stockholders' Equity Attributable to Parent [Abstract] | ' |
STOCKHOLDERS' EQUITY | ' |
STOCKHOLDERS’ EQUITY | |
Call Spread Options | |
Ciena purchased a call spread option relating to the 0.875% convertible senior notes due June 15, 2017 for $42.5 million during the third quarter of fiscal 2007. The call spread option is designed to mitigate exposure to potential dilution from the conversion of the notes. The call spread option was purchased at the time of the notes offering from an affiliate of the underwriter. The cost of the call spread option was recorded as a reduction in paid-in capital. | |
The call spread option is exercisable, upon maturity of the relevant issue of convertible note, for such number of shares of Ciena common stock issuable upon conversion of that series of notes in full. The call spread option has a “lower strike price” equal to the conversion price for the notes and a “higher strike price” that serves to cap the amount of dilution protection provided. At its election, Ciena can exercise the call spread option on a net cash basis or a net share basis. The value of the consideration of a net share settlement will be equal to the value upon a net cash settlement and can range from $0, if the market price per share of Ciena common stock upon exercise is equal to or below the lower strike price, or approximately $76.1 million, if the market price per share of Ciena common stock upon exercise is at or above the higher strike price. If the market price on the date of exercise is between the lower strike price and the higher strike price, in lieu of a net settlement, Ciena may elect to receive the full number of shares underlying the call spread option by paying the aggregate option exercise price, which is equal to the original principal outstanding on that series of notes. Should there be an early unwind of the call spread option, the amount of cash or shares to be received by Ciena will depend upon the existing overall market conditions, and on Ciena’s stock price, the volatility of Ciena’s stock and the remaining term of the call spread option. The number of shares subject to the call spread option, and the lower and higher strike prices, are subject to customary adjustments. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
INCOME TAXES | ' | ||||||||||||||||
INCOME TAXES | |||||||||||||||||
For the periods indicated, the provision for income taxes consists of the following (in thousands): | |||||||||||||||||
October 31, | |||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||
Provision for income taxes: | |||||||||||||||||
Current: | |||||||||||||||||
Federal | $ | (194 | ) | $ | — | $ | — | ||||||||||
State | (518 | ) | 857 | 906 | |||||||||||||
Foreign | 8,202 | 8,465 | 4,334 | ||||||||||||||
Total current | 7,490 | 9,322 | 5,240 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | 160 | — | — | ||||||||||||||
State | 23 | — | — | ||||||||||||||
Foreign | — | — | — | ||||||||||||||
Total deferred | 183 | — | — | ||||||||||||||
Provision for income taxes | $ | 7,673 | $ | 9,322 | $ | 5,240 | |||||||||||
For the periods indicated, income (loss) before provision for income taxes consists of the following (in thousands): | |||||||||||||||||
October 31, | |||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||
United States | $ | (240,244 | ) | $ | (151,958 | ) | $ | (59,594 | ) | ||||||||
Foreign | 52,396 | 17,259 | (20,597 | ) | |||||||||||||
Total | $ | (187,848 | ) | $ | (134,699 | ) | $ | (80,191 | ) | ||||||||
For the periods indicated, the tax provision reconciles to the amount computed by multiplying income or loss before income taxes by the U.S. federal statutory rate of 35% as follows: | |||||||||||||||||
October 31, | |||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||
Provision at statutory rate | 35 | % | 35 | % | 35 | % | |||||||||||
State taxes | 0.27 | % | (0.64 | )% | (1.13 | )% | |||||||||||
Foreign taxes | 2.32 | % | (5.09 | )% | (12.70 | )% | |||||||||||
Research and development credit | 11.03 | % | 10.21 | % | 17.39 | % | |||||||||||
Non-deductible loss on debt extinguishment | — | % | — | % | (11.21 | )% | |||||||||||
Non-deductible compensation and other | (3.96 | )% | (4.92 | )% | (8.78 | )% | |||||||||||
Valuation allowance | (48.74 | )% | (41.48 | )% | (25.10 | )% | |||||||||||
Effective income tax rate | (4.08 | )% | (6.92 | )% | (6.53 | )% | |||||||||||
The significant components of deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||||||
October 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Reserves and accrued liabilities | $ | 44,128 | $ | 44,515 | |||||||||||||
Depreciation and amortization | 276,710 | 274,468 | |||||||||||||||
NOL and credit carry forward | 1,142,647 | 1,159,494 | |||||||||||||||
Other | 25,509 | 8,822 | |||||||||||||||
Gross deferred tax assets | 1,488,994 | 1,487,299 | |||||||||||||||
Valuation allowance | (1,488,994 | ) | (1,487,299 | ) | |||||||||||||
Net deferred tax asset | $ | — | $ | — | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): | |||||||||||||||||
Unrecognized tax benefits at October 31, 2010 | $ | 7,442 | |||||||||||||||
Decrease related to positions taken in prior period | (450 | ) | |||||||||||||||
Increase related to positions taken in current period | 1,847 | ||||||||||||||||
Reductions related to expiration of statute of limitations | (249 | ) | |||||||||||||||
Unrecognized tax benefits at October 31, 2011 | 8,590 | ||||||||||||||||
Decrease related to positions taken in prior period | (12 | ) | |||||||||||||||
Increase related to positions taken in current period | 2,866 | ||||||||||||||||
Reductions related to expiration of statute of limitations | (392 | ) | |||||||||||||||
Unrecognized tax benefits at October 31, 2012 | 11,052 | ||||||||||||||||
Decrease related to positions taken in prior period | (3,925 | ) | |||||||||||||||
Increase related to positions taken in current period | 2,146 | ||||||||||||||||
Reductions related to expiration of statute of limitations | (994 | ) | |||||||||||||||
Unrecognized tax benefits at October 31, 2013 | $ | 8,279 | |||||||||||||||
For both October 31, 2012 and 2013, Ciena had accrued $1.4 million of interest and some minor penalties related to unrecognized tax benefits within other long-term liabilities in the Consolidated Balance Sheets. A benefit of $0.3 million, a charge of $0.3 million, and no charges or benefits were recorded to the provision for income taxes during fiscal 2011, fiscal 2012 and fiscal 2013 respectively. If recognized, the entire balance of unrecognized tax benefits would impact the effective tax rate. Over the next 12 months, Ciena does not estimate any material changes in unrecognized income tax benefits. | |||||||||||||||||
During fiscal 2002, Ciena established a valuation allowance against its deferred tax assets. Ciena intends to maintain a valuation allowance until sufficient positive evidence exists to support a reversal. Any future release of the valuation allowance may be recorded as a tax benefit increasing net income or as an adjustment to paid-in capital, based on tax ordering requirements. The following table summarizes the activity in Ciena’s valuation allowance against its gross deferred tax assets (in thousands): | |||||||||||||||||
Year ended | Balance at beginning | Balance at end | |||||||||||||||
October 31, | of period | Additions | Deductions | of period | |||||||||||||
2011 | $ | 1,363,493 | $ | 103,918 | $ | — | $ | 1,467,411 | |||||||||
2012 | $ | 1,467,411 | $ | 21,583 | $ | — | $ | 1,488,994 | |||||||||
2013 | $ | 1,488,994 | $ | — | $ | 1,695 | $ | 1,487,299 | |||||||||
As of October 31, 2013, Ciena had a $2.8 billion net operating loss carry forward and a $0.1 billion income tax credit carry forward which begin to expire in fiscal year 2018 and 2013, respectively. Ciena’s ability to use net operating losses and credit carry forwards is subject to limitations pursuant to the ownership change rules of the Internal Revenue Code Section 382. | |||||||||||||||||
The income tax provision does not reflect the tax savings resulting from deductions associated with Ciena’s equity compensation and the call spread option associated with Ciena’s convertible debt. The cumulative tax benefit through October 31, 2013 of approximately $79.0 million will be credited to additional paid-in capital when realized. For deductions associated with Ciena’s equity compensation, credits to paid-in capital will be recorded when those tax benefits are used to reduce taxes payable. |
ShareBased_Compensation_Expens
Share-Based Compensation Expense | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION EXPENSE | ' | |||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION EXPENSE | ||||||||||||||||||||||||||||||||||||
Ciena grants equity awards under its 2008 Omnibus Incentive Plan and the Amended and Restated Employee Stock Purchase Plan (“ESPP”). | ||||||||||||||||||||||||||||||||||||
2008 Plan | ||||||||||||||||||||||||||||||||||||
The 2008 Omnibus Incentive Plan (the “2008 Plan”) authorizes the issuance of awards including stock options, restricted stock units (RSUs), restricted stock, unrestricted stock, stock appreciation rights ("SARs") and other equity and/or cash performance incentive awards to employees, directors, and consultants of Ciena. Subject to certain restrictions, the Compensation Committee of the Board of Directors has broad discretion to establish the terms and conditions for awards under the 2008 Plan, including the number of shares, vesting conditions and the required service or performance criteria. Options and SARs have a maximum term of ten years, and their exercise price may not be less than 100% of fair market value on the date of grant. Repricing of stock options and SARs is prohibited without stockholder approval. Certain change in control transactions may cause awards granted under the 2008 Plan to vest, unless the awards are continued or substituted for in connection with the transaction. | ||||||||||||||||||||||||||||||||||||
The 2008 Plan reserves 18.5 million shares of common stock for issuance, subject to increase from time to time by the number of shares: (i) subject to outstanding awards granted under Ciena’s prior equity compensation plans that terminate without delivery of any stock (to the extent such shares would have been available for issuance under such prior plan), and (ii) subject to awards assumed or substituted in connection with the acquisition of another company. The 2008 Plan includes a fungible share feature that counts each share of common stock underlying full value awards, such as restricted stock units, as 1.31 shares for purposes of calculating the shares remaining available under the 2008 Plan. As of October 31, 2013, approximately 4.9 million shares remained available for issuance under the 2008 Plan. | ||||||||||||||||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||||||||||||||||
Outstanding stock option awards to employees are generally subject to service-based vesting restrictions and vest incrementally over a four-year period. The following table is a summary of Ciena's stock option activity for the periods indicated (shares in thousands): | ||||||||||||||||||||||||||||||||||||
Shares Underlying | Weighted | |||||||||||||||||||||||||||||||||||
Options | Average | |||||||||||||||||||||||||||||||||||
Outstanding | Exercise Price | |||||||||||||||||||||||||||||||||||
Balance as of October 31, 2010 | 5,002 | $ | 40.96 | |||||||||||||||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||||||||||||||
Exercised | (411 | ) | 14.88 | |||||||||||||||||||||||||||||||||
Canceled | (901 | ) | 97.64 | |||||||||||||||||||||||||||||||||
Balance as of October 31, 2011 | 3,690 | 30.01 | ||||||||||||||||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||||||||||||||
Exercised | (56 | ) | 6.72 | |||||||||||||||||||||||||||||||||
Canceled | (427 | ) | 51.28 | |||||||||||||||||||||||||||||||||
Balance as of October 31, 2012 | 3,207 | 27.58 | ||||||||||||||||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||||||||||||||
Exercised | (246 | ) | 13.81 | |||||||||||||||||||||||||||||||||
Canceled | (859 | ) | 31.83 | |||||||||||||||||||||||||||||||||
Balance as of October 31, 2013 | 2,102 | $ | 27.46 | |||||||||||||||||||||||||||||||||
The total intrinsic value of options exercised during fiscal 2011, fiscal 2012 and fiscal 2013 was $3.4 million, $0.5 million and $2.0 million, respectively. There were no stock options granted by Ciena during fiscal 2011, fiscal 2012 or fiscal 2013. | ||||||||||||||||||||||||||||||||||||
The following table summarizes information with respect to stock options outstanding at October 31, 2013, based on Ciena’s closing stock price on the last trading day of Ciena’s fiscal 2013 (shares and intrinsic value in thousands): | ||||||||||||||||||||||||||||||||||||
Options Outstanding at | Vested Options at | |||||||||||||||||||||||||||||||||||
October 31, 2013 | October 31, 2013 | |||||||||||||||||||||||||||||||||||
Number | Weighted | Weighted | Number | Weighted | Weighted | |||||||||||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||||||||||||||
Remaining | Remaining | |||||||||||||||||||||||||||||||||||
Range of | of | Contractual | Average | Aggregate | of | Contractual | Average | Aggregate | ||||||||||||||||||||||||||||
Exercise | Underlying | Life | Exercise | Intrinsic | Underlying | Life | Exercise | Intrinsic | ||||||||||||||||||||||||||||
Price | Shares | (Years) | Price | Value | Shares | (Years) | Price | Value | ||||||||||||||||||||||||||||
$ | 0.94 | — | $ | 16.31 | 197 | 4.11 | $ | 8.62 | $ | 2,893 | 196 | 4.09 | $ | 8.6 | $ | 2,879 | ||||||||||||||||||||
$ | 16.52 | — | $ | 17.29 | 300 | 1.68 | 16.64 | 1,981 | 300 | 1.68 | 16.64 | 1,981 | ||||||||||||||||||||||||
$ | 17.43 | — | $ | 24.5 | 403 | 1.46 | 20.6 | 1,085 | 403 | 1.46 | 20.6 | 1,085 | ||||||||||||||||||||||||
$ | 24.69 | — | $ | 28.28 | 347 | 3.01 | 27.02 | — | 347 | 3.01 | 27.02 | — | ||||||||||||||||||||||||
$ | 28.61 | — | $ | 31.43 | 157 | 2.7 | 29.53 | — | 157 | 2.7 | 29.53 | — | ||||||||||||||||||||||||
$ | 31.71 | — | $ | 32.55 | 21 | 4.13 | 31.92 | — | 21 | 4.13 | 31.92 | — | ||||||||||||||||||||||||
$ | 33 | — | $ | 37.1 | 288 | 3.55 | 35.17 | — | 288 | 3.55 | 35.17 | — | ||||||||||||||||||||||||
$ | 37.31 | — | $ | 47.32 | 378 | 1.21 | 45.99 | — | 378 | 1.21 | 45.99 | — | ||||||||||||||||||||||||
$ | 47.53 | — | $ | 55.79 | 11 | 0.1 | 49.64 | — | 11 | 0.1 | 49.64 | — | ||||||||||||||||||||||||
$ | 0.94 | — | $ | 55.79 | 2,102 | 2.35 | $ | 27.46 | $ | 5,959 | 2,101 | 2.35 | $ | 27.47 | $ | 5,945 | ||||||||||||||||||||
Assumptions for Option-Based Awards | ||||||||||||||||||||||||||||||||||||
Ciena recognizes the fair value of service-based options as share-based compensation expense on a straight-line basis over the requisite service period. Ciena did not grant any option-based awards during fiscal 2011, fiscal 2012, or fiscal 2013. | ||||||||||||||||||||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||||||||||||||||||
A restricted stock unit is a stock award that entitles the holder to receive shares of Ciena common stock as the unit vests. Ciena's outstanding restricted stock unit awards are subject to service-based vesting conditions and/or performance-based vesting conditions. Awards subject to service-based conditions typically vest in increments over a three or four-year period. Awards with performance-based vesting conditions require the achievement of certain operational, financial or other performance criteria or targets as a condition of vesting, or the acceleration of vesting, of such awards. Ciena recognizes the estimated fair value of performance-based awards, net of estimated forfeitures, as share-based compensation expense over the performance period, using graded vesting, which considers each performance period or tranche separately, based upon Ciena's determination of whether it is probable that the performance targets will be achieved. At each reporting period, Ciena reassesses the probability of achieving the performance targets and the performance period required to meet those targets. | ||||||||||||||||||||||||||||||||||||
The following table is a summary of Ciena's restricted stock unit activity for the period indicated, with the aggregate fair value of the balance outstanding at the end of each period, based on Ciena's closing stock price on the last trading day of the relevant period (shares and aggregate fair value in thousands): | ||||||||||||||||||||||||||||||||||||
Restricted | Weighted | Aggregate Fair | ||||||||||||||||||||||||||||||||||
Stock Units | Average | Value | ||||||||||||||||||||||||||||||||||
Outstanding | Grant Date | |||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||||
Per Share | ||||||||||||||||||||||||||||||||||||
Balance as of October 31, 2010 | 5,191 | $ | 13.81 | $ | 71,681 | |||||||||||||||||||||||||||||||
Granted | 2,064 | |||||||||||||||||||||||||||||||||||
Vested | (2,466 | ) | ||||||||||||||||||||||||||||||||||
Canceled or forfeited | (491 | ) | ||||||||||||||||||||||||||||||||||
Balance as of October 31, 2011 | 4,298 | 16.28 | 59,399 | |||||||||||||||||||||||||||||||||
Granted | 2,433 | |||||||||||||||||||||||||||||||||||
Vested | (1,912 | ) | ||||||||||||||||||||||||||||||||||
Canceled or forfeited | (416 | ) | ||||||||||||||||||||||||||||||||||
Balance as of October 31, 2012 | 4,403 | 14.16 | 56,267 | |||||||||||||||||||||||||||||||||
Granted | 2,508 | |||||||||||||||||||||||||||||||||||
Vested | (1,920 | ) | ||||||||||||||||||||||||||||||||||
Canceled or forfeited | (572 | ) | ||||||||||||||||||||||||||||||||||
Balance as of October 31, 2013 | 4,419 | $ | 15.33 | $ | 102,745 | |||||||||||||||||||||||||||||||
The total fair value of restricted stock units that vested and were converted into common stock during fiscal 2011, fiscal 2012 and fiscal 2013 was $45.3 million, $27.0 million and $37.3 million, respectively. The weighted average fair value of each restricted stock unit granted by Ciena during fiscal 2011, fiscal 2012 and fiscal 2013 was $19.73, $11.28 and $16.30, respectively. | ||||||||||||||||||||||||||||||||||||
Assumptions for Restricted Stock Unit Awards | ||||||||||||||||||||||||||||||||||||
The fair value of each restricted stock unit award is based on the closing price on the date of grant. Share-based expense for service-based restricted stock unit awards is recognized, net of estimated forfeitures, ratably over the vesting period on a straight-line basis. | ||||||||||||||||||||||||||||||||||||
Share-based expense for performance-based restricted stock unit awards, net of estimated forfeitures, is recognized ratably over the performance period based upon Ciena's determination of whether it is probable that the performance targets will be achieved. At each reporting period, Ciena reassesses the probability of achieving the performance targets and the performance period required to meet those targets. The estimation of whether the performance targets will be achieved involves judgment, and the estimate of expense is revised periodically based on the probability of achieving the performance targets. Revisions are reflected in the period in which the estimate is changed. If any performance goals are not met, no compensation cost is ultimately recognized against that goal and, to the extent previously recognized, compensation cost is reversed. | ||||||||||||||||||||||||||||||||||||
Because share-based compensation expense is recognized only for those awards that are ultimately expected to vest, the amount of share-based compensation expense recognized reflects a reduction for estimated forfeitures. Ciena estimates forfeitures at the time of grant and revises those estimates in subsequent periods based upon new or changed information. | ||||||||||||||||||||||||||||||||||||
Amended and Restated Employee Stock Purchase Plan (ESPP) | ||||||||||||||||||||||||||||||||||||
