Cover
Cover - shares | 9 Months Ended | |
Jul. 31, 2021 | Sep. 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36250 | |
Entity Registrant Name | Ciena Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 23-2725311 | |
Entity Address, Address Line One | 7035 Ridge Road | |
Entity Address, City or Town | Hanover | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 21076 | |
City Area Code | 410 | |
Local Phone Number | 694-5700 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | CIEN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 154,929,206 | |
Entity Central Index Key | 0000936395 | |
Current Fiscal Year End Date | --10-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Revenue: | ||||
Total revenue | $ 988,141 | $ 976,712 | $ 2,579,198 | $ 2,703,677 |
Cost of goods sold: | ||||
Total cost of goods sold | 513,591 | 512,031 | 1,334,338 | 1,455,135 |
Gross profit | 474,550 | 464,681 | 1,244,860 | 1,248,542 |
Operating expenses: | ||||
Research and development | 146,225 | 130,221 | 389,212 | 392,651 |
Selling and marketing | 114,924 | 94,763 | 322,589 | 303,043 |
General and administrative | 48,863 | 41,635 | 132,491 | 126,133 |
Significant asset impairments and restructuring costs | 9,789 | 6,515 | 23,865 | 14,798 |
Amortization of intangible assets | 5,967 | 5,840 | 17,896 | 17,532 |
Acquisition and integration costs (recoveries) | 259 | (2,329) | 860 | 904 |
Total operating expenses | 326,027 | 276,645 | 886,913 | 855,061 |
Income from operations | 148,523 | 188,036 | 357,947 | 393,481 |
Interest and other income (loss), net | 795 | 232 | (1,600) | 1,213 |
Interest expense | (7,776) | (7,251) | (22,921) | (23,926) |
Loss on extinguishment and modification of debt | 0 | 0 | 0 | (646) |
Income before income taxes | 141,542 | 181,017 | 333,426 | 370,122 |
Provision (benefit) for income taxes | (96,690) | 38,750 | (63,271) | 73,872 |
Net income | $ 238,232 | $ 142,267 | $ 396,697 | $ 296,250 |
Basic net income per common share (in dollars per share) | $ 1.53 | $ 0.92 | $ 2.55 | $ 1.92 |
Diluted net income per potential common share (in dollars per share) | $ 1.52 | $ 0.91 | $ 2.53 | $ 1.90 |
Weighted average basic common shares outstanding (in shares) | 155,271 | 154,184 | 155,277 | 154,136 |
Weighted average dilutive potential common shares outstanding (in shares) | 156,744 | 156,318 | 156,742 | 155,741 |
Products | ||||
Revenue: | ||||
Total revenue | $ 804,414 | $ 819,022 | $ 2,071,677 | $ 2,246,129 |
Cost of goods sold: | ||||
Total cost of goods sold | 420,236 | 436,227 | 1,074,935 | 1,230,378 |
Services | ||||
Revenue: | ||||
Total revenue | 183,727 | 157,690 | 507,521 | 457,548 |
Cost of goods sold: | ||||
Total cost of goods sold | $ 93,355 | $ 75,804 | $ 259,403 | $ 224,757 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME GAIN (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Net income | $ 238,232 | $ 142,267 | $ 396,697 | $ 296,250 |
Change in unrealized gain (loss) on available-for-sale securities, net of tax | (21) | (241) | (28) | 69 |
Change in cumulative translation adjustments | (6,823) | 15,169 | 19,439 | (6,321) |
Other comprehensive gain (loss) | (9,990) | 21,197 | 30,728 | (18,105) |
Total comprehensive income | 228,242 | 163,464 | 427,425 | 278,145 |
Change in unrealized gain (loss) on foreign currency forward contracts, net of tax | ||||
Change in unrealized gain (loss) on foreign currency forward contracts and forward starting interest rate swaps, net of tax | (4,766) | 6,245 | 5,667 | (1,773) |
Change in unrealized gain (loss) on forward starting interest rate swaps, net of tax | ||||
Change in unrealized gain (loss) on foreign currency forward contracts and forward starting interest rate swaps, net of tax | $ 1,620 | $ 24 | $ 5,650 | $ (10,080) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,230,441 | $ 1,088,624 |
Short-term investments | 182,010 | 150,667 |
Accounts receivable, net of allowance for credit losses of $9.9 million and $10.6 million as of July 31, 2021 and October 31, 2020, respectively. | 878,229 | 719,405 |
Inventories, net | 370,170 | 344,379 |
Prepaid expenses and other | 323,283 | 308,084 |
Total current assets | 2,984,133 | 2,611,159 |
Long-term investments | 60,888 | 82,226 |
Equipment, building, furniture and fixtures, net | 288,937 | 272,377 |
Operating right-of-use assets | 48,937 | 57,026 |
Goodwill | 311,569 | 310,847 |
Other intangible assets, net | 73,974 | 96,647 |
Deferred tax asset, net | 784,702 | 647,805 |
Other long-term assets | 102,728 | 102,830 |
Total assets | 4,655,868 | 4,180,917 |
Current liabilities: | ||
Accounts payable | 301,606 | 291,904 |
Accrued liabilities and other short-term obligations | 373,291 | 334,132 |
Deferred revenue | 126,179 | 108,700 |
Operating lease liabilities | 19,085 | 19,035 |
Current portion of long-term debt | 6,930 | 6,930 |
Total current liabilities | 827,091 | 760,701 |
Long-term deferred revenue | 57,720 | 49,663 |
Other long-term obligations | 123,731 | 123,185 |
Long-term operating lease liabilities | 51,235 | 61,415 |
Long-term debt, net | 671,855 | 676,356 |
Total liabilities | 1,731,632 | 1,671,320 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
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; 155,103,315 and 154,563,005 shares issued and outstanding | 1,551 | 1,546 |
Additional paid-in capital | 6,815,946 | 6,826,531 |
Accumulated other comprehensive loss | (4,630) | (35,358) |
Accumulated deficit | (3,888,631) | (4,283,122) |
Total stockholders’ equity | 2,924,236 | 2,509,597 |
Total liabilities and stockholders’ equity | $ 4,655,868 | $ 4,180,917 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 9.9 | $ 10.6 |
Stockholders’ equity: | ||
Preferred stock par value per share (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 per share (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) | 155,103,315 | 154,563,005 |
Common stock shares outstanding (in shares) | 155,103,315 | 154,563,005 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2021 | Aug. 01, 2020 | |
Cash flows provided by operating activities: | ||
Net income | $ 396,697 | $ 296,250 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements | 71,918 | 70,370 |
Share-based compensation costs | 62,970 | 50,838 |
Amortization of intangible assets | 27,341 | 29,035 |
Deferred taxes | (139,543) | 57,636 |
Provision for inventory excess and obsolescence | 13,460 | 20,176 |
Provision for warranty | 12,726 | 19,172 |
Other | 6,350 | 15,085 |
Changes in assets and liabilities: | ||
Accounts receivable | (163,149) | (6,688) |
Inventories | (38,821) | (39,568) |
Prepaid expenses and other | (17,272) | (52,945) |
Operating lease right-of-use assets | 12,340 | 12,816 |
Accounts payable, accruals and other obligations | 31,388 | (131,647) |
Deferred revenue | 24,969 | (19,039) |
Short- and long-term operating lease liabilities | (14,618) | (15,132) |
Net cash provided by operating activities | 286,756 | 306,359 |
Cash flows used in investing activities: | ||
Payments for equipment, furniture, fixtures and intellectual property | (67,290) | (61,333) |
Purchase of available-for-sale securities | (132,895) | (39,859) |
Proceeds from maturities of available-for-sale securities | 122,063 | 90,000 |
Settlement of foreign currency forward contracts, net | 7,326 | 3,067 |
Acquisition of business, net of cash acquired | 0 | (28,300) |
Proceeds from sale of equity investment | 4,678 | 0 |
Net cash used in investing activities | (66,118) | (36,425) |
Cash flows used in financing activities: | ||
Payment of long-term debt | (5,197) | (3,465) |
Payment of debt issuance costs | 0 | (382) |
Payment of finance lease obligations | (2,243) | (2,030) |
Shares repurchased for tax withholdings on vesting of stock unit awards | (36,484) | (26,328) |
Repurchases of common stock - repurchase program | (64,555) | (74,535) |
Proceeds from issuance of common stock | 28,289 | 27,986 |
Net cash used in financing activities | (80,190) | (78,754) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,344 | (1,526) |
Net increase in cash, cash equivalents and restricted cash | 141,792 | 189,654 |
Cash, cash equivalents and restricted cash at beginning of period | 1,088,708 | 904,161 |
Cash, cash equivalents and restricted cash at end of period | 1,230,500 | 1,093,815 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for interest | 22,392 | 25,278 |
Cash paid during the period for income taxes, net | 46,165 | 41,316 |
Operating lease payments | 16,162 | 16,762 |
Non-cash investing and financing activities | ||
Purchase of equipment in accounts payable | 5,517 | 4,200 |
Repurchase of common stock in accrued liabilities from repurchase program | 800 | 0 |
Operating lease right-of-use assets subject to lease liability | $ 4,182 | $ 11,404 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock Shares | Additional Paid-in-Capital | Accumulated Other Comprehensive Gain (Loss) | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Nov. 02, 2019 | 154,403,850 | ||||||
Equity - beginning balance at Nov. 02, 2019 | $ 2,172,761 | $ 1,544 | $ 6,837,714 | $ (22,084) | $ (4,644,413) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 296,250 | 296,250 | |||||
Other comprehensive income (loss) | (18,105) | (18,105) | |||||
Repurchase of common stock - repurchase program (in shares) | (1,872,446) | ||||||
Repurchase of common stock - repurchase program | (74,535) | $ (19) | (74,516) | ||||
Issuance of shares from employee equity plans (in shares) | 2,392,414 | ||||||
Issuance of shares from employee equity plans | 27,986 | $ 24 | 27,962 | ||||
Share-based compensation expense | 50,838 | 50,838 | |||||
Shares repurchased for tax withholdings on vesting of stock unit awards (in shares) | (605,621) | ||||||
Shares repurchased for tax withholdings on vesting of stock unit awards | (26,328) | $ (6) | (26,322) | ||||
Ending balance (in shares) at Aug. 01, 2020 | 154,318,197 | ||||||
Equity- ending balance at Aug. 01, 2020 | 2,428,867 | $ 1,543 | 6,815,676 | (40,189) | (4,348,163) | ||
Beginning balance (in shares) at Nov. 02, 2019 | 154,403,850 | ||||||
Equity - beginning balance at Nov. 02, 2019 | $ 2,172,761 | $ 1,544 | 6,837,714 | (22,084) | (4,644,413) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Ending balance (in shares) at Oct. 31, 2020 | 154,563,005 | 154,563,005 | |||||
Equity- ending balance at Oct. 31, 2020 | $ 2,509,597 | $ (2,206) | $ 1,546 | 6,826,531 | (35,358) | (4,283,122) | $ (2,206) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 396,697 | 396,697 | |||||
Other comprehensive income (loss) | 30,728 | 30,728 | |||||
Repurchase of common stock - repurchase program (in shares) | (1,203,439) | ||||||
Repurchase of common stock - repurchase program | (65,355) | $ (12) | (65,343) | ||||
Issuance of shares from employee equity plans (in shares) | 2,430,224 | ||||||
Issuance of shares from employee equity plans | 28,289 | $ 24 | 28,265 | ||||
Share-based compensation expense | 62,970 | 62,970 | |||||
Shares repurchased for tax withholdings on vesting of stock unit awards (in shares) | (686,475) | ||||||
Shares repurchased for tax withholdings on vesting of stock unit awards | $ (36,484) | $ (7) | (36,477) | ||||
Ending balance (in shares) at Jul. 31, 2021 | 155,103,315 | 155,103,315 | |||||
Equity- ending balance at Jul. 31, 2021 | $ 2,924,236 | $ 1,551 | $ 6,815,946 | $ (4,630) | $ (3,888,631) |
INTERIM FINANCIAL STATEMENTS
INTERIM FINANCIAL STATEMENTS | 9 Months Ended |
Jul. 31, 2021 | |
Quarterly Financial Data [Abstract] | |
INTERIM FINANCIAL STATEMENTS | INTERIM FINANCIAL STATEMENTS The interim financial statements included herein for Ciena Corporation and its wholly owned subsidiaries (“Ciena”) have been prepared by Ciena, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires Ciena to make judgments, assumptions, and estimates that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. The inputs into certain of Ciena’s judgments, assumptions, and estimates reflect, among other things, the information available to Ciena regarding the economic implications of the COVID-19 pandemic, and expectations as to its impact on Ciena’s business. Among other things, these estimates form the basis for judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions. To the extent that there are material differences between Ciena’s estimates and actual results, Ciena’s consolidated financial statements will be affected. In addition, because the duration and severity of COVID-19 pandemic are uncertain, certain of these estimates could require further judgment or modification and therefore carry a higher degree of variability and volatility. As events continue to evolve, Ciena’s estimates may change materially in future periods. In the opinion of management, the financial statements included in this report reflect all normal recurring adjustments that Ciena considers necessary for the fair statement of the results of operations of Ciena for the interim periods covered and of the financial position of Ciena at the date of the interim balance sheets. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to SEC rules and regulations. The Condensed Consolidated Balance Sheet as of October 31, 2020 was derived from audited financial statements, but does not include all disclosures required by GAAP. However, Ciena believes that the disclosures are adequate to understand the information presented herein. The operating results for interim periods are not necessarily indicative of the operating results for the entire year. These financial statements should be read in conjunction with Ciena’s audited consolidated financial statements and the notes thereto included in Ciena’s annual report on Form 10-K for fiscal 2020 (the “2020 Annual Report”). |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Except for the changes in certain policies described below, there have been no material changes to Ciena’s significant accounting policies, compared to the accounting policies described in Note 1, Ciena Corporation and Significant Accounting Policies and Estimates, in Notes to Consolidated Financial Statements in Item 8 of Part II of the 2020 Annual Report. Newly Issued Accounting Standards - Effective In June 2016, the Financial Accounting Standards Board (the ”FASB”) issued Accounting Standards Update No. 2016-13 (“ASU 2016-13”), Financial Instruments - Credit Losses, which requires measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Ciena adopted ASU 2016-13 on a modified retrospective basis in the first quarter of fiscal year 2021 through a cumulative-effect adjustment at the beginning of the period of adoption and did not restate prior periods. The standard primarily impacts the value of Ciena’s accounts receivable, net and contract assets, net. Adoption of ASU 2016-13 did not have a material effect on Ciena’s financial position or results of operations. Ciena’s significant accounting policies updated as a result of adopting this standard are as follows: Allowance for Credit Losses for Accounts Receivable and Contract Assets Ciena estimates its allowances for credit losses using relevant available information from internal and external sources, related to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. When assessing for credit losses, Ciena determines collectability by pooling assets with similar characteristics. The allowances for credit losses are each measured on a collective basis when similar risk characteristics exist. The allowances for credit losses are each measured by multiplying the exposure probability of default (the probability the asset will default within a given time frame) by the loss given default rate (the percentage of the asset not expected to be collected due to default) based on the pool of assets. Probability of default rates are published by third-party credit rating agencies. Adjustments to Ciena’s exposure probability may take into account a number of factors, including, but not limited to, various customer-specific factors, the potential sovereign risk of the geographic locations in which the customer is operating and macroeconomic conditions. These factors are updated regularly or when facts and circumstances indicate that an update is deemed necessary. Newly Issued Accounting Standards - Not Yet Effective In March 2020, the FASB issued ASU No. 2020-04 (“ASU 2020-04”), Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . ASU 2020-04 provides temporary optional guidance on contract modifications and hedging accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (“LIBOR”) to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, which refines the scope of Topic 848 and clarifies some of its guidance as part of the FASB’s monitoring of global reference rate activities. The new guidance was effective upon issuance, and Ciena is allowed to elect to apply the amendments prospectively through December 31, 2022. Ciena is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12 (“ASU 2019-12”), Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes |
REVENUE
REVENUE | 9 Months Ended |
