Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Oct. 31, 2018 | Dec. 17, 2018 | Apr. 27, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CIENA CORP | ||
Entity Central Index Key | 936,395 | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Oct. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 156,481,822 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 745,423 | $ 640,513 |
Short-term investments | 148,981 | 279,133 |
Accounts receivable, net | 786,502 | 622,183 |
Inventories, net | 262,751 | 267,143 |
Prepaid expenses and other | 198,945 | 197,339 |
Total current assets | 2,142,602 | 2,006,311 |
Long-term investments | 58,970 | 49,783 |
Equipment, building, furniture and fixtures, net | 292,067 | 308,465 |
Goodwill | 297,968 | 267,458 |
Other intangible assets, net | 148,225 | 100,997 |
Deferred tax asset, net | 745,039 | 1,155,104 |
Other long-term assets | 71,652 | 63,593 |
Total assets | 3,756,523 | 3,951,711 |
Current liabilities: | ||
Accounts payable | 340,582 | 260,098 |
Accrued liabilities and other short-term obligations | 340,075 | 322,934 |
Deferred revenue | 111,134 | 102,418 |
Current portion of long-term debt | 7,000 | 352,293 |
Debt conversion liability | 164,212 | 0 |
Total current liabilities | 963,003 | 1,037,743 |
Long-term deferred revenue | 58,323 | 82,589 |
Other long-term obligations | 119,413 | 111,349 |
Long-term debt, net | 686,450 | 583,688 |
Total liabilities | 1,827,189 | 1,815,369 |
Commitments and contingencies (Note 24) | ||
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; 154,318,531 and 143,043,227 shares issued and outstanding | 1,543 | 1,430 |
Additional paid-in capital | 6,881,223 | 6,810,182 |
Accumulated other comprehensive loss | (5,780) | (11,017) |
Accumulated deficit | (4,947,652) | (4,664,253) |
Total stockholders’ equity | 1,929,334 | 2,136,342 |
Total liabilities and stockholders’ equity | $ 3,756,523 | $ 3,951,711 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 31, 2018 | Oct. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 290,000,000 | 290,000,000 |
Common stock, shares issued (in shares) | 154,318,531 | 143,043,227 |
Common stock, shares outstanding (in shares) | 154,318,531 | 143,043,227 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Revenue: | |||
Total revenue | $ 3,094,286 | $ 2,801,687 | $ 2,600,573 |
Cost of goods sold: | |||
Total cost of goods sold | 1,779,596 | 1,555,901 | 1,438,997 |
Gross profit | 1,314,690 | 1,245,786 | 1,161,576 |
Operating expenses: | |||
Research and development | 491,564 | 475,329 | 451,794 |
Selling and marketing | 394,060 | 356,169 | 349,731 |
General and administrative | 160,133 | 142,604 | 132,828 |
Amortization of intangible assets | 15,737 | 33,029 | 61,508 |
Acquisition and integration costs | 5,111 | 0 | 4,613 |
Significant asset impairments and restructuring costs | 18,139 | 23,933 | 4,933 |
Total operating expenses | 1,084,744 | 1,031,064 | 1,005,407 |
Income from operations | 229,946 | 214,722 | 156,169 |
Interest and other income (loss), net | (12,029) | 913 | (12,569) |
Interest expense | (55,249) | (55,852) | (56,656) |
Loss on extinguishment and modification of debt | (13,887) | (3,657) | (226) |
Income before income taxes | 148,781 | 156,126 | 86,718 |
Provision (benefit) for income taxes | 493,471 | (1,105,827) | 14,134 |
Net income (loss) | $ (344,690) | $ 1,261,953 | $ 72,584 |
Basic net income (loss) per common share (in dollars per share) | $ (2.40) | $ 8.89 | $ 0.52 |
Diluted net income (loss) per potential common share (in dollars per share) | $ (2.49) | $ 7.53 | $ 0.51 |
Weighted average basic common shares outstanding (in shares) | 143,738 | 141,997 | 138,312 |
Weighted average diluted potential common shares outstanding (in shares) | 143,738 | 169,919 | 150,704 |
Products | |||
Revenue: | |||
Total revenue | $ 2,565,460 | $ 2,318,581 | $ 2,117,472 |
Cost of goods sold: | |||
Total cost of goods sold | 1,507,157 | 1,308,295 | 1,176,304 |
Services | |||
Revenue: | |||
Total revenue | 528,826 | 483,106 | 483,101 |
Cost of goods sold: | |||
Total cost of goods sold | $ 272,439 | $ 247,606 | $ 262,693 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Net income (loss) | $ (344,690) | $ 1,261,953 | $ 72,584 |
Other Comprehensive Income (Loss) | |||
Change in unrealized gain (loss) on available-for-sale securities, net of tax | 26 | (590) | 217 |
Change in accumulated translation adjustments | 686 | 8,012 | (1,152) |
Other comprehensive income (loss) | 5,237 | 13,312 | (2,203) |
Total comprehensive income (loss) | (339,453) | 1,275,265 | 70,381 |
Foreign Currency Forward Contracts | |||
Other Comprehensive Income (Loss) | |||
Change in unrealized gain (loss) on derivatives | (1,674) | (295) | (823) |
Interest Rate Swap | |||
Other Comprehensive Income (Loss) | |||
Change in unrealized gain (loss) on derivatives | $ 6,199 | $ 6,185 | $ (445) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in-Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance at Oct. 31, 2015 | $ 620,876 | $ 1,356 | $ 6,640,436 | $ (22,126) | $ (5,998,790) |
Beginning balance (in shares) at Oct. 31, 2015 | 135,612,217 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 72,584 | 72,584 | |||
Other comprehensive income (loss) | (2,203) | (2,203) | |||
Issuance of shares from employee equity plans | 23,091 | $ 42 | 23,049 | ||
Issuance of shares from employee equity plans (in shares) | 4,155,410 | ||||
Share-based compensation expense | 51,993 | 51,993 | |||
Ending balance at Oct. 31, 2016 | 766,341 | $ 1,398 | 6,715,478 | (24,329) | (5,926,206) |
Ending balance (in shares) at Oct. 31, 2016 | 139,767,627 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 1,261,953 | 1,261,953 | |||
Other comprehensive income (loss) | 13,312 | 13,312 | |||
Issuance of shares from employee equity plans | 20,412 | $ 32 | 20,380 | ||
Issuance of shares from employee equity plans (in shares) | 3,275,600 | ||||
Share-based compensation expense | 48,360 | 48,360 | |||
Reversal of deferred tax asset valuation allowance | 25,964 | 25,964 | |||
Ending balance at Oct. 31, 2017 | $ 2,136,342 | $ 1,430 | 6,810,182 | (11,017) | (4,664,253) |
Ending balance (in shares) at Oct. 31, 2017 | 143,043,227 | 143,043,227 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | $ (344,690) | (344,690) | |||
Other comprehensive income (loss) | 5,237 | 5,237 | |||
Reclassification of cash conversion feature | (152,142) | (152,142) | |||
Conversion of convertible notes into common shares | 262,103 | $ 122 | 261,981 | ||
Conversion of convertible notes into common shares (in shares) | 12,236,146 | ||||
Repurchases of common stock - repurchase program | $ (110,981) | $ (44) | (110,937) | ||
Repurchases of common stock-repurchase program (in shares) | (4,290,801) | (4,290,801) | |||
Issuance of shares from employee equity plans | $ 23,127 | $ 37 | 23,090 | ||
Issuance of shares from employee equity plans (in shares) | 179,000 | 3,484,018 | |||
Share-based compensation expense | $ 52,972 | 52,972 | |||
Shares repurchased for tax withholdings on vesting of restricted stock units | (4,757) | $ (2) | (4,755) | ||
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares) | (154,059) | ||||
Effect of adoption of new accounting standard at Oct. 31, 2017 | 62,123 | 832 | 0 | 61,291 | |
Ending balance at Oct. 31, 2018 | $ 1,929,334 | $ 1,543 | $ 6,881,223 | $ (5,780) | $ (4,947,652) |
Ending balance (in shares) at Oct. 31, 2018 | 154,318,531 | 154,318,531 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (344,690) | $ 1,261,953 | $ 72,584 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Loss on extinguishment of debt | 10,039 | 0 | 0 |
Loss on fair value of debt conversion liability | 12,070 | 0 | 0 |
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements | 84,214 | 77,189 | 63,394 |
Share-based compensation costs | 52,972 | 48,360 | 51,993 |
Amortization of intangible assets | 25,806 | 45,713 | 78,298 |
Deferred taxes | 463,631 | (1,126,732) | (1,116) |
Provision for doubtful accounts | 2,700 | 18,221 | 1,701 |
Provision for inventory excess and obsolescence | 30,615 | 35,459 | 33,713 |
Provision for warranty | 20,992 | 7,965 | 15,483 |
Other | 21,685 | 22,417 | 24,929 |
Changes in assets and liabilities: | |||
Accounts receivable | (168,357) | (66,123) | (26,074) |
Inventories | (27,445) | (91,567) | (53,000) |
Prepaid expenses and other | (21,425) | (33,834) | 30,047 |
Accounts payable, accruals and other obligations | 85,798 | 33,897 | 7,153 |
Deferred revenue | (19,344) | 1,964 | (9,585) |
Net cash provided by operating activities | 229,261 | 234,882 | 289,520 |
Cash flows used in investing activities: | |||
Payments for equipment, furniture, fixtures and intellectual property | (67,616) | (94,600) | (107,185) |
Restricted cash | 117 | (54) | 11 |
Purchase of available for sale securities | (286,824) | (299,038) | (365,191) |
Proceeds from maturities of available for sale securities | 410,109 | 335,075 | 230,612 |
Purchase of cost method investment | (1,767) | 0 | (4,000) |
Settlement of foreign currency forward contracts, net | 9,385 | (2,810) | (18,506) |
Acquisition of businesses, net of cash acquired | (82,670) | 0 | (32,000) |
Net cash used in investing activities | (19,266) | (61,427) | (296,259) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt, net | 305,125 | 0 | 248,750 |
Payment of long-term debt | (292,730) | (233,554) | (266,116) |
Payment for make-whole provision upon conversion of long-term debt | (13,453) | 0 | 0 |
Payment for modification of term loans | 0 | (93,625) | 0 |
Payment of debt issuance costs | (1,936) | (722) | (3,987) |
Payment of capital lease obligations | (3,624) | (3,562) | (5,966) |
Shares repurchased for tax withholdings on vesting of restricted stock units | (4,757) | 0 | 0 |
Repurchases of common stock - repurchase program | (110,981) | 0 | 0 |
Proceeds from issuance of common stock | 23,127 | 20,412 | 23,091 |
Net cash used in financing activities | (99,229) | (311,051) | (4,228) |
Effect of exchange rate changes on cash and cash equivalents | (5,856) | 494 | (2,389) |
Net increase (decrease) in cash and cash equivalents | 104,910 | (137,102) | (13,356) |
Cash and cash equivalents at beginning of fiscal year | 640,513 | 777,615 | 790,971 |
Cash and cash equivalents at end of fiscal year | 745,423 | 640,513 | 777,615 |
Supplemental disclosure of cash flow information | |||
Cash paid during the fiscal year for interest | 44,750 | 47,235 | 46,897 |
Cash paid during the fiscal year for income taxes, net | 26,900 | 22,136 | 15,268 |
Non-cash investing and financing activities | |||
Purchase of equipment in accounts payable | 5,118 | 6,214 | 15,030 |
Construction in progress subject to build-to-suit lease | 0 | 0 | 39,914 |
Contingent consideration for acquisition of business | 10,900 | 0 | 0 |
3.75% Convertible Senior Notes due October 15, 2018 | |||
Non-cash investing and financing activities | |||
Conversion of convertible senior notes | 61,270 | 0 | 0 |
4.0% Convertible Senior Notes due March 15, 2015 | |||
Non-cash investing and financing activities | |||
Conversion of convertible senior notes | 214,286 | 0 | 0 |
Equipment | |||
Non-cash investing and financing activities | |||
Equipment acquired under and building subject to capital lease | 0 | 0 | 5,322 |
Building | |||
Non-cash investing and financing activities | |||
Equipment acquired under and building subject to capital lease | $ 0 | $ 50,370 | $ 8,993 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | 12 Months Ended |
Oct. 31, 2018shares | |
3.75% Convertible Senior Notes due October 15, 2018 | |
Interest rate on convertible notes | 3.75% |
Debt conversion, shares issued (in shares) | 3,038,208 |
4.0% Convertible Senior Notes due March 15, 2015 | |
Interest rate on convertible notes | 4.00% |
Debt conversion, shares issued (in shares) | 9,197,943 |
Ciena Corporation and Significa
Ciena Corporation and Significant Accounting Policies and Estimates | 12 Months Ended |
Oct. 31, 2018 | |
Accounting Policies [Abstract] | |
CIENA CORPORATION AND SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES | CIENA CORPORATION AND SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES Description of Business Ciena Corporation (“Ciena” or the “Company”) is a networking systems, services and software company, providing solutions that enable a wide range of network operators to deploy and manage next-generation networks that deliver services to businesses and consumers. Ciena provides network hardware, software and services that support the transport, switching, aggregation, service delivery and management of video, data and voice traffic on communications networks. Ciena’s solutions are used by communications service providers, cable and multiservice operators, Web-scale providers, submarine network operators, governments, enterprises, research and education (R&E) institutions and other emerging network operators. Ciena’s solutions include a diverse portfolio of high-capacity Networking Platform products, which can be applied from the network core to network access points, and which allow network operators to scale capacity, increase transmission speeds, allocate traffic and adapt dynamically to changing end-user service demands. Ciena also offers Platform Software that provides management and domain control of our next-generation packet and optical platforms and automates network lifecycle operations including provisioning equipment and services. In addition, through its comprehensive suite of Blue Planet Automation Software, Ciena enables network operators to use network data and analytics to drive enhanced automation across multi-vendor and multi-domain network environments, accelerate service delivery and enable an increasingly predictive and autonomous network infrastructure. To complement its hardware and software solutions, Ciena offers broad range of attached and software-related services that help customers design, optimize, integrate, deploy, manage and maintain their networks and associated operational environments. Ciena’s complete portfolio of solutions enables customers to transform their network into a dynamic, programmable environment driven by automation and analytics, which Ciena refers to as the Adaptive Network. Ciena’s solutions for the Adaptive Network create business and operational value for customers, enabling them to introduce new revenue-generating services, reduce costs and maximize the return on their network infrastructure investment. Basis of Presentation The accompanying consolidated financial statements include the accounts of Ciena and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Ciena has a 52 or 53 week fiscal year, which ends on the Saturday nearest to the last day of October in each year ( November 3, 2018 , October 28, 2017 and October 29, 2016 for the periods reported). Fiscal 2018 consisted of a 53-week fiscal year. Fiscal 2017 and fiscal 2016 each consisted of a 52-week fiscal year. For purposes of financial statement presentation, each fiscal year is described as having ended on October 31. Business Combinations Ciena records acquisitions using the purchase method of accounting. All of the assets acquired, liabilities assumed, contractual contingencies and contingent consideration are recognized at their fair value as of the acquisition date. The excess of the purchase price over the estimated fair values of the net tangible and net intangible assets acquired is recorded as goodwill. The application of the purchase method of accounting for business combinations requires management to make significant estimates and assumptions in the determination of the fair value of assets acquired and liabilities assumed, in order to properly allocate purchase price consideration between assets that are depreciated and amortized from goodwill. These assumptions and estimates include a market participant’s use of the asset and the appropriate discount rates for a market participant. Ciena’s estimates are based on historical experience, information obtained from the management of the acquired companies and, when appropriate, include assistance from independent third-party appraisal firms. Significant assumptions and estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. In addition, unanticipated events and circumstances may occur which may affect the accuracy or validity of such estimates. Use of Estimates The preparation of the financial statements and related disclosures in conformity with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used for selling prices for multiple element arrangements, shared-based compensation, bad debts, valuation of inventories and investments, recoverability of intangible assets, other long-lived assets and goodwill, income taxes, warranty obligations, restructuring liabilities, derivatives, contingencies and litigation. Ciena bases its estimates on historical experience and assumptions that it believes are reasonable. Actual results may differ materially from management’s estimates. Cash and Cash Equivalents Ciena considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Any restricted cash collateralizing letters of credit is included in other current assets and other long-term assets depending upon the duration of the restriction. Investments Ciena’s investments are classified as available-for-sale and are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income (loss). Ciena recognizes losses in the income statement when it determines that declines in the fair value of its investments below their cost basis are other-than-temporary. In determining whether a decline in fair value is other-than-temporary, Ciena considers various factors, including market price (when available), investment ratings, the financial condition and near-term prospects of the investee, the length of time and the extent to which the fair value has been less than Ciena’s cost basis, and Ciena’s intent and ability to hold the investment until maturity or for a period of time sufficient to allow for any anticipated recovery in market value. Ciena considers all marketable debt securities that it expects to convert to cash within one year or less to be short-term investments, with all others considered to be long-term investments. Ciena has minority equity investments in privately held technology companies that are classified in other long-term assets. These investments are carried at cost because Ciena owns less than 20% of the voting equity and does not have the ability to exercise significant influence over the company. Ciena monitors these investments for impairment and makes appropriate reductions to the carrying value when necessary. As of October 31, 2018 , the combined carrying value of these investments was $8.1 million . Ciena has not estimated the fair value of these cost method investments because determining the fair value is not practicable. Ciena has not evaluated these investments for impairment as there have not been any events or changes in circumstances that Ciena believes would have had a significant adverse effect on the fair value of these investments. Inventories Inventories are stated at the lower of cost or market, with cost computed using standard cost, which approximates actual cost, on a first-in, first-out basis. Ciena records a provision for excess and obsolete inventory when an impairment has been identified. Segment Reporting Ciena’s chief operating decision maker, its chief executive officer, evaluates the company’s performance and allocates resources based on multiple factors, including measures of segment profit (loss). Operating segments are defined as components of an enterprise that engage in business activities that may earn revenue and incur expense, for which discrete financial information is available, and for which such information is evaluated regularly by the chief operating decision maker for purposes of allocating resources and assessing performance. Ciena has the following operating segments for reporting purposes: (i) Networking Platforms, (ii) Software and Software-Related Services, and (iii) Global Services. See Note 22 below. Goodwill Goodwill is the excess of the purchase price over the fair values assigned to the net assets acquired in a business combination. Ciena tests goodwill for impairment on an annual basis, which it has determined to be the last business day of fiscal September each year. Ciena also tests goodwill for impairment between annual tests if an event occurs or circumstances change that would, more likely than not, reduce the fair value of the reporting unit below its carrying value. The first step in the process of assessing goodwill impairment is to compare the fair value of the reporting unit with the unit’s carrying amount, including goodwill. If this test indicates that the fair value is less than the carrying value, then step two requires goodwill impairments to be measured on the basis of the fair value of the reporting unit relative to the reporting unit’s carrying amount. A non-cash goodwill impairment charge would have the effect of decreasing earnings or increasing losses in such period. If Ciena is required to take a substantial impairment charge, its operating results would be materially adversely affected in such period. Long-lived Assets Long-lived assets include: equipment, building, furniture and fixtures; intangible assets; and maintenance spares. Ciena tests long-lived assets for impairment whenever triggering events or changes in circumstances indicate that the asset’s carrying amount is not recoverable from its undiscounted cash flows. An impairment loss is measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value. Ciena’s long-lived assets are assigned to asset groups that represent the lowest level for which cash flows can be identified. Equipment, Building, Furniture and Fixtures and Internal Use Software Equipment, building, furniture and fixtures are recorded at cost. Depreciation and amortization are computed using the straight-line method over useful lives of two to five years for equipment and furniture and fixtures and the shorter of useful life or lease term for leasehold improvements. Qualifying internal use software and website development costs incurred during the application development stage, which consist primarily of outside services and purchased software license costs, are capitalized and amortized straight-line over the estimated useful lives of two to five years. Intangible Assets Ciena has recorded finite-lived intangible assets as a result of several acquisitions. Finite-lived intangible assets are carried at cost less accumulated amortization. Amortization is computed using the straight-line method over the expected economic lives of the respective assets, up to seven years, which approximates the use of intangible assets. Ciena has recorded in-process research and development projects acquired as the result of an acquisition as indefinite-lived intangible assets. Upon completion of the projects, the assets will be amortized on a straight-line basis over the expected economic life of the asset, which will be determined on that date. Should the project be determined to be abandoned, and if the asset developed has no alternative use, the full value of the asset will be charged to expense. Maintenance Spares Maintenance spares are recorded at cost. Spares usage cost is expensed ratably over four years. Concentrations Substantially all of Ciena’s cash and cash equivalents are maintained at a small number of major U.S. financial institutions. The majority of Ciena’s cash equivalents consist of money market funds. Deposits held with banks may exceed the amount of insurance provided on such deposits. Because these deposits generally may be redeemed upon demand, management believes that they bear minimal risk. Historically, a significant percentage of Ciena’s revenue has been concentrated among sales to a small number of large communications service providers. Consolidation among Ciena’s customers has increased this concentration. Consequently, Ciena’s accounts receivable are concentrated among these customers. See Note 22 below. Additionally, Ciena’s access to certain materials or components is dependent upon sole or limited source suppliers. The inability of any of these suppliers to fulfill Ciena’s supply requirements, or significant changes in supply cost, could affect future results. Ciena relies on a small number of contract manufacturers to perform the majority of the manufacturing for its products. If Ciena cannot effectively manage these manufacturers or forecast future demand, or if these manufacturers fail to deliver products or components on time, Ciena’s business and results of operations may suffer. Revenue Recognition Ciena recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the price to the buyer is fixed or determinable; and collectibility is reasonably assured. Customer purchase agreements and customer purchase orders are generally used to determine the existence of an