Under the ESPP, eligible employees may enroll in a twelve-month offer period that begins in December and June of each year. Each offer period includes two six-month purchase periods. Employees may purchase a limited number of shares of the Company's common stock at 85% of the fair market value on either the day immediately preceding the offer date or the purchase date, whichever is lower. The ESPP is considered compensatory for purposes of share-based compensation expense. Pursuant to the ESPP's “evergreen” provision, on December 31 of each year, the number of shares available under the ESPP increases by up to 0.6 million shares, provided that the total number of shares available at that time shall not exceed 8.2 million. Unless earlier terminated, the ESPP will terminate on January 24, 2023. | ||||||||||||||||||||||||||||||||||||
During fiscal 2011, fiscal 2012 and fiscal 2013, Ciena issued 0.5 million, 1.2 million and 0.9 million shares under the ESPP, respectively. At October 31, 2013, 7.2 million shares remained available for issuance under the ESPP. | ||||||||||||||||||||||||||||||||||||
Share-Based Compensation Expense for Periods Reported | ||||||||||||||||||||||||||||||||||||
The following table summarizes share-based compensation expense for the periods indicated (in thousands): | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||||||||||||||||||||||
Product costs | $ | 2,269 | $ | 2,156 | $ | 2,522 | ||||||||||||||||||||||||||||||
Service costs | 1,881 | 1,462 | 1,771 | |||||||||||||||||||||||||||||||||
Share-based compensation expense included in cost of goods sold | 4,150 | 3,618 | 4,293 | |||||||||||||||||||||||||||||||||
Research and development | 10,149 | 8,567 | 8,214 | |||||||||||||||||||||||||||||||||
Sales and marketing | 12,182 | 11,558 | 13,290 | |||||||||||||||||||||||||||||||||
General and administrative | 11,140 | 8,691 | 12,055 | |||||||||||||||||||||||||||||||||
Acquisition and integration costs | 308 | 7 | — | |||||||||||||||||||||||||||||||||
Share-based compensation expense included in operating expense | 33,779 | 28,823 | 33,559 | |||||||||||||||||||||||||||||||||
Share-based compensation expense capitalized in inventory, net | 1 | (47 | ) | (132 | ) | |||||||||||||||||||||||||||||||
Total share-based compensation | $ | 37,930 | $ | 32,394 | $ | 37,720 | ||||||||||||||||||||||||||||||
As of October 31, 2013, total unrecognized compensation expense was $55.9 million, which relates to unvested stock units and is expected to be recognized over a weighted-average period of 1.4 years. |
Segment_and_Entity_Wide_Disclo
Segment and Entity Wide Disclosures | 12 Months Ended | |||||||||||
Oct. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
SEGMENT AND ENTITY WIDE DISCLOSURES | ' | |||||||||||
SEGMENT AND ENTITY WIDE DISCLOSURES | ||||||||||||
Segment Reporting | ||||||||||||
During the first quarter of fiscal 2013, Ciena reorganized its internal organizational structure and the management of its business into the following new operating segments: (i) Converged Packet Optical; (ii) Packet Networking; (iii) Optical Transport; and (iv) Software and Services. Ciena's chief operating decision maker, its chief executive officer, evaluates the company's performance and allocates resources based on multiple factors, including measures of segment profit (loss). Operating segments are defined as components of an enterprise that engage in business activities that may earn revenue and incur expense; for which discrete financial information is available, and for which such information is evaluated regularly by the chief operating decision maker for purposes of allocating resources and assessing performance. Ciena's segment revenue and segment profit (loss) for fiscal 2011 and fiscal 2012 have been restated to reflect the new operating segments adopted in fiscal 2013. The following describes each of the newly reorganized operating segments: | ||||||||||||
• | Converged Packet Optical — includes networking solutions optimized for the convergence of coherent optical transport, OTN switching and packet switching. These platforms enable automated packet-optical infrastructures that create and efficiently allocate high-capacity bandwidth for the delivery of a wide variety of enterprise and consumer-oriented network services. Products in this segment include the 6500 Packet-Optical Platform featuring Ciena's WaveLogic coherent optical processors. Products also include Ciena's family of CoreDirector® Multiservice Optical Switches, its 5430 Reconfigurable Switching System and its OTN configuration for the 5410 Reconfigurable Switching System. These products include multiservice, multi-protocol switching systems that consolidate the functionality of an add/drop multiplexer, digital cross-connect and packet switch into a single, high-capacity intelligent switching system. These products address both the core and metro segments of communications networks and support key managed services, Ethernet/TDM Private Line, Triple Play and IP services. This segment also includes sales of operating system software and enhanced software features embedded in each of these products. Revenue from this segment is included in product revenue on the Consolidated Statement of Operations. | |||||||||||
• | Packet Networking — principally includes Ciena's 3000 family of service delivery switches and service aggregation switches, the 5000 series of service aggregation switches, and its Ethernet packet configuration for the 5410 Service Aggregation Switch. These products support the access and aggregation tiers of communications networks and have principally been deployed to support wireless backhaul infrastructures and business data services. Employing sophisticated, carrier-grade Ethernet switching technology, these products deliver quality of service capabilities, virtual local area networking and switching functions, and carrier-grade operations, administration, and maintenance features. This segment includes stand-alone broadband products that transition voice networks to support Internet-based (IP) telephony, video services and DSL. This segment also includes sales of operating system software and enhanced software features embedded in each of these products. Revenue from this segment is included in product revenue on the Consolidated Statement of Operations. | |||||||||||
• | Optical Transport — includes optical transport solutions that add capacity to core, regional and metro networks and enable cost-effective and efficient transport of voice, video and data traffic at high transmission speeds. Ciena's principal products in this segment include the 4200 Advanced Services Platform, Corestream® Agility Optical Transport System, 5100/5200 Advanced Services Platform, Common Photonic Layer (CPL), and 6100 Multiservice Optical Platform. This segment includes sales from SONET/SDH, transport and data networking products, as well as certain enterprise-oriented transport solutions that support storage and LAN extension, interconnection of data centers, and virtual private networks. This segment also includes operating system software and enhanced software features embedded in each of these products. Revenue from this segment is included in product revenue on the Consolidated Statement of Operations. | |||||||||||
• | Software and Services — includes Ciena's network software suite, including the OneControl Unified Management System, an integrated network and service management software designed to automate and simplify network management, operation and service delivery. These software solutions can track individual services across multiple product suites, facilitating planned network maintenance, outage detection and identification of customers or services affected by network performance. This segment includes the ON-Center® Network & Service Management Suite, Ethernet Services Manager, Optical Suite Release and network level applications. This segment includes a broad range of consulting, network design and support services from Ciena's Network Transformation Solutions offering. This segment also includes installation and deployment, maintenance support and training activities. Except for revenue from the software portion of this segment, which is included in product revenue, revenue from this segment is included in services revenue on the Consolidated Statement of Operations. | |||||||||||
Reportable segment asset information is not disclosed because it is not reviewed by the chief operating decision maker for purposes of evaluating performance and allocating resources. | ||||||||||||
The table below (in thousands, except percentage data) sets forth Ciena’s segment revenue for the respective periods: | ||||||||||||
Fiscal Year | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Revenues: | ||||||||||||
Converged Packet Optical | $ | 734,326 | $ | 951,245 | $ | 1,187,231 | ||||||
Packet Networking | 126,981 | 128,982 | 222,898 | |||||||||
Optical Transport | 535,877 | 353,620 | 233,821 | |||||||||
Software and Services | 344,786 | 400,076 | 438,596 | |||||||||
Consolidated revenue | $ | 1,741,970 | $ | 1,833,923 | $ | 2,082,546 | ||||||
Segment Profit | ||||||||||||
Segment profit is determined based on internal performance measures used by the chief executive officer to assess the performance of each operating segment in a given period. In connection with that assessment, the chief executive officer excludes the following items: selling and marketing costs; general and administrative costs; acquisition and integration costs; amortization of intangible assets; restructuring costs; change in fair value of contingent consideration; interest and other income (loss), net; interest expense; equity investment gains or losses, loss on extinguishment of debt and provisions for income taxes. | ||||||||||||
The table below (in thousands) sets forth Ciena’s segment profit and the reconciliation to consolidated net loss during the respective periods: | ||||||||||||
Fiscal Year | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Segment profit: | ||||||||||||
Converged Packet Optical | $ | 51,514 | $ | 148,244 | $ | 242,335 | ||||||
Packet Networking | 17,714 | 1,713 | 22,740 | |||||||||
Optical Transport | 189,497 | 116,736 | 89,754 | |||||||||
Software and Services | 70,559 | 93,352 | 126,938 | |||||||||
Total segment profit | 329,284 | 360,045 | 481,767 | |||||||||
Less: non-performance operating expenses | ||||||||||||
Selling and marketing | 251,990 | 266,338 | 304,170 | |||||||||
General and administrative | 126,242 | 114,002 | 122,432 | |||||||||
Acquisition and integration costs | 42,088 | — | — | |||||||||
Amortization of intangible assets | 69,665 | 51,697 | 49,771 | |||||||||
Restructuring costs | 5,781 | 7,854 | 7,169 | |||||||||
Change in fair value of contingent consideration | (3,289 | ) | — | — | ||||||||
Add: other non-performance financial items | ||||||||||||
Interest expense and other income (loss), net | (31,904 | ) | (54,853 | ) | (49,786 | ) | ||||||
Gain on cost method investments | 7,249 | — | — | |||||||||
Loss on extinguishment of debt | — | — | (28,630 | ) | ||||||||
Less: Provision for income taxes | 7,673 | 9,322 | 5,240 | |||||||||
Consolidated net loss | $ | (195,521 | ) | $ | (144,021 | ) | $ | (85,431 | ) | |||
Entity Wide Reporting | ||||||||||||
The following table reflects Ciena’s geographic distribution of revenue based on the location of the purchaser, with any country accounting for at least 10% of total revenue in the period specifically identified. Revenue attributable to geographic regions outside of the United States is reflected as International revenue. For the periods below, Ciena’s geographic distribution of revenue was as follows (in thousands, except percentage data): | ||||||||||||
Fiscal Year | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
United States | $ | 930,880 | $ | 972,576 | $ | 1,217,462 | ||||||
International | 811,090 | 861,347 | 865,084 | |||||||||
Total | $ | 1,741,970 | $ | 1,833,923 | $ | 2,082,546 | ||||||
The following table reflects Ciena's geographic distribution of equipment, furniture and fixtures, net, with any country | ||||||||||||
accounting for at least 10% of total equipment, furniture and fixtures, net, in the period specifically identified. Equipment, furniture and fixtures, net, attributable to geographic regions outside of the United States and Canada are reflected as “Other International.” For the periods below, Ciena's geographic distribution of equipment, furniture and fixtures,net, was as follows (in thousands, except percentage data): | ||||||||||||
October 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
United States | $ | 60,848 | $ | 64,653 | $ | 64,132 | ||||||
Canada | 47,424 | 48,376 | 43,772 | |||||||||
Other International | 14,286 | 10,551 | 11,825 | |||||||||
Total | $ | 122,558 | $ | 123,580 | $ | 119,729 | ||||||
For the periods below, customers accounting for at least 10% of Ciena’s revenue were as follows (in thousands, except percentage data): | ||||||||||||
Fiscal Year | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
AT&T | $ | 269,858 | $ | 248,123 | $ | 373,617 | ||||||
Other_Employee_Benefit_Plans
Other Employee Benefit Plans | 12 Months Ended |
Oct. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
OTHER EMPLOYEE BENEFIT PLANS | ' |
OTHER EMPLOYEE BENEFIT PLANS | |
Ciena has a Defined Contribution Pension Plan that covers a majority of its Canada-based employees. The plan covers all Canada-based employees who are not part of an excluded group. Total contributions (employee and employer) cannot exceed the lesser of 18% of participant earnings and an annual dollar limit (CAD$24,270 for 2013). This plan includes a required employer contribution of 1% for all participants and a 50% matching of participant contributions up to a total annual maximum of CAD$3,000 per employee. During fiscal 2011, 2012 and 2013, Ciena made matching contributions of approximately CAD$4.3 million, CAD$4.0 million and CAD$3.9 million, respectively. | |
Ciena has a 401(k) defined contribution profit sharing plan. Participants may contribute up to 60% of pre-tax compensation, subject to certain limitations. The plan includes an employer matching contribution equal to 50% of the first 6% an employee contributes each pay period. Ciena may also make discretionary annual profit contributions up to the IRS regulated limit. Ciena has made no profit sharing contributions to date. During fiscal 2011, 2012 and 2013, Ciena made matching contributions of approximately $3.9 million, $4.1 million and $4.0 million, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Oct. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
COMMITMENTS AND CONTINGENCIES | ' | |||
COMMITMENTS AND CONTINGENCIES | ||||
Ontario Grant | ||||
Ciena was awarded a conditional grant from the Province of Ontario in June 2011. Under this strategic jobs investment fund grant, Ciena can receive up to an aggregate of CAD$25.0 million in funding for eligible costs relating to certain next-generation, coherent optical transport development initiatives over the period from November 1, 2010 to October 31, 2015. Ciena has received, or expects to continue to receive, disbursements approximating CAD$5.0 million per fiscal year over the period above. Amounts received under the grant are subject to recoupment in the event that Ciena fails to achieve certain minimum investment, employment and project milestones. Ciena recorded a CAD$5.3 million, CAD$5.6 million and CAD$5.5 million benefit, as a reduction in research and development expenses, in fiscal 2011, fiscal 2012 and fiscal 2013, respectively. As of October 31, 2012 and October 31, 2013, amounts receivable from this grant were CAD$2.5 million and CAD$2.6 million, respectively. | ||||
Foreign Tax Contingencies | ||||
Ciena has previously received assessment notices from Mexican tax authorities asserting deficiencies in payments between 2001 and 2005, related primarily to income taxes and import taxes and duties. Ciena previously submitted judicial petitions appealing these assessments. As of October 31, 2012, Ciena had accrued liabilities of $1.7 million related to these foreign tax contingencies. During the third quarter of fiscal year 2013, Ciena received a favorable resolution of these matters with the tax court issuing a final and non-appealable declaration determining such tax assessments to be null and void. As a result, Ciena reversed the accrued liability related to this foreign tax contingency. | ||||
In addition to the matters described above, Ciena is subject to various tax liabilities arising in the ordinary course of business. Ciena does not expect that the ultimate settlement of these liabilities will have a material effect on its results of operations, financial position or cash flows. | ||||
Litigation | ||||
On July 26, 2013, Ciena and Cheetah Omni LLC entered into a settlement agreement relating to patent litigation pending in the United States District Court for the Eastern District of Texas. The proceeding arose on July 29, 2011, when Cheetah Omni filed a complaint against Ciena and several other defendants alleging that certain of the parties' products infringe upon multiple U.S. patents relating to reconfigurable optical add-drop multiplexer (ROADM) technologies. The complaint sought injunctive relief and damages. Under the terms of the settlement, Ciena agreed to make a one-time payment of $1.5 million to Cheetah Omni in exchange for a fully paid-up license to all of the patents-in-suit, a release from all claims for damages and other relief relating to such patents, and a covenant not to sue Ciena at any time on any non-medical patents owned by or assigned to Cheetah Omni on the effective date of the settlement agreement and through July 26, 2017. On August 9, 2013, the district court granted the parties' joint stipulation of dismissal with prejudice. | ||||
On May 29, 2008, Graywire, LLC filed a complaint in the United States District Court for the Northern District of Georgia against Ciena and four other defendants, alleging, among other things, that certain of the parties' products infringe U.S. Patent 6,542,673 (the “'673 Patent”), relating to an identifier system and components for optical assemblies. The complaint seeks injunctive relief and damages. In July 2009, upon request of Ciena and certain other defendants, the U.S. Patent and Trademark Office (“PTO”) granted the defendants' inter partes application for reexamination with respect to certain claims of the '673 Patent, and the district court granted the defendants' motion to stay the case pending reexamination of all of the patents-in-suit. In December 2010, the PTO confirmed the validity of some claims and rejected the validity of other claims of the '673 Patent and Ciena and other defendants filed an appeal. On March 16, 2012, the PTO on appeal rejected multiple claims of the '673 Patent, including the two claims on which Ciena is alleged to infringe. Subsequently, the plaintiff requested a reopening of the prosecution of the '673 Patent, which request was denied by the PTO on April 29, 2013. Thereafter, on May 28, 2013, the plaintiff filed an amendment with the PTO in which it canceled the claims of the '673 Patent on which Ciena is alleged to infringe. The case currently remains stayed, and there can be no assurance as to whether or when the stay will be lifted. | ||||
In addition to the matters described above, we are subject to various legal proceedings and claims arising in the ordinary course of business, including claims against third parties that may involve contractual indemnification obligations on the part of Ciena. We do not expect that the ultimate costs to resolve these matters will have a material effect on our results of operations, financial position or cash flows. | ||||
Operating Lease Commitments | ||||
Ciena has certain minimum obligations under non-cancelable operating leases expiring on various dates through 2027 for equipment and facilities. Future annual minimum operating lease commitments under non-cancelable operating leases at October 31, 2013 are as follows (in thousands): | ||||