Jul. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Disaggregation of Revenue Ciena’s disaggregated revenue represents similar groups that depict the nature, amount, and timing of revenue and cash flows for Ciena’s various offerings. The sales cycle, contractual obligations, customer requirements, and go-to-market strategies may differ for each of its product lines, resulting in different economic risk profiles for each line. Effective as of the beginning of fiscal 2021, Ciena renamed its “Packet Networking” product line to “Routing and Switching.” This change, affecting only the presentation of such information, was made on a prospective basis and does not impact comparability of previous financial results. References to prior reported “Packet Networking” product line have been changed herein to “Routing and Switching.” The tables below set forth Ciena’s disaggregated revenue for the respective periods (in thousands): Quarter Ended July 31, 2021 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Converged Packet Optical $ 712,906 $ — $ — $ — $ 712,906 Routing and Switching 69,698 — — — 69,698 Platform Software and Services — 56,945 — — 56,945 Blue Planet Automation Software and Services — — 16,607 — 16,607 Maintenance Support and Training — — — 74,006 74,006 Installation and Deployment — — — 46,653 46,653 Consulting and Network Design — — — 11,326 11,326 Total revenue by product line $ 782,604 $ 56,945 $ 16,607 $ 131,985 $ 988,141 Timing of revenue recognition: Products and services at a point in time $ 782,604 $ 17,928 $ 4,558 $ 6,508 $ 811,598 Services transferred over time — 39,017 12,049 125,477 176,543 Total revenue by timing of revenue recognition $ 782,604 $ 56,945 $ 16,607 $ 131,985 $ 988,141 Quarter Ended August 1, 2020 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Converged Packet Optical $ 722,512 $ — $ — $ — $ 722,512 Routing and Switching 79,756 — — — 79,756 Platform Software and Services — 46,422 — — 46,422 Blue Planet Automation Software and Services — — 11,297 — 11,297 Maintenance Support and Training — — — 69,099 69,099 Installation and Deployment — — — 39,798 39,798 Consulting and Network Design — — — 7,828 7,828 Total revenue by product line $ 802,268 $ 46,422 $ 11,297 $ 116,725 $ 976,712 Timing of revenue recognition: Products and services at a point in time $ 802,268 $ 15,838 $ 410 $ 3,300 $ 821,816 Services transferred over time — 30,584 10,887 113,425 154,896 Total revenue by timing of revenue recognition $ 802,268 $ 46,422 $ 11,297 $ 116,725 $ 976,712 Nine Months Ended July 31, 2021 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Converged Packet Optical $ 1,798,888 $ — $ — $ — $ 1,798,888 Routing and Switching 197,632 — — — 197,632 Platform Software and Services — 163,472 — — 163,472 Blue Planet Automation Software and Services — — 57,499 — 57,499 Maintenance Support and Training — — — 212,054 212,054 Installation and Deployment — — — 124,263 124,263 Consulting and Network Design — — — 25,390 25,390 Total revenue by product line $ 1,996,520 $ 163,472 $ 57,499 $ 361,707 $ 2,579,198 Timing of revenue recognition: Products and services at a point in time $ 1,996,520 $ 54,756 $ 20,497 $ 9,776 $ 2,081,549 Services transferred over time — 108,716 37,002 351,931 497,649 Total revenue by timing of revenue recognition $ 1,996,520 $ 163,472 $ 57,499 $ 361,707 $ 2,579,198 Nine Months Ended August 1, 2020 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Converged Packet Optical $ 1,968,355 $ — $ — $ — $ 1,968,355 Routing Switching 211,432 — — — 211,432 Platform Software and Services — 143,295 — — 143,295 Blue Planet Automation Software and Services — — 41,779 — 41,779 Maintenance Support and Training — — — 202,370 202,370 Installation and Deployment — — — 108,994 108,994 Consulting and Network Design — — — 27,452 27,452 Total revenue by product line $ 2,179,787 $ 143,295 $ 41,779 $ 338,816 $ 2,703,677 Timing of revenue recognition: Products and services at a point in time $ 2,179,787 $ 45,930 $ 8,891 $ 12,174 $ 2,246,782 Services transferred over time — 97,365 32,888 326,642 456,895 Total revenue by timing of revenue recognition $ 2,179,787 $ 143,295 $ 41,779 $ 338,816 $ 2,703,677 Ciena reports its sales geographically using the following markets: (i) Americas; (ii) Europe, Middle East and Africa (“EMEA”); and (iii) Asia Pacific, Japan and India (“APAC”). Americas includes activities in North America and South America. Within each geographic area, Ciena maintains specific teams or personnel that focus on a particular region, country, customer or market vertical. These teams include sales management, account salespersons and sales engineers, as well as services professionals and commercial management personnel. The following table reflects Ciena’s geographic distribution of revenue based principally on the relevant location for Ciena’s delivery of products and performance of services. For the periods below, Ciena’s geographic distribution of revenue was as follows (in thousands): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Geographic distribution: Americas $ 692,853 $ 713,340 $ 1,776,939 $ 1,937,725 EMEA 189,180 162,465 499,652 433,861 APAC 106,108 100,907 302,607 332,091 Total revenue by geographic distribution $ 988,141 $ 976,712 $ 2,579,198 $ 2,703,677 Ciena’s revenue includes $623.9 million and $647.0 million of United States revenue for the third quarter of fiscal 2021 and 2020, respectively. For the nine months ended July 31, 2021 and August 1, 2020, United States revenue was $1.6 billion and $1.8 billion, respectively. No other country accounted for 10% or more of total revenue for the periods presented above. For the periods below, the only customers that accounted for at least 10% of Ciena’s revenue were as follows (in thousands): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Verizon $ 131,892 n/a n/a $ 272,200 Web-scale provider 119,728 n/a n/a n/a AT&T 119,199 114,963 313,140 304,645 Total $ 370,819 $ 114,963 $ 313,140 $ 576,845 n/a Denotes revenue representing less than 10% of total revenue for the period The Web-scale provider noted in the above table purchased products from each of Ciena’s operating segments excluding Blue Planet ® Automation Software and Services. The other customers identified above purchased products and services from each of Ciena’s operating segments. • Networking Platforms revenue reflects sales of Ciena’s Converged Packet Optical and Routing and Switching product lines . ◦ Converged Packet Optical - includes the 6500 Packet-Optical Platform, the Waveserver ® stackable interconnect system, the 6500 Reconfigurable Line System (RLS) and the 5400 family of Packet-Optical Platforms. This product line also includes sales of the Z-Series Packet-Optical Platform. ◦ Routing and Switching - includes the 3000 family of service delivery switches and service aggregation switches and the 5000 family of service aggregation switches. This product line also includes the 8700 Packetwave Platform, the Ethernet packet configuration for the 5410 Service Aggregation Switch, and the 6500 Packet Transport System (PTS), which combines packet switching, control plane operation, and integrated optics. The Networking Platforms segment also includes sales of operating system software and enhanced software features embedded in each of the product lines above. Revenue from this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Operating system software and enhanced software features embedded in Ciena hardware are each considered distinct performance obligations for which the revenue is generally recognized upfront at a point in time upon transfer of control. • Platform Software and Services provides analytics, data, and planning tools to assist customers in managing Ciena’s Networking Platforms products in their networks. Ciena’s platform software includes its Manage, Control and Plan (MCP) domain controller solution and its OneControl Unified Management System, as well as planning tools and a number of legacy software solutions that support Ciena’s installed base of network solutions. Platform software-related services revenue includes sales of subscription, installation, support, and consulting services related to Ciena’s software platforms, operating system software and enhanced software features embedded in each of the Networking Platforms product lines above. Revenue from the software portion of this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Revenue from services portions of this segment is included in services revenue on the Condensed Consolidated Statements of Operations. • Blue Planet ® Automation Software and Services is a comprehensive, micro-services, standards-based open software suite, together with related services, that enables customers to implement large-scale software and IT-led operations support system (OSS) transformations by transforming legacy networks into “service ready” networks, accelerating the creation, delivery and lifecycle management of new, cloud-based services. Ciena’s Blue Planet Automation Platform includes multi-domain service orchestration (MDSO), inventory management (BPI), route optimization and analysis (ROA), network function virtualization orchestration (NFVO), and unified assurance and analytics (UAA). Services revenue includes sales of subscription, installation, support, consulting and design services related to Ciena’s Blue Planet Automation Platform. Revenue from the software portion of this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Revenue from services portions of this segment is included in services revenue on the Condensed Consolidated Statements of Operations. Ciena’s software platform revenue typically reflects either perpetual or term-based software licenses, and these sales are considered distinct performance obligations where revenue is generally recognized upfront at a point in time upon transfer of control. Revenue from software subscription and support is recognized ratably over the period during which the services are performed. Revenue from professional services for solution customization, software and solution support services, consulting and design, and build-operate-transfer services relating to Ciena’s software offerings is recognized over time with Ciena applying the input method to determine the amount of revenue to be recognized in a given period. • Global Services revenue reflects sales of a broad range of Ciena’s services for maintenance support and training, installation and deployment, and consulting and network design activities. Revenue from this segment is included in services revenue on the Condensed Consolidated Statements of Operations. Ciena’s Global Services are considered a distinct performance obligation where revenue is generally recognized over time. Revenue from maintenance support is recognized ratably over the period during which the services are performed. Revenue from installation and deployment services and consulting and network design services is recognized over time with Ciena applying the input method to determine the amount of revenue to be recognized in a given period. Revenue from training services is generally recognized at a point in time upon completion of the service. Contract Balances The following table provides information about receivables, contract assets and contract liabilities (deferred revenue) from contracts with customers (in thousands): Balance at July 31, 2021 Balance at October 31, 2020 Accounts receivable, net $ 878,229 $ 719,405 Contract assets for unbilled accounts receivable, net $ 98,812 $ 85,843 Deferred revenue $ 183,899 $ 158,363 Ciena’s contract assets represent unbilled accounts receivable, net where transfer of a product or service has occurred but invoicing is conditional upon completion of future performance obligations. These amounts are primarily related to installation and deployment and professional services arrangements where transfer of control has occurred, but Ciena has not yet invoiced the customer. Contract assets are included in prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. See Note 11 below. Contract liabilities consist of deferred revenue and represent advanced payments against non-cancelable customer orders received prior to revenue recognition. Ciena recognized approximately $94.7 million and $91.8 million of revenue during the first nine months of fiscal 2021 and 2020, respectively, that was included in the deferred revenue balance as of October 31, 2020 and November 2, 2019, respectively. Revenue recognized due to changes in transaction price from performance obligations satisfied or partially satisfied in previous periods was immaterial during the nine months ended July 31, 2021 and August 1, 2020. Capitalized Contract Acquisition Costs Capitalized contract acquisition costs consist of deferred sales commissions, and were $20.4 million and $15.3 million as of July 31, 2021 and October 31, 2020, respectively. Capitalized contract acquisition costs were included in prepaid expenses and other and other long-term assets. The amortization expense associated with these costs was $16.8 million and $16.2 million during the first nine months of fiscal 2021 and 2020, respectively, and was included in sales and marketing expense. Remaining Performance Obligations Remaining Performance Obligations (“RPO”) are comprised of non-cancelable customer purchase orders for products and services that are awaiting transfer of control for revenue recognition under the applicable contract terms. As of July 31, 2021, the aggregate amount of RPO was $1.4 billion. As of July 31, 2021, Ciena expects approximately 85% of the RPO to be recognized as revenue within the next twelve months. |
CANADIAN EMERGENCY WAGE SUBSIDY
CANADIAN EMERGENCY WAGE SUBSIDY | 9 Months Ended |
Jul. 31, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
CANADIAN EMERGENCY WAGE SUBSIDY | CANADIAN EMERGENCY WAGE SUBSIDY In April 2020, the Canadian government introduced the Canada Emergency Wage Subsidy (“CEWS”) to help employers offset a portion of their employee wages for a limited period in response to the COVID-19 outbreak, retroactive to March 15, 2020. The CEWS program has been extended through October 23, 2021. The subsidy covers employers of all sizes and across all sectors. Ciena accounts for proceeds from government grants as a reduction of expense when there is reasonable assurance that Ciena has met the required conditions associated with the grant and that grant proceeds will be received. Grant benefits are recorded to the particular line item of the Condensed Consolidated Statement of Operations to which the grant activity relates. Amounts from the CEWS program positively impacted our operating expense and measures of profit in the third quarter of fiscal 2021 and nine months ended July 31, 2021. For the third quarter of fiscal 2021, Ciena recorded CEWS benefits of CAD$1.1 million ($0.8 million), net of certain fees. For the nine months ended July 31, 2021, Ciena recorded a CAD$52.2 million ($41.3 million) benefit, net of certain fees, related to CEWS for claim periods beginning March 15, 2020, including CAD$43.9 million ($35.2 million) related to employee wages during fiscal 2020. As of July 31, 2021, amounts receivable from this subsidy were CAD$1.5 million ($1.2 million). The following table summarizes CEWS for the periods indicated (in thousands): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Product $ 94 $ — $ 4,283 $ — Service 47 — 2,667 — CEWS benefit in cost of goods sold 141 — 6,950 — Research and development 596 — 29,519 — Sales and marketing 53 — 2,604 — General and administrative 46 — 2,207 — CEWS benefit in operating expense 695 — 34,330 — Total CEWS benefit $ 836 $ — $ 41,280 $ — |
RESTRUCTURING COSTS
RESTRUCTURING COSTS | 9 Months Ended |
Jul. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING COSTS | RESTRUCTURING COSTS Ciena has undertaken a number of restructuring activities intended to reduce expense and to ensure better alignment of its workforce and costs with market opportunities, product development and business strategies. The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in Accrued liabilities and other short-term obligations on Ciena’s Condensed Consolidated Balance Sheets, for the nine months ended July 31, 2021 (in thousands): Workforce Other restructuring activities Total Balance at October 31, 2020 $ 2,915 $ — $ 2,915 Charges 5,306 (1) 18,558 (2) 23,864 Cash payments (7,051) (18,558) (25,609) Balance at July 31, 2021 $ 1,170 $ — $ 1,170 Current restructuring liabilities $ 1,170 $ — $ 1,170 (1) Reflects a global workforce reduction of 120 employees during the nine months ended July 31, 2021 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes. (2) Primarily represents the redesign of certain business processes associated with Ciena’s supply chain and distribution structure reorganization, and costs related to restructured facilities. The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in Accrued liabilities and other short-term obligations on Ciena’s Condensed Consolidated Balance Sheets for the nine months ended August 1, 2020 (in thousands): Workforce Other restructuring activities Total Balance at November 2, 2019 $ 3,983 $ 11,160 $ 15,143 Charges 5,015 (1) 9,783 (2) 14,798 Adjustments related to ASC 842 — (11,160) (3) (11,160) Cash payments (7,335) (9,783) (17,118) Balance at August 1, 2020 $ 1,663 $ — $ 1,663 Current restructuring liabilities $ 1,663 $ — $ 1,663 (1) Reflects a global workforce reduction of approximately 79 employees during the nine months ended August 1, 2020 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes. (2) Primarily represents variable costs and imputed interest expense related to restructured facilities. (3) Represents restructuring reserve liability recognized as a reduction to Operating right-of-use (“ROU”) assets, net in relation to adoption of ASC 842. |