arrangement. Shipping documents and evidence of customer acceptance, when applicable, are used to verify delivery or services rendered. Ciena assesses whether the price is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. Ciena assesses collectibility based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history. Revenue for maintenance services is deferred and recognized ratably over the period during which the services are performed. Shipping and handling fees billed to customers are included in revenue, with the associated expenses included in product cost of goods sold. Software revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectibility is probable. In instances where final acceptance criteria of the software are specified by the customer, revenue is deferred until there are no uncertainties regarding customer acceptance. Ciena limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or refund privileges. Revenue for multiple element arrangements is allocated to each unit of accounting based on the relative selling price of each delivered element, with revenue recognized for each delivered element when the revenue recognition criteria are met. Ciena determines the selling price for each deliverable based upon the selling price hierarchy for multiple-deliverable arrangements. Under this hierarchy, Ciena uses vendor-specific objective evidence ("VSOE") of selling price, if it exists, or third-party evidence ("TPE") of selling price if VSOE does not exist. If neither VSOE nor TPE of selling price exists for a deliverable, Ciena uses its best estimate of selling price ("BESP") for that deliverable. For multiple element software arrangements where VSOE of undelivered maintenance does not exist, revenue for the entire arrangement is recognized over the maintenance term. VSOE, when determinable, is established based on Ciena’s pricing and discounting practices for the specific product or service when sold separately. In determining whether VSOE exists, Ciena requires that a substantial majority of the selling prices for a product or service falls within a reasonably narrow pricing range. Ciena has been unable to establish TPE of selling price because its go-to-market strategy differs from that of others in its markets, and the extent of customization and differentiated features and functions varies among comparable products or services from its peers. Ciena determines BESP based upon management-approved pricing guidelines, which consider multiple factors including the type of product or service, gross margin objectives, competitive and market conditions, and the go-to-market strategy, all of which can affect pricing practices. Warranty Accruals Ciena provides for the estimated costs to fulfill customer warranty obligations upon recognition of the related revenue. Estimated warranty costs include estimates for material costs, technical support labor costs and associated overhead. Warranty is included in cost of goods sold and is determined based upon actual warranty cost experience, estimates of component failure rates and management’s industry experience. Ciena’s sales contracts do not permit the right of return of the product by the customer after the product has been accepted. Accounts Receivable, Net Accounts receivable includes both billed accounts receivable and unbilled accounts receivable due from customers. Unbilled accounts receivable is derived from contract arrangements whereby the billing term is post the revenue recognition term. Ciena’s allowance for doubtful accounts is based on its assessment, on a specific identification basis, of the collectibility of customer accounts. Ciena performs ongoing credit evaluations of its customers and generally has not required collateral or other forms of security from them. In determining the appropriate balance for Ciena’s allowance for doubtful accounts, management considers each individual customer account receivable in order to determine collectibility. In doing so, management considers creditworthiness, payment history, account activity and communication with the customer. If a customer’s financial condition changes, Ciena may be required to record an allowance for doubtful accounts for that customer, which could negatively affect its results of operations. Research and Development Ciena charges all research and development costs to expense as incurred. Types of expense incurred in research and development include employee compensation, prototype equipment, consulting and third-party services, depreciation, facility costs and information technology. Government Grants Ciena accounts for proceeds from government grants as a reduction of 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 Consolidated Statement of Operations to which the grant activity relates. See Note 24 below. Advertising Costs Ciena expenses all advertising costs as incurred. Legal Costs Ciena expenses legal costs associated with litigation as incurred. Share-Based Compensation Expense Ciena measures and recognizes compensation expense for share-based awards based on estimated fair values on the date of grant. Ciena estimates the fair value of each option-based award on the date of grant using the Black-Scholes option-pricing model. This model is affected by Ciena’s stock price as well as estimates regarding a number of variables, including expected stock price volatility over the expected term of the award and projected employee stock option exercise behaviors. Ciena estimates the fair value of each restricted stock unit award based on the fair value of the underlying common stock on the date of grant. In each case, Ciena only recognizes expense in its Consolidated Statement of Operations for those stock options or restricted stock units that are expected ultimately to vest. Ciena recognizes the estimated fair value of performance-based awards as share-based expense over the performance period, using graded vesting, which considers each performance period or tranche separately, based upon Ciena’s determination of whether it is probable that the performance targets will be achieved. At the end of each reporting period, Ciena reassesses the probability of achieving the performance targets and the performance period required to meet those targets, and the expense is adjusted accordingly. Ciena uses the straight-line method to record expense for share-based awards with only service-based vesting. See Note 21 below. Income Taxes Ciena accounts for income taxes using an asset and liability approach. This approach recognizes deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases, and for operating loss and tax credit carryforwards. In estimating future tax consequences, Ciena considers all expected future events other than the enactment of changes in tax laws or rates. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In the ordinary course of business, transactions occur for which the ultimate outcome may be uncertain. In addition, tax authorities periodically audit Ciena’s income tax returns. These audits examine significant tax filing positions, including the timing and amounts of deductions and the allocation of income tax expenses among tax jurisdictions. Ciena is currently under audit in India for 2012 and 2014 through 2017, and in Canada for 2011 through 2015. Management does not expect the outcome of these audits to have a material adverse effect on Ciena’s consolidated financial position, results of operations or cash flows. Ciena’s major tax jurisdictions and the earliest open tax years are as follows: United States (2015), United Kingdom (2015), Canada (2011), India (2012) and Brazil (2013). Limited adjustments can be made to Federal U.S. tax returns in earlier years in order to reduce net operating loss carryforwards. Ciena classifies interest and penalties related to uncertain tax positions as a component of income tax expense. Ciena has not provided for U.S. deferred income taxes on the cumulative unremitted earnings of its non-U.S. affiliates, as it plans to indefinitely reinvest these foreign earnings outside the U.S. As of October 31, 2018, the cumulative amount of such temporary differences for which a deferred tax liability has not been recognized totaled approximately $336 million . If these earnings were distributed to the U.S. in the form of dividends, or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, Ciena would be subject to additional U.S. income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. Ciena is required to record excess tax benefits or tax deficiencies related to stock-based compensation as income tax benefit or expense when share-based awards vest or are settled. The Tax Act includes provisions that do not affect Ciena in fiscal 2018, including a provision designed to tax global intangible low-taxed income (“GILTI”). Due to the complexity of the GILTI tax rules, this provision and related tax accounting will continue to be evaluated. An accounting policy choice is allowed to either treat taxes due on future U.S. inclusions related to GILTI in taxable income as a current-period expense when incurred (the “period cost method”) or factor such amounts into the measurement of deferred taxes (the “deferred method”). The calculation of the deferred balance with respect to the new GILTI tax provisions will depend, in part, on analyzing global income to determine whether future U.S. inclusions in taxable income are expected related to GILTI and, if so, what the impact is expected to be. Ciena is electing to use the period cost method for future GILTI inclusions. Additionally, Ciena is electing to use the incremental cash tax savings approach when determining whether a valuation allowance needs to be recorded against the U.S. net operating loss (“NOL”) due to the GILTI inclusions. The Tax Act also introduced an alternative tax known as the base erosion and anti-abuse tax (BEAT). An accounting policy choice can be made on whether or not to consider the impact of BEAT on its valuation allowance. Ciena continues to evaluate very recent regulatory guidance in order to assess its impact. Accordingly, an accounting policy choice has not yet been made. Loss Contingencies Ciena is subject to the possibility of various losses arising in the ordinary course of business. These may relate to disputes, litigation and other legal actions. Ciena considers the likelihood of loss or the incurrence of a liability, as well as Ciena’s ability to estimate the amount of loss reasonably, in determining loss contingencies. An estimated loss contingency is accrued when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Ciena regularly evaluates current information available to it in order to determine whether any accruals should be adjusted and whether new accruals are required. Fair Value of Financial Instruments The carrying value of Ciena’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair market value due to the relatively short period of time to maturity. For information related to the fair value of Ciena’s convertible notes and term loans, see Note 16 below. Fair value for the measurement of financial assets and liabilities is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Ciena utilizes a valuation hierarchy for disclosure of the inputs for fair value measurement. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 inputs are quoted prices for identical or similar assets or liabilities in less active markets or model-derived valuations in which significant inputs are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and • Level 3 inputs are unobservable inputs based on Ciena’s assumptions used to measure assets and liabilities at fair value. By distinguishing between inputs that are observable in the marketplace, and therefore more objective, and those that are unobservable, and therefore more subjective, the hierarchy is designed to indicate the relative reliability of the fair value measurements. A financial asset’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Restructuring From time to time, Ciena takes actions to better align its workforce, facilities and operating costs with perceived market opportunities, business strategies and changes in market and business conditions. Ciena recognizes a liability for the cost associated with an exit or disposal activity in the period in which the liability is incurred, except for one-time employee termination benefits related to a service period, typically of more than 60 days , which are accrued over the service period. See Note 3 below. Foreign Currency Certain of Ciena’s foreign branch offices and subsidiaries use the U.S. Dollar as their functional currency because Ciena Corporation, as the U.S. parent entity, exclusively funds the operations of these branch offices and subsidiaries. For those subsidiaries using the local currency as their functional currency, assets and liabilities are translated at exchange rates in effect at the balance sheet date, and the statement of operations is translated at a monthly average rate. Resulting translation adjustments are recorded directly to a separate component of stockholders’ equity. Where the monetary assets and liabilities are transacted in a currency other than the entity’s functional currency, re-measurement adjustments are recorded in interest and other income (loss), net on the Consolidated Statement of Operations. See Note 4 below. Derivatives Ciena’s 3.75% Convertible Senior Notes due October 15, 2018 (the "New Notes") included a conversion feature that is accounted for as a separate embedded derivative. The embedded conversion feature is recorded at fair value on a recurring basis using the underlying stock price, time to maturity and expected volatility of Ciena’s stock and conversion price. These changes are included in interest and other income (loss), net on the Consolidated Statement of Operations. From time to time, Ciena uses foreign currency forward contracts to reduce variability in certain forecasted non-U.S. Dollar denominated cash flows. Generally, these derivatives have maturities of 24 months or less. Ciena also has interest rate swap arrangements to reduce variability in certain forecasted interest expense associated with its term loan. All of these derivatives are designated as cash flow hedges. At the inception of the cash flow hedge, and on an ongoing basis, Ciena assesses whether the derivative has been effective in offsetting changes in cash flows attributable to the hedged risk during the hedging period. The derivative’s net gain or loss is initially reported as a component of accumulated other comprehensive income (loss), and, upon occurrence of the forecasted transaction, is subsequently reclassified to the line item in the Consolidated Statement of Operations to which the hedged transaction relates. Ciena records derivative instruments in the Consolidated Statements of Cash Flows within operating, investing, or financing activities consistent with the cash flows of the hedged items. From time to time, Ciena uses foreign currency forward contracts to hedge certain balance sheet foreign exchange exposures. These forward contracts are not designated as hedges for accounting purposes, and any net gain or loss associated with these derivatives is reported in interest and other income (loss), net on the Consolidated Statement of Operations. See Notes 6 and 14 below. Computation of Net Income (Loss) per Share Ciena calculates basic earnings per share (“EPS”) by dividing earnings attributable to common stock by the weighted average number of common shares outstanding for the period. Diluted EPS includes other potential dilutive shares that would be outstanding if securities or other contracts to issue common stock were exercised or converted into common stock. Ciena uses a dual presentation of basic and diluted EPS on the face of its income statement. A reconciliation of the numerator and denominator used for the basic and diluted EPS computations is set forth in Note 18 below. Software Development Costs Ciena develops software for sale to its customers. GAAP requires the capitalization of certain software development costs that are incurred subsequent to the date technological feasibility is established and prior to the date the product is generally available for sale. The capitalized cost is then amortized using the straight-line method over the estimated life of the product. Ciena defines technological feasibility as being attained at the time a working model is completed. To date, the period between Ciena achieving technological feasibility and the general availability of such software has been short, and software development costs qualifying for capitalization have been insignificant. Accordingly, Ciena has not capitalized any software development costs. Newly Issued Accounting Standards - Effective In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-01 (“ASU 2017-01”) , Business Combinations: Clarifying the Definition of a Business , which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisition or disposal of assets or businesses. The amendments in this update provide a screen to de |
Business Combinations
Business Combinations | 12 Months Ended |
Oct. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS DonRiver Holdings, LLC Acquisition On October 1, 2018 , Ciena acquired DonRiver Holdings, LLC (“DonRiver”), a global software and services company specializing in federated network and service inventory management solutions within the service provider Operational Support Systems (OSS) environment. This transaction has been accounted for as the acquisition of a business. During the fourth quarter of fiscal 2018, Ciena incurred approximately $3.5 million of acquisition-related costs associated with this transaction. These costs and expenses include fees associated with financial, legal and accounting advisors and other employment-related costs. The following table summarizes the purchase price for the acquisition (in thousands): Amount Cash $ 43,283 Contingent consideration 10,900 Total purchase price $ 54,183 The following table summarizes the final purchase price allocation related to the acquisition based on the estimated fair value of the acquired assets and assumed liabilities (in thousands): Amount Cash and cash equivalents $ 1,025 Accounts receivable 4,790 Prepaid expenses and other long term assets 372 Goodwill 10,453 Customer relationships and contracts 37,700 Developed technology 9,700 Deferred revenue (193 ) Other current and long term liabilities (9,664 ) Total purchase price $ 54,183 The acquisition of DonRiver includes a $ 28.5 million three -year earn-out arrangement that consists of both a contingent consideration element and a contingent compensation element. The contingent consideration element requires additional cash consideration to be paid based on the future revenues generally derived from the DonRiver business over a 25 -month period from the acquisition date through October 31, 2020. The undiscounted amounts potentially payable by Ciena under the contingent consideration element range from $ 0.0 million to $ 15.0 million in the aggregate over the period. Any amounts earned under the contingent consideration element are payable in the first quarters of fiscal 2019, fiscal 2020 and fiscal 2021. The $ 10.9 million fair value of the contingent consideration element as of the acquisition date was estimated by applying the income approach based upon a discounted cash flow technique using Monte Carlo simulations. The contingent compensation element of the earn-out arrangement includes an employment condition for the selling shareholders who became employees of Ciena upon the completion of the acquisition. The range of amounts that Ciena could pay under the contingent compensation element is between $ 0.0 million and $ 13.5 million in the aggregate over the period. Any amounts earned under the contingent compensation element are payable in the first quarters of fiscal 2021 and fiscal 2022. These amounts will be accrued over the period earned and recorded as expense in the Consolidated Statement of Operations. Customer relationships and contracts represent agreements with existing DonRiver customers. Customer relationships and contracts are amortized on a straight line basis over their estimated useful life of seven years. Fair value was determined using the multi-period excess earnings method based on the present value of the incremental after-tax cash flows (or “excess earnings”) attributable to customer relationships for a discrete projection period. Developed technology represents purchased technology that had reached technological feasibility and for which DonRiver had substantially completed development as of the date of acquisition. Fair value was determined using future discounted cash flows related to the projected income stream of the developed technology for a discrete projection period. Cash flows were discounted to their present value as of the closing date. Developed technology is amortized on a straight line basis over its estimated useful life of seven years. The goodwill generated from the acquisition of DonRiver is primarily related to expected synergies. The total goodwill amount was recorded in the Software and Software-Related Services segment. The goodwill related to this acquisition is not deductible for tax purposes. Pro forma disclosures have not been included due to immateriality. Packet Design, LLC Acquisition On July 2, 2018 , Ciena acquired Packet Design, LLC (“Packet Design”), a provider of network performance management software focused on Layer 3 network optimization, topology and route analytics, in a cash transaction for approximately $41.1 million in cash. This transaction has been accounted for as the acquisition of a business. During fiscal 2018, Ciena incurred approximately $1.6 million of acquisition-related costs associated with this transaction. These costs and expenses include fees associated with financial, legal and accounting advisors and severance and other employment-related costs, including payments to certain former Packet Design employees. The following table summarizes the final purchase price allocation related to the acquisition based on the estimated fair value of the acquired assets and assumed liabilities (in thousands): Amount Cash and cash equivalents $ 642 Accounts receivable 1,525 Prepaid expenses and other 450 Equipment, furniture and fixtures 31 Goodwill 20,304 Customer relationships and contracts 2,200 Developed technology 21,900 Accounts payable (165 ) Accrued liabilities (657 ) Deferred revenue (5,176 ) Total purchase price $ 41,054 Customer relationships and contracts represent agreements with existing Packet Design customers. Customer relationships and contracts are amortized on a straight line basis over their estimated useful life of three years. Developed technology represents purchased technology that had reached technological feasibility and for which Packet Design had substantially completed development as of the date of acquisition. Fair value was determined using future discounted cash flows related to the projected income stream of the developed technology for a discrete projection period. Cash flows were discounted to their present value as of the closing date. Developed technology is amortized on a straight line basis over its estimated useful life of five years. The goodwill generated from the acquisition of Packet Design is primarily related to expected synergies. The total goodwill amount was recorded in the Software and Software-Related Services segment. The goodwill related to this acquisition is not deductible for tax purposes. Pro forma disclosures have not been included due to immateriality. TeraXion HSPC Asset Acquisition On February 1, 2016, Ciena, through a Canadian subsidiary, acquired certain high-speed photonics components (“HSPC”) assets of TeraXion Inc. (“TeraXion”) and its wholly-owned subsidiary for approximately $32 million in cash. The assets purchased include TeraXion’s high-speed indium phosphide and silicon photonics technologies, as well as the underlying intellectual property. These technologies support the development of Ciena’s WaveLogic coherent optical chipsets. This transaction has been accounted for as the acquisition of a business. The following table summarizes the final purchase price allocation related to the acquisition of the HSPC assets based on the estimated fair value of the acquired assets and assumed liabilities (in thousands): Amount Inventory $ 119 Fixed assets 1,381 Developed technology 16,468 In-process technology 3,949 Goodwill 10,083 Total purchase price $ 32,000 Developed technology represents purchased technology that had reached technological feasibility and for which TeraXion had substantially completed development as of the date of acquisition. Fair value was determined using future discounted cash flows related to the projected income stream of the developed technology for a discrete projection period. Cash flows were discounted to their present value as of the closing date. Developed technology is amortized on a straight line basis over its estimated useful life of five years . In-process technology represents purchased technology that had not reached technological feasibility as of the date of acquisition. Fair value was determined using future discounted cash flows related to the projected income stream of the in-process technology for a discrete projection period. Cash flows were discounted to their present value as of the closing date. Upon completion of the in-process technology, it will be amortized on a straight line basis over its estimated useful life, which will be determined on that date. The goodwill generated from the acquisition of the HSPC assets was primarily related to expected synergies and has been allocated to the Networking Platforms segment. The goodwill is not deductible for income tax purposes. Pro forma disclosures have not been included due to immateriality. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Oct. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING COSTS | RESTRUCTURING COSTS Ciena has undertaken a number of restructuring activities intended to reduce expense and better align its workforce and costs with market opportunities, product development and business strategies. The following table sets forth the restructuring activity and balance of the restructuring liability accounts for the fiscal years indicated (in thousands): Workforce reduction Consolidation of excess facilities Total Balance at October 31, 2015 $ 591 $ 688 $ 1,279 Additional liability recorded 2,844 (1) 2,089 4,933 Cash payments (2,567 ) (807 ) (3,374 ) Balance at October 31, 2016 868 1,970 2,838 Additional liability recorded 5,883 (2) 5,432 (4) 11,315 Adjustment to previous estimates — (1,048 ) (1,048 ) Cash payments (5,460 ) (4,706 ) (10,166 ) Balance at October 31, 2017 1,291 1,648 2,939 Additional liability recorded 14,853 (3) 3,890 (5) 18,743 Cash payments (14,036 ) (3,799 ) (17,835 ) Balance at October 31, 2018 $ 2,108 $ 1,739 $ 3,847 Current restructuring liabilities $ 2,108 $ 502 $ 2,610 Non-current restructuring liabilities $ — $ 1,237 $ 1,237 _________________________________ (1) During fiscal 2016, Ciena recorded a charge of $2.8 million of severance and other employee-related costs associated with a workforce reduction of approximately 75 employees. (2) During fiscal 2017, Ciena recorded a charge of $5.9 million of severance and other employee-related costs associated with a workforce reduction of approximately 100 employees. (3) During fiscal 2018, Ciena recorded a charge of $14.9 million of severance and other employee-related costs associated with a workforce reduction of approximately 240 employees. (4) Reflects unfavorable lease commitments and relocation costs incurred in connection with our research and development center facility transitions in Ottawa, Canada. (5) Reflects unfavorable lease commitments in connection with a portion of facilities located in Petaluma, California and in Gurgaon, India. |