Year ended October 31, | ||||
2014 | $ | 30,939 | ||
2015 | 27,287 | |||
2016 | 24,198 | |||
2017 | 18,384 | |||
2018 | 8,655 | |||
Thereafter | 50,158 | |||
Total | $ | 159,621 | ||
Rental expense for fiscal 2011, fiscal 2012 and fiscal 2013 was approximately $25.5 million, $21.7 million and $26.0 million, respectively. In addition, Ciena paid approximately $2.4 million, $1.4 million and $1.6 million during fiscal 2011, fiscal 2012 and fiscal 2013, respectively, related to rent costs for restructured facilities and unfavorable lease commitments, which were offset against Ciena’s restructuring liabilities and unfavorable lease obligations. The amount for operating lease commitments above does not include variable expenses relating to insurance, taxes, maintenance and other costs required by the applicable operating lease. These costs are not expected to have a material impact on Ciena's financial condition, results of operations or cash flows. |
Ciena_Corporation_and_Signific1
Ciena Corporation and Significant Accounting Policies and Estimates (Policies) | 12 Months Ended | |
Oct. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Principles of Consolidation | ' | |
Principles of Consolidation | ||
The accompanying consolidated financial statements include the accounts of Ciena and its wholly owned subsidiaries. All material inter-company accounts and transactions have been eliminated in consolidation. | ||
Fiscal Year | ' | |
Fiscal Year | ||
Ciena has a 52 or 53 week fiscal year, which ends on the Saturday nearest to the last day of October in each year (October 29, 2011, November 3, 2012, and November 2, 2013 for the periods reported). Fiscal 2011 and fiscal 2013 each consisted of a 52-week fiscal year and fiscal 2012 consisted of a 53-week fiscal year. For purposes of financial statement presentation, each fiscal year is described as having ended on October 31. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of the financial statements and related disclosures in conformity with accounting principles generally | ||
accepted in the United States requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used for selling prices for multiple element arrangements, shared-based compensation, convertible notes payable valuations, bad debts, valuation of inventories and investments, recoverability of intangible assets, other long-lived assets, income taxes, warranty obligations, restructuring liabilities, derivatives, contingencies and litigation. Ciena bases its estimates on historical experience and assumptions that it believes are reasonable. Actual results may differ materially from management’s estimates. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents | ||
Ciena considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Restricted cash collateralizing letters of credit is included in other current assets and other long-term assets depending upon the duration of the restriction. | ||
Investments | ' | |
Investments | ||
Ciena's investments are classified as available-for-sale and are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income (loss). Ciena recognizes losses when it determines that declines in the fair value of its investments, below their cost basis, are other-than-temporary. In determining whether a decline in fair value is other-than-temporary, Ciena considers various factors including market price (when available), investment ratings, the financial condition and near-term prospects of the investee, the length of time and the extent to which the fair value has been less than Ciena's cost basis, and its intent and ability to hold the investment until maturity or for a period of time sufficient to allow for any anticipated recovery in market value. Ciena considers all marketable debt securities that it expects to convert to cash within one year or less to be short-term investments. All others are considered long-term investments. | ||
Inventories | ' | |
Inventories | ||
Inventories are stated at the lower of cost or market, with cost computed using standard cost, which approximates actual cost, on a first-in, first-out basis. Ciena records a provision for excess and obsolete inventory when an impairment has been identified. | ||
Ciena writes down its inventory for estimated obsolescence or unmarketable inventory by an amount equal to the difference between the cost of inventory and the estimated net realizable value based on assumptions about future demand and market conditions. | ||
Segment Reporting | ' | |
Segment Reporting | ||
Ciena's chief operating decision maker, its chief executive officer, evaluates the company's performance and allocates resources based on multiple factors, including measures of segment profit (loss). Operating segments are defined as components of an enterprise that engage in business activities that may earn revenue and incur expense, for which discrete financial information is available, and for which such information is evaluated regularly by the chief operating decision maker for purposes of allocating resources and assessing performance. During the first quarter of fiscal 2013, Ciena reorganized its internal organizational structure and the management of its business into the following operating segments: (i) Converged Packet Optical, (ii) Packet Networking, (iii) Optical Transport, and (iv) Software and Services. | ||
Long-lived Assets | ' | |
Long-lived Assets | ||
Long-lived assets include: equipment, furniture and fixtures; intangible assets; and maintenance spares. Ciena tests long-lived assets for impairment whenever triggering events or changes in circumstances indicate that the asset's carrying amount is not recoverable from its undiscounted cash flows. An impairment loss is measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value. Ciena's long-lived assets are assigned to asset groups which represent the lowest level for which cash flows can be identified. | ||
Equipment, Furniture and Fixtures | ' | |
Equipment, Furniture and Fixtures and Internal Use Software | ||
Equipment, furniture and fixtures are recorded at cost. Depreciation and amortization are computed using the straight-line method over useful lives of two to five years for equipment, furniture and fixtures and the shorter of useful life or lease term for leasehold improvements. | ||
Qualifying internal use software and website development costs incurred during the application development stage, which consist primarily of outside services and purchased software license costs, are capitalized and amortized straight-line over the estimated useful lives of two to five years. | ||
Intangible Assets | ' | |
Intangible Assets | ||
Ciena has recorded finite-lived intangible assets as a result of several acquisitions. Finite-lived intangible assets are carried at cost less accumulated amortization. Amortization is computed using the straight-line method over the expected economic lives of the respective assets, up to seven years, which approximates the use of intangible assets. | ||
Maintenance Spares | ' | |
Maintenance Spares | ||
Maintenance spares are recorded at cost. Spares usage cost is expensed ratably over four years. | ||
Concentrations | ' | |
Concentrations | ||
Substantially all of Ciena's cash and cash equivalents are maintained at a small number of major U.S. financial institutions. The majority of Ciena's cash equivalents consist of money market funds. Deposits held with banks may exceed the amount of insurance provided on such deposits. Because these deposits generally may be redeemed upon demand, management believes that they bear minimal risk. | ||
Historically, a significant percentage of Ciena's revenue has been concentrated among sales to a small number of large communications service providers. Consolidation among Ciena's customers has increased this concentration. Consequently, Ciena's accounts receivable are concentrated among these customers. See Note 18 below. | ||
Additionally, Ciena's access to certain materials or components is dependent upon sole or limited source suppliers. The inability of any of these suppliers to fulfill Ciena's supply requirements, or significant changes in supply cost, could affect future results. Ciena relies on a small number of contract manufacturers to perform the majority of the manufacturing for its products. If Ciena cannot effectively manage these manufacturers and forecast future demand, or if these manufacturers fail to deliver products or components on time, Ciena's business and results of operations may suffer. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
Ciena recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the price to the buyer is fixed or determinable; and collectibility is reasonably assured. Customer purchase agreements and customer purchase orders are generally used to determine the existence of an arrangement. Shipping documents and evidence of customer acceptance, when applicable, are used to verify delivery or services rendered. Ciena assesses whether the price is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. Ciena assesses collectibility based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer's payment history. Revenue for maintenance services is generally deferred and recognized ratably over the period during which the services are performed. Shipping and handling fees billed to customers are included in revenue, with the associated expenses included in product cost of goods sold. | ||
Ciena applies the percentage-of-completion method to long-term arrangements where it is required to undertake significant production, customizations or modification engineering, and reasonable and reliable estimates of revenue and cost are available. Utilizing the percentage-of-completion method, Ciena recognizes revenue based on the ratio of actual costs incurred to date to total estimated costs expected to be incurred. In instances that do not meet the percentage-of-completion method criteria, recognition of revenue is deferred until there are no uncertainties regarding customer acceptance. Unbilled percentage- of-completion revenues recognized are accumulated in the contracts in progress account included in accounts receivable, net. Billings in excess of revenues recognized to date on these contracts are recorded within deferred revenue. | ||
Software revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectibility is probable. In instances where final acceptance criteria of the software is specified by the customer, revenue is deferred until there are no uncertainties regarding customer acceptance. | ||
Ciena limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or refund privileges. | ||
Revenue for multiple element arrangements is allocated to each unit of accounting based on the relative selling price of each delivered element, with revenue recognized for each delivered element when the revenue recognition criteria are met. Ciena determines the selling price for each deliverable based upon the selling price hierarchy for multiple-deliverable arrangements. Under this hierarchy, Ciena uses vendor-specific objective evidence ("VSOE") of selling price, if it exists, or third party evidence ("TPE") of selling price if VSOE does not exist. If neither VSOE nor TPE of selling price exists for a deliverable, Ciena uses its best estimate of selling price ("BESP") for that deliverable. | ||
VSOE, when determinable, is established based on Ciena's pricing and discounting practices for the specific product or service when sold separately. In determining whether VSOE exists, Ciena requires that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range. Ciena has been unable to establish TPE of selling price because its go-to-market strategy differs from that of others in its markets, and the extent of customization and differentiated features and functions varies among comparable products or services from its peers. Ciena determines BESP based upon management-approved pricing guidelines, which consider multiple factors including the type of product or service, gross margin objectives, competitive and market conditions, and the go-to-market strategy, all of which can affect pricing practices. | ||
Warranty Accruals | ' | |
Warranty Accruals | ||
Ciena provides for the estimated costs to fulfill customer warranty obligations upon recognition of the related revenue. Estimated warranty costs include estimates for material costs, technical support labor costs and associated overhead. Warranty is included in cost of goods sold and is determined based upon actual warranty cost experience, estimates of component failure rates and management's industry experience. Ciena's sales contracts do not permit the right of return of the product by the customer after the product has been accepted. | ||
Accounts Receivable, Net | ' | |
Accounts Receivable, Net | ||
Ciena's allowance for doubtful accounts is based on its assessment, on a specific identification basis, of the collectibility of customer accounts. Ciena performs ongoing credit evaluations of its customers and generally has not required collateral or other forms of security from its customers. In determining the appropriate balance for Ciena's allowance for doubtful accounts, management considers each individual customer account receivable in order to determine collectibility. In doing so, management considers creditworthiness, payment history, account activity and communication with the customer. If a customer's financial condition changes, Ciena may be required to record an allowance for doubtful accounts, which would negatively affect its results of operations. | ||
Research and Development | ' | |
Research and Development | ||
Ciena charges all research and development costs to expense as incurred. Types of expense incurred in research and development include employee compensation, cost of prototype equipment, consulting and third party services, depreciation, facility costs and information technology. | ||
Government Grants | ' | |
Government Grants | ||
Ciena accounts for proceeds from government grants as a reduction of operating expense when there is reasonable assurance that Ciena has complied with the conditions attached to the grant and that the grant proceeds will be received. Grant benefits are recorded to the line item in the Consolidated Statement of Operations to which the grant activity relates. | ||
Advertising Costs | ' | |
Advertising Costs | ||
Ciena expenses all advertising costs as incurred. | ||
Legal Costs | ' | |
Legal Costs | ||
Ciena expenses legal costs associated with litigation defense as incurred. | ||
Share-Based Compensation Expense | ' | |
Share-Based Compensation Expense | ||
Ciena measures and recognizes compensation expense for share-based awards based on estimated fair values on the date of grant. Ciena estimates the fair value of each option-based award on the date of grant using the Black-Scholes option-pricing model. This model is affected by Ciena's stock price as well as estimates regarding a number of variables, including expected stock price volatility over the expected term of the award and projected employee stock option exercise behaviors. Ciena estimates the fair value of each restricted stock unit based on the fair value of the underlying common stock on the date of grant. In each case, Ciena only recognizes expense to its Consolidated Statement of Operations for those options or shares that are expected ultimately to vest. Ciena recognizes the estimated fair value of performance-based awards, net of estimated forfeitures, as share-based expense over the performance period, using graded vesting, which considers each performance period or tranche separately, based upon its determination of whether it is probable that the performance targets will be achieved. At each reporting period, Ciena reassesses the probability of achieving the performance targets and the performance period required to meet those targets. Ciena uses the straight-line method to record expense for grants with only service-based vesting. | ||
Restricted Stock Units | ||
A restricted stock unit is a stock award that entitles the holder to receive shares of Ciena common stock as the unit vests. Ciena's outstanding restricted stock unit awards are subject to service-based vesting conditions and/or performance-based vesting conditions. Awards subject to service-based conditions typically vest in increments over a three or four-year period. Awards with performance-based vesting conditions require the achievement of certain operational, financial or other performance criteria or targets as a condition of vesting, or the acceleration of vesting, of such awards. Ciena recognizes the estimated fair value of performance-based awards, net of estimated forfeitures, as share-based compensation expense over the performance period, using graded vesting, which considers each performance period or tranche separately, based upon Ciena's determination of whether it is probable that the performance targets will be achieved. At each reporting period, Ciena reassesses the probability of achieving the performance targets and the performance period required to meet those targets. | ||
Income Taxes | ' | |
Income Taxes | ||
Ciena accounts for income taxes using an asset and liability approach that recognizes deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases, and for operating loss and tax credit carryforwards. In estimating future tax consequences, Ciena considers all expected future events other than the enactment of changes in tax laws or rates. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | ||
In the ordinary course of business, transactions occur for which the ultimate outcome may be uncertain. In addition, tax authorities periodically audit Ciena's income tax returns. These audits examine significant tax filing positions, including the timing and amounts of deductions and the allocation of income tax expenses among tax jurisdictions. Ciena is currently under audit in India for 2007 through 2011 and in Canada for 2010 and 2011. Management does not expect the outcome of these audits to have a material adverse effect on Ciena's consolidated financial position, results of operations or cash flows. Ciena's major tax jurisdictions and the earliest open tax years are as follows: United States (2010), United Kingdom (2012), Canada (2009) and India (2007). However, limited adjustments can be made to Federal U.S. tax returns in earlier years in order to reduce net operating loss carryforwards. Ciena classifies interest and penalties related to uncertain tax positions as a component of income tax expense. All of the uncertain tax positions, if recognized, would decrease the effective income tax rate. | ||
Ciena has not provided for U.S. deferred income taxes on the cumulative unremitted earnings of its non-U.S. affiliates, as it plans to indefinitely reinvest cumulative unremitted foreign earnings outside the U.S. and it is not practicable to determine the unrecognized deferred income taxes. These cumulative unremitted foreign earnings relate to ongoing operations in foreign jurisdictions and will be used to fund foreign operations, capital expenditures and any expansion requirements. | ||
Ciena recognizes windfall tax benefits associated with the exercise of stock options or release of restricted stock units directly to stockholders' equity only when realized. A windfall tax benefit occurs when the actual tax benefit realized by Ciena upon an employee's disposition of a share-based award exceeds the deferred tax asset, if any, associated with the award that Ciena had recorded. When assessing whether a tax benefit relating to share-based compensation has been realized, Ciena follows the tax law “with-and-without” method. Under the with-and-without method, the windfall is considered realized and recognized for financial statement purposes only when an incremental benefit is provided after considering all other tax benefits including Ciena's net operating losses. The with-and-without method results in the windfall from share-based compensation awards always being effectively the last tax benefit to be considered. Consequently, the windfall attributable to share-based compensation will not be considered realized in instances where Ciena's net operating loss carryover (that is unrelated to windfalls) is sufficient to offset the current year's taxable income before considering the effects of current-year windfalls. | ||