INTEREST AND OTHER INCOME (LOSS
INTEREST AND OTHER INCOME (LOSS), NET | 9 Months Ended |
Jul. 31, 2021 | |
Other Income and Expenses [Abstract] | |
INTEREST AND OTHER INCOME (LOSS), NET | INTEREST AND OTHER INCOME (LOSS), NET The components of interest and other income (loss), net, are as follows (in thousands): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Interest income $ 465 $ 849 $ 1,553 $ 6,262 Gains (losses) on non-hedge designated foreign currency forward contracts (4,414) 1,282 5,295 3,005 Foreign currency exchange gains (losses) 4,959 (2,537) (8,534) (7,376) Other (215) 638 86 (678) Interest and other income (loss), net $ 795 $ 232 $ (1,600) $ 1,213 Ciena Corporation, as the U.S. parent entity, uses the U.S. Dollar as its functional currency; however, some of its foreign branch offices and subsidiaries use local currencies as their functional currencies. Ciena recorded $8.5 million and $7.4 million in foreign currency exchange rate losses during the first nine months of fiscal 2021 and 2020, respectively, as a result of monetary assets and liabilities that were transacted in a currency other than Ciena’s functional currency. The related remeasurement adjustments were recorded in interest and other income (loss), net, on the Condensed Consolidated Statements of Operations. From time to time, Ciena uses foreign currency forwards to hedge this type of balance sheet exposure. 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 Condensed Consolidated Statements of Operations. During the first nine months of fiscal 2021 and 2020, respectively, Ciena recorded gains of $5.3 million and $3.0 million from non-hedge designated foreign currency forward contracts. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe effective tax rate for the quarter and nine months ended July 31, 2021 was lower than the effective tax rate for the quarter and nine months ended August 1, 2020, primarily due to the tax benefit associated with recording a deferred tax asset. To accommodate the requirements of a global business, Ciena has begun reorganizing its global supply chain and distribution structure, which includes a legal entity reorganization and related system upgrade. During the quarter, Ciena completed an internal transfer of certain of its non-U.S. intangible assets, which created amortizable tax basis resulting in the discrete recognition of a $124.2 million deferred tax asset with a corresponding tax benefit. The impact of this transfer is reflected in Ciena’s effective tax rate for the quarter and nine months ended July 31, 2021, which had a significant, one-time impact on its net income for these periods. Ciena’s future income tax provisions and deferred tax balances may be affected by the amount of pre-tax income, the jurisdictions where it is earned, the existence and ability to utilize tax attributes and changes in tax laws and business reorganizations. Ciena continues to monitor these items and will adopt strategies to address their impact as appropriate. |
SHORT-TERM AND LONG-TERM INVEST
SHORT-TERM AND LONG-TERM INVESTMENTS | 9 Months Ended |
Jul. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
SHORT-TERM AND LONG-TERM INVESTMENTS | SHORT-TERM AND LONG-TERM INVESTMENTS As of the dates indicated, investments are comprised of the following (in thousands): July 31, 2021 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair U.S. government obligations: Included in short-term investments $ 181,966 $ 44 $ — $ 182,010 Included in long-term investments 60,887 7 (6) 60,888 $ 242,853 $ 51 $ (6) $ 242,898 October 31, 2020 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair U.S. government obligations: Included in short-term investments $ 150,559 $ 109 $ (1) $ 150,667 Included in long-term investments 82,252 — (26) 82,226 $ 232,811 $ 109 $ (27) $ 232,893 The following table summarizes the final legal maturities of debt investments at July 31, 2021 (in thousands): Amortized Estimated Less than one year $ 181,966 $ 182,010 Due in 1-2 years 60,887 60,888 $ 242,853 $ 242,898 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jul. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS As of the date indicated, the following table summarizes the assets and liabilities that are recorded at fair value on a recurring basis (in thousands): July 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 909,976 $ — $ — $ 909,976 Bond mutual fund 75,398 — — 75,398 Time deposits 30,029 — — 30,029 Deferred compensation plan assets 12,380 — — 12,380 U.S. government obligations — 242,898 — 242,898 Foreign currency forward contracts — 8,598 — 8,598 Total assets measured at fair value $ 1,027,783 $ 251,496 $ — $ 1,279,279 Liabilities: Foreign currency forward contracts $ — $ 3,709 $ — $ 3,709 Forward starting interest rate swaps — 20,682 — 20,682 Total liabilities measured at fair value $ — $ 24,391 $ — $ 24,391 October 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 889,293 $ — $ — $ 889,293 Bond mutual fund 50,361 — — 50,361 Deferred compensation plan assets 8,213 — — 8,213 U.S. government obligations — 232,893 — 232,893 Foreign currency forward contracts — 82 — 82 Total assets measured at fair value $ 947,867 $ 232,975 $ — $ 1,180,842 Liabilities: Foreign currency forward contracts $ — $ 681 $ — $ 681 Forward starting interest rate swaps — 28,513 — 28,513 Total liabilities measured at fair value $ — $ 29,194 $ — $ 29,194 As of the date indicated, the assets and liabilities above are presented on Ciena’s Condensed Consolidated Balance Sheets as follows (in thousands): July 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 1,015,403 $ — $ — $ 1,015,403 Short-term investments — 182,010 — 182,010 Prepaid expenses and other — 8,598 — 8,598 Long-term investments — 60,888 — 60,888 Other long-term assets 12,380 — — 12,380 Total assets measured at fair value $ 1,027,783 $ 251,496 $ — $ 1,279,279 Liabilities: Accrued liabilities and other short-term obligations $ — $ 3,709 $ — $ 3,709 Other long-term obligations — 20,682 — 20,682 Total liabilities measured at fair value $ — $ 24,391 $ — $ 24,391 October 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 939,654 $ — $ — $ 939,654 Short-term investments — 150,667 — 150,667 Prepaid expenses and other — 82 — 82 Other long-term assets 8,213 82,226 — 90,439 Total assets measured at fair value $ 947,867 $ 232,975 $ — $ 1,180,842 Liabilities: Accrued liabilities and other short-term obligations $ — $ 681 $ — $ 681 Other long-term obligations — 28,513 — 28,513 Total liabilities measured at fair value $ — $ 29,194 $ — $ 29,194 Ciena did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Jul. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES As of the dates indicated, inventories are comprised of the following (in thousands): July 31, October 31, Raw materials $ 139,338 $ 119,481 Work-in-process 10,556 13,738 Finished goods 204,580 210,050 Deferred cost of goods sold 53,826 40,747 Gross inventories 408,300 384,016 Provision for excess and obsolescence (38,130) (39,637) Inventories, net $ 370,170 $ 344,379 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, which are affected by changes in Ciena’s strategic direction, discontinuance of a product or introduction of newer versions of products, declines in the sales of or forecasted demand for certain products, and general market conditions. During the first nine months of fiscal 2021, Ciena recorded a provision for excess and obsolescence of $13.5 million, primarily related to a decrease in the forecasted demand for certain Networking Platforms products. Deductions from the provision for excess and obsolete inventory relate primarily to disposal activities. |
PREPAID EXPENSES AND OTHER
PREPAID EXPENSES AND OTHER | 9 Months Ended |
Jul. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER | PREPAID EXPENSES AND OTHERAs of the dates indicated, prepaid expenses and other are comprised of the following (in thousands): July 31, October 31, Contract assets for unbilled accounts receivable, net $ 98,812 $ 85,843 Prepaid expenses 75,287 70,647 Prepaid VAT and other taxes 70,735 72,838 Product demonstration equipment, net 35,411 44,793 Other non-trade receivables 17,808 21,981 Capitalized contract acquisition costs 15,067 11,296 Derivative assets 8,598 82 CEWS receivable 1,229 — Deferred deployment expense 336 604 $ 323,283 $ 308,084 Depreciation of product demonstration equipment was $7.6 million during the first nine months of fiscal 2021 and $6.5 million during the first nine months of fiscal 2020. For further discussion on contract assets and capitalized contract acquisition costs, see Note 3 above. |
OTHER BALANCE SHEET DETAILS
OTHER BALANCE SHEET DETAILS | 9 Months Ended |
Jul. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
OTHER BALANCE SHEET DETAILS | OTHER BALANCE SHEET DETAILS As of the dates indicated, accrued liabilities and other short-term obligations are comprised of the following (in thousands): July 31, October 31, Compensation, payroll related tax and benefits $ 142,713 $ 135,462 Warranty 48,139 49,868 Income taxes payable 36,526 6,348 Vacation 30,986 26,945 Finance lease obligations 3,395 2,836 Other 111,532 112,673 $ 373,291 $ 334,132 The following table summarizes the activity in Ciena’s accrued warranty for the periods indicated (in thousands): Beginning Balance Current Period Provisions Settlements Ending Balance Nine Months Ended August 1, 2020 $ 48,498 19,172 (15,504) $ 52,166 Nine Months Ended July 31, 2021 $ 49,868 12,726 (14,455) $ 48,139 As of the dates indicated, deferred revenue is comprised of the following (in thousands): July 31, October 31, Products $ 13,380 $ 17,534 Services 170,519 140,829 183,899 158,363 Less current portion (126,179) (108,700) Long-term deferred revenue $ 57,720 $ 49,663 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Jul. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS Foreign Currency Derivatives Ciena conducts business globally in numerous currencies, and thus is exposed to adverse foreign currency exchange rate changes. To limit this exposure, Ciena enters into foreign currency contracts. Ciena does not enter into such contracts for speculative purposes. As of July 31, 2021 and October 31, 2020, Ciena had forward contracts to hedge its foreign exchange exposure in order to reduce variability principally related to research and development activities. The notional amount of these contracts was approximately $219.1 million and $254.9 million as of July 31, 2021 and October 31, 2020, respectively. These foreign exchange contracts have maturities of 24 months or less and have been designated as cash flow hedges. As of July 31, 2021 and October 31, 2020, Ciena had forward contracts to hedge its foreign exchange exposure in order to reduce the variability in various currencies of certain balance sheet items. The notional amount of these contracts was approximately $241.8 million and $212.0 million as of July 31, 2021 and October 31, 2020, respectively. These foreign exchange contracts have maturities of 12 months or less and have not been designated as hedges for accounting purposes. Interest Rate Derivatives Ciena is exposed to floating rates of LIBOR interest on its term loan borrowings (see Note 16 below) and has hedged such risk by entering into floating to fixed interest rate swap arrangements (“interest rate swaps”). The interest rate swaps fix the LIBOR rate for $350.0 million of the 2025 Term Loan (as defined in Note 16 below) at 2.957% through September 2023. The total notional amount of interest rate swaps in effect was $350.0 million as of July 31, 2021 and October 31, 2020. Ciena expects the variable rate payments to be received under the terms of the interest rate swaps to offset exactly the forecasted variable rate payments on the equivalent notional amounts of the term loan. These derivative contracts have been designated as cash flow hedges. Other information regarding Ciena’s derivatives is immaterial for separate financial statement presentation. See Note 6 and Note 9 above. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Jul. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME The following table summarizes the changes in accumulated balances of other comprehensive income (“AOCI”), net of tax, for the nine months ended July 31, 2021 (in thousands): Unrealized Gain (Loss) on Cumulative Available-for-sale Securities Foreign Currency Forward Contracts Forward Starting Interest Rate Swaps Foreign Currency Total Balance at October 31, 2020 $ 45 $ (219) $ (21,535) $ (13,649) $ (35,358) Other comprehensive gain (loss) before reclassifications (28) 13,574 (1,399) 19,439 31,586 Amounts reclassified from AOCI — (7,907) 7,049 — (858) Balance at July 31, 2021 $ 17 $ 5,448 $ (15,885) $ 5,790 $ (4,630) The following table summarizes the changes in AOCI, net of tax, for the nine months ended August 1, 2020 (in thousands): Unrealized Gain (Loss) on Cumulative Available-for-sale Securities Foreign Currency Forward Contracts Forward Starting Interest Rate Swaps Foreign Currency Total Balance at November 2, 2019 $ 152 $ 925 $ (13,686) $ (9,475) $ (22,084) Other comprehensive loss before reclassifications 69 (4,515) (12,507) (6,321) (23,274) Amounts reclassified from AOCI — 2,742 2,427 — 5,169 Balance at August 1, 2020 $ 221 $ (848) $ (23,766) $ (15,796) $ (40,189) All amounts reclassified from AOCI related to settlement (gains) losses on foreign currency forward contracts designated as cash flow hedges impacted research and development expense on the Condensed Consolidated Statements of Operations. All |
LEASES
LEASES | 9 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES Ciena leases over 1.3 million square feet of facilities globally. Ciena’s principal executive offices are located in Hanover, Maryland. Ciena’s largest facilities are research and development centers located in Ottawa, Canada and Gurgaon, India. Ciena also has engineering and/or service delivery facilities located in San Jose, California; Alpharetta, Georgia; Quebec, Canada; and Pune and Bangalore, India. In addition, Ciena leases various smaller offices in regions throughout the world to support sales and services operations. Office facilities are leased under various non-cancelable operating or finance leases. Ciena's current leases have remaining terms that vary up to 11 years. Certain leases provide for options to extend up to ten years and/or options to terminate within five years. Leases included in the Condensed Consolidated Balance Sheets were as follows (in thousands): Classification As of July 31, 2021 As of October 31, 2020 Operating leases: Operating ROU assets Operating right-of-use assets $ 48,937 $ 57,026 Operating lease liabilities Operating lease liabilities and Long-term operating lease liabilities 70,320 80,450 Finance leases: Buildings, gross Equipment, building, furniture and fixtures, net $ 75,616 $ 70,791 Less: accumulated depreciation Equipment, building, furniture and fixtures, net (22,664) (17,837) Buildings, net $ 52,952 $ 52,954 Finance lease liabilities Accrued liabilities and other short-term obligations and other long-term obligations $ 66,530 $ 64,401 ROU assets that involve subleased or vacant space aggregate to $4.3 million as of July 31, 2021. These assets may become impaired if tenants are unable to service their obligations under the sublease, and/or if the estimates as to occupancy are not realized, either of which may be more likely as COVID-19 impacts evolve. The components of lease expense included in the Condensed Consolidated Statement of Operations were as follows (in thousands): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, Classification 2021 2020 2021 2020 Operating lease costs Operating expense $ 4,085 $ 4,234 $ 12,516 $ 13,435 Finance lease cost: Amortization of finance ROU asset Operating expense 1,224 1,097 3,580 3,330 Interest on finance lease liabilities Interest expense 1,243 1,162 3,671 3,574 Total finance lease cost 2,467 2,259 7,251 6,904 Non-capitalized lease cost Operating expense 216 883 842 2,211 Variable lease cost (1) Operating expense 1,393 1,265 4,444 3,900 Net lease cost (2) $ 8,161 $ 8,641 $ 25,053 $ 26,450 (1) Variable lease costs include expenses relating to insurance, taxes, maintenance and other costs required by the applicable operating lease. Variable lease costs are determined by whether they are to be included in base rent and if amounts are based on a consumer price index. (2) Excludes other operating expense of $2.3 million and $2.2 million for the third quarter of fiscal 2021 and 2020, respectively and $7.2 million and $8.7 million for the nine months ended July 31, 2021 and August 1, 2020, respectively, related to amortization of leasehold improvements. Future minimum lease payments and the present value of minimum lease payments related to operating and finance leases as of July 31, 2021 were as follows (in thousands): Operating Leases Finance Leases Total Remaining fiscal 2021 $ 5,472 $ 8,146 $ 13,618 2022 19,862 8,500 28,362 2023 16,087 8,500 24,587 2024 13,768 8,620 22,388 2025 9,437 8,706 18,143 Thereafter 10,272 55,532 65,804 Total lease payments 74,898 98,004 172,902 Less: Imputed interest (4,578) (31,474) (36,052) Present value of lease liabilities 70,320 66,530 136,850 Less: Current portion of present value of minimum lease payments (19,085) (3,395) (22,480) Long-term portion of present value of minimum lease payments $ 51,235 $ 63,135 $ 114,370 The weighted average remaining lease terms and weighted average discount rates for operating and finance leases were as follows: As of July 31, 2021 As of October 31, 2020 Weighted-average remaining lease term in years: Operating leases 4.35 4.87 Finance leases 10.97 11.71 Weighted-average discount rates: Operating leases 2.75 % 2.82 % Finance leases 7.56 % 7.56 % |