Interest and Other Income (Loss
Interest and Other Income (Loss), Net | 12 Months Ended |
Oct. 31, 2018 | |
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, were as follows (in thousands): Year Ended October 31, 2018 2017 2016 Interest income $ 13,703 $ 6,579 $ 4,058 Gain (loss) on non-hedge designated foreign currency forward contracts 6,791 (1,198 ) (23,355 ) Foreign currency exchange gains (losses) (19,434 ) (4,376 ) 5,870 Loss on fair value of debt conversion liability (12,070 ) — — Other (1,019 ) (92 ) 858 Interest and other income (loss), net $ (12,029 ) $ 913 $ (12,569 ) 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 the local currency as their functional currency. During fiscal 2018 and fiscal 2017 , Ciena recorded $19.4 million and $4.4 million , respectively, in exchange rate losses, as a result of monetary assets and liabilities that were transacted in a currency other than the entity’s functional currency, and the re-measurement adjustments were recorded in interest and other income (loss), net. For fiscal 2018 , the majority of the foreign currency exchange rate losses relate to Ciena’s Brazilian and Argentinian subsidiaries owing U.S. Dollars to Ciena Corporation. In fiscal 2016 , Ciena recorded $5.9 million in foreign currency exchange gains. From time to time, Ciena uses foreign currency forwards to hedge these balance sheet exposures. These forwards are not designated as hedges for accounting purposes, and any net gain or loss associated with these derivatives is also reported in interest and other income (loss), net. During fiscal 2018 , Ciena recorded a gain of $6.8 million from non-hedge designated foreign currency forward contracts. For fiscal 2017 and fiscal 2016 , Ciena recorded losses of $1.2 million , and $23.4 million respectively, from non-hedge designated foreign currency forward contracts. |
Short-Term and Long-Term Invest
Short-Term and Long-Term Investments | 12 Months Ended |
Oct. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SHORT-TERM AND LONG-TERM INVESTMENTS | SHORT-TERM AND LONG-TERM INVESTMENTS As of October 31, 2018 , investments are comprised of the following (in thousands): October 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. government obligations: Included in short-term investments $ 139,365 $ — $ (347 ) $ 139,018 Included in long-term investments 59,029 — (59 ) 58,970 $ 198,394 $ — $ (406 ) $ 197,988 Commercial paper: Included in short-term investments $ 9,963 $ — $ — $ 9,963 $ 9,963 $ — $ — $ 9,963 As of October 31, 2017 , investments are comprised of the following (in thousands): October 31, 2017 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair U.S. government obligations: Included in short-term investments $ 249,498 $ — $ (305 ) $ 249,193 Included in long-term investments 49,910 — (127 ) 49,783 $ 299,408 $ — $ (432 ) $ 298,976 Commercial paper: Included in short-term investments $ 29,939 $ 1 $ — $ 29,940 $ 29,939 $ 1 $ — $ 29,940 The following table summarizes the legal maturities of debt investments at October 31, 2018 : October 31, 2018 Amortized Cost Estimated Fair Less than one year $ 149,328 $ 148,981 Due in 1-2 years 59,029 58,970 $ 208,357 $ 207,951 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Oct. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS As of the dates indicated, the following tables summarize the fair value of assets and liabilities that were recorded at fair value on a recurring basis (in thousands): October 31, 2018 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 590,684 $ — $ — $ 590,684 U.S. government obligations — 197,988 — 197,988 Commercial paper — 69,888 — 69,888 Foreign currency forward contracts — 133 — 133 Forward starting interest rate swaps — 779 — 779 Total assets measured at fair value $ 590,684 $ 268,788 $ — $ 859,472 Liabilities: Foreign currency forward contracts $ — $ 3,231 $ — $ 3,231 Debt conversion liability — 164,212 — 164,212 Contingent consideration — — 10,900 10,900 Total liabilities measured at fair value $ — $ 167,443 $ 10,900 $ 178,343 October 31, 2017 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 511,355 $ — $ — $ 511,355 U.S. government obligations — 298,976 — 298,976 Commercial paper — 89,865 — 89,865 Foreign currency forward contracts — 227 — 227 Forward starting interest rate swaps — 218 — 218 Total assets measured at fair value $ 511,355 $ 389,286 $ — $ 900,641 Liabilities: Foreign currency forward contracts $ — $ 2,129 $ — $ 2,129 Total liabilities measured at fair value $ — $ 2,129 $ — $ 2,129 As of the dates indicated, the assets and liabilities above were presented on Ciena’s Consolidated Balance Sheet as follows (in thousands): October 31, 2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 590,684 $ 59,925 $ — $ 650,609 Short-term investments — 148,981 — 148,981 Prepaid expenses and other — 133 — 133 Long-term investments — 58,970 — 58,970 Other long-term assets — 779 — 779 Total assets measured at fair value $ 590,684 $ 268,788 $ — $ 859,472 Liabilities: Accrued liabilities $ — $ 3,231 $ — $ 3,231 Debt conversion liability — 164,212 — 164,212 Other long-term obligations — — 10,900 10,900 Total liabilities measured at fair value $ — $ 167,443 $ 10,900 $ 178,343 October 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 511,355 $ 59,925 $ — $ 571,280 Short-term investments — 279,133 — 279,133 Prepaid expenses and other — 227 — 227 Long-term investments — 49,783 — 49,783 Other long-term assets — 218 — 218 Total assets measured at fair value $ 511,355 $ 389,286 $ — $ 900,641 Liabilities: Accrued liabilities $ — $ 2,129 $ — $ 2,129 Total liabilities measured at fair value $ — $ 2,129 $ — $ 2,129 Ciena did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented. Ciena’s Level 3 liability is included in other long-term obligations and reflects a contingent consideration element of a three -year payout arrangement associated with Ciena’s purchase of DonRiver in the fourth quarter of fiscal 2018. See Note 2 above. The contingent consideration is valued by applying the income approach based upon a discounted cash flow technique using Monte Carlo simulations. As of October 31, 2018, there was no change to the fair value. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Oct. 31, 2018 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable includes $ 40.9 million and $ 26.1 million of unbilled receivables as October 31, 2018 and October 31, 2017 , respectively. As of October 31, 2018 , one customer accounted for 10.0% of net accounts receivable. As of October 31, 2017 , two customers together accounted for 23.0% of net accounts receivable. Ciena has not historically experienced a significant amount of bad debt expense. During fiscal 2017, Ciena’s allowance for doubtful accounts includes a provision for a significant asset impairment of $13.7 million for a trade receivable related to a single customer in the APAC region. The following table summarizes the activity in Ciena’s allowance for doubtful accounts for the fiscal years indicated (in thousands): Year ended Beginning Net Ending October 31, Balance Provisions Deductions Balance 2016 $ 2,963 $ 1,701 $ 701 $ 3,963 2017 $ 3,963 $ 18,221 $ 4,604 $ 17,580 2018 $ 17,580 $ 2,700 $ 2,902 $ 17,378 |
Inventories
Inventories | 12 Months Ended |
Oct. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES As of the dates indicated, inventories are comprised of the following (in thousands): October 31, 2018 2017 Raw materials $ 67,468 $ 52,898 Work-in-process 9,589 18,623 Finished goods 188,575 185,488 Deferred cost of goods sold 48,057 61,340 313,689 318,349 Provision for excess and obsolescence (50,938 ) (51,206 ) $ 262,751 $ 267,143 Ciena writes down its inventory for estimated obsolescence or unmarketable inventory by an amount equal to the difference between the cost of inventory and the estimated net realizable value based on assumptions about future demand and market conditions. During fiscal 2018 , fiscal 2017 and fiscal 2016 , Ciena recorded a provision for excess and obsolescence of $30.6 million , $35.5 million , and $33.7 million , respectively, primarily related to the decrease in the forecasted demand for certain Converged Packet Optical products. Deductions from the provision for excess and obsolete inventory relate to disposal activities. The following table summarizes the activity in Ciena’s reserve for excess and obsolete inventory for the fiscal years indicated (in thousands): Year ended Beginning Ending October 31, Balance Provisions Disposals Balance 2016 $ 53,001 $ 33,713 $ 24,211 $ 62,503 2017 $ 62,503 $ 35,459 $ 46,756 $ 51,206 2018 $ 51,206 $ 30,615 $ 30,883 $ 50,938 |
Prepaid Expenses and Other
Prepaid Expenses and Other | 12 Months Ended |
Oct. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER | PREPAID EXPENSES AND OTHER As of the dates indicated, prepaid expenses and other are comprised of the following (in thousands): October 31, 2018 2017 Prepaid VAT and other taxes $ 82,518 $ 91,647 Product demonstration equipment, net 37,623 40,713 Prepaid expenses 32,987 26,114 Other non-trade receivables 25,716 9,655 Deferred deployment expense 19,342 26,934 Financing receivable 626 2,049 Derivative assets 133 227 $ 198,945 $ 197,339 Depreciation of product demonstration equipment was $9.0 million , $10.0 million and $10.7 million for fiscal 2018 , 2017 and 2016 , respectively. |
Equipment, Building, Furniture
Equipment, Building, Furniture and Fixtures | 12 Months Ended |
Oct. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
EQUIPMENT, BUILDING, FURNITURE AND FIXTURES | EQUIPMENT, BUILDING, FURNITURE AND FIXTURES As of the dates indicated, equipment, building, furniture and fixtures are comprised of the following (in thousands): October 31, 2018 2017 Equipment, furniture and fixtures $ 504,714 $ 486,451 Building subject to capital lease 71,968 76,702 Leasehold improvements 94,195 87,763 670,877 650,916 Accumulated depreciation and amortization (378,810 ) (342,451 ) $ 292,067 $ 308,465 During fiscal 2018 , fiscal 2017 and fiscal 2016 , Ciena recorded depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements of $75.3 million , $67.2 million and $52.7 million , respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Oct. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS As of the dates indicated, intangible assets are comprised of the following (in thousands): October 31, 2018 2017 Gross Intangible Accumulated Amortization Net Intangible Gross Intangible Accumulated Amortization Net Intangible Developed technology $ 373,581 $ (285,233 ) $ 88,348 $ 341,255 $ (266,693 ) $ 74,562 In-process research and development — — — 671 — 671 Patents and licenses 3,565 (1,958 ) 1,607 7,165 (6,535 ) 630 Customer relationships, covenants not to compete, outstanding purchase orders and contracts 374,620 (316,350 ) 58,270 334,642 (309,508 ) 25,134 Total intangible assets $ 751,766 $ (603,541 ) $ 148,225 $ 683,733 $ (582,736 ) $ 100,997 During fiscal 2018 and 2017, certain fully amortized intangible assets of approximately $5.0 million and $34.0 million , respectively, were eliminated from gross intangible assets and accumulated amortization during the period, with no corresponding impact to the income statement. These assets were primarily technology for products no longer being sold by Ciena. The aggregate amortization expense of intangible assets was $25.8 million , $45.7 million and $78.3 million for fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively. Expected future amortization of intangible assets for the fiscal years indicated is as follows (in thousands): Year Ended October 31, 2019 $ 35,375 2020 34,019 2021 30,841 2022 24,820 2023 10,011 Thereafter 13,159 $ 148,225 |
Goodwill
Goodwill | 12 Months Ended |
Oct. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL October 31, 2018 and October 31, 2017 , as well as the changes to goodwill during fiscal 2018 . (in thousands): Balance at October 31, 2017 Acquisitions Impairments Translation Balance at October 31, 2018 Software and Software-Related Services $ 201,428 $ 30,757 $ — $ — $ 232,185 Networking Platforms 66,030 — — (247 ) 65,783 Total $ 267,458 $ 30,757 $ — $ (247 ) $ 297,968 |
Other Balance Sheet Details
Other Balance Sheet Details | 12 Months Ended |
Oct. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
OTHER BALANCE SHEET DETAILS | OTHER BALANCE SHEET DETAILS As of the dates indicated, other long-term assets are comprised of the following (in thousands): October 31, 2018 2017 Maintenance spares inventory, net $ 45,679 $ 46,872 Minority equity investments 8,056 6,000 Forward starting interest rate swaps 779 218 Deferred debt issuance costs, net (1) 720 1,041 Financing receivable — 1,052 Other 16,418 8,410 $ 71,652 $ 63,593 (1) Deferred debt issuance costs relate to Ciena’s ABL Credit Facility (described in Note 17 below). The amortization of deferred debt issuance costs for Ciena’s ABL Credit Facility is included in interest expense, and was $0.3 million , $0.3 million and $0.4 million for fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively. As of the dates indicated, accrued liabilities and other short-term obligations are comprised of the following (in thousands): October 31, 2018 2017 Compensation, payroll related tax and benefits $ 140,277 $ 113,272 Warranty 44,740 42,456 Vacation 42,507 39,778 Capital lease obligations 3,547 3,772 Interest payable 1,072 3,612 Other 107,932 120,044 $ 340,075 $ 322,934 The following table summarizes the activity in Ciena’s accrued warranty for the fiscal years indicated (in thousands): Year ended Beginning Current Year Ending October 31, Balance Provisions (1) Settlements Balance 2016 $ 56,654 $ 15,483 $ 19,813 $ 52,324 2017 $ 52,324 $ 7,965 $ 17,833 $ 42,456 2018 $ 42,456 $ 20,992 $ 18,708 $ 44,740 (1) As a result of actual failure rates lower than expected, Ciena adjusted its fiscal 2017 provisions for warranty. These adjustments for previous fiscal year provisions had the effect of reducing warranty provisions by $9.7 million and $5.3 million for fiscal 2017 and 2016 respectively. During fiscal 2018 , Ciena determined that failure rates for prior estimates remained unchanged, and accordingly did not make any adjustments for previous fiscal year provisions not yet settled. As a result, Ciena’s warranty provision for fiscal 2018 increased as compared to these prior years. As of the dates indicated, deferred revenue is comprised of the following (in thousands): October 31, 2018 2017 Products $ 42,474 $ 49,135 Services 126,983 135,872 169,457 185,007 Less current portion (111,134 ) (102,418 ) Long-term deferred revenue $ 58,323 $ 82,589 As of the dates indicated, other long-term obligations are comprised of the following (in thousands): October 31, 2018 2017 Capital lease obligations $ 68,245 $ 73,407 Income tax liability 15,894 15,445 Deferred tenant allowance 7,244 8,162 Straight-line rent 6,750 7,267 Contingent consideration 10,900 — Other 10,380 7,068 $ 119,413 $ 111,349 The following is a schedule by fiscal years of future minimum lease payments under capital leases and the present value of minimum lease payments as of October 31, 2018 (in thousands): Year Ending October 31, Amount 2019 $ 8,654 2020 7,674 2021 7,569 2022 7,883 2023 8,090 Thereafter 75,413 Net minimum capital lease payments 115,283 Less: Amount representing interest (43,491 ) Present value of minimum lease payments 71,792 Less: Current portion of present value of minimum lease payments (3,547 ) Long-term portion of present value of minimum lease payments $ 68,245 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Oct. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Foreign Currency Derivatives During fiscal 2018 and fiscal 2017 , Ciena entered into forward contracts to hedge its foreign exchange exposure from its forecasted cash flows in order to reduce the variability in its Canadian Dollar and Indian Rupee denominated expense, which principally relates to research and development activities, its British Pound denominated expense, which principally relates to sales and marketing activities, and its Euro denominated revenue. The notional amount of these contracts was approximately $163.2 million and $86.1 million as of October 31, 2018 and October 31, 2017 , respectively. These foreign exchange contracts have maturities of 24 months or less and have been designated as cash flow hedges. During fiscal 2018 and fiscal 2017 , in order to hedge its foreign exchange exposure from certain balance sheet items, Ciena entered into forward contracts to mitigate risk due to volatility in the Brazilian Real, Canadian Dollar, Euro, Australian Dollar, British Pound Sterling, and Mexican Peso. The notional amount of these contracts was approximately $162.6 million and $83.4 million as of October 31, 2018 and October 31, 2017 . 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"). During the fourth quarter of fiscal 2018, Ciena refinanced its existing 2022 Term Loans into a new 2025 Term Loan, increasing the aggregate outstanding principal to $700 million and extending the maturity to September 2025 (see Note 16 below). In conjunction with the refinancing, Ciena unwound its existing interest rate swaps for a cash gain of $ 6.8 million , which was recorded in Other Comprehensive Income, and entered into new floating-to-fixed interest rate swaps. The new interest rate swaps fix the LIBOR rate of approximately 50% of the principal amount of the 2025 Term Loan at 2.957% through September 2023. The total notional amount of these interest rate swaps in effect as of October 31, 2018 was $350.0 million . 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 loans. These derivative contracts have been designated as cash flow hedges. Other information regarding Ciena’s derivatives is immaterial for separate financial statement presentation. See Notes 4 and 6 above. Debt Conversion Liability Associated With 3.75% Convertible Senior Notes due October 15, 2018 (“New Notes”) The New Notes provided Ciena the option, at its election, to settle conversions of such notes for cash, shares of its common stock, or a combination of cash and shares equal to the aggregate amount due upon conversion. On August 30, 2018, Ciena notified the noteholders that it had elected to settle conversion of the New Notes in a combination of cash and shares, provided that the cash portion would not exceed an aggregate amount of $400 million . Ciena became obligated to settle a portion of the conversion feature in cash and reclassified the cash conversion feature from equity to a derivative liability at its current fair value of $152.1 million . As of October 31, 2018, Ciena recorded a loss of approximately $12.1 million related to the change in fair value of the embedded conversion feature. On November 15, 2018, Ciena paid approximately $111.3 million in cash and issued 1.6 million shares in settlement of this embedded conversion feature. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Oct. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME The following table summarizes the changes in accumulated balances of other comprehensive income (“AOCI”): Unrealized Gain/(Loss) on Available-for-Sale Securities Unrealized Gain/(Loss) on Foreign Currency Forward Contracts Unrealized Gain/(Loss) on Forward Starting Interest Rate Swaps Cumulative Foreign Currency Translation Adjustment Total Balance at October 31, 2015 $ (78 ) $ (268 ) $ (5,522 ) $ (16,258 ) $ (22,126 ) Other comprehensive gain (loss) before reclassifications 217 (1,453 ) (4,101 ) (1,152 ) (6,489 ) Amounts reclassified from AOCI — 630 3,656 — 4,286 Balance at October 31, 2016 139 (1,091 ) (5,967 ) (17,410 ) (24,329 ) Other comprehensive gain (loss) before reclassifications (590 ) 1,290 3,669 8,012 12,381 Amounts reclassified from AOCI — (1,585 ) 2,516 — 931 Balance at October 31, 2017 (451 ) (1,386 ) 218 (9,398 ) (11,017 ) Other comprehensive gain (loss) before reclassifications 26 (3,242 ) 6,011 686 3,481 Amounts reclassified from AOCI — 1,568 188 — 1,756 Balance at October 31, 2018 $ (425 ) $ (3,060 ) $ 6,417 $ (8,712 ) $ (5,780 ) All amounts reclassified from AOCI related to settlement (gains) losses on foreign currency forward contracts designated as cash flow hedges impacted revenue, research and development expense or sales and marketing expense on the Consolidated Statements of Operations. All amounts reclassified from AOCI related to settlement (gains) losses on forward starting interest rate swaps designated as cash flow hedges impacted interest and other income (loss), net on the Consolidated Statements of Operations. |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 12 Months Ended |