Loss Contingencies | ' | |
Loss Contingencies | ||
Ciena is subject to the possibility of various losses arising in the ordinary course of business. These may relate to disputes, litigation and other legal actions. Ciena considers the likelihood of loss or the incurrence of a liability, as well as Ciena's ability to reasonably estimate the amount of loss, in determining loss contingencies. An estimated loss contingency is accrued when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Ciena regularly evaluates current information available to it in order to determine whether any accruals should be adjusted and whether new accruals are required. | ||
Fair Value of Financial Instruments | ' | |
Fair Value of Financial Instruments | ||
The carrying value of Ciena's cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair market value due to the relatively short period of time to maturity. For information related to the fair value of Ciena's convertible notes, see Note 12 below. | ||
Fair value for the measurement of financial assets and liabilities is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Ciena utilizes a valuation hierarchy for disclosure of the inputs for fair value measurement. This hierarchy prioritizes the inputs into three broad levels as follows: | ||
• | Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities; | |
• | Level 2 inputs are quoted prices for identical or similar assets or liabilities in less active markets or model-derived valuations in which significant inputs are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and | |
• | Level 3 inputs are unobservable inputs based on Ciena's assumptions used to measure assets and liabilities at fair value. | |
By distinguishing between inputs that are observable in the marketplace, and therefore more objective, and those that are unobservable and therefore more subjective, the hierarchy is designed to indicate the relative reliability of the fair value measurements. A financial asset's or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. | ||
Restructuring | ' | |
Restructuring | ||
From time to time, Ciena takes actions to better align its workforce, facilities and operating costs with perceived market opportunities, business strategies and changes in market and business conditions. Generally accepted accounting principles("GAAP") require that a liability for the cost associated with an exit or disposal activity be recognized in the period in which the liability is incurred, except for one-time employee termination benefits related to a service period of more than 60 days, which are accrued over the service period. | ||
Foreign Currency | ' | |
Foreign Currency | ||
Some of Ciena's foreign branch offices and subsidiaries use the U.S. dollar as their functional currency because Ciena, as the U.S. parent entity, exclusively funds the operations of these branch offices and subsidiaries. For those subsidiaries using the local currency as their functional currency, assets and liabilities are translated at exchange rates in effect at the balance sheet date, and the statement of operations is translated at a monthly average rate. Resulting translation adjustments are recorded directly to a separate component of stockholders' equity. Where the monetary assets and liabilities are transacted in a currency other than the entity's functional currency, re-measurement adjustments are recorded in interest and other income (loss), net on the Consolidated Statement of Operations. | ||
Derivatives | ' | |
Derivatives | ||
Ciena's 4.0% convertible senior notes due March 15, 2015 (the "2015 Notes") include a redemption feature that is accounted for as a separate embedded derivative. The embedded redemption feature is recorded at fair value on a recurring basis, and these changes are included in interest and other income (loss), net on the Consolidated Statement of Operations. | ||
From time to time, Ciena uses foreign currency forward contracts to reduce variability in certain forecasted non-U.S.-dollar denominated cash flows. Generally, these derivatives have maturities of 12 months or less and are designated as cash flow hedges. At the inception of the cash flow hedge, and on an ongoing basis, Ciena assesses whether the forward contract has been effective in offsetting changes in cash flows attributable to the hedged risk during the hedging period. The effective portion of the derivative's net gain or loss is initially reported as a component of accumulated other comprehensive income (loss), and upon the occurrence of the forecasted transaction, is subsequently reclassified to the line item in the Consolidated Statement of Operations to which the hedged transaction relates. Any net gain or loss associated with the ineffectiveness of the hedging instrument is reported in interest and other income (loss), net. | ||
From time to time, Ciena uses foreign currency forwards to hedge certain balance sheet exposures. These forwards are not designated as hedges for accounting purposes, and any net gain or loss associated with these derivatives is reported in interest and other income (loss), net on the Consolidated Statement of Operations. | ||
Computation of Net Income (Loss) per Share | ' | |
Computation of Net Income (Loss) per Share | ||
Ciena calculates basic earnings per share ("EPS") by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes other potential dilutive shares that would be outstanding if securities or other contracts to issue common stock were exercised or converted into common stock. Ciena uses a dual presentation of basic and diluted EPS on the face of its income statement. A reconciliation of the numerator and denominator used for the basic and diluted EPS computations is set forth in Note 14 below. | ||
Software Development Costs | ' | |
Software Development Costs | ||
Ciena develops software for sale to its customers. GAAP require the capitalization of certain software development costs that are incurred subsequent to the date technological feasibility is established and prior to the date the product is generally available for sale. The capitalized cost is then amortized straight-line over the estimated life of the product. Ciena defines technological feasibility as being attained at the time a working model is completed. To date, the period between Ciena achieving technological feasibility and the general availability of such software has been short, and software development costs qualifying for capitalization have been insignificant. Accordingly, Ciena has not capitalized any software development costs. | ||
Newly Issued Accounting Standards | ' | |
Newly Issued Accounting Standards | ||
In May 2011, the Financial Accounting Standards Board ("FASB") issued an accounting standards update that amends current fair value measurement and disclosure guidance to converge with International Financial Reporting Standards ("IFRS"). This update provides improved comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with GAAP and IFRS. This guidance is effective for fiscal years and interim periods beginning after December 15, 2011. Ciena adopted this guidance in the first quarter of fiscal 2013. | ||
In June 2011, FASB issued an accounting standards update that requires an entity to present total comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements and eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. This guidance is effective for fiscal years and interim periods beginning after December 15, 2011. Ciena adopted this guidance in the first quarter of fiscal 2013. | ||
In February 2013, FASB issued an accounting standards update to require reclassification adjustments from other comprehensive income to be presented either in the financial statements or in the notes to the financial statements. This accounting standard update will be effective for Ciena beginning in the first quarter of fiscal 2014, at which time Ciena will include the required disclosures. |
Restructuring_Costs_Tables
Restructuring Costs (Tables) | 12 Months Ended | |||||||||||
Oct. 31, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Activity and balance of the restructuring liability accounts | ' | |||||||||||
The following table displays the activity and balances of the historical restructuring liability accounts for the fiscal years indicated (in thousands): | ||||||||||||
Workforce | Consolidation | Total | ||||||||||
reduction | of excess | |||||||||||
facilities | ||||||||||||
Balance at October 31, 2010 | $ | 1,576 | $ | 6,392 | $ | 7,968 | ||||||
Additional liability recorded | 6,627 | (a) | — | 6,627 | ||||||||
Adjustment to previous estimates | — | (846 | ) | (a) | (846 | ) | ||||||
Cash payments | (8,043 | ) | (2,253 | ) | (10,296 | ) | ||||||
Balance at October 31, 2011 | 160 | 3,293 | 3,453 | |||||||||
Additional liability recorded | 5,484 | (b) | 2,370 | (b) | 7,854 | |||||||
Cash payments | (4,195 | ) | (2,063 | ) | (6,258 | ) | ||||||
Balance at October 31, 2012 | 1,449 | 3,600 | 5,049 | |||||||||
Additional liability recorded | 5,041 | (c) | 2,128 | (c) | 7,169 | |||||||
Non-cash disposal | — | (747 | ) | (747 | ) | |||||||
Cash payments | (6,410 | ) | (3,045 | ) | (9,455 | ) | ||||||
Balance at October 31, 2013 | $ | 80 | $ | 1,936 | $ | 2,016 | ||||||
Current restructuring liabilities | $ | 80 | $ | 594 | $ | 674 | ||||||
Non-current restructuring liabilities | $ | — | $ | 1,342 | $ | 1,342 | ||||||
_________________________________ | ||||||||||||
(a) | During fiscal 2011, Ciena recorded a charge of $6.6 million of severance and other employee-related costs associated with a workforce reduction of approximately 150 employees. Ciena also recorded an adjustment of $0.8 million related to its previously restructured Acton, Massachusetts facility. | |||||||||||
(b) | During fiscal 2012, Ciena recorded a charge of $5.5 million of severance and other employee-related costs associated with a workforce reduction of approximately 135 employees. Ciena also recorded charges of $2.4 million related to its consolidation of several facilities in the Linthicum, Maryland area. | |||||||||||
(c) | During fiscal 2013, Ciena recorded a charge of $5.0 million of severance and other employee-related costs associated with a workforce reduction of approximately 100 employees. Ciena also recorded charges of $2.1 million related to its consolidation of several facilities primarily in the Linthicum, Maryland area. |
ShortTerm_and_LongTerm_Investm1
Short-Term and Long-Term Investments (Tables) | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Short-term and Long-term investments | ' | |||||||||||||||
As of October 31, 2012, short-term investments were comprised of the following (in thousands): | ||||||||||||||||
October 31, 2012 | ||||||||||||||||
Amortized Cost | Gross Unrealized | Gross Unrealized | Estimated Fair | |||||||||||||
Gains | Losses | Value | ||||||||||||||
U.S. government obligations | ||||||||||||||||
Included in short-term investments | 49,987 | 70 | — | 50,057 | ||||||||||||
$ | 49,987 | $ | 70 | $ | — | $ | 50,057 | |||||||||
As of October 31, 2013, short-term and long-term investments are comprised of the following (in thousands): | ||||||||||||||||
October 31, 2013 | ||||||||||||||||
Amortized Cost | Gross Unrealized | Gross Unrealized | Estimated Fair | |||||||||||||
Gains | Losses | Value | ||||||||||||||
U.S. government obligations | ||||||||||||||||
Included in short-term investments | $ | 99,974 | $ | 11 | $ | — | $ | 99,985 | ||||||||
Included in long-term investments | 14,996 | 35 | — | 15,031 | ||||||||||||
$ | 114,970 | $ | 46 | $ | — | $ | 115,016 | |||||||||
Commercial paper | ||||||||||||||||
Included in short-term investments | $ | 24,994 | $ | — | $ | — | $ | 24,994 | ||||||||
$ | 24,994 | $ | — | $ | — | $ | 24,994 | |||||||||
Investments Classified by Contractual Maturity Date | ' | |||||||||||||||
The following table summarizes the legal maturities of debt investments at October 31, 2013: | ||||||||||||||||
October 31, 2013 | ||||||||||||||||
Amortized Cost | Estimated Fair | |||||||||||||||
Value | ||||||||||||||||
Less than one year | $ | 124,968 | $ | 124,979 | ||||||||||||
Due in 1-2 years | 14,996 | 15,031 | ||||||||||||||
$ | 139,964 | $ | 140,010 | |||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Summary of the fair value of assets recorded on a recurring basis | ' | |||||||||||||||
As of the date indicated, the following table summarizes the fair value of assets that are recorded at fair value on a recurring basis (in thousands): | ||||||||||||||||
October 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Money market funds | 404,288 | $ | — | $ | — | $ | 404,288 | |||||||||
U.S. government obligations | — | 50,057 | — | 50,057 | ||||||||||||
Commercial paper | — | 14,998 | — | 14,998 | ||||||||||||
Foreign currency forward contracts | — | 79 | — | 79 | ||||||||||||
Embedded redemption feature | — | — | 420 | 420 | ||||||||||||
Total assets measured at fair value | $ | 404,288 | $ | 65,134 | $ | 420 | $ | 469,842 | ||||||||
October 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | 254,330 | $ | — | $ | — | $ | 254,330 | ||||||||
U.S. government obligations | — | 115,016 | — | 115,016 | ||||||||||||
Commercial paper | — | 44,991 | — | 44,991 | ||||||||||||
Embedded redemption feature | — | — | 2,740 | 2,740 | ||||||||||||
Total assets measured at fair value | $ | 254,330 | $ | 160,007 | $ | 2,740 | $ | 417,077 | ||||||||
Liabilities | ||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 442 | $ | — | $ | 442 | ||||||||
Total liabilities measured at fair value | $ | — | $ | 442 | $ | — | $ | 442 | ||||||||
Assets are presented on Ciena's Condensed Consolidated Balance Sheet | ' | |||||||||||||||
As of the dates indicated, the assets and liabilities above were presented on Ciena’s Consolidated Balance Sheet as follows (in thousands): | ||||||||||||||||
October 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 400,415 | $ | 14,998 | $ | — | $ | 415,413 | ||||||||
Short-term investments | — | 50,057 | — | 50,057 | ||||||||||||
Prepaid expenses and other | 2,030 | 79 | — | 2,109 | ||||||||||||
Other long-term assets | 1,843 | — | 420 | 2,263 | ||||||||||||
Total assets measured at fair value | $ | 404,288 | $ | 65,134 | $ | 420 | $ | 469,842 | ||||||||
October 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 252,241 | $ | 19,997 | $ | — | $ | 272,238 | ||||||||
Short-term investments | — | 124,979 | — | 124,979 | ||||||||||||
Prepaid expenses and other | 52 | — | — | 52 | ||||||||||||
Long-term investments | — | 15,031 | — | 15,031 | ||||||||||||
Other long-term assets | 2,037 | — | 2,740 | 4,777 | ||||||||||||
Total assets measured at fair value | $ | 254,330 | $ | 160,007 | $ | 2,740 | $ | 417,077 | ||||||||
Liabilities | ||||||||||||||||
Accrued liabilities | $ | — | $ | 442 | $ | — | 442 | |||||||||
Total liabilities measured at fair value | $ | — | $ | 442 | $ | — | $ | 442 | ||||||||
Reconciliation of changes in Level 3 fair value measurements | ' | |||||||||||||||
As of the dates indicated, the following table sets forth, in thousands, the reconciliation of changes in Level 3 assets recorded at fair value: | ||||||||||||||||
Level 3 | ||||||||||||||||
Balance at October 31, 2012 | $ | 420 | ||||||||||||||
Issuances | — | |||||||||||||||
Settlements | (630 | ) | ||||||||||||||
Changes in unrealized gain | 2,950 | |||||||||||||||
Transfers into Level 3 | — | |||||||||||||||
Transfers out of Level 3 | — | |||||||||||||||
Balance at October 31, 2013 | $ | 2,740 | ||||||||||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||
Activity in allowance for doubtful accounts | ' | ||||||||||||||||
The following table summarizes the activity in Ciena’s allowance for doubtful accounts for the fiscal years indicated (in thousands): | |||||||||||||||||
Year ended | Balance at beginning | Net | Balance at end of | ||||||||||||||
October 31, | of period | Provisions | Deductions | period | |||||||||||||
2011 | $ | 117 | $ | 1,696 | $ | 1,112 | $ | 701 | |||||||||
2012 | $ | 701 | $ | 1,647 | $ | 848 | $ | 1,500 | |||||||||
2013 | $ | 1,500 | $ | 2,339 | $ | 1,884 | $ | 1,955 | |||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Inventory Disclosure [Abstract] | ' | ||||||||||||||||
Inventories | ' | ||||||||||||||||
As of the dates indicated, inventories are comprised of the following (in thousands): | |||||||||||||||||
October 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Raw materials | $ | 39,678 | $ | 53,274 | |||||||||||||
Work-in-process | 10,736 | 7,773 | |||||||||||||||
Finished goods | 178,210 | 153,855 | |||||||||||||||
Deferred cost of goods sold | 71,484 | 75,764 | |||||||||||||||
300,108 | 290,666 | ||||||||||||||||
Provision for excess and obsolescence | (40,010 | ) | (41,563 | ) | |||||||||||||
$ | 260,098 | $ | 249,103 | ||||||||||||||
Activity in reserve for excess and obsolete inventory | ' | ||||||||||||||||
The following table summarizes the activity in Ciena’s reserve for excess and obsolete inventory for the fiscal years indicated (in thousands): | |||||||||||||||||
Balance at | |||||||||||||||||
Year ended | beginning of | Balance at | |||||||||||||||
October 31, | period | Provisions | Disposals | end of period | |||||||||||||
2011 | $ | 30,767 | $ | 17,334 | $ | 16,330 | $ | 31,771 | |||||||||
2012 | $ | 31,771 | $ | 23,438 | $ | 15,199 | $ | 40,010 | |||||||||
2013 | $ | 40,010 | $ | 19,938 | $ | 18,385 | $ | 41,563 | |||||||||
Prepaid_Expenses_and_Other_Tab
Prepaid Expenses and Other (Tables) | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Prepaid expenses and other | ' | |||||||
As of the dates indicated, prepaid expenses and other are comprised of the following (in thousands): | ||||||||
October 31, | ||||||||
2012 | 2013 | |||||||
Prepaid VAT and other taxes | $ | 37,806 | $ | 101,072 | ||||
Deferred deployment expense | 19,449 | 23,190 | ||||||
Product demonstration equipment, net | 33,144 | 33,382 | ||||||
Prepaid expenses | 16,477 | 16,963 | ||||||
Other non-trade receivables | 8,689 | 11,996 | ||||||
Restricted cash | 2,030 | 52 | ||||||
$ | 117,595 | $ | 186,655 | |||||
Equipment_Furniture_and_Fixtur1
Equipment, Furniture and Fixtures (Tables) | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Equipment, furniture and fixtures | ' | |||||||
As of the dates indicated, equipment, furniture and fixtures are comprised of the following (in thousands): | ||||||||
October 31, | ||||||||
2012 | 2013 | |||||||
Equipment, furniture and fixtures | $ | 422,118 | $ | 364,574 | ||||
Leasehold improvements | 61,493 | 46,247 | ||||||
483,611 | 410,821 | |||||||
Accumulated depreciation and amortization | (360,031 | ) | (291,092 | ) | ||||
$ | 123,580 | $ | 119,729 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | |||||||||||||||||||||||
Intangible assets | ' | |||||||||||||||||||||||
As of the dates indicated, intangible assets are comprised of the following (in thousands): | ||||||||||||||||||||||||
October 31, | ||||||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Intangible | Amortization | Intangible | Intangible | Amortization | Intangible | |||||||||||||||||||
Developed technology | $ | 417,833 | $ | (279,195 | ) | $ | 138,638 | $ | 417,833 | $ | (321,645 | ) | $ | 96,188 | ||||||||||
Patents and licenses | 46,538 | (45,566 | ) | 972 | 46,538 | (45,744 | ) | 794 | ||||||||||||||||
Customer relationships, covenants not to compete, outstanding purchase orders and contracts | 323,573 | (206,046 | ) | 117,527 | 323,573 | (234,727 | ) | 88,846 | ||||||||||||||||