LEASES | LEASES Ciena leases over 1.3 million square feet of facilities globally. Ciena’s principal executive offices are located in Hanover, Maryland. Ciena’s largest facilities are research and development centers located in Ottawa, Canada and Gurgaon, India. Ciena also has engineering and/or service delivery facilities located in San Jose, California; Alpharetta, Georgia; Quebec, Canada; and Pune and Bangalore, India. In addition, Ciena leases various smaller offices in regions throughout the world to support sales and services operations. Office facilities are leased under various non-cancelable operating or finance leases. Ciena's current leases have remaining terms that vary up to 11 years. Certain leases provide for options to extend up to ten years and/or options to terminate within five years. Leases included in the Condensed Consolidated Balance Sheets were as follows (in thousands): Classification As of July 31, 2021 As of October 31, 2020 Operating leases: Operating ROU assets Operating right-of-use assets $ 48,937 $ 57,026 Operating lease liabilities Operating lease liabilities and Long-term operating lease liabilities 70,320 80,450 Finance leases: Buildings, gross Equipment, building, furniture and fixtures, net $ 75,616 $ 70,791 Less: accumulated depreciation Equipment, building, furniture and fixtures, net (22,664) (17,837) Buildings, net $ 52,952 $ 52,954 Finance lease liabilities Accrued liabilities and other short-term obligations and other long-term obligations $ 66,530 $ 64,401 ROU assets that involve subleased or vacant space aggregate to $4.3 million as of July 31, 2021. These assets may become impaired if tenants are unable to service their obligations under the sublease, and/or if the estimates as to occupancy are not realized, either of which may be more likely as COVID-19 impacts evolve. The components of lease expense included in the Condensed Consolidated Statement of Operations were as follows (in thousands): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, Classification 2021 2020 2021 2020 Operating lease costs Operating expense $ 4,085 $ 4,234 $ 12,516 $ 13,435 Finance lease cost: Amortization of finance ROU asset Operating expense 1,224 1,097 3,580 3,330 Interest on finance lease liabilities Interest expense 1,243 1,162 3,671 3,574 Total finance lease cost 2,467 2,259 7,251 6,904 Non-capitalized lease cost Operating expense 216 883 842 2,211 Variable lease cost (1) Operating expense 1,393 1,265 4,444 3,900 Net lease cost (2) $ 8,161 $ 8,641 $ 25,053 $ 26,450 (1) Variable lease costs include expenses relating to insurance, taxes, maintenance and other costs required by the applicable operating lease. Variable lease costs are determined by whether they are to be included in base rent and if amounts are based on a consumer price index. (2) Excludes other operating expense of $2.3 million and $2.2 million for the third quarter of fiscal 2021 and 2020, respectively and $7.2 million and $8.7 million for the nine months ended July 31, 2021 and August 1, 2020, respectively, related to amortization of leasehold improvements. Future minimum lease payments and the present value of minimum lease payments related to operating and finance leases as of July 31, 2021 were as follows (in thousands): Operating Leases Finance Leases Total Remaining fiscal 2021 $ 5,472 $ 8,146 $ 13,618 2022 19,862 8,500 28,362 2023 16,087 8,500 24,587 2024 13,768 8,620 22,388 2025 9,437 8,706 18,143 Thereafter 10,272 55,532 65,804 Total lease payments 74,898 98,004 172,902 Less: Imputed interest (4,578) (31,474) (36,052) Present value of lease liabilities 70,320 66,530 136,850 Less: Current portion of present value of minimum lease payments (19,085) (3,395) (22,480) Long-term portion of present value of minimum lease payments $ 51,235 $ 63,135 $ 114,370 The weighted average remaining lease terms and weighted average discount rates for operating and finance leases were as follows: As of July 31, 2021 As of October 31, 2020 Weighted-average remaining lease term in years: Operating leases 4.35 4.87 Finance leases 10.97 11.71 Weighted-average discount rates: Operating leases 2.75 % 2.82 % Finance leases 7.56 % 7.56 % |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 9 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
SHORT-TERM AND LONG-TERM DEBT | SHORT-TERM AND LONG-TERM DEBT 2025 Term Loan On January 23, 2020, Ciena entered into a Refinancing Amendment to Credit Agreement pursuant to which Ciena refinanced the entire outstanding amount of its then existing senior secured term loan and incurred a new senior secured term loan in an aggregate principal amount of $693.0 million and maturing on September 28, 2025 (the “2025 Term Loan”). The net carrying value of Ciena’s term loan was comprised of the following for the periods indicated (in thousands): July 31, 2021 October 31, 2020 Principal Balance Unamortized Discount Deferred Debt Issuance Costs Net Carrying Value Net Carrying Value 2025 Term Loan $ 682,605 $ (1,332) $ (2,488) $ 678,785 $ 683,286 Deferred debt issuance costs that were deducted from the carrying amounts of the term loan totaled $2.5 million as of July 31, 2021 and $2.9 million at October 31, 2020. Deferred debt issuance costs are amortized using the straight-line method, which approximates the effect of the effective interest rate, through the maturity of the term loan. The amortization of deferred debt issuance costs for this term loan is included in interest expense, and was $0.5 million during the first nine months of each of fiscal 2021 and fiscal 2020. The carrying value of the term loan listed above is also net of any unamortized debt discounts. As of July 31, 2021, the estimated fair value of the 2025 Term Loan was $680.9 million. Ciena’s term loan is categorized as Level 2 in the fair value hierarchy. Ciena estimated the fair value of its term loan using a market approach based on observable inputs, such as current market transactions involving comparable securities. |
EARNINGS_PER SHARE CALCULATION
EARNINGS PER SHARE CALCULATION | 9 Months Ended |
Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE CALCULATION | EARNINGS PER SHARE CALCULATION The following table presents the calculation of basic and diluted net income per share (in thousands, except per share amounts): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Net income $ 238,232 $ 142,267 $ 396,697 $ 296,250 Basic weighted average shares outstanding 155,271 154,184 155,277 154,136 Effect of dilutive potential common shares 1,473 2,134 1,465 1,605 Diluted weighted average shares 156,744 156,318 156,742 155,741 Basic EPS $ 1.53 $ 0.92 $ 2.55 $ 1.92 Diluted EPS $ 1.52 $ 0.91 $ 2.53 $ 1.90 Antidilutive employee share-based awards, excluded 131 13 99 316 Basic net income per common share (“Basic EPS”) is computed using the weighted average number of common shares outstanding. Diluted net income per potential common share (“Diluted EPS”) is computed using the weighted average number of the following, in each case, to the extent the effect is not anti-dilutive: (i) common shares outstanding; (ii) shares issuable upon vesting of stock unit awards; and (iii) shares issuable under Ciena’s employee stock purchase plan and upon exercise of outstanding stock options, using the treasury stock method. |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Jul. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Stock Repurchase Program On December 13, 2018, Ciena announced that its Board of Directors authorized a program to repurchase up to $500 million of Ciena’s common stock. After temporarily suspending repurchases of Ciena’s common stock during fiscal 2020, Ciena reinstituted its stock repurchase program in the first quarter of 2021 . The amount and timing of repurchases are subject to a variety of factors including liquidity, cash flow, stock price and general business and market conditions. The program may be modified, suspended, or discontinued at any time. The following table summarizes activity of the stock repurchase program, reported based on trade date: Shares Repurchased Weighted-Average Price per Share Amount Repurchased (in thousands) Cumulative balance at October 31, 2020 5,710,912 $ 39.33 $ 224,611 Repurchase of common stock under the stock repurchase program 1,203,439 54.31 65,356 Cumulative balance at July 31, 2021 6,914,351 $ 41.94 $ 289,967 The purchase price for the shares of Ciena’s stock repurchased is reflected as a reduction of common stock and additional paid-in capital. Stock Repurchases Related to Stock Unit Award Tax Withholdings Ciena repurchases shares of common stock to satisfy employee tax withholding obligations due on vesting of stock unit awards. The purchase price of $36.5 million for the shares of Ciena’s stock repurchased during the first nine months of fiscal 2021 is reflected as a reduction to stockholders’ equity. Ciena is required to allocate the purchase price of the repurchased shares as a reduction of common stock and additional paid-in capital. |
SHARE-BASED COMPENSATION EXPENS
SHARE-BASED COMPENSATION EXPENSE | 9 Months Ended |
Jul. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION EXPENSE | SHARE-BASED COMPENSATION EXPENSEAmended and Restated ESPP Ciena makes shares of its common stock available for purchase under its Amended and Restated Ciena Corporation Employee Stock Purchase Plan (the “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 Ciena 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. On January 29, 2021, Ciena’s Board of Directors adopted an amendment and restatement of the ESPP to increase the number of shares available for issuance thereunder by 8.7 million and eliminate the evergreen mechanism thereunder, which became effective upon its approval by Ciena’s stockholders on April 1, 2021. Unless earlier terminated, the ESPP will terminate on April 1, 2031. The following table summarizes share-based compensation expense for the periods indicated (in thousands): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Product $ 1,037 $ 960 $ 2,488 $ 2,458 Service 1,315 1,007 3,941 2,885 Share-based compensation expense included in cost of goods sold 2,352 1,967 6,429 5,343 Research and development 5,541 4,286 16,179 12,957 Sales and marketing 6,534 5,180 18,960 15,057 General and administrative 8,237 5,940 21,338 17,442 Share-based compensation expense included in operating expense 20,312 15,406 56,477 45,456 Share-based compensation expense capitalized in inventory, net (193) (114) 64 39 Total share-based compensation $ 22,471 $ 17,259 $ 62,970 $ 50,838 As of July 31, 2021, total unrecognized share-based compensation expense was approximately $160.6 million, which relates to unvested stock unit awards and is expected to be recognized over a weighted-average period of 1.58 years. |
SEGMENTS AND ENTITY-WIDE DISCLO
SEGMENTS AND ENTITY-WIDE DISCLOSURES | 9 Months Ended |
Jul. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENTS AND ENTITY-WIDE DISCLOSURES | SEGMENTS AND ENTITY-WIDE DISCLOSURES Segment Reporting Ciena has the following operating segments for reporting purposes: (i) Networking Platforms; (ii) Platform Software and Services; (iii) Blue Planet Automation Software and Services; and (iv) Global Services. Ciena's long-lived assets, including equipment, building, furniture and fixtures, ROU assets, finite-lived intangible assets and maintenance spares, are not reviewed by Ciena's chief operating decision maker for purposes of evaluating performance and allocating resources. As of July 31, 2021, equipment, building, furniture and fixtures, net, totaled $288.9 million, and operating ROU assets totaled $48.9 million both of which support asset groups within Ciena’s four operating segments and unallocated selling and general and administrative activities. As of July 31, 2021, finite-lived intangible assets, goodwill and maintenance spares are assigned to asset groups within the following segments (in thousands): Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Other intangible assets, net $ 9,865 $ — $ 64,109 $ — $ 73,974 Goodwill $ 66,329 $ 156,191 $ 89,049 $ — $ 311,569 Maintenance spares, net $ — $ — $ — $ 61,048 $ 61,048 Segment Profit (Loss) Segment profit (loss) is determined based on internal performance measures used by Ciena’s 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; significant asset impairments and restructuring costs; amortization of intangible assets; acquisition and integration costs (recoveries); interest and other income (loss), net; interest expense; loss on extinguishment and modification of debt and provision (benefit) for income taxes. The table below sets forth Ciena’s segment profit (loss) and the reconciliation to consolidated net income for the periods indicated (in thousands): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Segment profit (loss): Networking Platforms $ 244,535 $ 262,801 $ 612,378 $ 642,057 Platform Software and Services 31,526 24,299 95,692 74,918 Blue Planet Automation Software and Services (3,243) (5,316) 11 (12,828) Global Services 55,507 52,676 147,567 151,744 Total segment profit 328,325 334,460 855,648 855,891 Less: Non-performance operating expenses Selling and marketing 114,924 94,763 322,589 303,043 General and administrative 48,863 41,635 132,491 126,133 Significant asset impairments and restructuring costs 9,789 6,515 23,865 14,798 Amortization of intangible assets 5,967 5,840 17,896 17,532 Acquisition and integration costs (recoveries) 259 (2,329) 860 904 Add: Other non-performance financial items Interest expense and other income (loss), net (6,981) (7,019) (24,521) (22,713) Loss on extinguishment and modification of debt — — — (646) Less: Provision (benefit) for income taxes (96,690) 38,750 (63,271) 73,872 Consolidated net income $ 238,232 $ 142,267 $ 396,697 $ 296,250 Entity-Wide Reporting The following table reflects Ciena’s geographic distribution of equipment, building, furniture and fixtures, net, and operating ROU assets, with any country accounting for at least 10% of total equipment, building, furniture and fixtures, net, and operating ROU assets specifically identified. Equipment, building, furniture and fixtures, net, and operating ROU assets attributable to geographic regions outside of the U.S. and Canada are reflected as “Other International.” For the periods below, Ciena’s geographic distribution of equipment, building, furniture and fixtures, net, and operating ROU assets was as follows (in thousands): July 31, October 31, Canada $ 242,495 $ 214,188 United States 54,050 65,321 Other International 41,329 49,894 Total $ 337,874 $ 329,403 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jul. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Canadian Grant During fiscal 2018, Ciena entered into agreements related to the Evolution of Networking Services through a Corridor in Quebec and Ontario for Research and Innovation (“ENCQOR”) project with the Canadian federal government, the government of the province of Ontario and the government of the province of Quebec to develop a 5G technology corridor between Quebec and Ontario to promote research and development, small business enterprises and entrepreneurs in Canada. Under these agreements, Ciena can receive up to an aggregate CAD$57.6 million (approximately $46.2 million) in reimbursement from the three Canadian government entities for eligible costs over a period commencing on February 20, 2017 and ending on March 31, 2022. Ciena anticipates receiving recurring disbursements over this period. Amounts received under the agreements are subject to recoupment in the event that Ciena fails to achieve certain minimum investment, employment and project milestones. As of July 31, 2021, Ciena has recorded CAD$48.6 million (approximately $39.0 million) in cumulative benefits as a reduction in research and development expense of which CAD$8.0 million ($6.3 million) was recorded in the first nine months of fiscal 2021. As of July 31, 2021, amounts receivable from this grant were CAD$5.8 million ($4.7 million). Tax Contingencies Ciena is subject to various tax liabilities arising in the ordinary course of business. Ciena does not expect that the ultimate settlement of these tax liabilities will have a material effect on its results of operations, financial position or cash flows. Litigation Ciena is subject to various legal proceedings, claims and other matters arising in the ordinary course of business, including those that relate to employment, commercial, tax and other regulatory matters. Ciena is also subject to intellectual property related claims, including claims against third parties that may involve contractual indemnification obligations on the part of Ciena. Ciena does not expect that the ultimate costs to resolve such matters will have a material effect on its results of operations, financial position or cash flows. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jul. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Stock Repurchase Program From the end of the third quarter of fiscal 2021 through September 3, 2021, Ciena repurchased an additional 176,815 shares of its common stock, for an aggregate purchase price of $10.0 million at an average price of $56.57 per share, inclusive of repurchases pending settlement. As of September 3, 2021, Ciena has repurchased an aggregate of 7,091,166 shares and has an aggregate of $200.0 million of authorized funds remaining under its stock repurchase program. Vyatta Routing and Switching Technology Acquisition On August 31, 2021, Ciena entered into a definitive agreement with AT&T to acquire its Vyatta virtual routing and switching technology. The acquisition reflects Ciena’s continued investment in its Routing and Switching solutions roadmap and resources. Ciena plans to integrate the engineering personnel to be hired through this transaction into its Routing and Switching research and development (R&D) organization. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Newly Issued Accounting Standards - Effective and Not Yet Effective | Newly Issued Accounting Standards - Effective In June 2016, the Financial Accounting Standards Board (the ”FASB”) issued Accounting Standards Update No. 2016-13 (“ASU 2016-13”), Financial Instruments - Credit Losses, which requires measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Ciena adopted ASU 2016-13 on a modified retrospective basis in the first quarter of fiscal year 2021 through a cumulative-effect adjustment at the beginning of the period of adoption and did not restate prior periods. The standard primarily impacts the value of Ciena’s accounts receivable, net and contract assets, net. Adoption of ASU 2016-13 did not have a material effect on Ciena’s financial position or results of operations. Ciena’s significant accounting policies updated as a result of adopting this standard are as follows: Allowance for Credit Losses for Accounts Receivable and Contract Assets Ciena estimates its allowances for credit losses using relevant available information from internal and external sources, related to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. When assessing for credit losses, Ciena determines collectability by pooling assets with similar characteristics. The allowances for credit losses are each measured on a collective basis when similar risk characteristics exist. The allowances for credit losses are each measured by multiplying the exposure probability of default (the probability the asset will default within a given time frame) by the loss given default rate (the percentage of the asset not expected to be collected due to default) based on the pool of assets. Probability of default rates are published by third-party credit rating agencies. Adjustments to Ciena’s exposure probability may take into account a number of factors, including, but not limited to, various customer-specific factors, the potential sovereign risk of the geographic locations in which the customer is operating and macroeconomic conditions. These factors are updated regularly or when facts and circumstances indicate that an update is deemed necessary. Newly Issued Accounting Standards - Not Yet Effective In March 2020, the FASB issued ASU No. 2020-04 (“ASU 2020-04”), Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . ASU 2020-04 provides temporary optional guidance on contract modifications and hedging accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (“LIBOR”) to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, which refines the scope of Topic 848 and clarifies some of its guidance as part of the FASB’s monitoring of global reference rate activities. The new guidance was effective upon issuance, and Ciena is allowed to elect to apply the amendments prospectively through December 31, 2022. Ciena is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12 (“ASU 2019-12”), Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The tables below set forth Ciena’s disaggregated revenue for the respective periods (in thousands): Quarter Ended July 31, 2021 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Converged Packet Optical $ 712,906 $ — $ — $ — $ 712,906 Routing and Switching 69,698 — — — 69,698 Platform Software and Services — 56,945 — — 56,945 Blue Planet Automation Software and Services — — 16,607 — 16,607 Maintenance Support and Training — — — 74,006 74,006 Installation and Deployment — — — 46,653 46,653 Consulting and Network Design — — — 11,326 11,326 Total revenue by product line $ 782,604 $ 56,945 $ 16,607 $ 131,985 $ 988,141 Timing of revenue recognition: Products and services at a point in time $ 782,604 $ 17,928 $ 4,558 $ 6,508 $ 811,598 Services transferred over time — 39,017 12,049 125,477 176,543 Total revenue by timing of revenue recognition $ 782,604 $ 56,945 $ 16,607 $ 131,985 $ 988,141 Quarter Ended August 1, 2020 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Converged Packet Optical $ 722,512 $ — $ — $ — $ 722,512 Routing and Switching 79,756 — — — 79,756 Platform Software and Services — 46,422 — — 46,422 Blue Planet Automation Software and Services — — 11,297 — 11,297 Maintenance Support and Training — — — 69,099 69,099 Installation and Deployment — — — 39,798 39,798 Consulting and Network Design — — — 7,828 7,828 Total revenue by product line $ 802,268 $ 46,422 $ 11,297 $ 116,725 $ 976,712 Timing of revenue recognition: Products and services at a point in time $ 802,268 $ 15,838 $ 410 $ 3,300 $ 821,816 Services transferred over time — 30,584 10,887 113,425 154,896 Total revenue by timing of revenue recognition $ 802,268 $ 46,422 $ 11,297 $ 116,725 $ 976,712 Nine Months Ended July 31, 2021 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Converged Packet Optical $ 1,798,888 $ — $ — $ — $ 1,798,888 Routing and Switching 197,632 — — — 197,632 Platform Software and Services — 163,472 — — 163,472 Blue Planet Automation Software and Services — — 57,499 — 57,499 Maintenance Support and Training — — — 212,054 212,054 Installation and Deployment — — — 124,263 124,263 Consulting and Network Design — — — 25,390 25,390 Total revenue by product line $ 1,996,520 $ 163,472 $ 57,499 $ 361,707 $ 2,579,198 Timing of revenue recognition: Products and services at a point in time $ 1,996,520 $ 54,756 $ 20,497 $ 9,776 $ 2,081,549 Services transferred over time — 108,716 37,002 351,931 497,649 Total revenue by timing of revenue recognition $ 1,996,520 $ 163,472 $ 57,499 $ 361,707 $ 2,579,198 Nine Months Ended August 1, 2020 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Converged Packet Optical $ 1,968,355 $ — $ — $ — $ 1,968,355 Routing Switching 211,432 — — — 211,432 Platform Software and Services — 143,295 — — 143,295 Blue Planet Automation Software and Services — — 41,779 — 41,779 Maintenance Support and Training — — — 202,370 202,370 Installation and Deployment — — — 108,994 108,994 Consulting and Network Design — — — 27,452 27,452 Total revenue by product line $ 2,179,787 $ 143,295 $ 41,779 $ 338,816 $ 2,703,677 Timing of revenue recognition: Products and services at a point in time $ 2,179,787 $ 45,930 $ 8,891 $ 12,174 $ 2,246,782 Services transferred over time — 97,365 32,888 326,642 456,895 Total revenue by timing of revenue recognition $ 2,179,787 $ 143,295 $ 41,779 $ 338,816 $ 2,703,677 Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Geographic distribution: Americas $ 692,853 $ 713,340 $ 1,776,939 $ 1,937,725 EMEA 189,180 162,465 499,652 433,861 APAC 106,108 100,907 302,607 332,091 Total revenue by geographic distribution $ 988,141 $ 976,712 $ 2,579,198 $ 2,703,677 For the periods below, the only customers that accounted for at least 10% of Ciena’s revenue were as follows (in thousands): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Verizon $ 131,892 n/a n/a $ 272,200 Web-scale provider 119,728 n/a n/a n/a AT&T 119,199 114,963 313,140 304,645 Total $ 370,819 $ 114,963 $ 313,140 $ 576,845 n/a Denotes revenue representing less than 10% of total revenue for the period |
Contract Balances | The following table provides information about receivables, contract assets and contract liabilities (deferred revenue) from contracts with customers (in thousands): Balance at July 31, 2021 Balance at October 31, 2020 Accounts receivable, net $ 878,229 $ 719,405 Contract assets for unbilled accounts receivable, net $ 98,812 $ 85,843 Deferred revenue $ 183,899 $ 158,363 As of the dates indicated, deferred revenue is comprised of the following (in thousands): July 31, October 31, Products $ 13,380 $ 17,534 Services 170,519 140,829 183,899 158,363 Less current portion (126,179) (108,700) Long-term deferred revenue $ 57,720 $ 49,663 |
CANADIAN EMERGENCY WAGE SUBSI_2
CANADIAN EMERGENCY WAGE SUBSIDY (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of Canadian Emergency Wage Subsidy | The following table summarizes CEWS for the periods indicated (in thousands): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Product $ 94 $ — $ 4,283 $ — Service 47 — 2,667 — CEWS benefit in cost of goods sold 141 — 6,950 — Research and development 596 — 29,519 — Sales and marketing 53 — 2,604 — General and administrative 46 — 2,207 — CEWS benefit in operating expense 695 — 34,330 — Total CEWS benefit $ 836 $ — $ 41,280 $ — |
RESTRUCTURING COSTS (Tables)
RESTRUCTURING COSTS (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Activity and Balance of the Restructuring Liability Accounts | The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in Accrued liabilities and other short-term obligations on Ciena’s Condensed Consolidated Balance Sheets, for the nine months ended July 31, 2021 (in thousands): Workforce Other restructuring activities Total Balance at October 31, 2020 $ 2,915 $ — $ 2,915 Charges 5,306 (1) 18,558 (2) 23,864 Cash payments (7,051) (18,558) (25,609) Balance at July 31, 2021 $ 1,170 $ — $ 1,170 Current restructuring liabilities $ 1,170 $ — $ 1,170 (1) Reflects a global workforce reduction of 120 employees during the nine months ended July 31, 2021 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes. (2) Primarily represents the redesign of certain business processes associated with Ciena’s supply chain and distribution structure reorganization, and costs related to restructured facilities. The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in Accrued liabilities and other short-term obligations on Ciena’s Condensed Consolidated Balance Sheets for the nine months ended August 1, 2020 (in thousands): Workforce Other restructuring activities Total Balance at November 2, 2019 $ 3,983 $ 11,160 $ 15,143 Charges 5,015 (1) 9,783 (2) 14,798 Adjustments related to ASC 842 — (11,160) (3) (11,160) Cash payments (7,335) (9,783) (17,118) Balance at August 1, 2020 $ 1,663 $ — $ 1,663 Current restructuring liabilities $ 1,663 $ — $ 1,663 (1) Reflects a global workforce reduction of approximately 79 employees during the nine months ended August 1, 2020 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes. (2) Primarily represents variable costs and imputed interest expense related to restructured facilities. (3) Represents restructuring reserve liability recognized as a reduction to Operating right-of-use (“ROU”) assets, net in relation to adoption of ASC 842. |
INTEREST AND OTHER INCOME (LO_2
INTEREST AND OTHER INCOME (LOSS), NET (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income (Loss), Net | The components of interest and other income (loss), net, are as follows (in thousands): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Interest income $ 465 $ 849 $ 1,553 $ 6,262 Gains (losses) on non-hedge designated foreign currency forward contracts (4,414) 1,282 5,295 3,005 Foreign currency exchange gains (losses) 4,959 (2,537) (8,534) (7,376) Other (215) 638 86 (678) Interest and other income (loss), net $ 795 $ 232 $ (1,600) $ 1,213 |
SHORT-TERM AND LONG-TERM INVE_2
SHORT-TERM AND LONG-TERM INVESTMENTS (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Short-Term and Long-Term Investments | As of the dates indicated, investments are comprised of the following (in thousands): July 31, 2021 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair U.S. government obligations: Included in short-term investments $ 181,966 $ 44 $ — $ 182,010 Included in long-term investments 60,887 7 (6) 60,888 $ 242,853 $ 51 $ (6) $ 242,898 October 31, 2020 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair U.S. government obligations: Included in short-term investments $ 150,559 $ 109 $ (1) $ 150,667 Included in long-term investments 82,252 — (26) 82,226 $ 232,811 $ 109 $ (27) $ 232,893 |
Schedule of Legal Maturities of Debt Investments | The following table summarizes the final legal maturities of debt investments at July 31, 2021 (in thousands): Amortized Estimated Less than one year $ 181,966 $ 182,010 Due in 1-2 years 60,887 60,888 $ 242,853 $ 242,898 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of the Fair Value of Assets and Liabilities Recorded on a Recurring Basis | As of the date indicated, the following table summarizes the assets and liabilities that are recorded at fair value on a recurring basis (in thousands): July 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 909,976 $ — $ — $ 909,976 Bond mutual fund 75,398 — — 75,398 Time deposits 30,029 — — 30,029 Deferred compensation plan assets 12,380 — — 12,380 U.S. government obligations — 242,898 — 242,898 Foreign currency forward contracts — 8,598 — 8,598 Total assets measured at fair value $ 1,027,783 $ 251,496 $ — $ 1,279,279 Liabilities: Foreign currency forward contracts $ — $ 3,709 $ — $ 3,709 Forward starting interest rate swaps — 20,682 — 20,682 Total liabilities measured at fair value $ — $ 24,391 $ — $ 24,391 October 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 889,293 $ — $ — $ 889,293 Bond mutual fund 50,361 — — 50,361 Deferred compensation plan assets 8,213 — — 8,213 U.S. government obligations — 232,893 — 232,893 Foreign currency forward contracts — 82 — 82 Total assets measured at fair value $ 947,867 $ 232,975 $ — $ 1,180,842 Liabilities: Foreign currency forward contracts $ — $ 681 $ — $ 681 Forward starting interest rate swaps — 28,513 — 28,513 Total liabilities measured at fair value $ — $ 29,194 $ — $ 29,194 |
Schedule of Assets and Liabilities as Presented on Ciena's Condensed Consolidated Balance Sheets | As of the date indicated, the assets and liabilities above are presented on Ciena’s Condensed Consolidated Balance Sheets as follows (in thousands): July 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 1,015,403 $ — $ — $ 1,015,403 Short-term investments — 182,010 — 182,010 Prepaid expenses and other — 8,598 — 8,598 Long-term investments — 60,888 — 60,888 Other long-term assets 12,380 — — 12,380 Total assets measured at fair value $ 1,027,783 $ 251,496 $ — $ 1,279,279 Liabilities: Accrued liabilities and other short-term obligations $ — $ 3,709 $ — $ 3,709 Other long-term obligations — 20,682 — 20,682 Total liabilities measured at fair value $ — $ 24,391 $ — $ 24,391 October 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 939,654 $ — $ — $ 939,654 Short-term investments — 150,667 — 150,667 Prepaid expenses and other — 82 — 82 Other long-term assets 8,213 82,226 — 90,439 Total assets measured at fair value $ 947,867 $ 232,975 $ — $ 1,180,842 Liabilities: Accrued liabilities and other short-term obligations $ — $ 681 $ — $ 681 Other long-term obligations — 28,513 — 28,513 Total liabilities measured at fair value $ — $ 29,194 $ — $ 29,194 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of the dates indicated, inventories are comprised of the following (in thousands): July 31, October 31, Raw materials $ 139,338 $ 119,481 Work-in-process 10,556 13,738 Finished goods 204,580 210,050 Deferred cost of goods sold 53,826 40,747 Gross inventories 408,300 384,016 Provision for excess and obsolescence (38,130) (39,637) Inventories, net $ 370,170 $ 344,379 |
PREPAID EXPENSES AND OTHER (Tab
PREPAID EXPENSES AND OTHER (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
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): July 31, October 31, Contract assets for unbilled accounts receivable, net $ 98,812 $ 85,843 Prepaid expenses 75,287 70,647 Prepaid VAT and other taxes 70,735 72,838 Product demonstration equipment, net 35,411 44,793 Other non-trade receivables 17,808 21,981 Capitalized contract acquisition costs 15,067 11,296 Derivative assets 8,598 82 CEWS receivable 1,229 — Deferred deployment expense 336 604 $ 323,283 $ 308,084 |
OTHER BALANCE SHEET DETAILS (Ta