Oct. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Debt | SHORT-TERM AND LONG-TERM DEBT Outstanding Term Loan Payable The net carrying values of Ciena’s term loans were comprised of the following for the fiscal periods indicated (in thousands): October 31, 2018 October 31, 2017 Term Loan Payable due January 30, 2022 $ — $ 392,972 Term Loan Payable due September 28, 2025 693,450 — $ 693,450 $ 392,972 Deferred debt issuance costs deducted from the carrying amounts of the term loans totaled $4.3 million at October 31, 2018 and $3.1 million at October 31, 2017 . Deferred debt issuance costs are amortized using the straight-line method, which approximates the effect of the effective interest rate method, through the maturity of the term loans. The amortization of deferred debt issuance costs for these term loans is included in interest expense, and was $0.7 million and $0.5 million during fiscal 2018 and fiscal 2017 , respectively. The carrying values of the term loans listed above are also net of any unamortized debt discounts. 2025 Term Loan On September 28, 2018, Ciena, as borrower, and Ciena Communications, Inc. and Ciena Government Solutions, Inc., as guarantors, entered into an Increase Joinder and Refinancing Amendment to Credit Agreement with the lenders party thereto and the Administrative Agent (the “Refinancing Agreement”), pursuant to which Ciena refinanced its existing 2022 Term Loan (as described under "2022 Term Loan" below) into a term loan with an aggregate principal amount of $700 million maturing on September 28, 2025 (the “2025 Term Loan”). In connection with the transaction, Ciena received a loan in the amount of $699.1 million , net of original discount, from the 2025 Term Loan and simultaneously repaid $394.0 million of outstanding principal under the 2022 Term Loan, resulting in proceeds of $305.1 million . The 2025 Term Loan requires Ciena to make installment payments of $1.75 million on a quarterly basis. Based on the continuation of existing lenders and the addition of new lenders, this arrangement was primarily accounted for as a modification of debt and, as such, $3.8 million of debt issuance costs associated with the 2025 Term Loan were expensed. The aggregate balance of $2.4 million of debt issuance costs and approximately $1.4 million of original discount from the 2022 Term Loan, $1.9 million of debt issuance costs associated with new lenders for the 2025 Term Loan, and approximately $0.9 million of original discount from the 2025 Term Loan, were included in the carrying value of the 2025 Term Loan. The Refinancing Agreement amends the Term Loan Credit Agreement (as defined below) and provides that the 2025 Term Loan will, among other things: • amortize in equal quarterly installments in aggregate amounts equal to 0.25% of the principal amount of the Refinancing Term Loan as of September 28, 2018, with the balance payable at maturity; • be subject to mandatory prepayment provisions upon the occurrence of certain specified events substantially similar to the Existing Term Loan, including certain asset sales, debt issuances and receipt of annual Excess Cash Flow (as defined in the Credit Agreement); • bear interest, at Ciena’s election, at a per annum rate equal to (a) LIBOR (subject to a floor of 0.00% ) plus an applicable margin of 2.00% , or (b) a base rate (subject to a floor of 1.00% ) plus an applicable margin of 1.00% ; and • be repayable at any time at Ciena’s election, provided that repayment of the 2025 Term Loan with proceeds of certain indebtedness prior to March 28, 2019 will require a prepayment premium of 1.00% of the aggregate principal amount of such prepayment. Except as amended by the Refinancing Agreement, the remaining terms of the Term Loan Credit Agreement remain in full force and effect. The principal balance, unamortized debt discount, deferred debt issuance costs and net carrying value of Ciena’s 2025 Term Loan were as follows as of October 31, 2018 (in thousands): Principal Balance Unamortized Discount Deferred Debt Issuance Costs Net Carrying Value Term Loan Payable due September 28, 2025 $ 700,000 $ (2,300 ) $ (4,250 ) $ 693,450 The following table sets forth the carrying value and the estimated fair value of Ciena’s 2025 Term Loan (in thousands): October 31, 2018 Carrying Value (1) Fair Value (2) Term Loan Payable due September 28, 2025 $ 693,450 $ 702,625 (1) Includes unamortized debt discount and debt issuance costs. (2) Ciena’s term loan is categorized as Level 2 in the fair value hierarchy. Ciena estimated the fair value of its 2025 Term Loan using a market approach based upon observable inputs, such as current market transactions involving comparable securities. 2022 Term Loan On January 30, 2017 Ciena entered into an Omnibus Refinancing Amendment to the Credit Agreement, Security Agreement and Pledge Agreement (the “Refinancing Agreement”). The Refinancing Agreement refinanced prior term loans into a single term loan with an aggregate principal amount of $400 million (the “2022 Term Loan”). The 2022 Term Loan required Ciena to make installment payments of approximately $1.0 million on a quarterly basis. Convertible Notes Payable As of October 31, 2018, there were no outstanding convertible notes payable or principal amounts owing with respect thereto. The net carrying values of Ciena’s convertible notes payable was comprised of the following for the fiscal periods indicated (in thousands): October 31, 2018 October 31, 2017 3.75% Convertible Senior Notes due October 15, 2018 (Original) $ — $ 61,071 3.75% Convertible Senior Notes due October 15, 2018 (New) — 287,221 4.0% Convertible Senior Notes due December 15, 2020 — 194,717 $ — $ 543,009 Deferred debt issuance costs that were deducted from the carrying amounts of the convertible notes payable totaled $2.1 million at October 31, 2017 , there are no deferred debt issuance costs attributed to convertible notes outstanding at October 31, 2018 . Deferred debt issuance costs are amortized using the straight-line method, which approximates the effect of the effective interest rate method, through the maturity of the convertible notes payable. The amortization of deferred debt issuance costs for these convertible notes are included in interest expense, and were $1.4 million , $1.8 million and $2.7 million during fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively. The carrying values of the term loans listed above as of October 31, 2017 are also net of any unamortized debt discounts. 3.75% Convertible Senior Notes, due October 15, 2018 On October 18, 2010, Ciena completed a private placement of 3.75% Convertible Senior Notes due October 15, 2018 (the “Original Notes”), in aggregate principal amount of $350.0 million . At the election of the holder, the Original Notes were convertible prior to maturity into shares of Ciena common stock at a conversion rate of 49.5872 shares per $1,000 in principal amount, which is equivalent to an initial conversion price of approximately $20.17 per share. On August 2, 2017, Ciena completed an offer to exchange the Original Notes for a new series of 3.75% Convertible Senior Notes due 2018 (the “New Notes”) and an exchange fee of $2.50 per $1,000 original principal amount, or $0.7 million . Following settlement of the exchange, $61.3 million in aggregate principal amount at maturity of Original Notes and $288.7 million in aggregate principal amount at maturity of the New Notes were outstanding. Except with respect to the additional cash settlement option upon conversion, the New Notes were issued on substantially the same terms as the Original Notes including the holder conversion option and interest payment dates described above. Since the calculated fair value of the liability component was greater than the fair value of the New Notes, the adjustment to equity for the cash conversion feature was immaterial. This arrangement was accounted for as a modification of debt and, as such, $0.7 million of debt issuance costs associated with the New Notes was expensed, and the aggregate balance of $1.2 million of debt issuance costs for the Old Notes and approximately $0.7 million of original discount from the New Notes were included in the carrying value of the New Notes. Conversion of Original Notes . Following conversion elections by the holders thereof, the Original Notes were converted in advance of maturity during the fourth quarter of fiscal 2018 and Ciena issued approximately 3.0 million shares of its common stock in settlement of such conversion. The Original Notes thereafter ceased to be outstanding. Conversion of New Notes. The New Notes provided Ciena the option, at its election, to settle conversions of such notes for cash, shares of its common stock, or a combination of cash and shares equal to the aggregate amount due upon conversion. During the fourth quarter of fiscal 2018, Ciena elected to settle conversion of the New Notes in a combination of cash and shares, provided that the cash portion would not to exceed an aggregate amount of approximately $400 million . As a result of this election, Ciena became obligated to settle a portion of the conversion feature in cash and reclassified the cash conversion feature from equity to a derivative liability at its current fair value of $152.1 million . The embedded conversion feature was remeasured in earnings through period end and was settled on November 15, 2018. See Notes 14 and 25 for more information on this liability and settlement. Following conversion elections by the holders thereof, the New Notes were converted in advance of maturity during the fourth quarter of fiscal 2018 and Ciena paid an amount of $ 288.7 million in cash, representing the aggregate principal amount of the notes, on October 15, 2018. The New Notes principal thereafter ceased to be outstanding. 4.0% Convertible Senior Notes due December 15, 2020 On December 27, 2012, Ciena issued $187.5 million in aggregate principal amount of 4.0% Convertible Senior Notes due December 15, 2020 (the “2020 Notes”) in separate private offerings in exchange for $187.5 million in aggregate principal amount of a then existing issue of convertible notes maturing in 2015. The principal amount of the 2020 Notes also accreted at a rate of 1.85% per year commencing December 27, 2012, compounding on a semi-annual basis. The accreted portion of the principal payable at maturity did not bear interest and was not convertible into shares of Ciena’s common stock. The 2020 Notes were convertible prior to maturity, at the option of the holder, into shares of Ciena’s common stock at a conversion rate of 49.0557 shares of common stock per $1,000 in original principal amount, which is equal to an initial conversion price of $20.39 per share. In addition, the indenture provided that Ciena could elect to convert the 2020 Notes, in whole or in part, at any time on or prior to December 15, 2020, if the daily volume weighted average price of the common stock equals or exceeds 130% of the conversion price then in effect for at least 20 trading days in any 30 consecutive trading day period, provided that upon such an election the conversion rate would be adjusted to include an amount of additional shares, determined by reference to a make-whole table, payable in Ciena common stock, or its cash equivalent. On September 20, 2018, Ciena elected to exercise its option to convert the entire principal amount outstanding into shares of Ciena common stock, with such conversion to occur on October 31, 2018 (the “Conversion Date”). Upon the Conversion Date, Ciena issued approximately 9.2 million shares of its common stock and paid cash of $ 13.5 million , having elected to satisfy its additional make-whole share obligation in cash. Accounting guidance issued by the FASB requires the issuer of convertible debt instruments with cash settlement features, including partial cash settlement, to account separately for the liability and equity components of the instrument. Under this guidance, the debt is recognized at the present value of its cash flows discounted using the issuer’s nonconvertible debt borrowing rate at the time of issuance, and the equity component is recognized as the difference between the proceeds from the issuance of the note and the fair value of the liability. The reduced carrying value on the convertible debt results in a debt discount that is accreted back to the convertible debt’s principal amount through the recognition of non-cash interest expense over the expected life of the debt, which results in recognizing the interest expense on these borrowings at effective rates approximating what Ciena would have incurred had nonconvertible debt with otherwise similar terms been issued. Because the additional make-whole shares could be settled in cash or common stock at Ciena’s option, the debt and equity components were accounted for separately. Ciena measured the fair value of the debt component of the 2020 Notes using an effective interest rate of 7.0% . As a result, Ciena attributed $170.4 million of the fair value of the 2020 Notes to the debt component. The debt component was netted against the face value of the 2020 Notes to determine the debt discount. The debt discount was accreted over the period from the date of issuance to the contractual maturity date, resulting in the recognition of non-cash interest expense. In addition, Ciena recorded $43.1 million within additional paid-in capital representing the equity component of the 2020 Notes. There was no net tax expense recorded at that time due to Ciena’s full valuation allowance against its deferred tax assets. Because the 2020 Notes contained both debt and equity elements as described above, Ciena allocated the fair value of the consideration transferred (cash and shares) between (i) the debt component to reflect the extinguishment of the debt and (ii) the equity component to reflect the reacquisition of the embedded conversion option. The fair value of the 2020 notes was calculated by Ciena immediately prior to its derecognition in the fourth quarter of fiscal 2018. Accordingly, Ciena recorded a $9.9 million loss on extinguishment of debt, representing the difference between the calculated fair value of the debt and the carrying amount of the debt component, including any unamortized debt discount or issuance costs. The remainder of the consideration was allocated to the reacquisition of the equity component. |
ABL Credit Facility
ABL Credit Facility | 12 Months Ended |
Oct. 31, 2018 | |
Line of Credit Facility [Abstract] | |
ABL Credit Facility | ABL CREDIT FACILITY Ciena Corporation and certain of its subsidiaries are parties to a senior secured asset-based revolving credit facility (the “ABL Credit Facility”) providing for a total commitment of $250 million with a maturity date of December 31, 2020. Ciena principally uses the ABL Credit Facility to support the issuance of letters of credit that arise in the ordinary course of its business and thereby to reduce its use of cash required to collateralize these instruments. As of October 31, 2018 , letters of credit totaling $61.7 million were collateralized by the ABL Credit Facility. There were no borrowings outstanding under the ABL Credit Facility as of October 31, 2018 . |
Earnings (Loss) Per Share Calcu
Earnings (Loss) Per Share Calculation | 12 Months Ended |
Oct. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share Calculation | EARNINGS (LOSS) PER SHARE CALCULATION The following table (in thousands except per share amounts) is a reconciliation of the numerator and denominator of the basic net income (loss) per common share (“Basic EPS”) and the diluted net income (loss) per potential common share (“Diluted EPS”). Basic EPS is computed using the weighted average number of common shares outstanding. 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 restricted stock units, (iii) shares issuable under Ciena’s employee stock purchase plan and upon exercise of outstanding stock options, using the treasury stock method, (iv) shares underlying Ciena’s outstanding convertible notes for which Ciena uses the treasury stock method (New Notes), and (v) shares underlying Ciena’s outstanding convertible notes for which Ciena uses the if-converted method. Numerator Year Ended October 31, 2018 2017 2016 Net income (loss) $ (344,690 ) $ 1,261,953 $ 72,584 Less: Loss on fair value of debt conversion liability (1) (12,894 ) — — Add: Interest expense associated with 0.875% Convertible Senior Notes due 2017 — 853 4,801 Add: Interest expense associated with 3.75% Convertible Senior Notes due 2018 (Original Notes) — 7,224 — Add: Interest expense associated with 4.0% Convertible Senior Notes due 2020 — 8,691 — Net income (loss) used to calculate Diluted EPS $ (357,584 ) $ 1,278,721 $ 77,385 Denominator Year Ended October 31, 2018 2017 2016 Basic weighted average shares outstanding 143,738 141,997 138,312 Add: Shares underlying outstanding stock options, employee stock purchase plan and restricted stock units — 1,354 1,311 Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (New Notes) — 404 — Add: Shares underlying 0.875% Convertible Senior Notes due 2017 — 3,032 11,081 Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (Original Notes) — 13,934 — Add: Shares underlying 4.0% Convertible Senior Notes due 2020 — 9,198 — Diluted weighted average shares outstanding 143,738 169,919 150,704 (1) On October 15, 2018, we settled our New Notes with an aggregate principal amount of $288.7 million . It was our intent to settle the principal amount of the New Notes in cash; accordingly, the principal amount was excluded from the determination of diluted earnings per share. On August 21, 2018, we changed our policy and decided to settle the payment of the conversion premium in cash and stock; see Note 16 above. Prior to this change, for EPS purposes we accounted for the conversion feature using the treasury stock method by adjusting the diluted weighted-average common shares if the effect was dilutive. As a consequence of our change in policy described above, the numerator for the computation of diluted earnings per common share was adjusted for any dilutive changes in the estimated value of the debt conversion liability during the period of August 20, 2018 through August 30, 2018, the date at which we began to account for the conversion feature as a derivative. There were no adjustments to diluted weighted average shares outstanding subsequent to our change in policy. See Note 14 above. For the fiscal year ended October 31, 2018, the adjustment to the numerator had the effect of reducing the diluted earnings per share by $0.09 . EPS Year Ended October 31, 2018 2017 2016 Basic EPS $ (2.40 ) $ 8.89 $ 0.52 Diluted EPS $ (2.49 ) $ 7.53 $ 0.51 The following table summarizes the weighted average shares excluded from the calculation of the denominator for Diluted EPS due to their anti-dilutive effect for the fiscal years indicated (in thousands): Year Ended October 31, 2018 2017 2016 Shares underlying stock options and restricted stock units 2,235 958 1,882 Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (New Notes) 1,780 — — — 3.75% Convertible Senior Notes due October 15, 2018 (Original Notes) 2,883 — 17,355 4.0% Convertible Senior Notes due December 15, 2020 9,123 — 9,198 Total shares excluded due to anti-dilutive effect 16,021 958 28,435 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Oct. 31, 2018 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Stock Repurchase Program On December 7, 2017, Ciena announced that its Board of Directors authorized a program to repurchase up to $300 million of Ciena’s common stock. A summary of the stock repurchase program, reported based on trade date, is summarized as follows: Shares Repurchased Weighted-Average Price per Share Amount Repurchased (in thousands) Cumulative balance at October 31, 2017 — $ — $ — Repurchase of common stock under the stock repurchase program 4,290,801 25.86 110,981 Cumulative balance at October 31, 2018 4,290,801 $ 25.86 $ 110,981 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 Restricted Stock Unit Tax Withholdings Historically, Ciena satisfied employee tax withholding obligations due upon the vesting of stock unit awards through directed open market sales. Beginning in the fourth quarter of fiscal 2018, Ciena changed this practice to begin the repurchase of shares of common stock delivered with respect to such stock units in settlement of employee tax withholding obligations due upon the vesting of such awards. The purchase price of $4.8 million for the shares of Ciena’s stock repurchased 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the periods indicated, the provision (benefit) for income taxes consists of the following (in thousands): Year Ended October 31, 2018 2017 2016 Provision (benefit) for income taxes: Current: Federal $ 8,327 $ — $ — State 8,219 6,342 5,281 Foreign 13,294 14,563 9,969 Total current 29,840 20,905 15,250 Deferred: Federal 475,951 (1) (1,047,699 ) (1 ) — State (8,202 ) (77,429 ) (1 ) — Foreign (4,118 ) (1,604 ) (1,116 ) Total deferred 463,631 (1,126,732 ) (1,116 ) Provision (benefit) for income taxes $ 493,471 $ (1,105,827 ) $ 14,134 _________________________________ (1) The income tax expense for 2018 includes the impact of the remeasurement of the net deferred tax assets and the federal transition tax. See further discussion below. The income tax benefit for fiscal 2017 includes the reversal of a significant portion of the valuation allowance on Ciena’s deferred tax assets in the U.S. as described below. For the periods indicated, income before provision for income taxes consists of the following (in thousands): Year Ended October 31, 2018 2017 2016 United States $ 106,972 $ 114,242 $ 58,237 Foreign 41,809 41,884 28,481 Total $ 148,781 $ 156,126 $ 86,718 Ciena’s foreign income tax as a percentage of foreign income may appear disproportionate compared to the expected tax based on the U.S. federal statutory rate and is dependent upon the mix of earnings and tax rates in foreign jurisdictions. For the periods indicated, the tax provision (benefit) reconciles to the amount computed by multiplying income before income taxes by the U.S. federal statutory rate of 35% ( 23.41% for fiscal 2018, see note below) as follows: Year Ended October 31, 2018 2017 2016 Provision at statutory rate 23.41 % 35.00 % 35.00 % Deferred tax assets remeasurement 294.56 % — % — % State taxes (0.16 )% 2.29 % 4.00 % Foreign taxes 1.22 % (0.35 )% 3.11 % Research and development credit (8.80 )% (15.38 )% (22.61 )% Non-deductible compensation 3.39 % 3.45 % 5.16 % Fair value of debt conversion liability 1.90 % — % — % Transition tax 23.23 % — % — % Valuation allowance (11.95 )% (739.97 )% (7.33 )% Other 4.88 % 6.67 % (1.03 )% Effective income tax rate 331.68 % (708.29 )% 16.30 % On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted. The Tax Act significantly revises the U.S. corporate income tax by, among other things, lowering the statutory corporate income tax rate (the “federal tax rate”) from 35% to 21% effective January 1, 2018, implementing a modified territorial tax system, and imposing a mandatory one-time transition tax on accumulated earnings of foreign subsidiaries that were previously tax deferred. As a fiscal-year taxpayer, certain provisions of the Tax Act impact Ciena in fiscal 2018, including the change in the federal tax rate and the one-time transition tax, while other provisions will be effective at the beginning of fiscal 2019, including the implementation of a modified territorial tax system, other changes to how foreign earnings are subject to U.S. tax, and adoption of an alternative tax system. As a result of the decrease in the federal tax rate from 35% to 21% effective January 1, 2018, Ciena has computed its income tax expense for the October 31, 2018 fiscal year using a blended federal tax rate of 23.41% . Ciena remeasured its deferred tax assets and liabilities (“DTA”) using the federal tax rate that will apply when the related temporary differences are expected to reverse. During fiscal 2018, Ciena recorded a tax expense of $493.5 million , primarily related to the Tax Act which consists of the following: • a $438.2 million charge related to the remeasurement of U.S. net deferred tax assets at the lower statutory rate under the Tax Act; and • a $34.6 million charge related to a transition tax on accumulated historical foreign earnings and its deemed repatriation to the U.S. In December 2017, the SEC issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional amounts when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes due to the Tax Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. The final impact of the Tax Act may differ from the above amounts to the extent they are provisional due to changes in interpretations of the Tax Act, legislative action to address questions that arise because of the Tax Act, changes in accounting standards for income taxes and related interpretations in response to the Tax Act, and any updates or changes to estimates used in the provisional amounts. In the fourth quarter of fiscal 2018, Ciena recorded a $10.5 million benefit to the provisional amounts originally recorded in the first quarter of fiscal 2018 related to the U.S transition tax on accumulated earnings of foreign subsidiaries. Ciena has determined that the $34.6 million of tax expense for the U.S. transition tax on accumulated earnings of foreign subsidiaries is a provisional amount and a reasonable estimate as of October 31, 2018. Ciena is able to reduce the transition tax payable through the utilization of research and development credits which previously had a valuation allowance. The net transition tax payable is $8.6 million . Ciena has further determined that the $438.2 million of tax expense for DTA remeasurement is complete. Ciena is also required to make accounting policy elections as a result of the Tax Act. These include whether a valuation allowance is recorded for the estimated effect of the application of GILTI and BEAT or if these will be treated as period costs when incurred. Ciena has made an accounting policy election to record an $8.6 million provisional valuation allowance against the U.S. NOL due to an