Total intangible assets | $ | 787,944 | $ | (530,807 | ) | $ | 257,137 | $ | 787,944 | $ | (602,116 | ) | $ | 185,828 | ||||||||||
Expected future amortization of finite-lived intangible assets | ' | |||||||||||||||||||||||
Expected future amortization of intangible assets for the fiscal years indicated is as follows (in thousands): | ||||||||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||||||||
2014 | $ | 57,151 | ||||||||||||||||||||||
2015 | 52,879 | |||||||||||||||||||||||
2016 | 52,879 | |||||||||||||||||||||||
2017 | 22,783 | |||||||||||||||||||||||
2018 | 136 | |||||||||||||||||||||||
$ | 185,828 | |||||||||||||||||||||||
Other_Balance_Sheet_Details_Ta
Other Balance Sheet Details (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | ' | ||||||||||||||||
Other long-term assets | ' | ||||||||||||||||
As of the dates indicated, other long-term assets are comprised of the following (in thousands): | |||||||||||||||||
October 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Maintenance spares inventory, net | $ | 57,548 | $ | 61,305 | |||||||||||||
Deferred debt issuance costs, net | 20,575 | 15,677 | |||||||||||||||
Embedded redemption feature | 420 | 2,740 | |||||||||||||||
Restricted cash | 2,413 | 2,053 | |||||||||||||||
Other | 3,780 | 4,605 | |||||||||||||||
$ | 84,736 | $ | 86,380 | ||||||||||||||
Accrued liabilities | ' | ||||||||||||||||
As of the dates indicated, accrued liabilities are comprised of the following (in thousands): | |||||||||||||||||
October 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Warranty | $ | 55,132 | $ | 56,303 | |||||||||||||
Compensation, payroll related tax and benefits | 48,885 | 98,770 | |||||||||||||||
Vacation | 29,581 | 32,118 | |||||||||||||||
Current restructuring liabilities | 3,516 | 674 | |||||||||||||||
Interest payable | 4,404 | 6,186 | |||||||||||||||
Other | 68,022 | 77,605 | |||||||||||||||
$ | 209,540 | $ | 271,656 | ||||||||||||||
Accrued warranty | ' | ||||||||||||||||
The following table summarizes the activity in Ciena’s accrued warranty for the fiscal years indicated (in thousands): | |||||||||||||||||
Year ended | Beginning | Balance at end | |||||||||||||||
October 31, | Balance | Provisions | Settlements | of period | |||||||||||||
2011 | $ | 54,372 | $ | 18,451 | $ | 25,541 | $ | 47,282 | |||||||||
2012 | $ | 47,282 | $ | 33,418 | $ | 25,568 | $ | 55,132 | |||||||||
2013 | $ | 55,132 | $ | 24,558 | $ | 23,387 | $ | 56,303 | |||||||||
Deferred revenue | ' | ||||||||||||||||
As of the dates indicated, deferred revenue is comprised of the following (in thousands): | |||||||||||||||||
October 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Products | $ | 29,279 | $ | 36,671 | |||||||||||||
Services | 77,797 | 75,499 | |||||||||||||||
107,076 | 112,170 | ||||||||||||||||
Less current portion | (79,516 | ) | (88,550 | ) | |||||||||||||
Long-term deferred revenue | $ | 27,560 | $ | 23,620 | |||||||||||||
Convertible_Notes_Payable_Tabl
Convertible Notes Payable (Tables) | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Schedule of details of convertible notes | ' | |||||||||||||||
The principal balance, unamortized discount and net carrying value of the liability and equity components of our 2020 notes were as follows as of October 31, 2013 | ||||||||||||||||
Liability Component | Equity Component | |||||||||||||||
Principal Balance | Unamortized Discount | Net Carrying Amount | Net Carrying Amount | |||||||||||||
4.0% Convertible Senior Notes due December 15, 2020 | $ | 190,456 | $ | 16,171 | $ | (174,285 | ) | $ | 43,131 | |||||||
Schedule of carrying values and estimated fair values of debt instruments | ' | |||||||||||||||
The following table sets forth, in thousands, the carrying value and the estimated current fair value of Ciena’s outstanding convertible notes: | ||||||||||||||||
October 31, 2013 | ||||||||||||||||
Description | Carrying Value | Fair Value(2) | ||||||||||||||
4.0% Convertible Senior Notes, due March 15, 2015 (1) | 187,734 | 243,867 | ||||||||||||||
0.875% Convertible Senior Notes due June 15, 2017 | 500,000 | 519,375 | ||||||||||||||
3.75% Convertible Senior Notes, due October 15, 2018 | 350,000 | 497,656 | ||||||||||||||
4.0% Convertible Senior Notes, due December 15, 2020(3) | 174,285 | 271,500 | ||||||||||||||
$ | 1,212,019 | $ | 1,532,398 | |||||||||||||
_________________________________ | ||||||||||||||||
-1 | Includes unamortized bond premium related to embedded redemption feature. | |||||||||||||||
-2 | The convertible notes were categorized as Level 2 in the fair value hierarchy. Ciena estimates the fair value of its outstanding convertible notes using a market approach based on observable inputs, such as current market transactions involving comparable securities. | |||||||||||||||
-3 | Includes unamortized discount and accretion of principal. |
Earnings_Loss_Per_Share_Calcul1
Earnings (Loss) Per Share Calculation (Tables) | 12 Months Ended | |||||||||||
Oct. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Reconciliation of numerator and denominator of Basic and Diluted Earnings Per Share | ' | |||||||||||
The following table (in thousands except per share amounts) is a reconciliation of the numerator and denominator of the basic net income (loss) per common share (“Basic EPS”) and the diluted net income (loss) per potential common share (“Diluted EPS”). Since the numerator reflects net losses for the fiscal years indicated, both Basic EPS and Diluted EPS are computed using the weighted average number of common shares outstanding. If the numerator reflected net income, Diluted EPS would also include, to the extent the effect is not anti-dilutive, the following: (i) shares issuable upon vesting of restricted stock units, (ii) shares issuable under Ciena's employee stock purchase plan and upon exercise of outstanding stock options, using the treasury stock method; and (iii) shares underlying Ciena's outstanding convertible notes. | ||||||||||||
Numerator | ||||||||||||
Year Ended October 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Net loss | $ | (195,521 | ) | $ | (144,021 | ) | $ | (85,431 | ) | |||
Denominator | ||||||||||||
Year Ended October 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Basic weighted average shares outstanding | 95,854 | 99,341 | 102,350 | |||||||||
Dilutive weighted average shares outstanding | 95,854 | 99,341 | 102,350 | |||||||||
EPS | ||||||||||||
Year Ended October 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Basic EPS | $ | (2.04 | ) | $ | (1.45 | ) | $ | (0.83 | ) | |||
Diluted EPS | $ | (2.04 | ) | $ | (1.45 | ) | $ | (0.83 | ) | |||
Weighted average shares excluded from calculation of denominator for Basic and Diluted EPS | ' | |||||||||||
The following table summarizes the weighted average shares excluded from the calculation of the denominator for Diluted EPS due to their anti-dilutive effect for the fiscal years indicated (in thousands): | ||||||||||||
Year Ended October 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Shares underlying stock options and restricted stock units | 6,142 | 5,726 | 3,890 | |||||||||
0.25% Convertible Senior Notes due May 1, 2013 | 5,470 | 5,470 | 2,682 | |||||||||
4.0% Convertible Senior Notes due March 15, 2015 | 18,395 | 18,395 | 10,541 | |||||||||
0.875% Convertible Senior Notes due June 15, 2017 | 13,108 | 13,108 | 13,108 | |||||||||
3.75% Convertible Senior Notes due October 15, 2018 | 17,355 | 17,355 | 17,355 | |||||||||
4.0% Convertible Senior Notes due December 15, 2020 | — | — | 7,855 | |||||||||
Total excluded due to anti-dilutive effect | 60,470 | — | 60,054 | 55,431 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Provision (Benefit) for income taxes | ' | ||||||||||||||||
For the periods indicated, the provision for income taxes consists of the following (in thousands): | |||||||||||||||||
October 31, | |||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||
Provision for income taxes: | |||||||||||||||||
Current: | |||||||||||||||||
Federal | $ | (194 | ) | $ | — | $ | — | ||||||||||
State | (518 | ) | 857 | 906 | |||||||||||||
Foreign | 8,202 | 8,465 | 4,334 | ||||||||||||||
Total current | 7,490 | 9,322 | 5,240 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | 160 | — | — | ||||||||||||||
State | 23 | — | — | ||||||||||||||
Foreign | — | — | — | ||||||||||||||
Total deferred | 183 | — | — | ||||||||||||||
Provision for income taxes | $ | 7,673 | $ | 9,322 | $ | 5,240 | |||||||||||
Income (Loss) before provision (benefit) for income taxes | ' | ||||||||||||||||
For the periods indicated, income (loss) before provision for income taxes consists of the following (in thousands): | |||||||||||||||||
October 31, | |||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||
United States | $ | (240,244 | ) | $ | (151,958 | ) | $ | (59,594 | ) | ||||||||
Foreign | 52,396 | 17,259 | (20,597 | ) | |||||||||||||
Total | $ | (187,848 | ) | $ | (134,699 | ) | $ | (80,191 | ) | ||||||||
Tax provision (benefit) reconciles to the amount computed by multiplying income or loss before income taxes by the U.S. federal statutory rate of 35% | ' | ||||||||||||||||
For the periods indicated, the tax provision reconciles to the amount computed by multiplying income or loss before income taxes by the U.S. federal statutory rate of 35% as follows: | |||||||||||||||||
October 31, | |||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||
Provision at statutory rate | 35 | % | 35 | % | 35 | % | |||||||||||
State taxes | 0.27 | % | (0.64 | )% | (1.13 | )% | |||||||||||
Foreign taxes | 2.32 | % | (5.09 | )% | (12.70 | )% | |||||||||||
Research and development credit | 11.03 | % | 10.21 | % | 17.39 | % | |||||||||||
Non-deductible loss on debt extinguishment | — | % | — | % | (11.21 | )% | |||||||||||
Non-deductible compensation and other | (3.96 | )% | (4.92 | )% | (8.78 | )% | |||||||||||
Valuation allowance | (48.74 | )% | (41.48 | )% | (25.10 | )% | |||||||||||
Effective income tax rate | (4.08 | )% | (6.92 | )% | (6.53 | )% | |||||||||||
Significant components of deferred tax assets and liabilities | ' | ||||||||||||||||
The significant components of deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||||||
October 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Reserves and accrued liabilities | $ | 44,128 | $ | 44,515 | |||||||||||||
Depreciation and amortization | 276,710 | 274,468 | |||||||||||||||
NOL and credit carry forward | 1,142,647 | 1,159,494 | |||||||||||||||
Other | 25,509 | 8,822 | |||||||||||||||
Gross deferred tax assets | 1,488,994 | 1,487,299 | |||||||||||||||
Valuation allowance | (1,488,994 | ) | (1,487,299 | ) | |||||||||||||
Net deferred tax asset | $ | — | $ | — | |||||||||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties | ' | ||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): | |||||||||||||||||
Unrecognized tax benefits at October 31, 2010 | $ | 7,442 | |||||||||||||||
Decrease related to positions taken in prior period | (450 | ) | |||||||||||||||
Increase related to positions taken in current period | 1,847 | ||||||||||||||||
Reductions related to expiration of statute of limitations | (249 | ) | |||||||||||||||
Unrecognized tax benefits at October 31, 2011 | 8,590 | ||||||||||||||||
Decrease related to positions taken in prior period | (12 | ) | |||||||||||||||
Increase related to positions taken in current period | 2,866 | ||||||||||||||||
Reductions related to expiration of statute of limitations | (392 | ) | |||||||||||||||
Unrecognized tax benefits at October 31, 2012 | 11,052 | ||||||||||||||||
Decrease related to positions taken in prior period | (3,925 | ) | |||||||||||||||
Increase related to positions taken in current period | 2,146 | ||||||||||||||||
Reductions related to expiration of statute of limitations | (994 | ) | |||||||||||||||
Unrecognized tax benefits at October 31, 2013 | $ | 8,279 | |||||||||||||||
Summary of valuation allowance against the gross deferred tax assets | ' | ||||||||||||||||
The following table summarizes the activity in Ciena’s valuation allowance against its gross deferred tax assets (in thousands): | |||||||||||||||||
Year ended | Balance at beginning | Balance at end | |||||||||||||||
October 31, | of period | Additions | Deductions | of period | |||||||||||||
2011 | $ | 1,363,493 | $ | 103,918 | $ | — | $ | 1,467,411 | |||||||||
2012 | $ | 1,467,411 | $ | 21,583 | $ | — | $ | 1,488,994 | |||||||||
2013 | $ | 1,488,994 | $ | — | $ | 1,695 | $ | 1,487,299 | |||||||||
ShareBased_Compensation_Expens1
Share-Based Compensation Expense (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Summary of stock option activity | ' | |||||||||||||||||||||||||||||||||||
The following table is a summary of Ciena's stock option activity for the periods indicated (shares in thousands): | ||||||||||||||||||||||||||||||||||||
Shares Underlying | Weighted | |||||||||||||||||||||||||||||||||||
Options | Average | |||||||||||||||||||||||||||||||||||
Outstanding | Exercise Price | |||||||||||||||||||||||||||||||||||
Balance as of October 31, 2010 | 5,002 | $ | 40.96 | |||||||||||||||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||||||||||||||
Exercised | (411 | ) | 14.88 | |||||||||||||||||||||||||||||||||
Canceled | (901 | ) | 97.64 | |||||||||||||||||||||||||||||||||
Balance as of October 31, 2011 | 3,690 | 30.01 | ||||||||||||||||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||||||||||||||
Exercised | (56 | ) | 6.72 | |||||||||||||||||||||||||||||||||
Canceled | (427 | ) | 51.28 | |||||||||||||||||||||||||||||||||
Balance as of October 31, 2012 | 3,207 | 27.58 | ||||||||||||||||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||||||||||||||
Exercised | (246 | ) | 13.81 | |||||||||||||||||||||||||||||||||
Canceled | (859 | ) | 31.83 | |||||||||||||||||||||||||||||||||
Balance as of October 31, 2013 | 2,102 | $ | 27.46 | |||||||||||||||||||||||||||||||||
Summarizes information with respect to stock options outstanding | ' | |||||||||||||||||||||||||||||||||||
The following table summarizes information with respect to stock options outstanding at October 31, 2013, based on Ciena’s closing stock price on the last trading day of Ciena’s fiscal 2013 (shares and intrinsic value in thousands): | ||||||||||||||||||||||||||||||||||||
Options Outstanding at | Vested Options at | |||||||||||||||||||||||||||||||||||
October 31, 2013 | October 31, 2013 | |||||||||||||||||||||||||||||||||||
Number | Weighted | Weighted | Number | Weighted | Weighted | |||||||||||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||||||||||||||
Remaining | Remaining | |||||||||||||||||||||||||||||||||||
Range of | of | Contractual | Average | Aggregate | of | Contractual | Average | Aggregate | ||||||||||||||||||||||||||||
Exercise | Underlying | Life | Exercise | Intrinsic | Underlying | Life | Exercise | Intrinsic | ||||||||||||||||||||||||||||
Price | Shares | (Years) | Price | Value | Shares | (Years) | Price | Value | ||||||||||||||||||||||||||||
$ | 0.94 | — | $ | 16.31 | 197 | 4.11 | $ | 8.62 | $ | 2,893 | 196 | 4.09 | $ | 8.6 | $ | 2,879 | ||||||||||||||||||||
$ | 16.52 | — | $ | 17.29 | 300 | 1.68 | 16.64 | 1,981 | 300 | 1.68 | 16.64 | 1,981 | ||||||||||||||||||||||||
$ | 17.43 | — | $ | 24.5 | 403 | 1.46 | 20.6 | 1,085 | 403 | 1.46 | 20.6 | 1,085 | ||||||||||||||||||||||||
$ | 24.69 | — | $ | 28.28 | 347 | 3.01 | 27.02 | — | 347 | 3.01 | 27.02 | — | ||||||||||||||||||||||||
$ | 28.61 | — | $ | 31.43 | 157 | 2.7 | 29.53 | — | 157 | 2.7 | 29.53 | — | ||||||||||||||||||||||||
$ | 31.71 | — | $ | 32.55 | 21 | 4.13 | 31.92 | — | 21 | 4.13 | 31.92 | — | ||||||||||||||||||||||||
$ | 33 | — | $ | 37.1 | 288 | 3.55 | 35.17 | — | 288 | 3.55 | 35.17 | — | ||||||||||||||||||||||||
$ | 37.31 | — | $ | 47.32 | 378 | 1.21 | 45.99 | — | 378 | 1.21 | 45.99 | — | ||||||||||||||||||||||||
$ | 47.53 | — | $ | 55.79 | 11 | 0.1 | 49.64 | — | 11 | 0.1 | 49.64 | — | ||||||||||||||||||||||||
$ | 0.94 | — | $ | 55.79 | 2,102 | 2.35 | $ | 27.46 | $ | 5,959 | 2,101 | 2.35 | $ | 27.47 | $ | 5,945 | ||||||||||||||||||||
Summary of restricted stock unit activity | ' | |||||||||||||||||||||||||||||||||||
The following table is a summary of Ciena's restricted stock unit activity for the period indicated, with the aggregate fair value of the balance outstanding at the end of each period, based on Ciena's closing stock price on the last trading day of the relevant period (shares and aggregate fair value in thousands): | ||||||||||||||||||||||||||||||||||||
Restricted | Weighted | Aggregate Fair | ||||||||||||||||||||||||||||||||||
Stock Units | Average | Value | ||||||||||||||||||||||||||||||||||
Outstanding | Grant Date | |||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||||
Per Share | ||||||||||||||||||||||||||||||||||||
Balance as of October 31, 2010 | 5,191 | $ | 13.81 | $ | 71,681 | |||||||||||||||||||||||||||||||
Granted | 2,064 | |||||||||||||||||||||||||||||||||||
Vested | (2,466 | ) | ||||||||||||||||||||||||||||||||||
Canceled or forfeited | (491 | ) | ||||||||||||||||||||||||||||||||||
Balance as of October 31, 2011 | 4,298 | 16.28 | 59,399 | |||||||||||||||||||||||||||||||||
Granted | 2,433 | |||||||||||||||||||||||||||||||||||
Vested | (1,912 | ) | ||||||||||||||||||||||||||||||||||
Canceled or forfeited | (416 | ) | ||||||||||||||||||||||||||||||||||
Balance as of October 31, 2012 | 4,403 | 14.16 | 56,267 | |||||||||||||||||||||||||||||||||
Granted | 2,508 | |||||||||||||||||||||||||||||||||||
Vested | (1,920 | ) | ||||||||||||||||||||||||||||||||||
Canceled or forfeited | (572 | ) | ||||||||||||||||||||||||||||||||||
Balance as of October 31, 2013 | 4,419 | $ | 15.33 | $ | 102,745 | |||||||||||||||||||||||||||||||
Share-based compensation expense | ' | |||||||||||||||||||||||||||||||||||
The following table summarizes share-based compensation expense for the periods indicated (in thousands): | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||||||||||||||||||||||
Product costs | $ | 2,269 | $ | 2,156 | $ | 2,522 | ||||||||||||||||||||||||||||||
Service costs | 1,881 | 1,462 | 1,771 | |||||||||||||||||||||||||||||||||
Share-based compensation expense included in cost of goods sold | 4,150 | 3,618 | 4,293 | |||||||||||||||||||||||||||||||||
Research and development | 10,149 | 8,567 | 8,214 | |||||||||||||||||||||||||||||||||
Sales and marketing | 12,182 | 11,558 | 13,290 | |||||||||||||||||||||||||||||||||
General and administrative | 11,140 | 8,691 | 12,055 | |||||||||||||||||||||||||||||||||
Acquisition and integration costs | 308 | 7 | — | |||||||||||||||||||||||||||||||||
Share-based compensation expense included in operating expense | 33,779 | 28,823 | 33,559 | |||||||||||||||||||||||||||||||||
Share-based compensation expense capitalized in inventory, net | 1 | (47 | ) | (132 | ) | |||||||||||||||||||||||||||||||
Total share-based compensation | $ | 37,930 | $ | 32,394 | $ | 37,720 | ||||||||||||||||||||||||||||||
Segment_and_Entity_Wide_Disclo1
Segment and Entity Wide Disclosures (Tables) | 12 Months Ended | |||||||||||
Oct. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment revenue | ' | |||||||||||
The table below (in thousands, except percentage data) sets forth Ciena’s segment revenue for the respective periods: | ||||||||||||
Fiscal Year | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Revenues: | ||||||||||||
Converged Packet Optical | $ | 734,326 | $ | 951,245 | $ | 1,187,231 | ||||||
Packet Networking | 126,981 | 128,982 | 222,898 | |||||||||
Optical Transport | 535,877 | 353,620 | 233,821 | |||||||||
Software and Services | 344,786 | 400,076 | 438,596 | |||||||||
Consolidated revenue | $ | 1,741,970 | $ | 1,833,923 | $ | 2,082,546 | ||||||
Segment profit (loss) and the reconciliation to consolidated net income (loss) | ' | |||||||||||
The table below (in thousands) sets forth Ciena’s segment profit and the reconciliation to consolidated net loss during the respective periods: | ||||||||||||
Fiscal Year | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Segment profit: | ||||||||||||
Converged Packet Optical | $ | 51,514 | $ | 148,244 | $ | 242,335 | ||||||