OTHER BALANCE SHEET DETAILS (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accrued Liabilities | As of the dates indicated, accrued liabilities and other short-term obligations are comprised of the following (in thousands): July 31, October 31, Compensation, payroll related tax and benefits $ 142,713 $ 135,462 Warranty 48,139 49,868 Income taxes payable 36,526 6,348 Vacation 30,986 26,945 Finance lease obligations 3,395 2,836 Other 111,532 112,673 $ 373,291 $ 334,132 |
Schedule of Accrued Warranties | The following table summarizes the activity in Ciena’s accrued warranty for the periods indicated (in thousands): Beginning Balance Current Period Provisions Settlements Ending Balance Nine Months Ended August 1, 2020 $ 48,498 19,172 (15,504) $ 52,166 Nine Months Ended July 31, 2021 $ 49,868 12,726 (14,455) $ 48,139 |
Contract Balances | The following table provides information about receivables, contract assets and contract liabilities (deferred revenue) from contracts with customers (in thousands): Balance at July 31, 2021 Balance at October 31, 2020 Accounts receivable, net $ 878,229 $ 719,405 Contract assets for unbilled accounts receivable, net $ 98,812 $ 85,843 Deferred revenue $ 183,899 $ 158,363 As of the dates indicated, deferred revenue is comprised of the following (in thousands): July 31, October 31, Products $ 13,380 $ 17,534 Services 170,519 140,829 183,899 158,363 Less current portion (126,179) (108,700) Long-term deferred revenue $ 57,720 $ 49,663 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table summarizes the changes in accumulated balances of other comprehensive income (“AOCI”), net of tax, for the nine months ended July 31, 2021 (in thousands): Unrealized Gain (Loss) on Cumulative Available-for-sale Securities Foreign Currency Forward Contracts Forward Starting Interest Rate Swaps Foreign Currency Total Balance at October 31, 2020 $ 45 $ (219) $ (21,535) $ (13,649) $ (35,358) Other comprehensive gain (loss) before reclassifications (28) 13,574 (1,399) 19,439 31,586 Amounts reclassified from AOCI — (7,907) 7,049 — (858) Balance at July 31, 2021 $ 17 $ 5,448 $ (15,885) $ 5,790 $ (4,630) The following table summarizes the changes in AOCI, net of tax, for the nine months ended August 1, 2020 (in thousands): Unrealized Gain (Loss) on Cumulative Available-for-sale Securities Foreign Currency Forward Contracts Forward Starting Interest Rate Swaps Foreign Currency Total Balance at November 2, 2019 $ 152 $ 925 $ (13,686) $ (9,475) $ (22,084) Other comprehensive loss before reclassifications 69 (4,515) (12,507) (6,321) (23,274) Amounts reclassified from AOCI — 2,742 2,427 — 5,169 Balance at August 1, 2020 $ 221 $ (848) $ (23,766) $ (15,796) $ (40,189) |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Leases Included in the Balance Sheet | Leases included in the Condensed Consolidated Balance Sheets were as follows (in thousands): Classification As of July 31, 2021 As of October 31, 2020 Operating leases: Operating ROU assets Operating right-of-use assets $ 48,937 $ 57,026 Operating lease liabilities Operating lease liabilities and Long-term operating lease liabilities 70,320 80,450 Finance leases: Buildings, gross Equipment, building, furniture and fixtures, net $ 75,616 $ 70,791 Less: accumulated depreciation Equipment, building, furniture and fixtures, net (22,664) (17,837) Buildings, net $ 52,952 $ 52,954 Finance lease liabilities Accrued liabilities and other short-term obligations and other long-term obligations $ 66,530 $ 64,401 The weighted average remaining lease terms and weighted average discount rates for operating and finance leases were as follows: As of July 31, 2021 As of October 31, 2020 Weighted-average remaining lease term in years: Operating leases 4.35 4.87 Finance leases 10.97 11.71 Weighted-average discount rates: Operating leases 2.75 % 2.82 % Finance leases 7.56 % 7.56 % |
Components of Lease Expense | The components of lease expense included in the Condensed Consolidated Statement of Operations were as follows (in thousands): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, Classification 2021 2020 2021 2020 Operating lease costs Operating expense $ 4,085 $ 4,234 $ 12,516 $ 13,435 Finance lease cost: Amortization of finance ROU asset Operating expense 1,224 1,097 3,580 3,330 Interest on finance lease liabilities Interest expense 1,243 1,162 3,671 3,574 Total finance lease cost 2,467 2,259 7,251 6,904 Non-capitalized lease cost Operating expense 216 883 842 2,211 Variable lease cost (1) Operating expense 1,393 1,265 4,444 3,900 Net lease cost (2) $ 8,161 $ 8,641 $ 25,053 $ 26,450 (1) Variable lease costs include expenses relating to insurance, taxes, maintenance and other costs required by the applicable operating lease. Variable lease costs are determined by whether they are to be included in base rent and if amounts are based on a consumer price index. (2) Excludes other operating expense of $2.3 million and $2.2 million for the third quarter of fiscal 2021 and 2020, respectively and $7.2 million and $8.7 million for the nine months ended July 31, 2021 and August 1, 2020, respectively, related to amortization of leasehold improvements. |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments and the present value of minimum lease payments related to operating and finance leases as of July 31, 2021 were as follows (in thousands): Operating Leases Finance Leases Total Remaining fiscal 2021 $ 5,472 $ 8,146 $ 13,618 2022 19,862 8,500 28,362 2023 16,087 8,500 24,587 2024 13,768 8,620 22,388 2025 9,437 8,706 18,143 Thereafter 10,272 55,532 65,804 Total lease payments 74,898 98,004 172,902 Less: Imputed interest (4,578) (31,474) (36,052) Present value of lease liabilities 70,320 66,530 136,850 Less: Current portion of present value of minimum lease payments (19,085) (3,395) (22,480) Long-term portion of present value of minimum lease payments $ 51,235 $ 63,135 $ 114,370 |
Finance Lease, Liability, Maturity | Future minimum lease payments and the present value of minimum lease payments related to operating and finance leases as of July 31, 2021 were as follows (in thousands): Operating Leases Finance Leases Total Remaining fiscal 2021 $ 5,472 $ 8,146 $ 13,618 2022 19,862 8,500 28,362 2023 16,087 8,500 24,587 2024 13,768 8,620 22,388 2025 9,437 8,706 18,143 Thereafter 10,272 55,532 65,804 Total lease payments 74,898 98,004 172,902 Less: Imputed interest (4,578) (31,474) (36,052) Present value of lease liabilities 70,320 66,530 136,850 Less: Current portion of present value of minimum lease payments (19,085) (3,395) (22,480) Long-term portion of present value of minimum lease payments $ 51,235 $ 63,135 $ 114,370 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Convertible Notes | The net carrying value of Ciena’s term loan was comprised of the following for the periods indicated (in thousands): July 31, 2021 October 31, 2020 Principal Balance Unamortized Discount Deferred Debt Issuance Costs Net Carrying Value Net Carrying Value 2025 Term Loan $ 682,605 $ (1,332) $ (2,488) $ 678,785 $ 683,286 |
EARNINGS_PER SHARE CALCULATION
EARNINGS PER SHARE CALCULATION (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted net income per share (in thousands, except per share amounts): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Net income $ 238,232 $ 142,267 $ 396,697 $ 296,250 Basic weighted average shares outstanding 155,271 154,184 155,277 154,136 Effect of dilutive potential common shares 1,473 2,134 1,465 1,605 Diluted weighted average shares 156,744 156,318 156,742 155,741 Basic EPS $ 1.53 $ 0.92 $ 2.55 $ 1.92 Diluted EPS $ 1.52 $ 0.91 $ 2.53 $ 1.90 Antidilutive employee share-based awards, excluded 131 13 99 316 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Equity [Abstract] | |
Schedule of Stock Repurchase Program | The following table summarizes activity of the stock repurchase program, reported based on trade date: Shares Repurchased Weighted-Average Price per Share Amount Repurchased (in thousands) Cumulative balance at October 31, 2020 5,710,912 $ 39.33 $ 224,611 Repurchase of common stock under the stock repurchase program 1,203,439 54.31 65,356 Cumulative balance at July 31, 2021 6,914,351 $ 41.94 $ 289,967 |
SHARE-BASED COMPENSATION EXPE_2
SHARE-BASED COMPENSATION EXPENSE (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | The following table summarizes share-based compensation expense for the periods indicated (in thousands): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Product $ 1,037 $ 960 $ 2,488 $ 2,458 Service 1,315 1,007 3,941 2,885 Share-based compensation expense included in cost of goods sold 2,352 1,967 6,429 5,343 Research and development 5,541 4,286 16,179 12,957 Sales and marketing 6,534 5,180 18,960 15,057 General and administrative 8,237 5,940 21,338 17,442 Share-based compensation expense included in operating expense 20,312 15,406 56,477 45,456 Share-based compensation expense capitalized in inventory, net (193) (114) 64 39 Total share-based compensation $ 22,471 $ 17,259 $ 62,970 $ 50,838 |
SEGMENTS AND ENTITY-WIDE DISC_2
SEGMENTS AND ENTITY-WIDE DISCLOSURES (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Assets From Segment to Consolidated | As of July 31, 2021, finite-lived intangible assets, goodwill and maintenance spares are assigned to asset groups within the following segments (in thousands): Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Other intangible assets, net $ 9,865 $ — $ 64,109 $ — $ 73,974 Goodwill $ 66,329 $ 156,191 $ 89,049 $ — $ 311,569 Maintenance spares, net $ — $ — $ — $ 61,048 $ 61,048 |
Schedule of Segment Profit (Loss) and the Reconciliation to Consolidated Net Income (Loss) | The table below sets forth Ciena’s segment profit (loss) and the reconciliation to consolidated net income for the periods indicated (in thousands): Quarter Ended Nine Months Ended July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Segment profit (loss): Networking Platforms $ 244,535 $ 262,801 $ 612,378 $ 642,057 Platform Software and Services 31,526 24,299 95,692 74,918 Blue Planet Automation Software and Services (3,243) (5,316) 11 (12,828) Global Services 55,507 52,676 147,567 151,744 Total segment profit 328,325 334,460 855,648 855,891 Less: Non-performance operating expenses Selling and marketing 114,924 94,763 322,589 303,043 General and administrative 48,863 41,635 132,491 126,133 Significant asset impairments and restructuring costs 9,789 6,515 23,865 14,798 Amortization of intangible assets 5,967 5,840 17,896 17,532 Acquisition and integration costs (recoveries) 259 (2,329) 860 904 Add: Other non-performance financial items Interest expense and other income (loss), net (6,981) (7,019) (24,521) (22,713) Loss on extinguishment and modification of debt — — — (646) Less: Provision (benefit) for income taxes (96,690) 38,750 (63,271) 73,872 Consolidated net income $ 238,232 $ 142,267 $ 396,697 $ 296,250 |
Schedule of Ciena's Geographic Distribution of Revenue and Long-Lived Assets | For the periods below, Ciena’s geographic distribution of equipment, building, furniture and fixtures, net, and operating ROU assets was as follows (in thousands): July 31, October 31, Canada $ 242,495 $ 214,188 United States 54,050 65,321 Other International 41,329 49,894 Total $ 337,874 $ 329,403 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 988,141 | $ 976,712 | $ 2,579,198 | $ 2,703,677 |
Products and services at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 811,598 | 821,816 | 2,081,549 | 2,246,782 |
Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 176,543 | 154,896 | 497,649 | 456,895 |
Converged Packet Optical | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 712,906 | 722,512 | 1,798,888 | 1,968,355 |
Routing and Switching | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 69,698 | 79,756 | 197,632 | 211,432 |
Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 56,945 | 46,422 | 163,472 | 143,295 |
Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 16,607 | 11,297 | 57,499 | 41,779 |
Maintenance Support and Training | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 74,006 | 69,099 | 212,054 | 202,370 |
Installation and Deployment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 46,653 | 39,798 | 124,263 | 108,994 |
Consulting and Network Design | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 11,326 | 7,828 | 25,390 | 27,452 |
Networking Platforms | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 782,604 | 802,268 | 1,996,520 | 2,179,787 |
Networking Platforms | Products and services at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 782,604 | 802,268 | 1,996,520 | 2,179,787 |
Networking Platforms | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Networking Platforms | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 782,604 | 802,268 | 1,996,520 | 2,179,787 |
Networking Platforms | Operating Segments | Converged Packet Optical | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 712,906 | 722,512 | 1,798,888 | 1,968,355 |
Networking Platforms | Operating Segments | Routing and Switching | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 69,698 | 79,756 | 197,632 | 211,432 |
Networking Platforms | Operating Segments | Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Networking Platforms | Operating Segments | Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Networking Platforms | Operating Segments | Maintenance Support and Training | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Networking Platforms | Operating Segments | Installation and Deployment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Networking Platforms | Operating Segments | Consulting and Network Design | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 56,945 | 46,422 | 163,472 | 143,295 |
Platform Software and Services | Products and services at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 17,928 | 15,838 | 54,756 | 45,930 |
Platform Software and Services | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 39,017 | 30,584 | 108,716 | 97,365 |
Platform Software and Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 56,945 | 46,422 | 163,472 | 143,295 |
Platform Software and Services | Operating Segments | Converged Packet Optical | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Platform Software and Services | Operating Segments | Routing and Switching | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Platform Software and Services | Operating Segments | Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 56,945 | 46,422 | 163,472 | 143,295 |
Platform Software and Services | Operating Segments | Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Platform Software and Services | Operating Segments | Maintenance Support and Training | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Platform Software and Services | Operating Segments | Installation and Deployment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Platform Software and Services | Operating Segments | Consulting and Network Design | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 16,607 | 11,297 | 57,499 | 41,779 |
Blue Planet Automation Software and Services | Products and services at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,558 | 410 | 20,497 | 8,891 |
Blue Planet Automation Software and Services | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,049 | 10,887 | 37,002 | 32,888 |
Blue Planet Automation Software and Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 16,607 | 11,297 | 57,499 | 41,779 |
Blue Planet Automation Software and Services | Operating Segments | Converged Packet Optical | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Blue Planet Automation Software and Services | Operating Segments | Routing and Switching | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Blue Planet Automation Software and Services | Operating Segments | Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Blue Planet Automation Software and Services | Operating Segments | Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 16,607 | 11,297 | 57,499 | 41,779 |
Blue Planet Automation Software and Services | Operating Segments | Maintenance Support and Training | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Blue Planet Automation Software and Services | Operating Segments | Installation and Deployment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Blue Planet Automation Software and Services | Operating Segments | Consulting and Network Design | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Global Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 131,985 | 116,725 | 361,707 | 338,816 |
Global Services | Products and services at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 6,508 | 3,300 | 9,776 | 12,174 |
Global Services | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 125,477 | 113,425 | 351,931 | 326,642 |
Global Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 131,985 | 116,725 | 361,707 | 338,816 |
Global Services | Operating Segments | Converged Packet Optical | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Global Services | Operating Segments | Routing and Switching | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Global Services | Operating Segments | Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Global Services | Operating Segments | Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Global Services | Operating Segments | Maintenance Support and Training | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 74,006 | 69,099 | 212,054 | 202,370 |