anticipated incremental cash tax cost projected to be generated by the new GILTI tax rules that begin to apply to Ciena in fiscal 2019. Ciena’s analysis of the new BEAT rules, as well as the very recent regulatory guidance and how they may impact the company, continue to progress. Accordingly, Ciena has not made an accounting policy election on whether to establish a valuation allowance for the estimated impact for BEAT. Ciena is also required to elect to either treat taxes due on future GILTI inclusions in U.S. taxable income as a current period expense when incurred or reflect such portion of the future GILTI inclusions in U.S. taxable income that relate to existing basis differences in Ciena’s current measurement of deferred taxes. Ciena’s accounting policy election is to treat the taxes due on future U.S. inclusions in taxable income under GILTI as a period cost when incurred. The significant components of deferred tax assets and liabilities are as follows (in thousands): October 31, 2018 2017 Deferred tax assets: Reserves and accrued liabilities $ 40,959 $ 56,597 Depreciation and amortization 353,838 451,385 NOL and credit carry forward 483,495 803,622 Other 9,397 29,398 Gross deferred tax assets 887,689 1,341,002 Valuation allowance (142,650 ) (185,898 ) Deferred tax asset, net of valuation allowance $ 745,039 $ 1,155,104 A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): Amount Unrecognized tax benefits at October 31, 2015 $ 27,536 Increase related to positions taken in prior period 2,187 Increase related to positions taken in current period 2,654 Reductions related to expiration of statute of limitations (1,709 ) Unrecognized tax benefits at October 31, 2016 30,668 Increase related to positions taken in prior period 122 Increase related to positions taken in current period 111,412 Reductions related to expiration of statute of limitations (620 ) Unrecognized tax benefits at October 31, 2017 141,582 Decrease related to positions taken in prior period (46,400 ) Increase related to positions taken in current period 2,482 Reductions related to expiration of statute of limitations (1,301 ) Unrecognized tax benefits at October 31, 2018 $ 96,363 As of October 31, 2018 and 2017 , Ciena had accrued $3.5 million and $4.0 million of interest and penalties, respectively, related to unrecognized tax benefits within other long-term liabilities in the Consolidated Balance Sheets. Interest and penalties of $1.1 million and $1.2 million were recorded to the provision for income taxes during fiscal 2018 and fiscal 2016 , respectively. During fiscal 2017, Ciena recorded a net benefit for interest and penalties in its provision for income taxes of $0.6 million , primarily as a result of recognizing a portion of previously unrecognized tax benefits. If recognized, the entire balance of unrecognized tax benefits would impact the effective tax rate. Over the next 12 months, Ciena does not estimate any material changes in unrecognized income tax benefits. Ciena has not provided for U.S. deferred income taxes on the cumulative unremitted earnings of its non-U.S. affiliates, as it plans to indefinitely reinvest these foreign earnings outside the U.S. As of October 31, 2018, the cumulative amount of such temporary differences for which a deferred tax liability has not been recognized is an estimated $336 million . If these earnings were distributed to the U.S., Ciena would be subject to additional foreign withholding taxes of approximately $23.0 million . Additionally, there are no other significant temporary differences for which a deferred tax liability has not been recognized. As of October 31, 2018 , Ciena continues to maintain a valuation allowance against net deferred tax assets of $142.7 million primarily related to state and foreign net operating losses and credits that Ciena estimates it will not be able to use. The following table summarizes the activity in Ciena’s valuation allowance against its gross deferred tax assets (in thousands): Year ended Beginning Ending October 31, Balance Additions Deductions Balance 2016 $ 1,495,672 $ — $ 5,892 $ 1,489,780 2017 $ 1,489,780 $ — $ 1,303,882 $ 185,898 2018 $ 185,898 $ 23,720 $ 66,968 $ 142,650 As of October 31, 2018 , Ciena had a $1.27 billion net operating loss carry forward and a $0.1 billion income tax credit carry forward which both begin to expire in fiscal year 2021. Ciena’s ability to use net operating losses and credit carry forwards is subject to limitations pursuant to the ownership change rules of the Internal Revenue Code Section 382. Ciena adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, in the first quarter of fiscal 2018. In connection with the adoption of this guidance, Ciena recognized approximately $62.1 million of deferred tax assets related to previously unrecognized tax benefits. This was recorded as a cumulative-effect adjustment to retained earnings as of the beginning of the first quarter of fiscal 2018. |
Share-Based Compensation Expens
Share-Based Compensation Expense | 12 Months Ended |
Oct. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION EXPENSE | SHARE-BASED COMPENSATION EXPENSE Ciena has outstanding equity awards issued under its 2017 Omnibus Incentive Plan (the "2017 Plan"), its 2008 Omnibus Incentive Plan, and certain legacy equity plans and equity plans assumed as a result of previous acquisitions. All equity awards granted on or after March 23, 2017 are made exclusively from the 2017 Plan. Ciena also makes shares of its common stock available for purchase under its Amended and Restated 2003 Employee Stock Purchase Plan (the "ESPP"). Each of the 2017 Plan and the ESPP are described below. 2017 Plan The 2017 Plan has a ten -year term and authorizes the issuance of awards including stock options, restricted stock units (RSUs), restricted stock, unrestricted stock, stock appreciation rights (SARs) and other equity and/or cash performance incentive awards to employees, directors and consultants of Ciena. Subject to certain restrictions, the Compensation Committee of the Board of Directors has broad discretion to establish the terms and conditions for awards under the 2017 Plan, including the number of shares, vesting conditions, and the required service or performance criteria. Options and SARs have a maximum term of ten years, and their exercise price may not be less than 100% of fair market value on the date of grant. Repricing of stock options and SARs is prohibited without stockholder approval. Certain change in control transactions may cause awards granted under the 2017 Plan to vest, unless the awards are continued or substituted for in connection with the transaction. The 2017 Plan authorizes and reserves 8.9 million shares for issuance. In addition, any shares that remained available for issuance under the 2008 Plan as of March 23, 2017 were added to the 2017 Plan and are available for issuance thereunder. The number of shares available under the 2017 Plan will also be increased from time to time by: (i) the number of shares subject to outstanding awards granted under Ciena’s prior equity compensation plans that are forfeited, expire or are canceled without delivery of common stock following the effective date of the 2017 Plan, and (ii) the number of shares subject to awards assumed or substituted in connection with the acquisition of another company. As of October 31, 2018 , the total number of shares authorized for issuance under the 2017 Plan is 8.9 million and approximately 7.2 million shares remained available for issuance thereunder. Stock Options There were no stock options granted by Ciena during fiscal 2018 , fiscal 2017 or fiscal 2016. Outstanding stock option awards granted to employees in prior periods are generally subject to service-based vesting conditions and vest over a four -year period. The following table is a summary of Ciena’s stock option activity for the periods indicated (shares in thousands): Shares Underlying Options Outstanding Weighted Average Exercise Price Balance as of October 31, 2017 875 $ 30.19 Granted — — Exercised (179 ) 12.75 Canceled (420 ) 35.46 Balance as of October 31, 2018 276 $ 33.52 The total intrinsic value of options exercised during fiscal 2018 , fiscal 2017 and fiscal 2016 was $2.2 million , $3.1 million and $5.7 million , respectively. The following table summarizes information with respect to stock options outstanding at October 31, 2018 , based on Ciena’s closing stock price on the last trading day of Ciena’s fiscal 2018 (shares and intrinsic value in thousands): Options Outstanding at Vested Options at October 31, 2018 October 31, 2018 Number Weighted Average Remaining Weighted Number Weighted Average Remaining Weighted Range of of Contractual Average Aggregate of Contractual Average Aggregate Exercise Underlying Life Exercise Intrinsic Underlying Life Exercise Intrinsic Price Shares (Years) Price Value Shares (Years) Price Value $ 5.34 — $ 11.16 14 1.31 $ 8.30 $ 323 14 1.31 $ 8.30 $ 323 $ 11.34 — $ 16.79 64 3.63 13.53 1,191 64 3.62 13.52 1,185 $ 17.50 — $ 25.36 11 5.6 18.44 156 11 5.55 18.21 151 $ 32.06 — $ 37.10 54 3.97 35.60 — 54 3.97 35.60 — $ 37.82 — $ 55.63 133 4.59 46.29 — 132 4.59 46.29 — $ 5.34 — $ 55.63 276 4.13 $ 33.52 $ 1,670 275 4.12 $ 33.56 $ 1,659 Assumptions for Option-Based Awards Ciena recognizes the fair value of stock options as share-based compensation expense on a straight-line basis over the requisite service period. Ciena did not grant any option-based awards during fiscal 2018, fiscal 2017, or fiscal 2016. Restricted Stock Units A restricted stock unit is a stock award that entitles the holder to receive shares of Ciena common stock as the unit vests. Ciena’s outstanding restricted stock unit awards are subject to service-based vesting conditions and/or performance-based vesting conditions. Awards subject to service-based conditions typically vest in increments over a three or four -year period. However, the 2017 Plan permits Ciena to grant service-based stock awards with a minimum one -year vesting period. Awards with performance-based vesting conditions (i) require the achievement of certain operational, financial or other performance criteria or targets; or (ii) measure Ciena’s total shareholder return as compared to an index of peer companies, a condition of vesting of such awards, in whole or in part. Ciena recognizes the estimated fair value of performance-based awards, net of estimated forfeitures, as share-based compensation expense over the performance period, using graded vesting, which considers each performance period or tranche separately, based upon Ciena’s determination of whether it is probable that the performance targets will be achieved. At the end of each reporting period, Ciena reassesses the probability of achieving the performance targets and the performance period required to meet those targets. The following table is a summary of Ciena’s restricted stock unit activity for the period indicated, with the aggregate fair value of the balance outstanding at the end of each period, based on Ciena’s closing stock price on the last trading day of the relevant period (shares and aggregate fair value in thousands): Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Per Share Aggregate Fair Value Balance as of October 31, 2017 4,143 $ 21.46 $ 86,721 Granted 2,713 Vested (2,155 ) Canceled or forfeited (299 ) Balance as of October 31, 2018 4,402 $ 22.26 $ 140,943 The total fair value of restricted stock units that vested and were converted into common stock during fiscal 2018 , fiscal 2017 and fiscal 2016 was $54.3 million , $49.5 million and $50.3 million , respectively. The weighted average fair value of each restricted stock unit granted by Ciena during fiscal 2018 , fiscal 2017 and fiscal 2016 was $22.46 , $23.29 and $19.81 , respectively. Assumptions for Restricted Stock Unit Awards The fair value of each restricted stock unit award is based on the closing price on the date of grant. Share-based expense for service-based restricted stock unit awards is recognized ratably over the vesting period on a straight-line basis. Share-based expense for performance-based restricted stock unit awards is recognized ratably over the performance period based upon Ciena’s determination of whether it is probable that the performance targets will be achieved. At each reporting period, Ciena reassesses the probability of achieving the performance targets and the performance period required to meet those targets. The estimation of whether the performance targets will be achieved involves judgment, and the estimate of expense is revised periodically based on the probability of achieving the performance targets. Revisions are reflected in the period in which the estimate is changed. If any performance goals are not met, no compensation cost is ultimately recognized against that goal and, to the extent previously recognized, compensation expense is reversed. Share-based compensation expense is recognized only for those awards that are ultimately expected to vest. In the event of a forfeiture of an award, the expense related to the unvested portion of that award is reversed. Reversal of share-based compensation expense based on forfeitures can materially affect the measurement of estimated fair value of our share-based compensation. Amended and Restated Employee Stock Purchase Plan (ESPP) Under the ESPP, eligible employees may enroll in a twelve -month offer period that begins in December and June of each year. Each offer period includes two six -month purchase periods. Employees may purchase a limited number of shares of 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. Pursuant to the ESPP’s “evergreen” provision, on December 31 of each year, the number of shares available under the ESPP increases by up to 0.6 million shares, provided that the total number of shares available at that time shall not exceed 8.2 million . Unless earlier terminated, the ESPP will terminate on January 24, 2023 . During fiscal 2018 , fiscal 2017 and fiscal 2016 , Ciena issued 1.1 million , 1.0 million and 1.1 million shares under the ESPP, respectively. At October 31, 2018 , 4.9 million shares remained available for issuance under the ESPP. Share-Based Compensation Expense The following table summarizes share-based compensation expense for the periods indicated (in thousands): Year Ended October 31, 2018 2017 2016 Product cost of goods sold $ 2,984 $ 2,672 $ 2,457 Service cost of goods sold 2,616 2,487 2,479 Share-based compensation expense included in cost of goods sold 5,600 5,159 4,936 Research and development 13,518 12,957 13,870 Sales and marketing 14,246 12,846 15,138 General and administrative 19,709 17,321 17,342 Acquisition and integration costs — — 714 Share-based compensation expense included in operating expense 47,473 43,124 47,064 Share-based compensation expense capitalized in inventory, net (101 ) 77 (7 ) Total share-based compensation $ 52,972 $ 48,360 $ 51,993 As of October 31, 2018 , total unrecognized share-based compensation expense was $77.3 million which relates to unvested restricted stock units and is expected to be recognized over a weighted-average period of 1.45 years. |
Segment and Entity Wide Disclos
Segment and Entity Wide Disclosures | 12 Months Ended |
Oct. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT AND ENTITY WIDE DISCLOSURES | SEGMENT AND ENTITY WIDE DISCLOSURES Segment Reporting Ciena manages its business, measures its performance and allocates its resources based on the following operating segments: • Networking Platforms reflects sales of Ciena’s Converged Packet Optical and Packet Networking product lines . ◦ Converged Packet Optical — includes the 6500 Packet-Optical Platform, the 5430 Reconfigurable Switching System, Waveserver® stackable interconnect system, the family of CoreDirector® Multiservice Optical Switches and the OTN configuration for the 5410 Reconfigurable Switching System. This product line also includes sales of the Z-Series Packet-Optical Platform. As of the first quarter of fiscal 2018, sales of Optical Transport products are also reflected within the Converged Packet Optical product line for all periods presented. ◦ Packet Networking — 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 Consolidated Statement of Operations. • Software and Software-Related Services reflects sales of the following: ◦ Ciena’s Blue Planet Automation Software and Services, which is a comprehensive, open software suite that allows customers to use enhanced knowledge about their network to drive adaptive optimization of their services and operations. Ciena’s Blue Planet Automation Platform includes multi-domain service orchestration (MDSO), network function virtualization (NFV), management and orchestration (NFV MANO), analytics, network health predictor (NHP), route optimization and assurance (ROA), inventory management and Ciena’s SDN Multilayer Controller and virtual wide area network (V-WAN) application. Ciena acquired the NHP and ROA software solutions as a part of its acquisition of Packet Design. Ciena acquired the inventory management and ROA software solutions from DonRiver and Packet Design, respectively. Services includes sales of subscription, installation, support, consulting and design services related to Ciena’s Blue Planet Automation Platform. ◦ Ciena’s Platform Software and Services, which 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, OneControl Unified Management System, ON-Center® Network and Service Management Suite, Ethernet Services Manager, Optical Suite Release and Planet Operate. As Ciena seeks further adoption of its MCP software platform and transitions features, functionality and customers to this platform, Ciena expects revenue declines for its other platform software solutions. Software-related services includes sales of subscription, installation, support, and consulting services related to Ciena’s software platforms and operating system software and enhanced software features embedded in each of the Networking Platforms product lines above. Revenue from the software portions of this segment is included in product revenue on the Consolidated Statements of Operations. Revenue from services portions of this segment is included in services revenue on the Consolidated Statements of Operations. • Global Services reflects sales of a broad range of Ciena’s services for consulting and network design, installation and deployment, maintenance support and training activities. Revenue from this segment is included in services revenue on the Consolidated Statement of Operations. Ciena’s long-lived assets, including equipment, building, furniture and fixtures, finite-lived intangible assets, and maintenance spares, are not reviewed by the chief operating decision maker for purposes of evaluating performance and allocating resources. As of October 31, 2018 , equipment, building, furniture and fixtures totaling $292.1 million primarily supports asset groups within Ciena’s Networking Platforms and Software and Software-Related Services segments and Ciena’s unallocated selling and general and administrative activities. As of October 31, 2018 , $29.7 million of Ciena’s intangible assets were assigned to asset groups within Ciena’s Networking Platforms segment and $118.5 million of Ciena’s intangible assets were assigned to asset groups within Ciena’s Software and Software-Related Services segment. As of October 31, 2018 , all of the maintenance spares totaling $45.7 million were assigned to asset groups within Ciena’s Global Services segment. Segment Revenue The table below (in thousands, except percentage data) sets forth Ciena’s segment revenue for the respective periods indicated: Year Ended October 31, 2018 2017 2016 Revenue: Networking Platforms Converged Packet Optical $ 2,194,519 $ 1,939,621 $ 1,815,921 Packet Networking 283,499 313,089 252,862 Total Networking Platforms 2,478,018 2,252,710 2,068,783 Software and Software-Related Services Platform Software and Services 173,949 145,009 117,251 Blue Planet Automation Software and Services 26,764 16,110 7,818 Total Software and Software-Related Services 200,713 161,119 125,069 Global Services Maintenance Support and Training 245,161 227,400 228,982 Installation and Deployment 128,829 117,524 130,916 Consulting and Network Design 41,565 42,934 46,823 Total Global Services 415,555 387,858 406,721 Total revenue $ 3,094,286 $ 2,801,687 $ 2,600,573 Segment Profit Segment profit 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; amortization of intangible assets; acquisition and integration costs; significant asset impairments and restructuring costs, interest and other income (loss), net; interest expense; loss on extinguishment of debt; and provision (benefit) for income taxes. The table below (in thousands) sets forth Ciena’s segment profit and the reconciliation to consolidated net income during the respective periods indicated: Year Ended October 31, 2018 2017 2016 Segment profit: Networking Platforms $ 581,113 $ 578,039 $ 544,744 Software and Software-Related Services 69,808 32,536 7,123 Global Services 172,205 159,882 157,915 Total segment profit 823,126 770,457 709,782 Less: non-performance operating expenses Selling and marketing 394,060 356,169 349,731 General and administrative 160,133 142,604 132,828 Amortization of intangible assets 15,737 33,029 61,508 Acquisition and integration costs 5,111 — 4,613 Significant asset impairments and restructuring costs 18,139 23,933 4,933 Add: other non-performance financial items Interest and other income (loss), net (12,029 ) 913 (12,569 ) Interest expense (55,249 ) (55,852 ) (56,656 ) Loss on extinguishment and modification of debt (13,887 ) (3,657 ) (226 ) Less: Provision (benefit) for income taxes 493,471 (1,105,827 ) 14,134 Total net income (loss) $ (344,690 ) $ 1,261,953 $ 72,584 Entity Wide Reporting Ciena’s operating segments each engage in business across four geographic regions: North America; Europe, Middle East and Africa (“EMEA”); Asia-Pacific (“APAC”); and Caribbean and Latin America (“CALA”). North America includes only activities in the United States and Canada. The following table reflects Ciena’s geographic distribution of revenue principally based 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): Year Ended October 31, 2018 2017 2016 North America $ 1,886,450 $ 1,736,047 $ 1,689,263 EMEA 464,876 404,099 393,705 CALA 140,177 164,308 195,085 APAC 602,783 497,233 322,520 Total $ 3,094,286 $ 2,801,687 $ 2,600,573 North America includes $1.77 billion , $1.63 billion and $1.58 billion of United States revenue for fiscal years ended October 31, 2018 , 2017 and 2016 , respectively. No other country accounted for at least 10% of total revenue for the periods presented above. The following table reflects Ciena’s geographic distribution of equipment, building, furniture and fixtures, net, with any country accounting for at least 10% of total equipment, building, furniture and fixtures, net, specifically identified. Equipment, building, furniture and fixtures, net, attributable to geographic regions outside of the United States and Canada are reflected as “Other International.” For the periods below, Ciena’s geographic distribution of equipment, building, furniture and fixtures, net, was as follows (in thousands): October 31, 2018 2017 Canada $ 198,028 $ 203,491 United States 75,479 90,482 Other International 18,560 14,492 Total $ 292,067 $ 308,465 While we have benefited from the diversification of our business and customer base, our ten largest customers contributed 56.5% of fiscal 2018 revenue, 55.6% of fiscal 2017 revenue and 51.1% of fiscal 2016 revenue. For the periods below, customers accounting for at least 10% of Ciena’s revenue were as follows (in thousands): October 31, 2018 2017 2016 AT&T $ 374,576 $ 448,943 $ 479,077 Verizon 318,013 288,048 n/a Total $ 692,589 $ 736,991 $ 479,077 ________________________________ n/a Denotes revenue representing less than 10% of total revenue for the period Both customers purchased products and services from each of Ciena’s operating segments. |
Other Employee Benefit Plans
Other Employee Benefit Plans | 12 Months Ended |
Oct. 31, 2018 | |
Retirement Benefits [Abstract] | |