Packet Networking | 17,714 | 1,713 | 22,740 | |||||||||
Optical Transport | 189,497 | 116,736 | 89,754 | |||||||||
Software and Services | 70,559 | 93,352 | 126,938 | |||||||||
Total segment profit | 329,284 | 360,045 | 481,767 | |||||||||
Less: non-performance operating expenses | ||||||||||||
Selling and marketing | 251,990 | 266,338 | 304,170 | |||||||||
General and administrative | 126,242 | 114,002 | 122,432 | |||||||||
Acquisition and integration costs | 42,088 | — | — | |||||||||
Amortization of intangible assets | 69,665 | 51,697 | 49,771 | |||||||||
Restructuring costs | 5,781 | 7,854 | 7,169 | |||||||||
Change in fair value of contingent consideration | (3,289 | ) | — | — | ||||||||
Add: other non-performance financial items | ||||||||||||
Interest expense and other income (loss), net | (31,904 | ) | (54,853 | ) | (49,786 | ) | ||||||
Gain on cost method investments | 7,249 | — | — | |||||||||
Loss on extinguishment of debt | — | — | (28,630 | ) | ||||||||
Less: Provision for income taxes | 7,673 | 9,322 | 5,240 | |||||||||
Consolidated net loss | $ | (195,521 | ) | $ | (144,021 | ) | $ | (85,431 | ) | |||
Ciena's geographic distribution of revenue and long-lived assets | ' | |||||||||||
For the periods below, Ciena's geographic distribution of equipment, furniture and fixtures,net, was as follows (in thousands, except percentage data): | ||||||||||||
October 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
United States | $ | 60,848 | $ | 64,653 | $ | 64,132 | ||||||
Canada | 47,424 | 48,376 | 43,772 | |||||||||
Other International | 14,286 | 10,551 | 11,825 | |||||||||
Total | $ | 122,558 | $ | 123,580 | $ | 119,729 | ||||||
For the periods below, Ciena’s geographic distribution of revenue was as follows (in thousands, except percentage data): | ||||||||||||
Fiscal Year | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
United States | $ | 930,880 | $ | 972,576 | $ | 1,217,462 | ||||||
International | 811,090 | 861,347 | 865,084 | |||||||||
Total | $ | 1,741,970 | $ | 1,833,923 | $ | 2,082,546 | ||||||
Customers accounting for at least 10% of Ciena's | ' | |||||||||||
For the periods below, customers accounting for at least 10% of Ciena’s revenue were as follows (in thousands, except percentage data): | ||||||||||||
Fiscal Year | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
AT&T | $ | 269,858 | $ | 248,123 | $ | 373,617 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Oct. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Future annual minimum rental commitments under non-cancelable operating leases | ' | |||
Future annual minimum operating lease commitments under non-cancelable operating leases at October 31, 2013 are as follows (in thousands): | ||||
Year ended October 31, | ||||
2014 | $ | 30,939 | ||
2015 | 27,287 | |||
2016 | 24,198 | |||
2017 | 18,384 | |||
2018 | 8,655 | |||
Thereafter | 50,158 | |||
Total | $ | 159,621 | ||
Ciena_Corporation_and_Signific2
Ciena Corporation and Significant Accounting Policies and Estimates (Details) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of fiscal weeks in a year | 'P52W | 'P53W | 'P52W |
Fiscal year | '52 or 53Â week | ' | ' |
Expected economic lives of finite-lived intangible assets, minimum (in years) | '7 years | ' | ' |
Expected number of years Spares usage cost is expensed | '4 years | ' | ' |
4.0% Convertible Senior Notes due March 15, 2015 | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Interest rate on convertible notes | 4.00% | 4.00% | 4.00% |
Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of fiscal weeks in a year | 'P53W | ' | ' |
Period used to determine marketable debt securities that will be converted to cash treatment as short term investments | '1 year | ' | ' |
Derivative, term of contract | '12 months | ' | ' |
Maximum | Equipment, furniture and fixtures | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives capitalized and amortized straight-line, minimum (in years) | '5 years | ' | ' |
Maximum | Software and website development | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives capitalized and amortized straight-line, minimum (in years) | '5 years | ' | ' |
Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of fiscal weeks in a year | 'P52W | ' | ' |
One-time employee termination benefits related to service period | '60 days | ' | ' |
Minimum | Equipment, furniture and fixtures | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives capitalized and amortized straight-line, minimum (in years) | '2 years | ' | ' |
Minimum | Software and website development | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives capitalized and amortized straight-line, minimum (in years) | '2 years | ' | ' |
Restructuring_Costs_Details
Restructuring Costs (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |||
Activity and balance of the restructuring liability accounts | ' | ' | ' | |||
Balance at beginning of period | $5,049 | $3,453 | $7,968 | |||
Additional liability recorded | 7,169 | 7,854 | 6,627 | |||
Adjustment to previous estimates | ' | ' | -846 | |||
Non-cash disposal | -747 | ' | ' | |||
Cash payments | -9,455 | -6,258 | -10,296 | |||
Balance at end of period | 2,016 | 5,049 | 3,453 | |||
Current restructuring liabilities | 674 | 3,516 | ' | |||
Non-current restructuring liabilities | 1,342 | ' | ' | |||
Workforce reduction | ' | ' | ' | |||
Activity and balance of the restructuring liability accounts | ' | ' | ' | |||
Balance at beginning of period | 1,449 | 160 | 1,576 | |||
Additional liability recorded | 5,041 | [1] | 5,484 | [2] | 6,627 | [3] |
Adjustment to previous estimates | ' | ' | 0 | |||
Non-cash disposal | 0 | ' | ' | |||
Cash payments | -6,410 | -4,195 | -8,043 | |||
Balance at end of period | 80 | 1,449 | 160 | |||
Current restructuring liabilities | 80 | ' | ' | |||
Non-current restructuring liabilities | 0 | ' | ' | |||
Restructuring and Related Cost, Positions Eliminated [Abstract] | ' | ' | ' | |||
Number of employees in workforce reduction | 100 | 135 | 150 | |||
Consolidation of excess facilities | ' | ' | ' | |||
Activity and balance of the restructuring liability accounts | ' | ' | ' | |||
Balance at beginning of period | 3,600 | 3,293 | 6,392 | |||
Additional liability recorded | 2,128 | [1] | 2,370 | [2] | 0 | |
Adjustment to previous estimates | ' | ' | -846 | [3] | ||
Non-cash disposal | -747 | ' | ' | |||
Cash payments | -3,045 | -2,063 | -2,253 | |||
Balance at end of period | 1,936 | 3,600 | 3,293 | |||
Current restructuring liabilities | 594 | ' | ' | |||
Non-current restructuring liabilities | $1,342 | ' | ' | |||
[1] | During fiscal 2013, Ciena recorded a charge of $5.0 million of severance and other employee-related costs associated with a workforce reduction of approximately 100 employees. Ciena also recorded charges of $2.1 million related to its consolidation of several facilities primarily in the Linthicum, Maryland area. | |||||
[2] | During fiscal 2012, Ciena recorded a charge of $5.5 million of severance and other employee-related costs associated with a workforce reduction of approximately 135 employees. Ciena also recorded charges of $2.4 million related to its consolidation of several facilities in the Linthicum, Maryland area. | |||||
[3] | During fiscal 2011, Ciena recorded a charge of $6.6 million of severance and other employee-related costs associated with a workforce reduction of approximately 150 employees. Ciena also recorded an adjustment of $0.8 million related to its previously restructured Acton, Massachusetts facility. |
ShortTerm_and_LongTerm_Investm2
Short-Term and Long-Term Investments (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Long Term Investments | ' | ' |
Estimated Fair Value | $140,010 | ' |
Amortized cost, due in less than one year | 124,968 | ' |
Amortized cost, due in 1-2 years | 14,996 | ' |
Amortized cost, total | 139,964 | ' |
Estimated fair value, due less than one year | 124,979 | ' |
Estimated fair value, due in 1-2 years | 15,031 | ' |
U.S. government obligations | ' | ' |
Long Term Investments | ' | ' |
Amortized Cost | 114,970 | 49,987 |
Gross Unrealized Gains | 46 | 70 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 115,016 | 50,057 |
Commercial Paper | ' | ' |
Long Term Investments | ' | ' |
Amortized Cost | 24,994 | ' |
Gross Unrealized Gains | 0 | ' |
Gross Unrealized Losses | 0 | ' |
Estimated Fair Value | 24,994 | ' |
Short-term Investments | U.S. government obligations | ' | ' |
Long Term Investments | ' | ' |
Amortized Cost | 99,974 | 49,987 |
Gross Unrealized Gains | 11 | 70 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 99,985 | 50,057 |
Short-term Investments | Commercial Paper | ' | ' |
Long Term Investments | ' | ' |
Amortized Cost | 24,994 | ' |
Gross Unrealized Gains | 0 | ' |
Gross Unrealized Losses | 0 | ' |
Estimated Fair Value | 24,994 | ' |
Other Long-term Investments | U.S. government obligations | ' | ' |
Long Term Investments | ' | ' |
Amortized Cost | 14,996 | ' |
Gross Unrealized Gains | 35 | ' |
Gross Unrealized Losses | 0 | ' |
Estimated Fair Value | $15,031 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Assets: | ' | ' |
U.S. government obligations | $140,010 | ' |
Embedded redemption feature | 2,740 | 420 |
Reconciliation of changes in Level 3 fair value measurements | ' | ' |
Balance at October 31, 2012 | 420 | ' |
Issuances | 0 | ' |
Settlements | -630 | ' |
Changes in unrealized gain | 2,950 | ' |
Transfers into Level 3 | 0 | ' |
Transfers out of Level 3 | 0 | ' |
Balance at October 31, 2013 | 2,740 | ' |
Fair Value, Measurements, Recurring | Level 1 | ' | ' |
Assets: | ' | ' |
Money market funds | 254,330 | 404,288 |
U.S. government obligations | 0 | 0 |
Commercial paper | 0 | 0 |
Foreign currency forward contracts | ' | 0 |
Embedded redemption feature | 0 | 0 |
Total assets measured at fair value | 254,330 | 404,288 |
Foreign currency forward contracts | 0 | ' |
Total liabilities measured at fair value | 0 | ' |
Fair Value, Measurements, Recurring | Level 2 | ' | ' |
Assets: | ' | ' |
Money market funds | 0 | 0 |
U.S. government obligations | 115,016 | 50,057 |
Commercial paper | 44,991 | 14,998 |
Foreign currency forward contracts | ' | 79 |
Embedded redemption feature | 0 | 0 |
Total assets measured at fair value | 160,007 | 65,134 |
Foreign currency forward contracts | 442 | ' |
Total liabilities measured at fair value | 442 | ' |
Fair Value, Measurements, Recurring | Level 3 | ' | ' |
Assets: | ' | ' |
Money market funds | 0 | 0 |
U.S. government obligations | 0 | 0 |
Commercial paper | 0 | 0 |
Foreign currency forward contracts | ' | 0 |
Embedded redemption feature | 2,740 | 420 |
Total assets measured at fair value | 2,740 | 420 |
Foreign currency forward contracts | 0 | ' |
Total liabilities measured at fair value | 0 | ' |
Fair Value, Measurements, Recurring | Total | ' | ' |
Assets: | ' | ' |
Money market funds | 254,330 | 404,288 |
U.S. government obligations | 115,016 | 50,057 |
Commercial paper | 44,991 | 14,998 |
Foreign currency forward contracts | ' | 79 |
Embedded redemption feature | 2,740 | 420 |
Total assets measured at fair value | 417,077 | 469,842 |
Foreign currency forward contracts | 442 | ' |
Total liabilities measured at fair value | $442 | ' |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (Fair Value, Measurements, Recurring, USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Level 1 | ' | ' |
Assets: | ' | ' |
Cash equivalents | $252,241 | $400,415 |
Short-term investments | 0 | 0 |
Prepaid expenses and other | 52 | 2,030 |
Long-term investments | 0 | ' |
Other long-term assets | 2,037 | 1,843 |
Total assets measured at fair value | 254,330 | 404,288 |
Accrued liabilities | 0 | ' |
Total liabilities measured at fair value | 0 | ' |
Level 2 | ' | ' |
Assets: | ' | ' |
Cash equivalents | 19,997 | 14,998 |
Short-term investments | 124,979 | 50,057 |
Prepaid expenses and other | 0 | 79 |
Long-term investments | 15,031 | ' |
Other long-term assets | 0 | 0 |
Total assets measured at fair value | 160,007 | 65,134 |
Accrued liabilities | 442 | ' |
Total liabilities measured at fair value | 442 | ' |
Level 3 | ' | ' |
Assets: | ' | ' |
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Prepaid expenses and other | 0 | 0 |
Long-term investments | 0 | ' |
Other long-term assets | 2,740 | 420 |
Total assets measured at fair value | 2,740 | 420 |
Accrued liabilities | 0 | ' |
Total liabilities measured at fair value | 0 | ' |
Total | ' | ' |
Assets: | ' | ' |
Cash equivalents | 272,238 | 415,413 |
Short-term investments | 124,979 | 50,057 |
Prepaid expenses and other | 52 | 2,109 |
Long-term investments | 15,031 | ' |
Other long-term assets | 4,777 | 2,263 |
Total assets measured at fair value | 417,077 | 469,842 |
Accrued liabilities | 442 | ' |
Total liabilities measured at fair value | $442 | ' |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details Textual) (4.0% Convertible Senior Notes due March 15, 2015) | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
4.0% Convertible Senior Notes due March 15, 2015 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate on convertible notes | 4.00% | 4.00% | 4.00% |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
customer | customer | ||
Concentration Risk [Line Items] | ' | ' | ' |
Number of Customers Accounting For Greater than Ten Percent of Accounts Receivable | 2 | 0 | ' |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' |
Balance at beginning of period | $1,500 | $701 | $117 |
Provisions | 2,339 | 1,647 | 1,696 |
Net Deductions | 1,884 | 848 | 1,112 |
Balance at end of period | $1,955 | $1,500 | $701 |
Customer A and Customer B | Customer Concentration Risk | Accounts Receivable | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | 22.50% | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Inventories | ' | ' | ' |
Raw materials | $53,274 | $39,678 | ' |
Work-in-process | 7,773 | 10,736 | ' |
Finished goods | 153,855 | 178,210 | ' |
Deferred cost of goods sold | 75,764 | 71,484 | ' |
Inventories before provision | 290,666 | 300,108 | ' |
Provision for excess and obsolescence | -41,563 | -40,010 | -31,771 |
Total inventories | 249,103 | 260,098 | ' |
Reserve for excess and obsolete inventory [Roll Forward] | ' | ' | ' |
Valuation allowance, beginning balance | 40,010 | 31,771 | 30,767 |
Provisions | 19,938 | 23,438 | 17,334 |
Disposals | 18,385 | 15,199 | 16,330 |
Valuation allowance, ending balance | $41,563 | $40,010 | $31,771 |
Prepaid_Expenses_and_Other_Det
Prepaid Expenses and Other (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Prepaid expenses and other | ' | ' | ' |
Prepaid VAT and other taxes | $101,072,000 | $37,806,000 | ' |
Deferred deployment expense | 23,190,000 | 19,449,000 | ' |
Product demonstration equipment, net | 33,382,000 | 33,144,000 | ' |
Prepaid expenses | 16,963,000 | 16,477,000 | ' |
Other non-trade receivables | 11,996,000 | 8,689,000 | ' |
Restricted cash | 52,000 | 2,030,000 | ' |
Prepaid expenses and other | 186,655,000 | 117,595,000 | ' |
Depreciation of product demonstration equipment | $7,400,000 | $7,800,000 | $9,700,000 |
Equipment_Furniture_and_Fixtur2
Equipment, Furniture and Fixtures (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' |
Property, Plant and Equipment, Gross | $410,821,000 | $483,611,000 | ' |
Accumulated depreciation and amortization | -291,092,000 | -360,031,000 | ' |
Property, Plant and Equipment, Net | 119,729,000 | 123,580,000 | 122,558,000 |
Equipment Furniture Fixtures And Leasehold Improvements [Member] | ' | ' | ' |
Equipment, furniture and fixtures (Textuals) [Abstract] | ' | ' | ' |
Depreciation of equipment, furniture and fixtures, and amortization of leasehold improvements | 48,300,000 | 51,300,000 | 50,500,000 |
Equipment, furniture and fixtures | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' |
Property, Plant and Equipment, Gross | 364,574,000 | 422,118,000 | ' |
Leasehold improvements | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' |
Property, Plant and Equipment, Gross | 46,247,000 | 61,493,000 | ' |
Facility Closing | ' | ' | ' |
Equipment, furniture and fixtures (Textuals) [Abstract] | ' | ' | ' |
Property, Plant and Equipment, Disposals | 39,000,000 | ' | ' |
Accumulated Depreciation, Depletion and Amortization, Sale or Disposal of Property, Plant and Equipment | $38,300,000 | ' | ' |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Intangible Assets | ' | ' | ' |
Gross Intangible | $787,944 | $787,944 | ' |
Accumulated Amortization | -602,116 | -530,807 | ' |
Net Intangible | 185,828 | 257,137 | ' |
Expected future amortization of finite-lived intangible assets | ' | ' | ' |
2014 | 57,151 | ' | ' |
2015 | 52,879 | ' | ' |
2016 | 52,879 | ' | ' |
2017 | 22,783 | ' | ' |
2018 | 136 | ' | ' |
Net Intangible | 185,828 | 257,137 | ' |
Intangible Assets (Textuals) [Abstract] | ' | ' | ' |
Amortization of intangible assets | 71,308 | 74,497 | 95,927 |
Developed technology | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Gross Intangible | 417,833 | 417,833 | ' |
Accumulated Amortization | -321,645 | -279,195 | ' |
Net Intangible | 96,188 | 138,638 | ' |
Expected future amortization of finite-lived intangible assets | ' | ' | ' |
Net Intangible | 96,188 | 138,638 | ' |
Patents and licenses | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Gross Intangible | 46,538 | 46,538 | ' |
Accumulated Amortization | -45,744 | -45,566 | ' |
Net Intangible | 794 | 972 | ' |
Expected future amortization of finite-lived intangible assets | ' | ' | ' |
Net Intangible | 794 | 972 | ' |
Customer relationships, covenants not to compete, outstanding purchase orders and contracts | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Gross Intangible | 323,573 | 323,573 | ' |
Accumulated Amortization | -234,727 | -206,046 | ' |
Net Intangible | 88,846 | 117,527 | ' |
Expected future amortization of finite-lived intangible assets | ' | ' | ' |
Net Intangible | $88,846 | $117,527 | ' |
Other_Balance_Sheet_Details_De
Other Balance Sheet Details (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Other long-term assets | ' | ' | ' |
Maintenance spares inventory, net | $61,305,000 | $57,548,000 | ' |
Deferred debt issuance costs, net | 15,677,000 | 20,575,000 | ' |
Embedded redemption feature | 2,740,000 | 420,000 | ' |
Restricted cash | 2,053,000 | 2,413,000 | ' |
Other | 4,605,000 | 3,780,000 | ' |
Total | 86,380,000 | 84,736,000 | ' |
Other Balance Sheet Details (Textuals) [Abstract] | ' | ' | ' |
Amortization of debt issuance costs included in interest expense | $5,400,000 | $5,300,000 | $5,300,000 |
Other_Balance_Sheet_Details_De1
Other Balance Sheet Details (Details 1) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Accrued liabilities | ' | ' | ' | ' |
Warranty | $56,303 | $55,132 | $47,282 | $54,372 |
Compensation, payroll related tax and benefits | 98,770 | 48,885 | ' | ' |
Vacation | 32,118 | 29,581 | ' | ' |
Current restructuring liabilities | 674 | 3,516 | ' | ' |
Interest payable | 6,186 | 4,404 | ' | ' |
Other | 77,605 | 68,022 | ' | ' |
Total | $271,656 | $209,540 | ' | ' |
Other_Balance_Sheet_Details_De2
Other Balance Sheet Details (Details 2) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' |
Beginning balance | $55,132,000 | $47,282,000 | $54,372,000 |
Provisions | 24,558,000 | 33,418,000 | 18,451,000 |
Settlements | 23,387,000 | 25,568,000 | 25,541,000 |
Balance at end of period | 56,303,000 | 55,132,000 | 47,282,000 |
Reduction in warranty liability | $6,900,000 | ' | ' |
Other_Balance_Sheet_Details_De3
Other Balance Sheet Details (Details 3) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total | $112,170 | $107,076 |
Less current portion | -88,550 | -79,516 |
Long-term deferred revenue | 23,620 | 27,560 |
Products | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total | 36,671 | 29,279 |
Services | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total | $75,499 | $77,797 |
Convertible_Notes_Payable_Deta
Convertible Notes Payable (Details) (USD $) | 8 Months Ended | 12 Months Ended | 0 Months Ended | 8 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||||||||||||||
Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | 1-May-13 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 18, 2010 | Dec. 27, 2012 | Mar. 15, 2010 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Dec. 27, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Jun. 11, 2007 | Oct. 31, 2013 | Dec. 27, 2012 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 18, 2010 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Jan. 31, 2013 | Oct. 31, 2013 | Dec. 27, 2012 | Jul. 31, 2013 | Dec. 27, 2012 | ||||||||
D | debtinstrument | 0.25% Convertible Senior Notes due May 1, 2013 | 0.25% Convertible Senior Notes due May 1, 2013 | 0.25% Convertible Senior Notes due May 1, 2013 | 0.25% Convertible Senior Notes due May 1, 2013 | 0.25% Convertible Senior Notes due May 1, 2013 | 4.0% Convertible Senior Notes due March 15, 2015 | 4.0% Convertible Senior Notes due March 15, 2015 | 4.0% Convertible Senior Notes due March 15, 2015 | 4.0% Convertible Senior Notes due March 15, 2015 | 4.0% Convertible Senior Notes due March 15, 2015 | 4.0% Convertible Senior Notes due March 15, 2015 | 4.0% Convertible Senior Notes due December 15, 2020 | 4.0% Convertible Senior Notes due December 15, 2020 | 4.0% Convertible Senior Notes due December 15, 2020 | 4.0% Convertible Senior Notes due December 15, 2020 | 0.875% Convertible Senior Notes due June 15, 2017 | 0.875% Convertible Senior Notes due June 15, 2017 | 0.875% Convertible Senior Notes due June 15, 2017 | 0.875% Convertible Senior Notes due June 15, 2017 | 0.875% Convertible Senior Notes due June 15, 2017 | 3.75% Convertible Senior Notes due October 15, 2018 | 3.75% Convertible Senior Notes due October 15, 2018 | 3.75% Convertible Senior Notes due October 15, 2018 | 3.75% Convertible Senior Notes due October 15, 2018 | Convertible Notes Payable | Convertible Notes Payable | Convertible Notes Payable | Convertible Notes Payable | 4.0% Convertible Senior Notes due March 15, 2015 | ||||||||||
debtinstrument | 4.0% Convertible Senior Notes due March 15, 2015 | 4.0% Convertible Senior Notes due March 15, 2015 | 4.0% Convertible Senior Notes due December 15, 2020 | 4.0% Convertible Senior Notes due December 15, 2020 | Convertible Notes Payable | |||||||||||||||||||||||||||||||||||
D | ||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Number of issuances of convertible notes payable outstanding | 4 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Minimum percentage of aggregate principal amount required to be held by trustee or holders to declare notes immediately payable | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | |||||||
Interest rate on convertible notes | ' | ' | ' | ' | 0.25% | ' | 0.25% | 0.25% | 0.25% | ' | ' | 4.00% | 4.00% | 4.00% | 4.00% | ' | 4.00% | 4.00% | 4.00% | 0.88% | 0.88% | ' | 0.88% | 0.88% | 3.75% | 3.75% | 3.75% | 3.75% | ' | 4.00% | 4.00% | ' | ' | |||||||
Aggregate principal amount | ' | ' | ' | ' | ' | $216,200,000 | ' | ' | ' | ' | $375,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | ' | ' | ' | ' | $350,000,000 | ' | ' | ' | ' | ' | $187,500,000 | ' | ' | |||||||
Debt Conversion, Original Debt, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 187,500,000 | |||||||
Amount repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 187,900,000 | |||||||
Write off of Deferred Debt Issuance Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | |||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | |||||||
Debt Instrument, Fair Value Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 213,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Gains (Losses) on Extinguishment of Debt | ' | -28,630,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,600,000 | ' | ' | ' | ' | |||||||
Number of shares converted for each $1000 principal amount (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.0557 | ' | ' | ' | ' | ' | ' | ' | ' | 26.2154 | ' | ' | ' | ' | 49.5872 | ' | ' | ' | ' | ' | 49.0557 | ' | ' | |||||||
Principal amount used for conversion of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | 1,000 | ' | ' | ' | 1,000 | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Initial conversion price per share equivalent (per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20.38 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $38.15 | ' | ' | $20.17 | ' | ' | ' | ' | ' | $20.39 | ' | ' | |||||||
Minimum number of trading days in 30 consecutive trading day period prior to redemption notice date where closing price exceeds conversion price by a minimum percentage | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | |||||||
Number of consecutive trading day period prior to redemption notice date where closing price exceeds conversion price by a minimum percentage | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | |||||||
Accretion Rate of Principal Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.85% | ' | ' | |||||||
Redemption option, closing price to conversion price, minimum percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130.00% | ' | ' | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,197,944 | ' | ' | |||||||
Discount rate used for make whole premium payment calculation | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 2,740,000 | 2,740,000 | 420,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | ' | 2,950,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net proceeds from issuance of senior convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 364,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 340,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net proceeds from convertible senior notes offering used to replace contractual obligation to issue convertible notes as part of acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 243,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net proceeds from convertible senior notes offering used to purchase call spread option on its common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net proceeds from convertible senior notes offering used to repurchase 0.25% convertible senior notes due 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Debt Instrument, Interest Rate, Effective Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | |||||||
Debt Instrument, Convertible, Fair Value of Debt Component | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 170,400,000 | ' | ' | |||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,100,000 | 43,131,000 | ' | |||||||
Carrying value and estimated current fair value of outstanding convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Carrying Value | 1,212,019,000 | 1,212,019,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 187,734,000 | [1] | 187,734,000 | [1] | ' | ' | ' | 174,285,000 | [2] | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ||||
Fair Value | $1,532,398,000 | [3] | $1,532,398,000 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | $243,867,000 | [1],[3] | $243,867,000 | [1],[3] | ' | ' | ' | $271,500,000 | [2],[3] | ' | ' | ' | $519,375,000 | [3] | ' | ' | ' | ' | $497,656,000 | [3] | ' | ' | ' | ' | ' | ' | ' |
[1] | Includes unamortized bond premium related to embedded redemption feature | |||||||||||||||||||||||||||||||||||||||
[2] | Includes unamortized discount and accretion of principal. | |||||||||||||||||||||||||||||||||||||||
[3] | The convertible notes were categorized as Level 2 in the fair value hierarchy. Ciena estimates the fair value of its outstanding convertible notes using a market approach based on observable inputs, such as current market transactions involving comparable securities. |
Convertible_Notes_Payable_Summ
Convertible Notes Payable Summary of Notes Due 2020 (Details) (Convertible Notes Payable, 4.0% Convertible Senior Notes due December 15, 2020, USD $) | Jul. 31, 2013 | Dec. 27, 2012 |
In Thousands, unless otherwise specified | ||
Convertible Notes Payable | 4.0% Convertible Senior Notes due December 15, 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, Gross | $190,456 | ' |
Debt Instrument, Unamortized Discount | 16,171 | ' |
Long-term Debt | -174,285 | ' |
Debt Instrument, Convertible, Carrying Amount of Equity Component | $43,131 | $43,100 |
Credit_Facility_Details
Credit Facility (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||
Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Aug. 13, 2012 | Oct. 31, 2012 | |
4.0% Convertible Senior Notes due March 15, 2015 | 4.0% Convertible Senior Notes due March 15, 2015 | 4.0% Convertible Senior Notes due March 15, 2015 | Convertible Notes Payable | Minimum | Minimum | Maximum | Maximum | LIBOR | LIBOR | Base Rate | Base Rate | Deutsche Bank AG New York Branch, Bank of America, N.A., and Morgan Stanley Senior Funding, Inc. and Wells Fargo Bank [Member] | Deutsche Bank AG New York Branch, Bank of America, N.A., and Morgan Stanley Senior Funding, Inc. and Wells Fargo Bank [Member] | Deutsche Bank AG New York Branch, Bank of America, N.A., and Morgan Stanley Senior Funding, Inc. and Wells Fargo Bank [Member] | Canadian Borrower [Member] | ||
4.0% Convertible Senior Notes due March 15, 2015 | Letter of Credit | Letter of Credit | Minimum | Maximum | Minimum | Maximum | Letter of Credit | Letter of Credit | Letter of Credit | Deutsche Bank AG New York Branch, Bank of America, N.A., and Morgan Stanley Senior Funding, Inc. and Wells Fargo Bank [Member] | |||||||
Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Letter of Credit | |||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Current Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150,000,000 | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' |
Line of Credit Facility, Borrowing Capacity For Canadian Dollar Denominated Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | ' | 4.00% | 4.00% | 4.00% | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit collateralized by the credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,600,000 | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 2.50% | 1.00% | 1.50% | ' | ' | ' | ' |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | ' | ' | ' | ' | ' | ' | 0.50% | ' | 0.38% | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Fixed-charge Coverage Ratio Required Per Credit Agreement | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Percent of Excess Availability For Coverage Ratio To Apply | ' | ' | ' | ' | ' | ' | ' | 12.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Of Excess Availability For Coverage Ratio To Apply | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Restriction on Aggregate of Unrestricted Cash and Cash Equivalents | ' | ' | ' | ' | ' | $200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Covenant Term, Length of Duration to Stay, Satisfy, Bond or Discharge Material Judgement | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings_Loss_Per_Share_Calcul2
Earnings (Loss) Per Share Calculation (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Numerator | ' | ' | ' |
Net loss | ($85,431) | ($144,021) | ($195,521) |
Denominator | ' | ' | ' |
Weighted average basic common shares outstanding (in shares | 102,350 | 99,341 | 95,854 |
Dilutive weighted average shares outstanding (in shares) | 102,350 | 99,341 | 95,854 |
Earning Per Share [Abstract] | ' | ' | ' |
Basic EPS (in dollars per share) | ($0.83) | ($1.45) | ($2.04) |
Diluted EPS (in dollars per share) | ($0.83) | ($1.45) | ($2.04) |
Earnings_Loss_Per_Share_Calcul3
Earnings (Loss) Per Share Calculation (Details 1) | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 18, 2010 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Jun. 11, 2007 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 18, 2010 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
0.25% Convertible Senior Notes due May 1, 2013 | 0.25% Convertible Senior Notes due May 1, 2013 | 0.25% Convertible Senior Notes due May 1, 2013 | 0.25% Convertible Senior Notes due May 1, 2013 | 4.0% Convertible Senior Notes due March 15, 2015 | 4.0% Convertible Senior Notes due March 15, 2015 | 4.0% Convertible Senior Notes due March 15, 2015 | 0.875% Convertible Senior Notes due June 15, 2017 | 0.875% Convertible Senior Notes due June 15, 2017 | 0.875% Convertible Senior Notes due June 15, 2017 | 0.875% Convertible Senior Notes due June 15, 2017 | 3.75% Convertible Senior Notes due October 15, 2018 | 3.75% Convertible Senior Notes due October 15, 2018 | 3.75% Convertible Senior Notes due October 15, 2018 | 3.75% Convertible Senior Notes due October 15, 2018 | 4.0% Convertible Senior Notes due December 15, 2020 | 4.0% Convertible Senior Notes due December 15, 2020 | 4.0% Convertible Senior Notes due December 15, 2020 | Shares underlying stock options, restricted stock units and warrants | Shares underlying stock options, restricted stock units and warrants | Shares underlying stock options, restricted stock units and warrants | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | ||||
0.25% Convertible Senior Notes due May 1, 2013 | 0.25% Convertible Senior Notes due May 1, 2013 | 0.25% Convertible Senior Notes due May 1, 2013 | 4.0% Convertible Senior Notes due March 15, 2015 | 4.0% Convertible Senior Notes due March 15, 2015 | 4.0% Convertible Senior Notes due March 15, 2015 | 0.875% Convertible Senior Notes due June 15, 2017 | 0.875% Convertible Senior Notes due June 15, 2017 | 0.875% Convertible Senior Notes due June 15, 2017 | 3.75% Convertible Senior Notes due October 15, 2018 | 3.75% Convertible Senior Notes due October 15, 2018 | 3.75% Convertible Senior Notes due October 15, 2018 | 4.0% Convertible Senior Notes due December 15, 2020 | 4.0% Convertible Senior Notes due December 15, 2020 | 4.0% Convertible Senior Notes due December 15, 2020 | |||||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total excluded due to anti-dilutive effect (in shares) | 55,431 | 60,054 | 60,470 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,890 | 5,726 | 6,142 | 2,682 | 5,470 | 5,470 | 10,541 | 18,395 | 18,395 | 13,108 | 13,108 | 13,108 | 17,355 | 17,355 | 17,355 | 7,855 | 0 | 0 |
Interest rate on convertible notes | ' | ' | ' | 0.25% | 0.25% | 0.25% | 0.25% | 4.00% | 4.00% | 4.00% | 0.88% | 0.88% | 0.88% | 0.88% | 3.75% | 3.75% | 3.75% | 3.75% | 4.00% | 4.00% | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Jun. 11, 2007 | Jun. 11, 2007 |
Minimum | Maximum | 0.875% Convertible Senior Notes due June 15, 2017 | 0.875% Convertible Senior Notes due June 15, 2017 | 0.875% Convertible Senior Notes due June 15, 2017 | 0.875% Convertible Senior Notes due June 15, 2017 | 0.875% Convertible Senior Notes due June 15, 2017 | |
June 2007 Call Spread Option | June 2007 Call Spread Option | June 2007 Call Spread Option | |||||
Option Indexed to Issuer's Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Interest rate on convertible notes | ' | ' | 0.88% | 0.88% | 0.88% | 0.88% | ' |
Payment for derivative instrument | ' | ' | ' | ' | ' | ' | $42.50 |
Option indexed to issuer's equity, settlement value in cash or net shares | $0 | $76.10 | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Current: | ' | ' | ' |
Federal | $0 | $0 | ($194) |
State | 906 | 857 | -518 |
Foreign | 4,334 | 8,465 | 8,202 |
Total current | 5,240 | 9,322 | 7,490 |
Deferred: | ' | ' | ' |
Federal | 0 | 0 | 160 |
State | 0 | 0 | 23 |
Foreign | 0 | 0 | 0 |
Total deferred | 0 | 0 | 183 |
Provision for income taxes | $5,240 | $9,322 | $7,673 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Income (loss) before provision (benefit) for income taxes: | ' | ' | ' |
United States | ($59,594) | ($151,958) | ($240,244) |
Foreign | -20,597 | 17,259 | 52,396 |
Loss before income taxes | ($80,191) | ($134,699) | ($187,848) |
Income_Taxes_Details_2
Income Taxes (Details 2) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Income tax rate reconciliation: | ' | ' | ' |
Provision at statutory rate | 35.00% | 35.00% | 35.00% |
State taxes | -1.13% | -0.64% | 0.27% |
Foreign taxes | -12.70% | -5.09% | 2.32% |
Research and development credit | 17.39% | 10.21% | 11.03% |
Non-deductible loss on debt extinguishment | -11.21% | 0.00% | 0.00% |
Non-deductible compensation and other | -8.78% | -4.92% | -3.96% |
Valuation allowance | -25.10% | -41.48% | -48.74% |
Effective income tax rate | -6.53% | -6.92% | -4.08% |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Deferred tax assets: | ' | ' | ' | ' |
Reserves and accrued liabilities | $44,515 | $44,128 | ' | ' |
Depreciation and amortization | 274,468 | 276,710 | ' | ' |
NOL and credit carry forward | 1,159,494 | 1,142,647 | ' | ' |
Other | 8,822 | 25,509 | ' | ' |
Gross deferred tax assets | 1,487,299 | 1,488,994 | ' | ' |
Valuation allowance | -1,487,299 | -1,488,994 | -1,467,411 | -1,363,493 |
Net deferred tax asset | $0 | $0 | ' | ' |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties | ' | ' | ' |
Unrecognized tax benefits, beginning balance | $11,052 | $8,590 | $7,442 |
Unrecognized tax benefits, decrease resulting from prior period tax positions | -3,925 | -12 | -450 |
Increase related to positions taken in current period | 2,146 | 2,866 | 1,847 |
Reductions related to expiration of statute of limitations | -994 | -392 | -249 |
Unrecognized tax benefits, ending balance | $8,279 | $11,052 | $8,590 |
Income_Taxes_Details_5
Income Taxes (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Valuation allowance against gross deferred tax assets: | ' | ' | ' |
Valuation allowance, beginning balance | $1,488,994 | $1,467,411 | $1,363,493 |
Additions | 0 | 21,583 | 103,918 |
Deductions | 1,695 | 0 | 0 |
Valuation allowance, ending balance | $1,487,299 | $1,488,994 | $1,467,411 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Unrecognized tax benefits, interest and penalties accrued | $1,400,000 | $1,400,000 | ' |
Unrecognized tax benefits, interest and penalties (benefit) expense | 0 | 300,000 | -300,000 |
Net operating loss carryforwards subject to expiration | 2,800,000,000 | ' | ' |
Income tax credit carryforwards subject to expiration | 100,000,000 | ' | ' |
Cumulative tax benefit credited to additional paid in capital, equity compensation and call spread option | $79,000,000 | ' | ' |
ShareBased_Compensation_Expens2
Share-Based Compensation Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Summary of stock option activity | ' | ' | ' |
Shares Underlying Options Outstanding, Beginning Balance (in shares) | 3,207 | 3,690 | 5,002 |
Shares Underlying Options Outstanding, Granted (in shares) | 0 | 0 | 0 |
Shares Underlying Options Outstanding, Exercised (in shares) | -246 | -56 | -411 |
Shares Underlying Options Outstanding, Canceled (in shares) | -859 | -427 | -901 |
Shares Underlying Options Outstanding, Ending Balance (in shares) | 2,102 | 3,207 | 3,690 |
Options Outstanding Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Weighted Average Exercise Price, Beginning Balance (per share) | $27.58 | $30.01 | $40.96 |
Weighted Average Exercise Price, Granted (per share) | $0 | $0 | $0 |
Weighted Average Exercise Price, Exercised (per share) | $13.81 | $6.72 | $14.88 |
Weighted Average Exercise Price, Canceled (per share) | $31.83 | $51.28 | $97.64 |
Weighted Average Exercise Price, Ending Balance (per share) | $27.46 | $27.58 | $30.01 |
ShareBased_Compensation_Expens3
Share-Based Compensation Expense (Details 1) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2010 |
Summarizes information with respect to stock options outstanding | ' | ' | ' | ' |
Range of Exercise Price, Lower (in dollars per share) | $0.94 | ' | ' | ' |
Range of Exercise Price, Upper (in dollars per share) | $55.79 | ' | ' | ' |
Number of Shares, Options Outstanding (in shares) | 2,102 | ' | ' | ' |
Weighted Average, Outstanding Options Remaining Contractual Life (Years) | '2 years 4 months 6 days | ' | ' | ' |
Weighted Average Exercise Price, Options Outstanding (per share) | $27.46 | $27.58 | $30.01 | $40.96 |
Aggregate Intrinsic Value, Options Outstanding | $5,959 | ' | ' | ' |
Number of Shares, Vested Options (in shares) | 2,101 | ' | ' | ' |