Global Services | Operating Segments | Installation and Deployment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 46,653 | 39,798 | 124,263 | 108,994 |
Global Services | Operating Segments | Consulting and Network Design | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 11,326 | $ 7,828 | $ 25,390 | $ 27,452 |
REVENUE - Geographical Distribu
REVENUE - Geographical Distribution of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 988,141 | $ 976,712 | $ 2,579,198 | $ 2,703,677 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 692,853 | 713,340 | 1,776,939 | 1,937,725 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 189,180 | 162,465 | 499,652 | 433,861 |
APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 106,108 | 100,907 | 302,607 | 332,091 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 623,900 | $ 647,000 | $ 1,600,000 | $ 1,800,000 |
REVENUE - Revenue by Major Cust
REVENUE - Revenue by Major Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Revenue, Major Customer [Line Items] | ||||
Total revenue | $ 988,141 | $ 976,712 | $ 2,579,198 | $ 2,703,677 |
Verizon | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenue | 131,892 | 272,200 | ||
Web-scale provider | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenue | 119,728 | |||
AT&T | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenue | 119,199 | 114,963 | 313,140 | 304,645 |
Total | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenue | $ 370,819 | $ 114,963 | $ 313,140 | $ 576,845 |
REVENUE - Contract Balances (De
REVENUE - Contract Balances (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 878,229 | $ 719,405 |
Contract assets for unbilled accounts receivable, net | 98,812 | 85,843 |
Deferred revenue | $ 183,899 | $ 158,363 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | Oct. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 988,141 | $ 976,712 | $ 2,579,198 | $ 2,703,677 | |
Revenue recognized that was previously deferred | 94,700 | 91,800 | |||
Capitalized contract acquisition costs | 20,400 | 20,400 | $ 15,300 | ||
Amortization of capitalized contract acquisition costs | 16,800 | 16,200 | |||
United States | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 623,900 | $ 647,000 | $ 1,600,000 | $ 1,800,000 |
REVENUE - Performance Obligatio
REVENUE - Performance Obligation (Details) $ in Millions | Jul. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 1,400 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-08-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining performance obligation | 85.00% |
Period of remaining performance obligation | 12 months |
CANADIAN EMERGENCY WAGE SUBSI_3
CANADIAN EMERGENCY WAGE SUBSIDY - Narrative (Details) $ in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2021CAD ($) | Jul. 31, 2021USD ($) | Aug. 01, 2020USD ($) | Jul. 31, 2021CAD ($) | Jul. 31, 2021USD ($) | Aug. 01, 2020USD ($) | Jul. 31, 2021USD ($) | |
Grants, Canada Emergency Wage Subsidy, 2020 Employee Wages | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Total CEWS benefit | $ 1.1 | $ 800 | $ 43.9 | $ 35,200 | |||
Canadian Emergency Wage Subsidy | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Total CEWS benefit | $ 836 | $ 0 | 52.2 | $ 41,280 | $ 0 | ||
Amounts receivable from grant | $ 1.5 | $ 1.5 | $ 1,200 |
CANADIAN EMERGENCY WAGE SUBSI_4
CANADIAN EMERGENCY WAGE SUBSIDY - Schedule of Canadian Emergency Wage Subsidy (Details) - CEWS receivable $ in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2021USD ($) | Aug. 01, 2020USD ($) | Jul. 31, 2021CAD ($) | Jul. 31, 2021USD ($) | Aug. 01, 2020USD ($) | |
Unusual or Infrequent Item, or Both [Line Items] | |||||
Total CEWS benefit | $ 836 | $ 0 | $ 52.2 | $ 41,280 | $ 0 |
Product | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Total CEWS benefit | 94 | 0 | 4,283 | 0 | |
Service | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Total CEWS benefit | 47 | 0 | 2,667 | 0 | |
CEWS benefit in cost of goods sold | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Total CEWS benefit | 141 | 0 | 6,950 | 0 | |
Research and development | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Total CEWS benefit | 596 | 0 | 29,519 | 0 | |
Sales and marketing | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Total CEWS benefit | 53 | 0 | 2,604 | 0 | |
General and administrative | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Total CEWS benefit | 46 | 0 | 2,207 | 0 | |
CEWS benefit in operating expense | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Total CEWS benefit | $ 695 | $ 0 | $ 34,330 | $ 0 |
RESTRUCTURING COSTS (Details)
RESTRUCTURING COSTS (Details) $ in Thousands | 9 Months Ended | |
Jul. 31, 2021USD ($)employee | Aug. 01, 2020USD ($)employee | |
Activity and balance of the restructuring liability accounts | ||
Balance at beginning of period | $ 2,915 | $ 15,143 |
Charges | 23,864 | 14,798 |
Cash payments | (25,609) | (17,118) |
Balance at end of period | 1,170 | 1,663 |
Current restructuring liabilities | 1,170 | 1,663 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Activity and balance of the restructuring liability accounts | ||
Balance at beginning of period | (11,160) | |
Workforce reduction | ||
Activity and balance of the restructuring liability accounts | ||
Balance at beginning of period | 2,915 | 3,983 |
Charges | 5,306 | 5,015 |
Cash payments | (7,051) | (7,335) |
Balance at end of period | 1,170 | 1,663 |
Current restructuring liabilities | $ 1,170 | $ 1,663 |
Number of employee reduction | employee | 120 | 79 |
Workforce reduction | Cumulative Effect, Period of Adoption, Adjustment | ||
Activity and balance of the restructuring liability accounts | ||
Balance at beginning of period | $ 0 | |
Other restructuring activities | ||
Activity and balance of the restructuring liability accounts | ||
Balance at beginning of period | $ 0 | 11,160 |
Charges | 18,558 | 9,783 |
Cash payments | (18,558) | (9,783) |
Balance at end of period | 0 | 0 |
Current restructuring liabilities | $ 0 | 0 |
Other restructuring activities | Cumulative Effect, Period of Adoption, Adjustment | ||
Activity and balance of the restructuring liability accounts | ||
Balance at beginning of period | $ (11,160) |
INTEREST AND OTHER INCOME (LO_3
INTEREST AND OTHER INCOME (LOSS), NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 465 | $ 849 | $ 1,553 | $ 6,262 |
Gains (losses) on non-hedge designated foreign currency forward contracts | (4,414) | 1,282 | 5,295 | 3,005 |
Foreign currency exchange gains (losses) | 4,959 | (2,537) | (8,534) | (7,376) |
Other | (215) | 638 | 86 | (678) |
Interest and other income (loss), net | $ 795 | $ 232 | $ (1,600) | $ 1,213 |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Millions | 3 Months Ended |
Jul. 31, 2021USD ($) | |
Income Tax Disclosure [Abstract] | |
Intra-entity transfer of non-US intellectual property rights, income tax benefit | $ (124.2) |
SHORT-TERM AND LONG-TERM INVE_3
SHORT-TERM AND LONG-TERM INVESTMENTS - Components of Investments (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 242,853 | |
Estimated Fair Value | 242,898 | |
U.S. government obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 242,853 | $ 232,811 |
Gross Unrealized Gains | 51 | 109 |
Gross Unrealized Losses | (6) | (27) |
Estimated Fair Value | 242,898 | 232,893 |
Included in short-term investments | U.S. government obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 181,966 | 150,559 |
Gross Unrealized Gains | 44 | 109 |
Gross Unrealized Losses | 0 | (1) |
Estimated Fair Value | 182,010 | 150,667 |
Included in long-term investments | U.S. government obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 60,887 | 82,252 |
Gross Unrealized Gains | 7 | 0 |
Gross Unrealized Losses | (6) | (26) |
Estimated Fair Value | $ 60,888 | $ 82,226 |
SHORT-TERM AND LONG-TERM INVE_4
SHORT-TERM AND LONG-TERM INVESTMENTS - Legal Maturities of Debt Investments (Details) $ in Thousands | Jul. 31, 2021USD ($) |
Amortized Cost | |
Less than one year | $ 181,966 |
Due in 1-2 years | 60,887 |
Amortized Cost | 242,853 |
Estimated Fair Value | |
Less than one year | 182,010 |
Due in 1-2 years | 60,888 |
Estimated Fair Value | $ 242,898 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value Measurements (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Assets: | ||
Debt securities | $ 242,898 | |
Fair value, Measurements, Recurring | ||
Assets: | ||
Deferred compensation plan assets | 12,380 | $ 8,213 |
Total assets measured at fair value | 1,279,279 | 1,180,842 |
Liabilities: | ||
Total liabilities measured at fair value | 24,391 | 29,194 |
Fair value, Measurements, Recurring | Money market funds | ||
Assets: | ||
Cash equivalents | 909,976 | 889,293 |
Fair value, Measurements, Recurring | Time deposits | ||
Assets: | ||
Cash equivalents | 30,029 | |
Fair value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Deferred compensation plan assets | 12,380 | 8,213 |
Total assets measured at fair value | 1,027,783 | 947,867 |
Liabilities: | ||
Total liabilities measured at fair value | 0 | 0 |
Fair value, Measurements, Recurring | Level 1 | Money market funds | ||
Assets: | ||
Cash equivalents | 909,976 | 889,293 |
Fair value, Measurements, Recurring | Level 1 | Time deposits | ||
Assets: | ||
Cash equivalents | 30,029 | |
Fair value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Deferred compensation plan assets | 0 | 0 |
Total assets measured at fair value | 251,496 | 232,975 |
Liabilities: | ||
Total liabilities measured at fair value | 24,391 | 29,194 |
Fair value, Measurements, Recurring | Level 2 | Money market funds | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Fair value, Measurements, Recurring | Level 2 | Time deposits | ||
Assets: | ||
Cash equivalents | 0 | |
Fair value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Deferred compensation plan assets | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities: | ||
Total liabilities measured at fair value | 0 | 0 |
Fair value, Measurements, Recurring | Level 3 | Money market funds | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Fair value, Measurements, Recurring | Level 3 | Time deposits | ||
Assets: | ||
Cash equivalents | 0 | |
Foreign Currency Forward Contracts | Fair value, Measurements, Recurring | ||
Assets: | ||
Derivative asset | 8,598 | 82 |
Liabilities: | ||
Derivative liability | 3,709 | 681 |
Foreign Currency Forward Contracts | Fair value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Derivative asset | 0 | 0 |
Liabilities: | ||
Derivative liability | 0 | 0 |
Foreign Currency Forward Contracts | Fair value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Derivative asset | 8,598 | 82 |
Liabilities: | ||
Derivative liability | 3,709 | 681 |
Foreign Currency Forward Contracts | Fair value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Derivative asset | 0 | 0 |
Liabilities: | ||
Derivative liability | 0 | 0 |
Forward Starting Interest Rate Swaps | ||
Liabilities: | ||
Derivative liability | 28,513 | |
Forward Starting Interest Rate Swaps | Fair value, Measurements, Recurring | ||
Liabilities: | ||
Derivative liability | 20,682 | |
Forward Starting Interest Rate Swaps | Fair value, Measurements, Recurring | Level 1 | ||
Liabilities: | ||
Derivative liability | 0 | 0 |
Forward Starting Interest Rate Swaps | Fair value, Measurements, Recurring | Level 2 | ||
Liabilities: | ||
Derivative liability | 20,682 | 28,513 |
Forward Starting Interest Rate Swaps | Fair value, Measurements, Recurring | Level 3 | ||
Liabilities: | ||
Derivative liability | 0 | 0 |
Bond mutual fund | Fair value, Measurements, Recurring | ||
Assets: | ||
Debt securities | 75,398 | 50,361 |
Bond mutual fund | Fair value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Debt securities | 75,398 | 50,361 |
Bond mutual fund | Fair value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Debt securities | 0 | 0 |
Bond mutual fund | Fair value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Debt securities | 0 | 0 |
U.S. government obligations | Fair value, Measurements, Recurring | ||
Assets: | ||
Debt securities | 242,898 | 232,893 |
U.S. government obligations | Fair value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Debt securities | 0 | 0 |
U.S. government obligations | Fair value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Debt securities | 242,898 | 232,893 |
U.S. government obligations | Fair value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Debt securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Conde
FAIR VALUE MEASUREMENTS - Condensed Consolidated Balance Sheet (Details) - Fair value, Measurements, Recurring - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Assets: | ||
Total assets measured at fair value | $ 1,279,279 | $ 1,180,842 |
Liabilities: | ||
Total liabilities measured at fair value | 24,391 | 29,194 |
Cash equivalents | ||
Assets: | ||
Cash equivalents | 1,015,403 | 939,654 |
Short-term investments | ||
Assets: | ||
Short-term investments | 182,010 | 150,667 |
Prepaid expenses and other | ||
Assets: | ||
Other assets | 8,598 | 82 |
Long-term investments | ||
Assets: | ||
Long-term investments | 60,888 | |
Other long-term assets | ||
Assets: | ||
Other assets | 12,380 | 90,439 |
Accrued liabilities and other short-term obligations | ||
Liabilities: | ||
Accrued liabilities and other short-term obligations | 3,709 | 681 |
Other long-term obligations | ||
Liabilities: | ||
Other long-term obligations | 20,682 | 28,513 |
Level 1 | ||
Assets: | ||
Total assets measured at fair value | 1,027,783 | 947,867 |
Liabilities: | ||
Total liabilities measured at fair value | 0 | 0 |
Level 1 | Cash equivalents | ||
Assets: | ||
Cash equivalents | 1,015,403 | 939,654 |
Level 1 | Short-term investments | ||
Assets: | ||
Short-term investments | 0 | 0 |
Level 1 | Prepaid expenses and other | ||
Assets: | ||
Other assets | 0 | 0 |
Level 1 | Long-term investments | ||
Assets: | ||
Long-term investments | 0 | |
Level 1 | Other long-term assets | ||
Assets: | ||
Other assets | 12,380 | 8,213 |
Level 1 | Accrued liabilities and other short-term obligations | ||
Liabilities: | ||
Accrued liabilities and other short-term obligations | 0 | 0 |
Level 1 | Other long-term obligations | ||
Liabilities: | ||
Other long-term obligations | 0 | 0 |
Level 2 | ||
Assets: | ||
Total assets measured at fair value | 251,496 | 232,975 |
Liabilities: | ||
Total liabilities measured at fair value | 24,391 | 29,194 |
Level 2 | Cash equivalents | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Level 2 | Short-term investments | ||
Assets: | ||
Short-term investments | 182,010 | 150,667 |
Level 2 | Prepaid expenses and other | ||
Assets: | ||
Other assets | 8,598 | 82 |
Level 2 | Long-term investments | ||
Assets: | ||
Long-term investments | 60,888 | |
Level 2 | Other long-term assets | ||
Assets: | ||
Other assets | 0 | 82,226 |
Level 2 | Accrued liabilities and other short-term obligations | ||
Liabilities: | ||
Accrued liabilities and other short-term obligations | 3,709 | 681 |
Level 2 | Other long-term obligations | ||
Liabilities: | ||
Other long-term obligations | 20,682 | 28,513 |
Level 3 | ||
Assets: | ||
Total assets measured at fair value | 0 | 0 |
Liabilities: | ||
Total liabilities measured at fair value | 0 | 0 |
Level 3 | Cash equivalents | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Level 3 | Short-term investments | ||
Assets: | ||
Short-term investments | 0 | 0 |
Level 3 | Prepaid expenses and other | ||
Assets: | ||
Other assets | 0 | 0 |
Level 3 | Long-term investments | ||
Assets: | ||
Long-term investments | 0 | |
Level 3 | Other long-term assets | ||
Assets: | ||
Other assets | 0 | 0 |
Level 3 | Accrued liabilities and other short-term obligations | ||
Liabilities: | ||
Accrued liabilities and other short-term obligations | 0 | 0 |
Level 3 | Other long-term obligations | ||
Liabilities: | ||
Other long-term obligations | $ 0 | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Oct. 31, 2020 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 139,338 | $ 119,481 | |
Work-in-process | 10,556 | 13,738 | |
Finished goods | 204,580 | 210,050 | |
Deferred cost of goods sold | 53,826 | 40,747 | |
Gross inventories | 408,300 | 384,016 | |
Provision for excess and obsolescence | (38,130) | (39,637) | |
Inventories, net | 370,170 | $ 344,379 | |
Provisions | $ 13,460 | $ 20,176 |
PREPAID EXPENSES AND OTHER (Det
PREPAID EXPENSES AND OTHER (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Oct. 31, 2020 | |
Capitalized Contract Cost [Line Items] | |||
Prepaid expenses | $ 75,287 | $ 70,647 | |
Prepaid VAT and other taxes | 70,735 | 72,838 | |
Product demonstration equipment, net | 35,411 | 44,793 | |
Other non-trade receivables | 17,808 | 21,981 | |
Derivative assets | 8,598 | 82 | |
Deferred deployment expense | 336 | 604 | |
Prepaid expenses and other | 323,283 | 308,084 | |
Depreciation of product demonstration equipment | 7,600 | $ 6,500 | |
CEWS receivable | |||
Capitalized Contract Cost [Line Items] | |||
CEWS receivable | 1,229 | 0 | |
Contract assets for unbilled accounts receivable, net | |||
Capitalized Contract Cost [Line Items] | |||
Contract assets | 98,812 | 85,843 | |
Capitalized contract acquisition costs | |||
Capitalized Contract Cost [Line Items] | |||