OTHER EMPLOYEE BENEFIT PLANS | OTHER EMPLOYEE BENEFIT PLANS Ciena has a Defined Contribution Pension Plan that covers a majority of its Canada-based employees. The plan covers all Canada-based employees who are not part of an excluded group. Total contributions (employee and employer) cannot exceed the lesser of 18% of participant earnings and an annual dollar limit (CAD $26,230 (approximately $34,364 ) for 2018 ). This plan includes a required employer contribution of 1% for all participants and a 50% matching of participant contributions up to a total annual maximum of CAD $3,000 (approximately $3,930 ) per employee. During fiscal 2018 , 2017 and 2016 , Ciena made matching contributions of approximately CAD $5.1 million (approximately $6.7 million ), CAD $4.7 million (approximately $6.2 million ) and CAD $4.5 million (approximately $5.9 million ), respectively. Ciena has a 401(k) defined contribution profit sharing plan. Participants may contribute up to 60% of pre-tax compensation, subject to certain limitations. The plan includes an employer matching contribution equal to 50% of the first 6% an employee contributes each pay period. Ciena may also make discretionary annual profit contributions up to the IRS regulated limit. Ciena has made no profit sharing contributions to date. During fiscal 2018 , 2017 and 2016 , Ciena made matching contributions of approximately $5.8 million , $5.7 million and $5.4 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Canadian Grant During the second quarter of fiscal 2018, Ciena entered into agreements related to the Evolution of Networking Services through a Corridor in Quebec and Ontario for Research and Innovation (“ENCQOR”) project with the Canadian federal government, the government of the province of Ontario and the government of the province of Quebec to develop a 5G technology corridor between Quebec and Ontario to promote research and development, small business enterprises and entrepreneurs in Canada. Under these agreements, Ciena can receive up to an aggregate CAD$ 57.6 million (approximately $45.0 million ) in reimbursement from the three Canadian government entities for eligible costs over a period commencing on February 20, 2017 and ending on March 31, 2022. Ciena anticipates receiving recurring disbursements over this period. Amounts received under the agreements are subject to recoupment in the event that Ciena fails to achieve certain minimum investment, employment and project milestones. During fiscal 2018 , Ciena recorded a CAD$ 16.6 million (approximately $ 12.9 million ) benefit as a reduction in research and development expense, related to eligible costs that it incurred from the commencement date of February 20, 2017 to October 31, 2018 , because it believes it has complied with the conditions of the agreements entitling it to this amount. In future periods, through the term of these agreements, Ciena expects to record a quarterly benefit to operating expense of approximately CAD$ 2.95 million (approximately $2.3 million ) related to these grants. As of October 31, 2018 , amounts receivable from this grant were CAD$ 7.5 million (approximately $5.7 million ). Foreign 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 liabilities will have a material effect on its results of operations, financial position or cash flows. Litigation As a result of the acquisition of Cyan in August 2015, Ciena became a defendant in a securities class action lawsuit. On April 1, 2014, the first of two purported stockholder class action lawsuit was filed in the Superior Court of California, County of San Francisco, against Cyan, the members of Cyan’s board of directors, Cyan’s former Chief Financial Officer, and the underwriters of Cyan’s initial public offering. The cases were consolidated as Beaver County Employees Retirement Fund, et al. v. Cyan, Inc. et al., Case No. CGC-14-538355. The consolidated complaint alleges violations of federal securities laws on behalf of a purported class consisting of purchasers of Cyan’s common stock pursuant or traceable to the registration statement and prospectus for Cyan’s initial public offering in April 2013, and seeks unspecified compensatory damages and other relief. On May 19, 2015, the proposed class was certified. During the fourth quarter of fiscal 2018, the parties agreed to the terms of a settlement of the action, which settlement is subject to notice to class members and approval by the court. The terms of the proposed settlement, which include a release and dismissal of all claims against all defendants without any liability or wrongdoing attributed to them, are not material to the Company’s financial results. There is no assurance that the court will ultimately approve the settlement. Internal Investigation During fiscal 2017, one of Ciena’s third-party vendors raised allegations about certain questionable payments to one or more individuals employed by a customer in a country in the ASEAN region. Ciena promptly initiated an internal investigation into the matter, with the assistance of outside counsel, which investigation corroborated direct and indirect payments to one such individual and sought to determine whether the payments may have violated applicable laws and regulations, including the U.S. Foreign Corrupt Practices Act (“FCPA”). In September 2017, Ciena voluntarily contacted the SEC and the U.S. Department of Justice (“DOJ”) to advise them of the relevant events and the findings of Ciena’s internal investigation. On December 10, 2018, the DOJ advised that it has declined to prosecute this matter and that its investigation into the matter is now closed. Ciena continues to cooperate fully with the SEC in its investigation into this matter. Ciena’s operations in the relevant country have constituted less than 1.5% of consolidated revenues as reported by Ciena in each fiscal year from 2012 through 2017. Ciena does not currently anticipate that this matter will have a material adverse effect on its business, financial condition or results of operations. However, as discussions with the SEC are ongoing, the ultimate outcome of this matter cannot be predicted at this time. As of the filing of this Report, no provision with respect to this matter has been made in Ciena’s consolidated financial statements. Any determination that Ciena’s operations or activities are not in compliance with the FCPA or other applicable laws or regulations could result in the imposition of fines, civil and criminal penalties, and equitable remedies, including disgorgement or injunctive relief. In addition to the matters described in “Litigation” and “Internal Investigation” above, 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. Lease Commitments Ciena has certain minimum obligations under non-cancelable leases expiring on various dates through 2032 for equipment and facilities. The following table summarizes our future annual minimum lease commitments under non-cancelable leases that are not recorded on the balance sheet as of October 31, 2018 (in thousands): 2019 2020 2021 2022 2023 Thereafter Total Operating leases $ 28,912 $ 24,348 $ 21,320 $ 15,839 $ 13,142 $ 47,047 $ 150,608 Rental expense for fiscal 2018 , fiscal 2017 and fiscal 2016 was approximately $24.1 million , $30.9 million and $26.6 million , respectively. In addition, Ciena paid approximately $1.9 million , $2.7 million and $0.8 million during fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively, related to rent costs for restructured facilities and unfavorable lease commitments, which were offset against Ciena’s restructuring liabilities and unfavorable lease obligations. The amount for operating lease commitments above does not include variable expenses relating to insurance, taxes, maintenance and other costs required by the applicable operating lease. These costs are not expected to have a material impact on Ciena’s financial condition, results of operations or cash flows. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Oct. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Stock Repurchase Program On December 13, 2018, Ciena announced that its Board of Directors authorized a program to repurchase up to $500 million of its common stock. 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. This program terminates and replaces in its entire the previous stock repurchase program authorized in fiscal 2018. From the end of the fiscal year ending October 31, 2018 through December 17, 2018 , Ciena did not repurchase shares of its common stock under this prior stock repurchase program. Settlement of Conversions of 3.75% Convertible Senior Notes due October 15, 2018 (“New Notes”) During the fourth quarter of fiscal 2018 Ciena elected to settle the conversion of the New Notes prior to maturity in a combination of cash and shares, with the cash portion not to exceed an aggregate amount of approximately $400 million . Per the settlement provisions of the indenture governing conversion of the New Notes, an amount of $288.7 million (representing the aggregate principal amount) was paid in cash on October 15, 2018. During the relevant settlement period, Ciena’s shares traded at a volume weighted average price in excess of the $20.17 per share conversion price. As such, Ciena paid $111.3 million in excess of the aggregate principal amount in cash, and $52.9 million settled in shares, or 1.6 million shares. These amounts were recorded as debt conversion liability at fiscal year-end October 31, 2018 and were settled during the first quarter of fiscal 2019. |
Ciena Corporation and Signifi_2
Ciena Corporation and Significant Accounting Policies and Estimates (Policies) | 12 Months Ended |
Oct. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The accompanying consolidated financial statements include the accounts of Ciena and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Year | Ciena has a 52 or 53 week fiscal year, which ends on the Saturday nearest to the last day of October in each year ( November 3, 2018 , October 28, 2017 and October 29, 2016 for the periods reported). Fiscal 2018 consisted of a 53-week fiscal year. Fiscal 2017 and fiscal 2016 each consisted of a 52-week fiscal year. For purposes of financial statement presentation, each fiscal year is described as having ended on October 31. |
Business Combinations | Ciena records acquisitions using the purchase method of accounting. All of the assets acquired, liabilities assumed, contractual contingencies and contingent consideration are recognized at their fair value as of the acquisition date. The excess of the purchase price over the estimated fair values of the net tangible and net intangible assets acquired is recorded as goodwill. The application of the purchase method of accounting for business combinations requires management to make significant estimates and assumptions in the determination of the fair value of assets acquired and liabilities assumed, in order to properly allocate purchase price consideration between assets that are depreciated and amortized from goodwill. These assumptions and estimates include a market participant’s use of the asset and the appropriate discount rates for a market participant. Ciena’s estimates are based on historical experience, information obtained from the management of the acquired companies and, when appropriate, include assistance from independent third-party appraisal firms. Significant assumptions and estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. In addition, unanticipated events and circumstances may occur which may affect the accuracy or validity of such estimates. |
Use of Estimates | The preparation of the financial statements and related disclosures in conformity with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used for selling prices for multiple element arrangements, shared-based compensation, bad debts, valuation of inventories and investments, recoverability of intangible assets, other long-lived assets and goodwill, income taxes, warranty obligations, restructuring liabilities, derivatives, contingencies and litigation. Ciena bases its estimates on historical experience and assumptions that it believes are reasonable. Actual results may differ materially from management’s estimates. |
Cash and Cash Equivalents | Ciena considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Any restricted cash collateralizing letters of credit is included in other current assets and other long-term assets depending upon the duration of the restriction. |
Investments | Ciena’s investments are classified as available-for-sale and are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income (loss). Ciena recognizes losses in the income statement when it determines that declines in the fair value of its investments below their cost basis are other-than-temporary. In determining whether a decline in fair value is other-than-temporary, Ciena considers various factors, including market price (when available), investment ratings, the financial condition and near-term prospects of the investee, the length of time and the extent to which the fair value has been less than Ciena’s cost basis, and Ciena’s intent and ability to hold the investment until maturity or for a period of time sufficient to allow for any anticipated recovery in market value. Ciena considers all marketable debt securities that it expects to convert to cash within one year or less to be short-term investments, with all others considered to be long-term investments. Ciena has minority equity investments in privately held technology companies that are classified in other long-term assets. These investments are carried at cost because Ciena owns less than 20% of the voting equity and does not have the ability to exercise significant influence over the company. Ciena monitors these investments for impairment and makes appropriate reductions to the carrying value when necessary. As of October 31, 2018 , the combined carrying value of these investments was $8.1 million . Ciena has not estimated the fair value of these cost method investments because determining the fair value is not practicable. Ciena has not evaluated these investments for impairment as there have not been any events or changes in circumstances that Ciena believes would have had a significant adverse effect on the fair value of these investments. |
Inventories | Inventories are stated at the lower of cost or market, with cost computed using standard cost, which approximates actual cost, on a first-in, first-out basis. Ciena records a provision for excess and obsolete inventory when an impairment has been identified. Ciena writes down its inventory for estimated obsolescence or unmarketable inventory by an amount equal to the difference between the cost of inventory and the estimated net realizable value based on assumptions about future demand and market conditions. |
Segment Reporting | Ciena’s chief operating decision maker, its chief executive officer, evaluates the company’s performance and allocates resources based on multiple factors, including measures of segment profit (loss). Operating segments are defined as components of an enterprise that engage in business activities that may earn revenue and incur expense, for which discrete financial information is available, and for which such information is evaluated regularly by the chief operating decision maker for purposes of allocating resources and assessing performance. Ciena has the following operating segments for reporting purposes: (i) Networking Platforms, (ii) Software and Software-Related Services, and (iii) Global Services. |
Goodwill | Goodwill is the excess of the purchase price over the fair values assigned to the net assets acquired in a business combination. Ciena tests goodwill for impairment on an annual basis, which it has determined to be the last business day of fiscal September each year. Ciena also tests goodwill for impairment between annual tests if an event occurs or circumstances change that would, more likely than not, reduce the fair value of the reporting unit below its carrying value. The first step in the process of assessing goodwill impairment is to compare the fair value of the reporting unit with the unit’s carrying amount, including goodwill. If this test indicates that the fair value is less than the carrying value, then step two requires goodwill impairments to be measured on the basis of the fair value of the reporting unit relative to the reporting unit’s carrying amount. A non-cash goodwill impairment charge would have the effect of decreasing earnings or increasing losses in such period. If Ciena is required to take a substantial impairment charge, its operating results would be materially adversely affected in such period. |
Long-lived Assets | Long-lived assets include: equipment, building, furniture and fixtures; intangible assets; and maintenance spares. Ciena tests long-lived assets for impairment whenever triggering events or changes in circumstances indicate that the asset’s carrying amount is not recoverable from its undiscounted cash flows. An impairment loss is measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value. Ciena’s long-lived assets are assigned to asset groups that represent the lowest level for which cash flows can be identified. |
Equipment, Building, Furniture and Fixtures and Internal Use Software | Equipment, building, furniture and fixtures are recorded at cost. Depreciation and amortization are computed using the straight-line method over useful lives of two to five years for equipment and furniture and fixtures and the shorter of useful life or lease term for leasehold improvements. Qualifying internal use software and website development costs incurred during the application development stage, which consist primarily of outside services and purchased software license costs, are capitalized and amortized straight-line over the estimated useful lives of two to five years. |
Intangible Assets | Ciena has recorded finite-lived intangible assets as a result of several acquisitions. Finite-lived intangible assets are carried at cost less accumulated amortization. Amortization is computed using the straight-line method over the expected economic lives of the respective assets, up to seven years, which approximates the use of intangible assets. Ciena has recorded in-process research and development projects acquired as the result of an acquisition as indefinite-lived intangible assets. Upon completion of the projects, the assets will be amortized on a straight-line basis over the expected economic life of the asset, which will be determined on that date. Should the project be determined to be abandoned, and if the asset developed has no alternative use, the full value of the asset will be charged to expense. |
Maintenance Spares | Maintenance spares are recorded at cost. Spares usage cost is expensed ratably over four years. |
Concentrations | Substantially all of Ciena’s cash and cash equivalents are maintained at a small number of major U.S. financial institutions. The majority of Ciena’s cash equivalents consist of money market funds. Deposits held with banks may exceed the amount of insurance provided on such deposits. Because these deposits generally may be redeemed upon demand, management believes that they bear minimal risk. Historically, a significant percentage of Ciena’s revenue has been concentrated among sales to a small number of large communications service providers. Consolidation among Ciena’s customers has increased this concentration. Consequently, Ciena’s accounts receivable are concentrated among these customers. See Note 22 below. Additionally, Ciena’s access to certain materials or components is dependent upon sole or limited source suppliers. The inability of any of these suppliers to fulfill Ciena’s supply requirements, or significant changes in supply cost, could affect future results. Ciena relies on a small number of contract manufacturers to perform the majority of the manufacturing for its products. If Ciena cannot effectively manage these manufacturers or forecast future demand, or if these manufacturers fail to deliver products or components on time, Ciena’s business and results of operations may suffer. |
Revenue Recognition | Ciena recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the price to the buyer is fixed or determinable; and collectibility is reasonably assured. Customer purchase agreements and customer purchase orders are generally used to determine the existence of an arrangement. Shipping documents and evidence of customer acceptance, when applicable, are used to verify delivery or services rendered. Ciena assesses whether the price is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. Ciena assesses collectibility based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history. Revenue for maintenance services is deferred and recognized ratably over the period during which the services are performed. Shipping and handling fees billed to customers are included in revenue, with the associated expenses included in product cost of goods sold. Software revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectibility is probable. In instances where final acceptance criteria of the software are specified by the customer, revenue is deferred until there are no uncertainties regarding customer acceptance. Ciena limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or refund privileges. Revenue for multiple element arrangements is allocated to each unit of accounting based on the relative selling price of each delivered element, with revenue recognized for each delivered element when the revenue recognition criteria are met. Ciena determines the selling price for each deliverable based upon the selling price hierarchy for multiple-deliverable arrangements. Under this hierarchy, Ciena uses vendor-specific objective evidence ("VSOE") of selling price, if it exists, or third-party evidence ("TPE") of selling price if VSOE does not exist. If neither VSOE nor TPE of selling price exists for a deliverable, Ciena uses its best estimate of selling price ("BESP") for that deliverable. For multiple element software arrangements where VSOE of undelivered maintenance does not exist, revenue for the entire arrangement is recognized over the maintenance term. VSOE, when determinable, is established based on Ciena’s pricing and discounting practices for the specific product or service when sold separately. In determining whether VSOE exists, Ciena requires that a substantial majority of the selling prices for a product or service falls within a reasonably narrow pricing range. Ciena has been unable to establish TPE of selling price because its go-to-market strategy differs from that of others in its markets, and the extent of customization and differentiated features and functions varies among comparable products or services from its peers. Ciena determines BESP based upon management-approved pricing guidelines, which consider multiple factors including the type of product or service, gross margin objectives, competitive and market conditions, and the go-to-market strategy, all of which can affect pricing practices. |
Warranty Accruals | Ciena provides for the estimated costs to fulfill customer warranty obligations upon recognition of the related revenue. Estimated warranty costs include estimates for material costs, technical support labor costs and associated overhead. Warranty is included in cost of goods sold and is determined based upon actual warranty cost experience, estimates of component failure rates and management’s industry experience. Ciena’s sales contracts do not permit the right of return of the product by the customer after the product has been accepted. |
Accounts Receivable, Net | Ciena’s allowance for doubtful accounts is based on its assessment, on a specific identification basis, of the collectibility of customer accounts. Ciena performs ongoing credit evaluations of its customers and generally has not required collateral or other forms of security from them. In determining the appropriate balance for Ciena’s allowance for doubtful accounts, management considers each individual customer account receivable in order to determine collectibility. In doing so, management considers creditworthiness, payment history, account activity and communication with the customer. If a customer’s financial condition changes, Ciena may be required to record an allowance for doubtful accounts for that customer, which could negatively affect its results of operations. |
Research and Development | Ciena charges all research and development costs to expense as incurred. Types of expense incurred in research and development include employee compensation, prototype equipment, consulting and third-party services, depreciation, facility costs and information technology. |
Government Grants | Ciena accounts for proceeds from government grants as a reduction of 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 Consolidated Statement of Operations to which the grant activity relates. |
Advertising Costs | Ciena expenses all advertising costs as incurred. |
Legal Costs | Ciena expenses legal costs associated with litigation as incurred. |