Weighted Average, Vested Options Remaining Contractual Life (Years) | '2 years 4 months 6 days | ' | ' | ' |
Weighted Average Exercise Price, Vested Options (per share) | $27.47 | ' | ' | ' |
Aggregate Intrinsic Value, Vested Options | 5,945 | ' | ' | ' |
$0.94 to $16.31 | ' | ' | ' | ' |
Summarizes information with respect to stock options outstanding | ' | ' | ' | ' |
Range of Exercise Price, Lower (in dollars per share) | $0.94 | ' | ' | ' |
Range of Exercise Price, Upper (in dollars per share) | $16.31 | ' | ' | ' |
Number of Shares, Options Outstanding (in shares) | 197 | ' | ' | ' |
Weighted Average, Outstanding Options Remaining Contractual Life (Years) | '4 years 1 month 10 days | ' | ' | ' |
Weighted Average Exercise Price, Options Outstanding (per share) | $8.62 | ' | ' | ' |
Aggregate Intrinsic Value, Options Outstanding | 2,893 | ' | ' | ' |
Number of Shares, Vested Options (in shares) | 196 | ' | ' | ' |
Weighted Average, Vested Options Remaining Contractual Life (Years) | '4 years 1 month 2 days | ' | ' | ' |
Weighted Average Exercise Price, Vested Options (per share) | $8.60 | ' | ' | ' |
Aggregate Intrinsic Value, Vested Options | 2,879 | ' | ' | ' |
$16.52 to $17.29 | ' | ' | ' | ' |
Summarizes information with respect to stock options outstanding | ' | ' | ' | ' |
Range of Exercise Price, Lower (in dollars per share) | $16.52 | ' | ' | ' |
Range of Exercise Price, Upper (in dollars per share) | $17.29 | ' | ' | ' |
Number of Shares, Options Outstanding (in shares) | 300 | ' | ' | ' |
Weighted Average, Outstanding Options Remaining Contractual Life (Years) | '1 year 8 months 5 days | ' | ' | ' |
Weighted Average Exercise Price, Options Outstanding (per share) | $16.64 | ' | ' | ' |
Aggregate Intrinsic Value, Options Outstanding | 1,981 | ' | ' | ' |
Number of Shares, Vested Options (in shares) | 300 | ' | ' | ' |
Weighted Average, Vested Options Remaining Contractual Life (Years) | '1 year 8 months 5 days | ' | ' | ' |
Weighted Average Exercise Price, Vested Options (per share) | $16.64 | ' | ' | ' |
Aggregate Intrinsic Value, Vested Options | 1,981 | ' | ' | ' |
$17.43 to $24.50 | ' | ' | ' | ' |
Summarizes information with respect to stock options outstanding | ' | ' | ' | ' |
Range of Exercise Price, Lower (in dollars per share) | $17.43 | ' | ' | ' |
Range of Exercise Price, Upper (in dollars per share) | $24.50 | ' | ' | ' |
Number of Shares, Options Outstanding (in shares) | 403 | ' | ' | ' |
Weighted Average, Outstanding Options Remaining Contractual Life (Years) | '1 year 5 months 16 days | ' | ' | ' |
Weighted Average Exercise Price, Options Outstanding (per share) | $20.60 | ' | ' | ' |
Aggregate Intrinsic Value, Options Outstanding | 1,085 | ' | ' | ' |
Number of Shares, Vested Options (in shares) | 403 | ' | ' | ' |
Weighted Average, Vested Options Remaining Contractual Life (Years) | '1 year 5 months 16 days | ' | ' | ' |
Weighted Average Exercise Price, Vested Options (per share) | $20.60 | ' | ' | ' |
Aggregate Intrinsic Value, Vested Options | 1,085 | ' | ' | ' |
$24.69 to $28.28 | ' | ' | ' | ' |
Summarizes information with respect to stock options outstanding | ' | ' | ' | ' |
Range of Exercise Price, Lower (in dollars per share) | $24.69 | ' | ' | ' |
Range of Exercise Price, Upper (in dollars per share) | $28.28 | ' | ' | ' |
Number of Shares, Options Outstanding (in shares) | 347 | ' | ' | ' |
Weighted Average, Outstanding Options Remaining Contractual Life (Years) | '3 years 0 months 4 days | ' | ' | ' |
Weighted Average Exercise Price, Options Outstanding (per share) | $27.02 | ' | ' | ' |
Aggregate Intrinsic Value, Options Outstanding | 0 | ' | ' | ' |
Number of Shares, Vested Options (in shares) | 347 | ' | ' | ' |
Weighted Average, Vested Options Remaining Contractual Life (Years) | '3 years 0 months 4 days | ' | ' | ' |
Weighted Average Exercise Price, Vested Options (per share) | $27.02 | ' | ' | ' |
Aggregate Intrinsic Value, Vested Options | 0 | ' | ' | ' |
$28.61 to $31.43 | ' | ' | ' | ' |
Summarizes information with respect to stock options outstanding | ' | ' | ' | ' |
Range of Exercise Price, Lower (in dollars per share) | $28.61 | ' | ' | ' |
Range of Exercise Price, Upper (in dollars per share) | $31.43 | ' | ' | ' |
Number of Shares, Options Outstanding (in shares) | 157 | ' | ' | ' |
Weighted Average, Outstanding Options Remaining Contractual Life (Years) | '2 years 8 months 12 days | ' | ' | ' |
Weighted Average Exercise Price, Options Outstanding (per share) | $29.53 | ' | ' | ' |
Aggregate Intrinsic Value, Options Outstanding | 0 | ' | ' | ' |
Number of Shares, Vested Options (in shares) | 157 | ' | ' | ' |
Weighted Average, Vested Options Remaining Contractual Life (Years) | '2 years 8 months 12 days | ' | ' | ' |
Weighted Average Exercise Price, Vested Options (per share) | $29.53 | ' | ' | ' |
Aggregate Intrinsic Value, Vested Options | 0 | ' | ' | ' |
$31.71 to $32.55 | ' | ' | ' | ' |
Summarizes information with respect to stock options outstanding | ' | ' | ' | ' |
Range of Exercise Price, Lower (in dollars per share) | $31.71 | ' | ' | ' |
Range of Exercise Price, Upper (in dollars per share) | $32.55 | ' | ' | ' |
Number of Shares, Options Outstanding (in shares) | 21 | ' | ' | ' |
Weighted Average, Outstanding Options Remaining Contractual Life (Years) | '4 years 1 month 17 days | ' | ' | ' |
Weighted Average Exercise Price, Options Outstanding (per share) | $31.92 | ' | ' | ' |
Aggregate Intrinsic Value, Options Outstanding | 0 | ' | ' | ' |
Number of Shares, Vested Options (in shares) | 21 | ' | ' | ' |
Weighted Average, Vested Options Remaining Contractual Life (Years) | '4 years 1 month 17 days | ' | ' | ' |
Weighted Average Exercise Price, Vested Options (per share) | $31.92 | ' | ' | ' |
Aggregate Intrinsic Value, Vested Options | 0 | ' | ' | ' |
$33.00 to $37.10 | ' | ' | ' | ' |
Summarizes information with respect to stock options outstanding | ' | ' | ' | ' |
Range of Exercise Price, Lower (in dollars per share) | $33 | ' | ' | ' |
Range of Exercise Price, Upper (in dollars per share) | $37.10 | ' | ' | ' |
Number of Shares, Options Outstanding (in shares) | 288 | ' | ' | ' |
Weighted Average, Outstanding Options Remaining Contractual Life (Years) | '3 years 6 months 18 days | ' | ' | ' |
Weighted Average Exercise Price, Options Outstanding (per share) | $35.17 | ' | ' | ' |
Aggregate Intrinsic Value, Options Outstanding | 0 | ' | ' | ' |
Number of Shares, Vested Options (in shares) | 288 | ' | ' | ' |
Weighted Average, Vested Options Remaining Contractual Life (Years) | '3 years 6 months 18 days | ' | ' | ' |
Weighted Average Exercise Price, Vested Options (per share) | $35.17 | ' | ' | ' |
Aggregate Intrinsic Value, Vested Options | 0 | ' | ' | ' |
$37.31 to $47.32 | ' | ' | ' | ' |
Summarizes information with respect to stock options outstanding | ' | ' | ' | ' |
Range of Exercise Price, Lower (in dollars per share) | $37.31 | ' | ' | ' |
Range of Exercise Price, Upper (in dollars per share) | $47.32 | ' | ' | ' |
Number of Shares, Options Outstanding (in shares) | 378 | ' | ' | ' |
Weighted Average, Outstanding Options Remaining Contractual Life (Years) | '1 year 2 months 16 days | ' | ' | ' |
Weighted Average Exercise Price, Options Outstanding (per share) | $45.99 | ' | ' | ' |
Aggregate Intrinsic Value, Options Outstanding | 0 | ' | ' | ' |
Number of Shares, Vested Options (in shares) | 378 | ' | ' | ' |
Weighted Average, Vested Options Remaining Contractual Life (Years) | '1 year 2 months 16 days | ' | ' | ' |
Weighted Average Exercise Price, Vested Options (per share) | $45.99 | ' | ' | ' |
Aggregate Intrinsic Value, Vested Options | 0 | ' | ' | ' |
$47.53 to $55.79 | ' | ' | ' | ' |
Summarizes information with respect to stock options outstanding | ' | ' | ' | ' |
Range of Exercise Price, Lower (in dollars per share) | $47.53 | ' | ' | ' |
Range of Exercise Price, Upper (in dollars per share) | $55.79 | ' | ' | ' |
Number of Shares, Options Outstanding (in shares) | 11 | ' | ' | ' |
Weighted Average, Outstanding Options Remaining Contractual Life (Years) | '0 years 1 month 6 days | ' | ' | ' |
Weighted Average Exercise Price, Options Outstanding (per share) | $49.64 | ' | ' | ' |
Aggregate Intrinsic Value, Options Outstanding | 0 | ' | ' | ' |
Number of Shares, Vested Options (in shares) | 11 | ' | ' | ' |
Weighted Average, Vested Options Remaining Contractual Life (Years) | '0 years 1 month 6 days | ' | ' | ' |
Weighted Average Exercise Price, Vested Options (per share) | $49.64 | ' | ' | ' |
Aggregate Intrinsic Value, Vested Options | $0 | ' | ' | ' |
ShareBased_Compensation_Expens4
Share-Based Compensation Expense (Details 2) (Restricted Stock Units (RSUs), USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2010 |
Restricted Stock Units (RSUs) | ' | ' | ' | ' |
Summary of Restricted Stock Unit Activity | ' | ' | ' | ' |
Restricted shares outstanding, Beginning Balance | 4,403 | 4,298 | 5,191 | ' |
Restricted Stock Units Outstanding, Granted | 2,508 | 2,433 | 2,064 | ' |
Restricted Stock Units Outstanding, Vested | -1,920 | -1,912 | -2,466 | ' |
Restricted Stock Units Outstanding, Canceled or forfeited | -572 | -416 | -491 | ' |
Restricted shares outstanding, Ending Balance | 4,419 | 4,403 | 4,298 | ' |
Weighted Average Grant Date Fair Value Per Share | $15.33 | $14.16 | $16.28 | $13.81 |
Aggregate Fair Value | $102,745 | $56,267 | $59,399 | $71,681 |
ShareBased_Compensation_Expens5
Share-Based Compensation Expense (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Share-based compensation expense | ' | ' | ' |
Share-based compensation expense capitalized in inventory, net | ($132) | ($47) | $1 |
Total share-based compensation | 37,720 | 32,394 | 37,930 |
Share-based compensation expense included in cost of goods sold | ' | ' | ' |
Share-based compensation expense | ' | ' | ' |
Allocated Share-based Compensation Expense | 4,293 | 3,618 | 4,150 |
Product costs | ' | ' | ' |
Share-based compensation expense | ' | ' | ' |
Allocated Share-based Compensation Expense | 2,522 | 2,156 | 2,269 |
Service costs | ' | ' | ' |
Share-based compensation expense | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,771 | 1,462 | 1,881 |
Share-based compensation expense included in operating expense | ' | ' | ' |
Share-based compensation expense | ' | ' | ' |
Allocated Share-based Compensation Expense | 33,559 | 28,823 | 33,779 |
Research and development | ' | ' | ' |
Share-based compensation expense | ' | ' | ' |
Allocated Share-based Compensation Expense | 8,214 | 8,567 | 10,149 |
Sales and marketing | ' | ' | ' |
Share-based compensation expense | ' | ' | ' |
Allocated Share-based Compensation Expense | 13,290 | 11,558 | 12,182 |
General and administrative | ' | ' | ' |
Share-based compensation expense | ' | ' | ' |
Allocated Share-based Compensation Expense | 12,055 | 8,691 | 11,140 |
Acquisition and integration costs | ' | ' | ' |
Share-based compensation expense | ' | ' | ' |
Allocated Share-based Compensation Expense | $0 | $7 | $308 |
ShareBased_Compensation_Expens6
Share-Based Compensation Expense (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized share-based compensation | $55.90 | ' | ' |
Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of service-based awards | '4 years | ' | ' |
Intrinsic value of option exercised | 2 | 0.5 | 3.4 |
Restricted Stock Units (RSUs) | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total fair value of restricted stock units vested and converted into common stock | $37.30 | $27 | $45.30 |
Weighted average fair value of each restricted stock unit granted (per share) | $16.30 | $11.28 | $19.73 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 5 months | ' | ' |
Restricted Stock Units (RSUs) | Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of service-based awards | '3 years | ' | ' |
Restricted Stock Units (RSUs) | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period of service-based awards | '4 years | ' | ' |
2008 Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares of common stock reserved for future issuance | 18,500,000 | ' | ' |
Fungible share ratio used for counting full value awards, subsequent to amendment | 1.31 | ' | ' |
Remaining authorized shares available for issuance | 4,900,000 | ' | ' |
2008 Plan | Employee Stock | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Remaining authorized shares available for issuance | 7,200,000 | ' | ' |
2008 Plan | Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Awards maximum term (in years) | '10 years | ' | ' |
Date of grant exercise price minimum percentage of fair market value | 100.00% | ' | ' |
2008 Plan | Stock Appreciation Rights (SARs) | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Awards maximum term (in years) | '10 years | ' | ' |
Date of grant exercise price minimum percentage of fair market value | 100.00% | ' | ' |
2003 Employee Stock Purchase Plan | Employee Stock | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Offer period | '12 months | ' | ' |
Number of purchase periods in offer period | 2 | ' | ' |
Purchase period | '6 months | ' | ' |
ESPP discount percentage purchase date | 85.00% | ' | ' |
Maximum number of shares increase under ESPP | 600,000 | ' | ' |
Shares issued under ESPP | 900,000 | 1,200,000 | 500,000 |
2003 Employee Stock Purchase Plan | Employee Stock | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares authorized for issuance under plan | 8,200,000 | ' | ' |
Segment_and_Entity_Wide_Disclo2
Segment and Entity Wide Disclosures (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Revenue: | ' | ' | ' |
Revenue | $2,082,546 | $1,833,923 | $1,741,970 |
Segment profit (loss) and the reconciliation to consolidated net income (loss) | ' | ' | ' |
Segment profit (loss) | 481,767 | 360,045 | 329,284 |
Less: non-performance operating expenses | ' | ' | ' |
Selling and marketing | 304,170 | 266,338 | 251,990 |
General and administrative | 122,432 | 114,002 | 126,242 |
Acquisition and integration costs | 0 | 0 | 42,088 |
Amortization of intangible assets | 49,771 | 51,697 | 69,665 |
Restructuring costs | 7,169 | 7,854 | 5,781 |
Change in fair value of contingent consideration | 0 | 0 | -3,289 |
Add: other non-performance financial items | ' | ' | ' |
Interest expense and other income (loss), net | -49,786 | -54,853 | -31,904 |
Gain on cost method investments | 0 | 0 | 7,249 |
Loss on extinguishment of debt | -28,630 | 0 | 0 |
Less: Provision for income taxes | 5,240 | 9,322 | 7,673 |
Net loss | -85,431 | -144,021 | -195,521 |
Converged Packet Optical | ' | ' | ' |
Revenue: | ' | ' | ' |
Revenue | 1,187,231 | 951,245 | 734,326 |
Segment profit (loss) and the reconciliation to consolidated net income (loss) | ' | ' | ' |
Segment profit (loss) | 242,335 | 148,244 | 51,514 |
Packet Networking | ' | ' | ' |
Revenue: | ' | ' | ' |
Revenue | 222,898 | 128,982 | 126,981 |
Segment profit (loss) and the reconciliation to consolidated net income (loss) | ' | ' | ' |
Segment profit (loss) | 22,740 | 1,713 | 17,714 |
Optical Transport | ' | ' | ' |
Revenue: | ' | ' | ' |
Revenue | 233,821 | 353,620 | 535,877 |
Segment profit (loss) and the reconciliation to consolidated net income (loss) | ' | ' | ' |
Segment profit (loss) | 89,754 | 116,736 | 189,497 |
Software and Services | ' | ' | ' |
Revenue: | ' | ' | ' |
Revenue | 438,596 | 400,076 | 344,786 |
Segment profit (loss) and the reconciliation to consolidated net income (loss) | ' | ' | ' |
Segment profit (loss) | $126,938 | $93,352 | $70,559 |
Segment_and_Entity_Wide_Disclo3
Segment and Entity Wide Disclosures (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Ciena's geographic distribution of revenue | ' | ' | ' |
Revenue | $2,082,546 | $1,833,923 | $1,741,970 |
Ciena's geographic distribution of equipment, furniture and fixtures | ' | ' | ' |
Equipment, furniture and fixtures, net | 119,729 | 123,580 | 122,558 |
United States | ' | ' | ' |
Ciena's geographic distribution of revenue | ' | ' | ' |
Revenue | 1,217,462 | 972,576 | 930,880 |
Ciena's geographic distribution of equipment, furniture and fixtures | ' | ' | ' |
Equipment, furniture and fixtures, net | 64,132 | 64,653 | 60,848 |
International | ' | ' | ' |
Ciena's geographic distribution of revenue | ' | ' | ' |
Revenue | 865,084 | 861,347 | 811,090 |
Canada | ' | ' | ' |
Ciena's geographic distribution of equipment, furniture and fixtures | ' | ' | ' |
Equipment, furniture and fixtures, net | 43,772 | 48,376 | 47,424 |
Other International | ' | ' | ' |
Ciena's geographic distribution of equipment, furniture and fixtures | ' | ' | ' |
Equipment, furniture and fixtures, net | $11,825 | $10,551 | $14,286 |
Segment_and_Entity_Wide_Disclo4
Segment and Entity Wide Disclosures (Details 2) (AT&T, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
AT&T | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Revenue | $373,617 | $248,123 | $269,858 |
Other_Employee_Benefit_Plans_D
Other Employee Benefit Plans (Details) | 12 Months Ended | |||||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Defined Contribution Pension Plan Canada | Defined Contribution Pension Plan Canada | Defined Contribution Pension Plan Canada | Defined Contribution Profit Sharing Plan | Defined Contribution Profit Sharing Plan | Defined Contribution Profit Sharing Plan | |
CAD | CAD | CAD | USD ($) | USD ($) | USD ($) | |
Schedule of Defined Contribution Pension And Other Postretirement Plans Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Maximum total employee and employer contribution percentage | 18.00% | ' | ' | ' | ' | ' |
Maximum total employee and employer contribution amount | 24,270 | ' | ' | ' | ' | ' |
Required employer contribution percent | 1.00% | ' | ' | ' | ' | ' |
Maximum employer annual contribution amount per employee | 3,000 | ' | ' | ' | ' | ' |
Employer matching percentage for eligible employee contribution | 50.00% | ' | ' | 50.00% | ' | ' |
Employer matching contributions | 3,900,000 | 4,000,000 | 4,300,000 | $4,000,000 | $4,100,000 | $3,900,000 |
Maximum employee contribution percentage of pre-tax compensation | ' | ' | ' | 60.00% | ' | ' |
Percentage of employee contribution with 50% employer matching contribution | ' | ' | ' | 6.00% | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (Ontario Grant, CAD) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Ontario Grant | ' | ' | ' | ' |
Gain Contingencies [Line Items] | ' | ' | ' | ' |
Grant amount | 25,000,000 | ' | ' | ' |
Grant period | 'November 1, 2010 to October 31, 2015 | ' | ' | ' |
Annual disbursements | 5,000,000 | ' | ' | ' |
Benefit recorded to date | ' | 5,500,000 | 5,600,000 | 5,300,000 |
Grants receivable | ' | 2,600,000 | 2,500,000 | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 1) (Foreign Tax Contingencies, USD $) | Oct. 31, 2012 |
In Millions, unless otherwise specified | |
Foreign Tax Contingencies | ' |
Income Tax Examination [Line Items] | ' |
Accrued liabilities related to contingencies | $1.70 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details 2) (USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | Jul. 26, 2013 | Mar. 16, 2012 | 29-May-08 |
Cheetah Omni LLC | Graywire LLC | Graywire LLC | |
claim | defendant | ||
Loss Contingencies [Line Items] | ' | ' | ' |
Litigation Settlement, Amount | $1.50 | ' | ' |
Loss Contingency, Number of Defendants Other than Reporting Entity | ' | ' | 4 |
Loss Contingency, Claims Settled, Number | ' | 2 | ' |
Commitments_and_Contingencies_4
Commitments and Contingencies (Details 3) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Future annual minimum rental commitments under non-cancelable operating leases: | ' | ' | ' |
2014 | $30,939,000 | ' | ' |
2015 | 27,287,000 | ' | ' |
2016 | 24,198,000 | ' | ' |
2017 | 18,384,000 | ' | ' |
2018 | 8,655,000 | ' | ' |
Thereafter | 50,158,000 | ' | ' |
Total | 159,621,000 | ' | ' |
Operating lease, rental expense | ' | ' | ' |
Rental expense | 26,000,000 | 21,700,000 | 25,500,000 |
Restructured Facilities and Unfavorable Lease | ' | ' | ' |
Operating lease, rental expense | ' | ' | ' |
Rental expense | $1,600,000 | $1,400,000 | $2,400,000 |