Contract assets | $ 15,067 | $ 11,296 |
OTHER BALANCE SHEET DETAILS - A
OTHER BALANCE SHEET DETAILS - Accrued Liabilities and Other Short-term Obligations (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | Nov. 02, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||||
Compensation, payroll related tax and benefits | $ 142,713 | $ 135,462 | ||
Warranty | 48,139 | 49,868 | $ 52,166 | $ 48,498 |
Income taxes payable | 36,526 | 6,348 | ||
Vacation | 30,986 | 26,945 | ||
Finance lease obligations | 3,395 | 2,836 | ||
Other | 111,532 | 112,673 | ||
Total accrued liabilities and other short-term obligations | $ 373,291 | $ 334,132 |
OTHER BALANCE SHEET DETAILS -_2
OTHER BALANCE SHEET DETAILS - Accrued Warranty (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2021 | Aug. 01, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning Balance | $ 49,868 | $ 48,498 |
Current Period Provisions | 12,726 | 19,172 |
Settlements | (14,455) | (15,504) |
Ending Balance | $ 48,139 | $ 52,166 |
OTHER BALANCE SHEET DETAILS - D
OTHER BALANCE SHEET DETAILS - Deferred Revenue (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 183,899 | $ 158,363 |
Less current portion | (126,179) | (108,700) |
Long-term deferred revenue | 57,720 | 49,663 |
Products | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 13,380 | 17,534 |
Services | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 170,519 | $ 140,829 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2021 | Oct. 31, 2020 | |
Foreign Currency Forward Contracts | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 219.1 | $ 254.9 |
Derivative maturity (in months) | 24 months | |
Foreign Currency Forward Contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 241.8 | 212 |
Derivative maturity (in months) | 12 months | |
Forward Starting Interest Rate Swaps | Designated as Hedging Instrument | Cash Flow Hedging | Secured Debt | 2025 Term Loan | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 350 | $ 350 |
Derivative, fixed interest rate | 2.957% |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2021 | Aug. 01, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Equity - beginning balance | $ 2,509,597 | $ 2,172,761 |
Other comprehensive gain (loss) before reclassifications | 31,586 | (23,274) |
Amounts reclassified from AOCI | (858) | 5,169 |
Equity- ending balance | 2,924,236 | 2,428,867 |
Accumulated Other Comprehensive Gain (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Equity - beginning balance | (35,358) | (22,084) |
Equity- ending balance | (4,630) | (40,189) |
Available-for-sale Securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Equity - beginning balance | 45 | 152 |
Other comprehensive gain (loss) before reclassifications | (28) | 69 |
Amounts reclassified from AOCI | 0 | 0 |
Equity- ending balance | 17 | 221 |
Unrealized Gain (Loss) Derivatives | Foreign Currency Forward Contracts | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Equity - beginning balance | (219) | 925 |
Other comprehensive gain (loss) before reclassifications | 13,574 | (4,515) |
Amounts reclassified from AOCI | (7,907) | 2,742 |
Equity- ending balance | 5,448 | (848) |
Unrealized Gain (Loss) Derivatives | Forward Starting Interest Rate Swaps | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Equity - beginning balance | (21,535) | (13,686) |
Other comprehensive gain (loss) before reclassifications | (1,399) | (12,507) |
Amounts reclassified from AOCI | 7,049 | 2,427 |
Equity- ending balance | (15,885) | (23,766) |
Cumulative Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Equity - beginning balance | (13,649) | (9,475) |
Other comprehensive gain (loss) before reclassifications | 19,439 | (6,321) |
Amounts reclassified from AOCI | 0 | 0 |
Equity- ending balance | $ 5,790 | $ (15,796) |
LEASES - Narrative (Details)
LEASES - Narrative (Details) ft² in Millions, $ in Millions | 9 Months Ended |
Jul. 31, 2021USD ($)ft² | |
Leases [Abstract] | |
Area leased (in sq ft) | ft² | 1.3 |
Remaining lease term (up to) | 11 years |
Extension term (up to) | 10 years |
Termination period (up to) | 5 years |
ROU assets that involve subleased or vacant space | $ | $ 4.3 |
LEASES - Leases Included in the
LEASES - Leases Included in the Balance Sheet (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Operating leases: | ||
Operating ROU assets | $ 48,937 | $ 57,026 |
Operating lease liabilities | 70,320 | 80,450 |
Finance leases: | ||
Buildings, gross | 75,616 | 70,791 |
Less: accumulated depreciation | (22,664) | (17,837) |
Buildings, net | 52,952 | $ 52,954 |
Finance lease liabilities | $ 66,530 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Equipment, building, furniture and fixtures, net | Equipment, building, furniture and fixtures, net |
Accrued liabilities and other short-term obligations | ||
Finance leases: | ||
Finance lease liabilities | $ 66,530 | $ 64,401 |
Other long-term obligations | ||
Finance leases: | ||
Finance lease liabilities | $ 66,530 | $ 64,401 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Leases [Abstract] | ||||
Operating lease costs | $ 4,085 | $ 4,234 | $ 12,516 | $ 13,435 |
Finance lease cost: | ||||
Amortization of finance ROU asset | 1,224 | 1,097 | 3,580 | 3,330 |
Interest on finance lease liabilities | 1,243 | 1,162 | 3,671 | 3,574 |
Total finance lease cost | 2,467 | 2,259 | 7,251 | 6,904 |
Non-capitalized lease cost | 216 | 883 | 842 | 2,211 |
Variable lease cost | 1,393 | 1,265 | 4,444 | 3,900 |
Net lease cost | 8,161 | 8,641 | 25,053 | 26,450 |
Leasehold Improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Amortization | $ 2,300 | $ 2,200 | $ 7,200 | $ 8,700 |
LEASES - Leases Maturity (Detai
LEASES - Leases Maturity (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Operating Leases | ||
Remaining fiscal 2021 | $ 5,472 | |
2022 | 19,862 | |
2023 | 16,087 | |
2024 | 13,768 | |
2025 | 9,437 | |
Thereafter | 10,272 | |
Total lease payments | 74,898 | |
Less: Imputed interest | (4,578) | |
Present value of lease liabilities | 70,320 | $ 80,450 |
Less: Current portion of present value of minimum lease payments | (19,085) | (19,035) |
Long-term portion of present value of minimum lease payments | 51,235 | 61,415 |
Finance Leases | ||
Remaining fiscal 2021 | 8,146 | |
2022 | 8,500 | |
2023 | 8,500 | |
2024 | 8,620 | |
2025 | 8,706 | |
Thereafter | 55,532 | |
Total lease payments | 98,004 | |
Less: Imputed interest | (31,474) | |
Present value of lease liabilities | 66,530 | |
Less: Current portion of present value of minimum lease payments | (3,395) | $ (2,836) |
Long-term portion of present value of minimum lease payments | 63,135 | |
Lease, Liability, Payment, Due [Abstract] | ||
Remaining fiscal 2021 | 13,618 | |
2022 | 28,362 | |
2023 | 24,587 | |
2024 | 22,388 | |
2025 | 18,143 | |
Thereafter | 65,804 | |
Total lease payments | 172,902 | |
Less: Imputed interest | (36,052) | |
Present value of lease liabilities | 136,850 | |
Less: Current portion of present value of minimum lease payments | (22,480) | |
Long-term portion of present value of minimum lease payments | $ 114,370 |
LEASES - Weighted Average Remai
LEASES - Weighted Average Remaining Lease Terms and Discount Rates (Details) | Jul. 31, 2021 | Oct. 31, 2020 |
Weighted-average remaining lease term in years: | ||
Operating leases | 4 years 4 months 6 days | 4 years 10 months 13 days |
Finance leases | 10 years 11 months 19 days | 11 years 8 months 15 days |
Weighted-average discount rates: | ||
Operating leases | 2.75% | 2.82% |
Finance leases | 7.56% | 7.56% |
SHORT-TERM AND LONG-TERM DEBT -
SHORT-TERM AND LONG-TERM DEBT - Narrative (Details) - Secured Debt - USD ($) $ in Thousands | 9 Months Ended | |||
Jul. 31, 2021 | Aug. 01, 2020 | Oct. 31, 2020 | Jan. 23, 2020 | |
Debt Instrument [Line Items] | ||||
Debt issuance costs, net | $ 2,500 | $ 2,900 | ||
Amortization of debt issuance costs | 500 | $ 500 | ||
2025 Term Loan | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | 682,605 | $ 693,000 | ||
Debt issuance costs, net | 2,488 | |||
Fair value of debt | $ 680,900 |
SHORT-TERM AND LONG-TERM DEBT_2
SHORT-TERM AND LONG-TERM DEBT - Debt Components (Details) - Secured Debt - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 | Jan. 23, 2020 |
Debt Instrument [Line Items] | |||
Deferred Debt Issuance Costs | $ (2,500) | $ (2,900) | |
2025 Term Loan | |||
Debt Instrument [Line Items] | |||
Principal Balance | 682,605 | $ 693,000 | |
Unamortized Discount | (1,332) | ||
Deferred Debt Issuance Costs | (2,488) | ||
Net Carrying Value | $ 678,785 | $ 683,286 |
EARNINGS_PER SHARE CALCULATIO_2
EARNINGS PER SHARE CALCULATION - Earnings Per Share Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 238,232 | $ 142,267 | $ 396,697 | $ 296,250 |
Basic weighted average shares outstanding (in shares) | 155,271 | 154,184 | 155,277 | 154,136 |
Effect of dilutive potential common shares (in shares) | 1,473 | 2,134 | 1,465 | 1,605 |
Dilutive weighted average shares (in shares) | 156,744 | 156,318 | 156,742 | 155,741 |
Basic EPS (in dollars per share) | $ 1.53 | $ 0.92 | $ 2.55 | $ 1.92 |
Diluted EPS (in dollars per share) | $ 1.52 | $ 0.91 | $ 2.53 | $ 1.90 |
Antidilutive employee share-based awards, excluded (in shares) | 131 | 13 | 99 | 316 |
STOCKHOLDERS_ EQUITY - Narrativ
STOCKHOLDERS’ EQUITY - Narrative (Details) - USD ($) | 9 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Dec. 13, 2018 | |
Equity [Abstract] | |||
Stock repurchase program authorized amount | $ 500,000,000 | ||
Payments for repurchase of common stock | $ 36,484,000 | $ 26,328,000 |
STOCKHOLDERS_ EQUITY - Summary
STOCKHOLDERS’ EQUITY - Summary of the Stock Repurchase Program (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Jul. 31, 2021USD ($)$ / sharesshares | |
Shares Repurchased | |
Cumulative beginning balance (in shares) | shares | 5,710,912 |
Repurchase of common stock under the stock repurchase program (in shares) | shares | 1,203,439 |
Cumulative ending balance (in shares) | shares | 6,914,351 |
Weighted-Average Price per Share | |
Cumulative beginning balance (in dollars per share) | $ / shares | $ 39.33 |
Repurchase of common stock under the stock repurchase program (in dollars per share) | $ / shares | 54.31 |
Cumulative ending balance (in dollars per share) | $ / shares | $ 41.94 |
Amount Repurchased (in thousands) | |
Cumulative beginning balance | $ | $ 224,611 |
Repurchase of common stock under the stock repurchase program | $ | 65,356 |
Cumulative ending balance | $ | $ 289,967 |
SHARE-BASED COMPENSATION EXPE_3
SHARE-BASED COMPENSATION EXPENSE - Narrative (Details) shares in Millions, $ in Millions | Jan. 29, 2021shares | Jul. 31, 2021USD ($)purchase_period |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Offer period | 12 months | |
Number of purchase periods | purchase_period | 2 | |
Purchase period | 6 months | |
Purchase price of common stock | 85.00% | |
Increase in number of shares authorized (in shares) | shares | 8.7 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation | $ | $ 160.6 | |
Weighted-average period for recognition of share-based compensation (in years) | 1 year 6 months 29 days |
SHARE-BASED COMPENSATION EXPE_4
SHARE-BASED COMPENSATION EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense capitalized in inventory, net | $ (193) | $ (114) | $ 64 | $ 39 |
Total share-based compensation | 22,471 | 17,259 | 62,970 | 50,838 |
CEWS benefit in cost of goods sold | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 2,352 | 1,967 | 6,429 | 5,343 |
Product | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 1,037 | 960 | 2,488 | 2,458 |
Service | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 1,315 | 1,007 | 3,941 | 2,885 |
CEWS benefit in operating expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 20,312 | 15,406 | 56,477 | 45,456 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 5,541 | 4,286 | 16,179 | 12,957 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 6,534 | 5,180 | 18,960 | 15,057 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 8,237 | $ 5,940 | $ 21,338 | $ 17,442 |
SEGMENTS AND ENTITY-WIDE DISC_3
SEGMENTS AND ENTITY-WIDE DISCLOSURES - Narrative (Details) $ in Thousands | 9 Months Ended | |
Jul. 31, 2021USD ($)segment | Oct. 31, 2020USD ($) | |
Segment Reporting [Abstract] | ||
Equipment, building, furniture and fixtures, net | $ 288,937 | $ 272,377 |
Operating right-of-use assets | $ 48,937 | $ 57,026 |
Number of operating segments | segment | 4 |
SEGMENTS AND ENTITY-WIDE DISC_4
SEGMENTS AND ENTITY-WIDE DISCLOSURES - Other Intangibles Assets, Goodwill and Maintenance Spares (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Other intangible assets, net | $ 73,974 | |
Goodwill | 311,569 | $ 310,847 |
Maintenance spares, net | 61,048 | |
Networking Platforms | ||
Segment Reporting Information [Line Items] | ||
Other intangible assets, net | 9,865 | |
Goodwill | 66,329 | |
Maintenance spares, net | 0 | |
Platform Software and Services | ||
Segment Reporting Information [Line Items] | ||
Other intangible assets, net | 0 | |
Goodwill | 156,191 | |
Maintenance spares, net | 0 | |
Blue Planet Automation Software and Services | ||
Segment Reporting Information [Line Items] | ||
Other intangible assets, net | 64,109 | |
Goodwill | 89,049 | |
Maintenance spares, net | 0 | |
Global Services | ||
Segment Reporting Information [Line Items] | ||
Other intangible assets, net | 0 | |
Goodwill | 0 | |
Maintenance spares, net | $ 61,048 |
SEGMENTS AND ENTITY-WIDE DISC_5
SEGMENTS AND ENTITY-WIDE DISCLOSURES - Revenue, Profit (Loss) and Net Income (Loss) Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Less: Non-performance operating expenses | ||||
Selling and marketing | $ 114,924 | $ 94,763 | $ 322,589 | $ 303,043 |
General and administrative | 48,863 | 41,635 | 132,491 | 126,133 |
Significant asset impairments and restructuring costs | 9,789 | 6,515 | 23,865 | 14,798 |
Amortization of intangible assets | 5,967 | 5,840 | 17,896 | 17,532 |
Acquisition and integration costs (recoveries) | 259 | (2,329) | 860 | 904 |
Add: Other non-performance financial items | ||||
Interest expense and other income (loss), net | (6,981) | (7,019) | (24,521) | (22,713) |
Loss on extinguishment and modification of debt | 0 | 0 | 0 | (646) |
Less: Provision (benefit) for income taxes | (96,690) | 38,750 | (63,271) | 73,872 |
Net income | 238,232 | 142,267 | 396,697 | 296,250 |
Operating Segments | ||||
Add: Other non-performance financial items | ||||
Net income | 328,325 | 334,460 | 855,648 | 855,891 |
Networking Platforms | Operating Segments | ||||
Add: Other non-performance financial items | ||||
Net income | 244,535 | 262,801 | 612,378 | 642,057 |
Platform Software and Services | Operating Segments | ||||
Add: Other non-performance financial items | ||||
Net income | 31,526 | 24,299 | 95,692 | 74,918 |
Blue Planet Automation Software and Services | Operating Segments | ||||
Add: Other non-performance financial items | ||||
Net income | (3,243) | (5,316) | 11 | (12,828) |
Global Services | Operating Segments | ||||
Add: Other non-performance financial items | ||||
Net income | $ 55,507 | $ 52,676 | $ 147,567 | $ 151,744 |
SEGMENTS AND ENTITY-WIDE DISC_6
SEGMENTS AND ENTITY-WIDE DISCLOSURES - Geographic Distribution of Equipment, Building, Furniture and Fixtures (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Equipment, building, furniture and fixtures, net | $ 337,874 | $ 329,403 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Equipment, building, furniture and fixtures, net | 242,495 | 214,188 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Equipment, building, furniture and fixtures, net | 54,050 | 65,321 |
Other International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Equipment, building, furniture and fixtures, net | $ 41,329 | $ 49,894 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | 53 Months Ended | |||||
Jul. 31, 2021USD ($) | Aug. 01, 2020USD ($) | Jul. 31, 2021USD ($)government_entity | Jul. 31, 2021CAD ($)government_entity | Aug. 01, 2020USD ($) | Jul. 31, 2021USD ($) | Jul. 31, 2021CAD ($) | Jul. 31, 2021CAD ($) | |
Loss Contingencies [Line Items] | ||||||||
Total revenue | $ | $ 988,141 | $ 976,712 | $ 2,579,198 | $ 2,703,677 | ||||
Canadian Grant | ||||||||
Loss Contingencies [Line Items] | ||||||||
Maximum amount of Canadian grant | 46,200 | $ 46,200 | $ 46,200 | $ 57.6 | ||||
Number of Canadian government entities | government_entity | 3 | 3 | ||||||
Total revenue | $ 6,300 | $ 8 | 39,000 | $ 48.6 | ||||
Amounts receivable from grant | $ 4,700 | $ 4,700 | $ 4,700 | $ 5.8 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 4 Months Ended | 9 Months Ended | |
Sep. 03, 2021 | Jul. 31, 2021 | Oct. 31, 2020 | |
Subsequent Event [Line Items] | |||
Stock repurchases (in shares) | 1,203,439 | ||
Stock repurchases | $ 65,356 | ||
Average price of shares repurchased (in dollars per share) | $ 54.31 | ||
Aggregate shares repurchased (in shares) | 6,914,351 | 5,710,912 | |
Subsequent event | |||
Subsequent Event [Line Items] | |||
Stock repurchases (in shares) | 176,815 | ||
Stock repurchases | $ 10,000 | ||
Average price of shares repurchased (in dollars per share) | $ 56.57 | ||
Aggregate shares repurchased (in shares) | 7,091,166 | ||
Authorized funds remaining under stock repurchase program | $ 200,000 |