Share-Based Compensation Expense | Ciena measures and recognizes compensation expense for share-based awards based on estimated fair values on the date of grant. Ciena estimates the fair value of each option-based award on the date of grant using the Black-Scholes option-pricing model. This model is affected by Ciena’s stock price as well as estimates regarding a number of variables, including expected stock price volatility over the expected term of the award and projected employee stock option exercise behaviors. Ciena estimates the fair value of each restricted stock unit award based on the fair value of the underlying common stock on the date of grant. In each case, Ciena only recognizes expense in its Consolidated Statement of Operations for those stock options or restricted stock units that are expected ultimately to vest. Ciena recognizes the estimated fair value of performance-based awards as share-based expense over the performance period, using graded vesting, which considers each performance period or tranche separately, based upon Ciena’s determination of whether it is probable that the performance targets will be achieved. At the end of each reporting period, Ciena reassesses the probability of achieving the performance targets and the performance period required to meet those targets, and the expense is adjusted accordingly. Ciena uses the straight-line method to record expense for share-based awards with only service-based vesting. |
Income Taxes | Ciena accounts for income taxes using an asset and liability approach. This approach recognizes deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases, and for operating loss and tax credit carryforwards. In estimating future tax consequences, Ciena considers all expected future events other than the enactment of changes in tax laws or rates. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In the ordinary course of business, transactions occur for which the ultimate outcome may be uncertain. In addition, tax authorities periodically audit Ciena’s income tax returns. These audits examine significant tax filing positions, including the timing and amounts of deductions and the allocation of income tax expenses among tax jurisdictions. Ciena is currently under audit in India for 2012 and 2014 through 2017, and in Canada for 2011 through 2015. Management does not expect the outcome of these audits to have a material adverse effect on Ciena’s consolidated financial position, results of operations or cash flows. Ciena’s major tax jurisdictions and the earliest open tax years are as follows: United States (2015), United Kingdom (2015), Canada (2011), India (2012) and Brazil (2013). Limited adjustments can be made to Federal U.S. tax returns in earlier years in order to reduce net operating loss carryforwards. Ciena classifies interest and penalties related to uncertain tax positions as a component of income tax expense. Ciena has not provided for U.S. deferred income taxes on the cumulative unremitted earnings of its non-U.S. affiliates, as it plans to indefinitely reinvest these foreign earnings outside the U.S. As of October 31, 2018, the cumulative amount of such temporary differences for which a deferred tax liability has not been recognized totaled approximately $336 million . If these earnings were distributed to the U.S. in the form of dividends, or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, Ciena would be subject to additional U.S. income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. Ciena is required to record excess tax benefits or tax deficiencies related to stock-based compensation as income tax benefit or expense when share-based awards vest or are settled. The Tax Act includes provisions that do not affect Ciena in fiscal 2018, including a provision designed to tax global intangible low-taxed income (“GILTI”). Due to the complexity of the GILTI tax rules, this provision and related tax accounting will continue to be evaluated. An accounting policy choice is allowed to either treat taxes due on future U.S. inclusions related to GILTI in taxable income as a current-period expense when incurred (the “period cost method”) or factor such amounts into the measurement of deferred taxes (the “deferred method”). The calculation of the deferred balance with respect to the new GILTI tax provisions will depend, in part, on analyzing global income to determine whether future U.S. inclusions in taxable income are expected related to GILTI and, if so, what the impact is expected to be. Ciena is electing to use the period cost method for future GILTI inclusions. Additionally, Ciena is electing to use the incremental cash tax savings approach when determining whether a valuation allowance needs to be recorded against the U.S. net operating loss (“NOL”) due to the GILTI inclusions. The Tax Act also introduced an alternative tax known as the base erosion and anti-abuse tax (BEAT). An accounting policy choice can be made on whether or not to consider the impact of BEAT on its valuation allowance. Ciena continues to evaluate very recent regulatory guidance in order to assess its impact. Accordingly, an accounting policy choice has not yet been made. |
Loss Contingencies | Ciena is subject to the possibility of various losses arising in the ordinary course of business. These may relate to disputes, litigation and other legal actions. Ciena considers the likelihood of loss or the incurrence of a liability, as well as Ciena’s ability to estimate the amount of loss reasonably, in determining loss contingencies. An estimated loss contingency is accrued when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Ciena regularly evaluates current information available to it in order to determine whether any accruals should be adjusted and whether new accruals are required. |
Fair Value of Financial Instruments | The carrying value of Ciena’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair market value due to the relatively short period of time to maturity. For information related to the fair value of Ciena’s convertible notes and term loans, see Note 16 below. Fair value for the measurement of financial assets and liabilities is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Ciena utilizes a valuation hierarchy for disclosure of the inputs for fair value measurement. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 inputs are quoted prices for identical or similar assets or liabilities in less active markets or model-derived valuations in which significant inputs are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and • Level 3 inputs are unobservable inputs based on Ciena’s assumptions used to measure assets and liabilities at fair value. By distinguishing between inputs that are observable in the marketplace, and therefore more objective, and those that are unobservable, and therefore more subjective, the hierarchy is designed to indicate the relative reliability of the fair value measurements. A financial asset’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. |
Restructuring | From time to time, Ciena takes actions to better align its workforce, facilities and operating costs with perceived market opportunities, business strategies and changes in market and business conditions. Ciena recognizes a liability for the cost associated with an exit or disposal activity in the period in which the liability is incurred, except for one-time employee termination benefits related to a service period, typically of more than 60 days , which are accrued over the service period. |
Foreign Currency | Certain of Ciena’s foreign branch offices and subsidiaries use the U.S. Dollar as their functional currency because Ciena Corporation, as the U.S. parent entity, exclusively funds the operations of these branch offices and subsidiaries. For those subsidiaries using the local currency as their functional currency, assets and liabilities are translated at exchange rates in effect at the balance sheet date, and the statement of operations is translated at a monthly average rate. Resulting translation adjustments are recorded directly to a separate component of stockholders’ equity. Where the monetary assets and liabilities are transacted in a currency other than the entity’s functional currency, re-measurement adjustments are recorded in interest and other income (loss), net on the Consolidated Statement of Operations. |
Derivatives | Ciena’s 3.75% Convertible Senior Notes due October 15, 2018 (the "New Notes") included a conversion feature that is accounted for as a separate embedded derivative. The embedded conversion feature is recorded at fair value on a recurring basis using the underlying stock price, time to maturity and expected volatility of Ciena’s stock and conversion price. These changes are included in interest and other income (loss), net on the Consolidated Statement of Operations. From time to time, Ciena uses foreign currency forward contracts to reduce variability in certain forecasted non-U.S. Dollar denominated cash flows. Generally, these derivatives have maturities of 24 months or less. Ciena also has interest rate swap arrangements to reduce variability in certain forecasted interest expense associated with its term loan. All of these derivatives are designated as cash flow hedges. At the inception of the cash flow hedge, and on an ongoing basis, Ciena assesses whether the derivative has been effective in offsetting changes in cash flows attributable to the hedged risk during the hedging period. The derivative’s net gain or loss is initially reported as a component of accumulated other comprehensive income (loss), and, upon occurrence of the forecasted transaction, is subsequently reclassified to the line item in the Consolidated Statement of Operations to which the hedged transaction relates. Ciena records derivative instruments in the Consolidated Statements of Cash Flows within operating, investing, or financing activities consistent with the cash flows of the hedged items. From time to time, Ciena uses foreign currency forward contracts to hedge certain balance sheet foreign exchange exposures. These forward contracts are not designated as hedges for accounting purposes, and any net gain or loss associated with these derivatives is reported in interest and other income (loss), net on the Consolidated Statement of Operations. |
Computation of Net Income (Loss) per Share | Ciena calculates basic earnings per share (“EPS”) by dividing earnings attributable to common stock by the weighted average number of common shares outstanding for the period. Diluted EPS includes other potential dilutive shares that would be outstanding if securities or other contracts to issue common stock were exercised or converted into common stock. Ciena uses a dual presentation of basic and diluted EPS on the face of its income statement. A reconciliation of the numerator and denominator used for the basic and diluted EPS computations is set forth in Note 18 below. |
Software Development Costs | Ciena develops software for sale to its customers. GAAP requires the capitalization of certain software development costs that are incurred subsequent to the date technological feasibility is established and prior to the date the product is generally available for sale. The capitalized cost is then amortized using the straight-line method over the estimated life of the product. Ciena defines technological feasibility as being attained at the time a working model is completed. To date, the period between Ciena achieving technological feasibility and the general availability of such software has been short, and software development costs qualifying for capitalization have been insignificant. Accordingly, Ciena has not capitalized any software development costs. |
Newly Issued Accounting Standards - Effective and Not Yet Effective | In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-01 (“ASU 2017-01”) , Business Combinations: Clarifying the Definition of a Business , which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisition or disposal of assets or businesses. The amendments in this update provide a screen to determine when a set of assets is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set of assets is not a business. Ciena adopted ASU 2017-01 during the first quarter of fiscal 2018. In August 2017, the FASB issued ASU No. 2017-12 (“ASU 2017-12”) , Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities , which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The amendments in this update better align an entity’s risk management activities and financial reporting for hedging relationships, through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. Ciena adopted ASU 2017-12 during the first quarter of fiscal 2018. For hedges for which Ciena has elected to exclude the spot-forward difference from assessment of effectiveness, Ciena has elected to amortize the difference on a straight-line basis. Ciena will record amortization in earnings each period with an offsetting entry to other comprehensive income, and all changes in fair value over the term of the derivative in other comprehensive income. The application of this accounting standard did not have a material impact on Ciena’s Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-09 (“ASU 2016-09”) , Improvements to Employee Share-Based Payment Accounting , which provides guidance on several aspects of accounting for share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification on the statement of cash flows. Ciena adopted ASU 2016-09 during the first quarter of fiscal 2018. In connection with the adoption of this guidance, Ciena recognized approximately $62.1 million of deferred tax assets related to previously unrecognized tax benefits. This was recorded as a cumulative-effect adjustment to accumulated deficit as of the beginning of the first quarter of fiscal 2018. Additionally, the consolidated statements of cash flows will include excess tax benefits as an operating activity, on a prospective basis as a result of the adoption. Finally, Ciena has elected to recognize forfeitures when they occur, rather than to estimate the impact of forfeitures when the award is granted. Accordingly, Ciena recognized approximately $0.8 million for this change through a cumulative effect adjustment recorded to opening accumulated deficit in the first quarter of fiscal 2018. Newly Issued Accounting Standards - Not Yet Effective In May 2014, the FASB issued Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , a new accounting standard related to revenue recognition. ASC 606 supersedes nearly all U.S. GAAP on revenue recognition and eliminated industry-specific guidance. The underlying principle of ASC 606 is to recognize revenue when a customer obtains control of promised goods or services at an amount that reflects the consideration that is expected to be received in exchange for those goods or services. It also requires increased disclosures including the nature, amount, timing, and uncertainty of revenues and cash flows related to contracts with customers. For multiple element software arrangements where vendor-specific objective evidence (“VSOE”) of undelivered maintenance does not exist, Ciena currently recognizes revenue for the entire arrangement over the maintenance term. The adoption of ASC 606 will require Ciena to determine the stand alone selling price for each of the software and software-related deliverables at contract inception, and Ciena consequently notes that certain software deliverables will be recognized at a point in time rather than over a period of time. Ciena also notes that certain installation and deployment, and consulting and network design services, will be recognized over a period of time rather than at a point in time. Ciena has considered the impact of the guidance in ASC 340-40, Other Assets and Deferred Costs; Contracts with Customers , and the interpretations of the FASB Transition Resource Group for Revenue Recognition (TRG) with respect to capitalization and amortization of incremental costs of obtaining a contract. In conjunction with this interpretation, Ciena has elected to implement the practical expedient allowing for incremental costs to be recognized as an expense when incurred if the period of the asset recognition is one year or less, and amortized over the period of performance, if the period of the asset recognition is greater than one year. Ciena elected to implement ASC 606 using the modified retrospective approach whereby the cumulative effect at adoption will be presented as an adjustment to the opening balance of accumulated deficit. The comparative information will not be restated and will continue to be reported under the accounting standards in effect for those periods. ASC 606 will be effective for Ciena beginning in the first quarter of fiscal 2019. Upon adopting ASC 606 at the beginning of fiscal 2019, the cumulative effect adjustment will reduce accumulated deficit by approximately $49.2 million . This cumulative effect adjustment is primarily driven by a reduction to deferred product revenue of approximately $30.2 million related to software arrangements and an increase to unbilled accounts receivable of approximately $29.6 million primarily related to installation and deployment and consulting and network design service arrangements, with additional amounts related to hardware sales and other adjustments. In addition to the adjustment to deferred revenue and unbilled accounts receivable, other adjustments at transition include immaterial adjustments to billed accounts receivable, deferred product costs, prepaid service costs and other current and non-current assets, and other liabilities. The adjustment to other current and non-current assets is primarily for capitalized incremental contract acquisitions costs. The cumulative effect adjustment is recorded net of tax with the direct tax effect recorded primarily as an increase in deferred tax liability. In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”) , Leases , which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and to provide additional disclosures. ASU 2016-02 is effective for Ciena beginning in the first quarter of fiscal 2020. Under current GAAP, the majority of Ciena’s leases for its properties are considered operating leases, and Ciena expects that the adoption of this ASU will require these leases to be classified as financing leases and to be recognized as assets and liabilities on Ciena’s balance sheet. Ciena is continuing to evaluate other possible impacts of the adoption of ASU 2016-02 on its Consolidated Financial Statements and disclosures. In August 2018, the FASB issued ASU No. 2018-13 ( “ASU 2018-13” ), Fair Value Measurement (Topic 820): Disclosure Framework which modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for Ciena beginning in the first quarter of fiscal year 2020, early adoption is permitted. Adoption of ASU 2018-13 will not have a material effect on Ciena’s financial position or results of operations. In August 2018, the FASB issued ASU No. 2018-15 ( “ASU 2018-15” ), Intangibles - Goodwill and Other-Internal-Use Software which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for Ciena beginning in the first quarter of fiscal year 2020, early adoption is permitted. Ciena is currently evaluating this guidance to determine the impact on its Consolidated Financial Statements and disclosures. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of purchase price for acquisition | The following table summarizes the purchase price for the acquisition (in thousands): Amount Cash $ 43,283 Contingent consideration 10,900 Total purchase price $ 54,183 |
Schedule of acquired assets and assumed liabilities | The following table summarizes the final purchase price allocation related to the acquisition based on the estimated fair value of the acquired assets and assumed liabilities (in thousands): Amount Cash and cash equivalents $ 642 Accounts receivable 1,525 Prepaid expenses and other 450 Equipment, furniture and fixtures 31 Goodwill 20,304 Customer relationships and contracts 2,200 Developed technology 21,900 Accounts payable (165 ) Accrued liabilities (657 ) Deferred revenue (5,176 ) Total purchase price $ 41,054 The following table summarizes the final purchase price allocation related to the acquisition of the HSPC assets based on the estimated fair value of the acquired assets and assumed liabilities (in thousands): Amount Inventory $ 119 Fixed assets 1,381 Developed technology 16,468 In-process technology 3,949 Goodwill 10,083 Total purchase price $ 32,000 The following table summarizes the final purchase price allocation related to the acquisition based on the estimated fair value of the acquired assets and assumed liabilities (in thousands): Amount Cash and cash equivalents $ 1,025 Accounts receivable 4,790 Prepaid expenses and other long term assets 372 Goodwill 10,453 Customer relationships and contracts 37,700 Developed technology 9,700 Deferred revenue (193 ) Other current and long term liabilities (9,664 ) Total purchase price $ 54,183 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Activity and balance of the restructuring liability accounts | The following table sets forth the restructuring activity and balance of the restructuring liability accounts for the fiscal years indicated (in thousands): Workforce reduction Consolidation of excess facilities Total Balance at October 31, 2015 $ 591 $ 688 $ 1,279 Additional liability recorded 2,844 (1) 2,089 4,933 Cash payments (2,567 ) (807 ) (3,374 ) Balance at October 31, 2016 868 1,970 2,838 Additional liability recorded 5,883 (2) 5,432 (4) 11,315 Adjustment to previous estimates — (1,048 ) (1,048 ) Cash payments (5,460 ) (4,706 ) (10,166 ) Balance at October 31, 2017 1,291 1,648 2,939 Additional liability recorded 14,853 (3) 3,890 (5) 18,743 Cash payments (14,036 ) (3,799 ) (17,835 ) Balance at October 31, 2018 $ 2,108 $ 1,739 $ 3,847 Current restructuring liabilities $ 2,108 $ 502 $ 2,610 Non-current restructuring liabilities $ — $ 1,237 $ 1,237 _________________________________ (1) During fiscal 2016, Ciena recorded a charge of $2.8 million of severance and other employee-related costs associated with a workforce reduction of approximately 75 employees. (2) During fiscal 2017, Ciena recorded a charge of $5.9 million of severance and other employee-related costs associated with a workforce reduction of approximately 100 employees. (3) During fiscal 2018, Ciena recorded a charge of $14.9 million of severance and other employee-related costs associated with a workforce reduction of approximately 240 employees. (4) Reflects unfavorable lease commitments and relocation costs incurred in connection with our research and development center facility transitions in Ottawa, Canada. (5) Reflects unfavorable lease commitments in connection with a portion of facilities located in Petaluma, California and in Gurgaon, India. |
Interest and Other Income (Lo_2
Interest and Other Income (Loss), Net (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Interest and Other Income (Loss) | The components of interest and other income (loss), net, were as follows (in thousands): Year Ended October 31, 2018 2017 2016 Interest income $ 13,703 $ 6,579 $ 4,058 Gain (loss) on non-hedge designated foreign currency forward contracts 6,791 (1,198 ) (23,355 ) Foreign currency exchange gains (losses) (19,434 ) (4,376 ) 5,870 Loss on fair value of debt conversion liability (12,070 ) — — Other (1,019 ) (92 ) 858 Interest and other income (loss), net $ (12,029 ) $ 913 $ (12,569 ) |
Short-Term and Long-Term Inve_2
Short-Term and Long-Term Investments (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term and long-term investments | As of October 31, 2018 , investments are comprised of the following (in thousands): October 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. government obligations: Included in short-term investments $ 139,365 $ — $ (347 ) $ 139,018 Included in long-term investments 59,029 — (59 ) 58,970 $ 198,394 $ — $ (406 ) $ 197,988 Commercial paper: Included in short-term investments $ 9,963 $ — $ — $ 9,963 $ 9,963 $ — $ — $ 9,963 As of October 31, 2017 , investments are comprised of the following (in thousands): October 31, 2017 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair U.S. government obligations: Included in short-term investments $ 249,498 $ — $ (305 ) $ 249,193 Included in long-term investments 49,910 — (127 ) 49,783 $ 299,408 $ — $ (432 ) $ 298,976 Commercial paper: Included in short-term investments $ 29,939 $ 1 $ — $ 29,940 $ 29,939 $ 1 $ — $ 29,940 |
Legal maturities of debt investments | The following table summarizes the legal maturities of debt investments at October 31, 2018 : October 31, 2018 Amortized Cost Estimated Fair Less than one year $ 149,328 $ 148,981 Due in 1-2 years 59,029 58,970 $ 208,357 $ 207,951 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of the fair value of assets and liabilities recorded on a recurring basis | As of the dates indicated, the following tables summarize the fair value of assets and liabilities that were recorded at fair value on a recurring basis (in thousands): October 31, 2018 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 590,684 $ — $ — $ 590,684 U.S. government obligations — 197,988 — 197,988 Commercial paper — 69,888 — 69,888 Foreign currency forward contracts — 133 — 133 Forward starting interest rate swaps — 779 — 779 Total assets measured at fair value $ 590,684 $ 268,788 $ — $ 859,472 Liabilities: Foreign currency forward contracts $ — $ 3,231 $ — $ 3,231 Debt conversion liability — 164,212 — 164,212 Contingent consideration — — 10,900 10,900 Total liabilities measured at fair value $ — $ 167,443 $ 10,900 $ 178,343 October 31, 2017 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 511,355 $ — $ — $ 511,355 U.S. government obligations — 298,976 — 298,976 Commercial paper — 89,865 — 89,865 Foreign currency forward contracts — 227 — 227 Forward starting interest rate swaps — 218 — 218 Total assets measured at fair value $ 511,355 $ 389,286 $ — $ 900,641 Liabilities: Foreign currency forward contracts $ — $ 2,129 $ — $ 2,129 Total liabilities measured at fair value $ — $ 2,129 $ — $ 2,129 |
Assets and liabilities are presented on Ciena's Condensed Consolidated Balance Sheet | As of the dates indicated, the assets and liabilities above were presented on Ciena’s Consolidated Balance Sheet as follows (in thousands): October 31, 2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 590,684 $ 59,925 $ — $ 650,609 Short-term investments — 148,981 — 148,981 Prepaid expenses and other — 133 — 133 Long-term investments — 58,970 — 58,970 Other long-term assets — 779 — 779 Total assets measured at fair value $ 590,684 $ 268,788 $ — $ 859,472 Liabilities: Accrued liabilities $ — $ 3,231 $ — $ 3,231 Debt conversion liability — 164,212 — 164,212 Other long-term obligations — — 10,900 10,900 Total liabilities measured at fair value $ — $ 167,443 $ 10,900 $ 178,343 October 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 511,355 $ 59,925 $ — $ 571,280 Short-term investments — 279,133 — 279,133 Prepaid expenses and other — 227 — 227 Long-term investments — 49,783 — 49,783 Other long-term assets — 218 — 218 Total assets measured at fair value $ 511,355 $ 389,286 $ — $ 900,641 Liabilities: Accrued liabilities $ — $ 2,129 $ — $ 2,129 Total liabilities measured at fair value $ — $ 2,129 $ — $ 2,129 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Receivables [Abstract] | |
Activity in allowance for doubtful accounts | The following table summarizes the activity in Ciena’s allowance for doubtful accounts for the fiscal years indicated (in thousands): Year ended Beginning Net Ending October 31, Balance Provisions Deductions Balance 2016 $ 2,963 $ 1,701 $ 701 $ 3,963 2017 $ 3,963 $ 18,221 $ 4,604 $ 17,580 2018 $ 17,580 $ 2,700 $ 2,902 $ 17,378 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | As of the dates indicated, inventories are comprised of the following (in thousands): October 31, 2018 2017 Raw materials $ 67,468 $ 52,898 Work-in-process 9,589 18,623 Finished goods 188,575 185,488 Deferred cost of goods sold 48,057 61,340 313,689 318,349 Provision for excess and obsolescence (50,938 ) (51,206 ) $ 262,751 $ 267,143 |
Activity in reserve for excess and obsolete inventory | The following table summarizes the activity in Ciena’s reserve for excess and obsolete inventory for the fiscal years indicated (in thousands): Year ended Beginning Ending October 31, Balance Provisions Disposals Balance 2016 $ 53,001 $ 33,713 $ 24,211 $ 62,503 2017 $ 62,503 $ 35,459 $ 46,756 $ 51,206 2018 $ 51,206 $ 30,615 $ 30,883 $ 50,938 |
Prepaid Expenses and Other (Tab
Prepaid Expenses and Other (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid expenses and other | As of the dates indicated, prepaid expenses and other are comprised of the following (in thousands): October 31, 2018 2017 Prepaid VAT and other taxes $ 82,518 $ 91,647 Product demonstration equipment, net 37,623 40,713 Prepaid expenses 32,987 26,114 Other non-trade receivables 25,716 9,655 Deferred deployment expense 19,342 26,934 Financing receivable 626 2,049 Derivative assets 133 227 $ 198,945 $ 197,339 |
Equipment, Building, Furnitur_2
Equipment, Building, Furniture and Fixtures (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Equipment, building, furniture and fixtures | As of the dates indicated, equipment, building, furniture and fixtures are comprised of the following (in thousands): October 31, 2018 2017 Equipment, furniture and fixtures $ 504,714 $ 486,451 Building subject to capital lease 71,968 76,702 Leasehold improvements 94,195 87,763 670,877 650,916 Accumulated depreciation and amortization (378,810 ) (342,451 ) $ 292,067 $ 308,465 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible assets | As of the dates indicated, intangible assets are comprised of the following (in thousands): October 31, 2018 2017 Gross Intangible Accumulated Amortization Net Intangible Gross Intangible Accumulated Amortization Net Intangible Developed technology $ 373,581 $ (285,233 ) $ 88,348 $ 341,255 $ (266,693 ) $ 74,562 In-process research and development — — — 671 — 671 Patents and licenses 3,565 (1,958 ) 1,607 7,165 (6,535 ) 630 Customer relationships, covenants not to compete, outstanding purchase orders and contracts 374,620 (316,350 ) 58,270 334,642 (309,508 ) 25,134 Total intangible assets $ 751,766 $ (603,541 ) $ 148,225 $ 683,733 $ (582,736 ) $ 100,997 |
Expected future amortization of finite-lived intangible assets | Expected future amortization of intangible assets for the fiscal years indicated is as follows (in thousands): Year Ended October 31, 2019 $ 35,375 2020 34,019 2021 30,841 2022 24,820 2023 10,011 Thereafter 13,159 $ 148,225 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Allocated by Reportable Segments | he following table presents the goodwill allocated to our operating segments as of October 31, 2018 and October 31, 2017 , as well as the changes to goodwill during fiscal 2018 . (in thousands): Balance at October 31, 2017 Acquisitions Impairments Translation Balance at October 31, 2018 Software and Software-Related Services $ 201,428 $ 30,757 $ — $ — $ 232,185 Networking Platforms 66,030 — — (247 ) 65,783 Total $ 267,458 $ 30,757 $ — $ (247 ) $ 297,968 |
Other Balance Sheet Details (Ta
Other Balance Sheet Details (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Other long-term assets | As of the dates indicated, other long-term assets are comprised of the following (in thousands): October 31, 2018 2017 Maintenance spares inventory, net $ 45,679 $ 46,872 Minority equity investments 8,056 6,000 Forward starting interest rate swaps 779 218 Deferred debt issuance costs, net (1) 720 1,041 Financing receivable — 1,052 Other 16,418 8,410 $ 71,652 $ 63,593 (1) Deferred debt issuance costs relate to Ciena’s ABL Credit Facility (described in Note 17 below). The amortization of deferred debt issuance costs for Ciena’s ABL Credit Facility is included in interest expense, and was $0.3 million , $0.3 million and $0.4 million for fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively. |
Accrued liabilities | As of the dates indicated, accrued liabilities and other short-term obligations are comprised of the following (in thousands): October 31, 2018 2017 Compensation, payroll related tax and benefits $ 140,277 $ 113,272 Warranty 44,740 42,456 Vacation 42,507 39,778 Capital lease obligations 3,547 3,772 Interest payable 1,072 3,612 Other 107,932 120,044 $ 340,075 $ 322,934 |
Accrued warranty | The following table summarizes the activity in Ciena’s accrued warranty for the fiscal years indicated (in thousands): Year ended Beginning Current Year Ending October 31, Balance Provisions (1) Settlements Balance 2016 $ 56,654 $ 15,483 $ 19,813 $ 52,324 2017 $ 52,324 $ 7,965 $ 17,833 $ 42,456 2018 $ 42,456 $ 20,992 $ 18,708 $ 44,740 (1) As a result of actual failure rates lower than expected, Ciena adjusted its fiscal 2017 provisions for warranty. These adjustments for previous fiscal year provisions had the effect of reducing warranty provisions by $9.7 million and $5.3 million for fiscal 2017 and 2016 respectively. During fiscal 2018 , Ciena determined that failure rates for prior estimates remained unchanged, and accordingly did not make any adjustments for previous fiscal year provisions not yet settled. As a result, Ciena’s warranty provision for fiscal 2018 increased as compared to these prior years. |
Deferred revenue | As of the dates indicated, deferred revenue is comprised of the following (in thousands): October 31, 2018 2017 Products $ 42,474 $ 49,135 Services 126,983 135,872 169,457 185,007 Less current portion (111,134 ) (102,418 ) Long-term deferred revenue $ 58,323 $ 82,589 |
Other liabilities | As of the dates indicated, other long-term obligations are comprised of the following (in thousands): October 31, 2018 2017 Capital lease obligations $ 68,245 $ 73,407 Income tax liability 15,894 15,445 Deferred tenant allowance 7,244 8,162 Straight-line rent 6,750 7,267 Contingent consideration 10,900 — Other 10,380 7,068 $ 119,413 $ 111,349 |
Future minimum lease payments under capital leases | The following is a schedule by fiscal years of future minimum lease payments under capital leases and the present value of minimum lease payments as of October 31, 2018 (in thousands): Year Ending October 31, Amount 2019 $ 8,654 2020 7,674 2021 7,569 2022 7,883 2023 8,090 Thereafter 75,413 Net minimum capital lease payments 115,283 Less: Amount representing interest (43,491 ) Present value of minimum lease payments 71,792 Less: Current portion of present value of minimum lease payments (3,547 ) Long-term portion of present value of minimum lease payments $ 68,245 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | The following table summarizes the changes in accumulated balances of other comprehensive income (“AOCI”): Unrealized Gain/(Loss) on Available-for-Sale Securities Unrealized Gain/(Loss) on Foreign Currency Forward Contracts Unrealized Gain/(Loss) on Forward Starting Interest Rate Swaps Cumulative Foreign Currency Translation Adjustment Total Balance at October 31, 2015 $ (78 ) $ (268 ) $ (5,522 ) $ (16,258 ) $ (22,126 ) Other comprehensive gain (loss) before reclassifications 217 (1,453 ) (4,101 ) (1,152 ) (6,489 ) Amounts reclassified from AOCI — 630 3,656 — 4,286 Balance at October 31, 2016 139 (1,091 ) (5,967 ) (17,410 ) (24,329 ) Other comprehensive gain (loss) before reclassifications (590 ) 1,290 3,669 8,012 12,381 Amounts reclassified from AOCI — (1,585 ) 2,516 — 931 Balance at October 31, 2017 (451 ) (1,386 ) 218 (9,398 ) (11,017 ) Other comprehensive gain (loss) before reclassifications 26 (3,242 ) 6,011 686 3,481 Amounts reclassified from AOCI — 1,568 188 — 1,756 Balance at October 31, 2018 $ (425 ) $ (3,060 ) $ 6,417 $ (8,712 ) $ (5,780 ) |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of carrying values and estimated fair values of debt instruments | The net carrying values of Ciena’s convertible notes payable was comprised of the following for the fiscal periods indicated (in thousands): October 31, 2018 October 31, 2017 3.75% Convertible Senior Notes due October 15, 2018 (Original) $ — $ 61,071 3.75% Convertible Senior Notes due October 15, 2018 (New) — 287,221 4.0% Convertible Senior Notes due December 15, 2020 — 194,717 $ — $ 543,009 The net carrying values of Ciena’s term loans were comprised of the following for the fiscal periods indicated (in thousands): October 31, 2018 October 31, 2017 Term Loan Payable due January 30, 2022 $ — $ 392,972 Term Loan Payable due September 28, 2025 693,450 — $ 693,450 $ 392,972 The following table sets forth the carrying value and the estimated fair value of Ciena’s 2025 Term Loan (in thousands): October 31, 2018 Carrying Value (1) Fair Value (2) Term Loan Payable due September 28, 2025 $ 693,450 $ 702,625 (1) Includes unamortized debt discount and debt issuance costs. (2) Ciena’s term loan is categorized as Level 2 in the fair value hierarchy. Ciena estimated the fair value of its 2025 Term Loan using a market approach based upon observable inputs, such as current market transactions involving comparable securities. |
Schedule of details of notes | The principal balance, unamortized debt discount, deferred debt issuance costs and net carrying value of Ciena’s 2025 Term Loan were as follows as of October 31, 2018 (in thousands): Principal Balance Unamortized Discount Deferred Debt Issuance Costs Net Carrying Value Term Loan Payable due September 28, 2025 $ 700,000 $ (2,300 ) $ (4,250 ) $ 693,450 |
Earnings (Loss) Per Share Cal_2
Earnings (Loss) Per Share Calculation (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of numerator and denominator of Basic and Diluted Earnings Per Share | The following table (in thousands except per share amounts) is a reconciliation of the numerator and denominator of the basic net income (loss) per common share (“Basic EPS”) and the diluted net income (loss) per potential common share (“Diluted EPS”). Basic EPS is computed using the weighted average number of common shares outstanding. 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 restricted stock units, (iii) shares issuable under Ciena’s employee stock purchase plan and upon exercise of outstanding stock options, using the treasury stock method, (iv) shares underlying Ciena’s outstanding convertible notes for which Ciena uses the treasury stock method (New Notes), and (v) shares underlying Ciena’s outstanding convertible notes for which Ciena uses the if-converted method. Numerator Year Ended October 31, 2018 2017 2016 Net income (loss) $ (344,690 ) $ 1,261,953 $ 72,584 Less: Loss on fair value of debt conversion liability (1) (12,894 ) — — Add: Interest expense associated with 0.875% Convertible Senior Notes due 2017 — 853 4,801 Add: Interest expense associated with 3.75% Convertible Senior Notes due 2018 (Original Notes) — 7,224 — Add: Interest expense associated with 4.0% Convertible Senior Notes due 2020 — 8,691 — Net income (loss) used to calculate Diluted EPS $ (357,584 ) $ 1,278,721 $ 77,385 Denominator Year Ended October 31, 2018 2017 2016 Basic weighted average shares outstanding 143,738 141,997 138,312 Add: Shares underlying outstanding stock options, employee stock purchase plan and restricted stock units — 1,354 1,311 Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (New Notes) — 404 — Add: Shares underlying 0.875% Convertible Senior Notes due 2017 — 3,032 11,081 Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (Original Notes) — 13,934 — Add: Shares underlying 4.0% Convertible Senior Notes due 2020 — 9,198 — Diluted weighted average shares outstanding 143,738 169,919 150,704 (1) On October 15, 2018, we settled our New Notes with an aggregate principal amount of $288.7 million . It was our intent to settle the principal amount of the New Notes in cash; accordingly, the principal amount was excluded from the determination of diluted earnings per share. On August 21, 2018, we changed our policy and decided to settle the payment of the conversion premium in cash and stock; see Note 16 above. Prior to this change, for EPS purposes we accounted for the conversion feature using the treasury stock method by adjusting the diluted weighted-average common shares if the effect was dilutive. As a consequence of our change in policy described above, the numerator for the computation of diluted earnings per common share was adjusted for any dilutive changes in the estimated value of the debt conversion liability during the period of August 20, 2018 through August 30, 2018, the date at which we began to account for the conversion feature as a derivative. There were no adjustments to diluted weighted average shares outstanding subsequent to our change in policy. See Note 14 above. For the fiscal year ended October 31, 2018, the adjustment to the numerator had the effect of reducing the diluted earnings per share by $0.09 . EPS Year Ended October 31, 2018 2017 2016 Basic EPS $ (2.40 ) $ 8.89 $ 0.52 Diluted EPS $ (2.49 ) $ 7.53 $ 0.51 |
Weighted average shares excluded from calculation of denominator for Basic and Diluted EPS | The following table summarizes the weighted average shares excluded from the calculation of the denominator for Diluted EPS due to their anti-dilutive effect for the fiscal years indicated (in thousands): Year Ended October 31, 2018 2017 2016 Shares underlying stock options and restricted stock units 2,235 958 1,882 Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (New Notes) 1,780 — — — 3.75% Convertible Senior Notes due October 15, 2018 (Original Notes) 2,883 — 17,355 4.0% Convertible Senior Notes due December 15, 2020 9,123 — 9,198 Total shares excluded due to anti-dilutive effect 16,021 958 28,435 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Equity [Abstract] | |
Summary of stock repurchase program | A summary of the stock repurchase program, reported based on trade date, is summarized as follows: Shares Repurchased Weighted-Average Price per Share Amount Repurchased (in thousands) Cumulative balance at October 31, 2017 — $ — $ — Repurchase of common stock under the stock repurchase program 4,290,801 25.86 110,981 Cumulative balance at October 31, 2018 4,290,801 $ 25.86 $ 110,981 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision (benefit) for income taxes | For the periods indicated, the provision (benefit) for income taxes consists of the following (in thousands): Year Ended October 31, 2018 2017 2016 Provision (benefit) for income taxes: Current: Federal $ 8,327 $ — $ — State 8,219 6,342 5,281 Foreign 13,294 14,563 9,969 Total current 29,840 20,905 15,250 Deferred: Federal 475,951 (1) (1,047,699 ) (1 ) — State (8,202 ) (77,429 ) (1 ) — Foreign (4,118 ) (1,604 ) (1,116 ) Total deferred 463,631 (1,126,732 ) (1,116 ) Provision (benefit) for income taxes $ 493,471 $ (1,105,827 ) $ 14,134 _________________________________ (1) The income tax expense for 2018 includes the impact of the remeasurement of the net deferred tax assets and the federal transition tax. See further discussion below. The income tax benefit for fiscal 2017 includes the reversal of a significant portion of the valuation allowance on Ciena’s deferred tax assets in the U.S. as described below. |
Income before provision (benefit) for income taxes | For the periods indicated, income before provision for income taxes consists of the following (in thousands): Year Ended October 31, 2018 2017 2016 United States $ 106,972 $ 114,242 $ 58,237 Foreign 41,809 41,884 28,481 Total $ 148,781 $ 156,126 $ 86,718 |
Tax provision (benefit) reconciles to the amount computed by multiplying income or loss before income taxes by the U.S. federal statutory rate of 35% | For the periods indicated, the tax provision (benefit) reconciles to the amount computed by multiplying income before income taxes by the U.S. federal statutory rate of 35% ( 23.41% for fiscal 2018, see note below) as follows: Year Ended October 31, 2018 2017 2016 Provision at statutory rate 23.41 % 35.00 % 35.00 % Deferred tax assets remeasurement 294.56 % — % — % State taxes (0.16 )% 2.29 % 4.00 % Foreign taxes 1.22 % (0.35 )% 3.11 % Research and development credit (8.80 )% (15.38 )% (22.61 )% Non-deductible compensation 3.39 % 3.45 % 5.16 % Fair value of debt conversion liability 1.90 % — % — % Transition tax 23.23 % — % — % Valuation allowance (11.95 )% (739.97 )% (7.33 )% Other 4.88 % 6.67 % (1.03 )% Effective income tax rate 331.68 % (708.29 )% 16.30 % |
Significant components of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities are as follows (in thousands): October 31, 2018 2017 Deferred tax assets: Reserves and accrued liabilities $ 40,959 $ 56,597 Depreciation and amortization 353,838 451,385 NOL and credit carry forward 483,495 803,622 Other 9,397 29,398 Gross deferred tax assets 887,689 1,341,002 Valuation allowance (142,650 ) (185,898 ) Deferred tax asset, net of valuation allowance $ 745,039 $ 1,155,104 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): Amount Unrecognized tax benefits at October 31, 2015 $ 27,536 Increase related to positions taken in prior period 2,187 Increase related to positions taken in current period 2,654 Reductions related to expiration of statute of limitations (1,709 ) Unrecognized tax benefits at October 31, 2016 30,668 Increase related to positions taken in prior period 122 Increase related to positions taken in current period 111,412 Reductions related to expiration of statute of limitations (620 ) Unrecognized tax benefits at October 31, 2017 141,582 Decrease related to positions taken in prior period (46,400 ) Increase related to positions taken in current period 2,482 Reductions related to expiration of statute of limitations (1,301 ) Unrecognized tax benefits at October 31, 2018 $ 96,363 |
Summary of valuation allowance against the gross deferred tax assets | The following table summarizes the activity in Ciena’s valuation allowance against its gross deferred tax assets (in thousands): Year ended Beginning Ending October 31, Balance Additions Deductions Balance 2016 $ 1,495,672 $ — $ 5,892 $ 1,489,780 2017 $ 1,489,780 $ — $ 1,303,882 $ 185,898 2018 $ 185,898 $ 23,720 $ 66,968 $ 142,650 |
Share-Based Compensation Expe_2
Share-Based Compensation Expense (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of stock option activity | The following table is a summary of Ciena’s stock option activity for the periods indicated (shares in thousands): Shares Underlying Options Outstanding Weighted Average Exercise Price Balance as of October 31, 2017 875 $ 30.19 Granted — — Exercised (179 ) 12.75 Canceled (420 ) 35.46 Balance as of October 31, 2018 276 $ 33.52 |
Summarizes information with respect to stock options outstanding | The following table summarizes information with respect to stock options outstanding at October 31, 2018 , based on Ciena’s closing stock price on the last trading day of Ciena’s fiscal 2018 (shares and intrinsic value in thousands): Options Outstanding at Vested Options at October 31, 2018 October 31, 2018 Number Weighted Average Remaining Weighted Number Weighted Average Remaining Weighted Range of of Contractual Average Aggregate of Contractual Average Aggregate Exercise Underlying Life Exercise Intrinsic Underlying Life Exercise Intrinsic Price Shares (Years) Price Value Shares (Years) Price Value $ 5.34 — $ 11.16 14 1.31 $ 8.30 $ 323 14 1.31 $ 8.30 $ 323 $ 11.34 — $ 16.79 64 3.63 13.53 1,191 64 3.62 13.52 1,185 $ 17.50 — $ 25.36 11 5.6 18.44 156 11 5.55 18.21 151 $ 32.06 — $ 37.10 54 3.97 35.60 — 54 3.97 35.60 — $ 37.82 — $ 55.63 133 4.59 46.29 — 132 4.59 46.29 — $ 5.34 — $ 55.63 276 4.13 $ 33.52 $ 1,670 275 4.12 $ 33.56 $ 1,659 |
Summary of restricted stock unit activity | The following table is a summary of Ciena’s restricted stock unit activity for the period indicated, with the aggregate fair value of the balance outstanding at the end of each period, based on Ciena’s closing stock price on the last trading day of the relevant period (shares and aggregate fair value in thousands): Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Per Share Aggregate Fair Value Balance as of October 31, 2017 4,143 $ 21.46 $ 86,721 Granted 2,713 Vested (2,155 ) Canceled or forfeited (299 ) Balance as of October 31, 2018 4,402 $ 22.26 $ 140,943 |
Share-based compensation expense | The following table summarizes share-based compensation expense for the periods indicated (in thousands): Year Ended October 31, 2018 2017 2016 Product cost of goods sold $ 2,984 $ 2,672 $ 2,457 Service cost of goods sold 2,616 2,487 2,479 Share-based compensation expense included in cost of goods sold 5,600 5,159 4,936 Research and development 13,518 12,957 13,870 Sales and marketing 14,246 12,846 15,138 General and administrative 19,709 17,321 17,342 Acquisition and integration costs — — 714 Share-based compensation expense included in operating expense 47,473 43,124 47,064 Share-based compensation expense capitalized in inventory, net (101 ) 77 (7 ) Total share-based compensation $ 52,972 $ 48,360 $ 51,993 |
Segment and Entity Wide Discl_2
Segment and Entity Wide Disclosures (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment revenue | The table below (in thousands, except percentage data) sets forth Ciena’s segment revenue for the respective periods indicated: Year Ended October 31, 2018 2017 2016 Revenue: Networking Platforms Converged Packet Optical $ 2,194,519 $ 1,939,621 $ 1,815,921 Packet Networking 283,499 313,089 252,862 Total Networking Platforms 2,478,018 2,252,710 2,068,783 Software and Software-Related Services Platform Software and Services 173,949 145,009 117,251 Blue Planet Automation Software and Services 26,764 16,110 7,818 Total Software and Software-Related Services 200,713 161,119 125,069 Global Services Maintenance Support and Training 245,161 227,400 228,982 Installation and Deployment 128,829 117,524 130,916 Consulting and Network Design 41,565 42,934 46,823 Total Global Services 415,555 387,858 406,721 Total revenue $ 3,094,286 $ 2,801,687 $ 2,600,573 |
Segment profit (loss) and the reconciliation to consolidated net income (loss) | The table below (in thousands) sets forth Ciena’s segment profit and the reconciliation to consolidated net income during the respective periods indicated: Year Ended October 31, 2018 2017 2016 Segment profit: Networking Platforms $ 581,113 $ 578,039 $ 544,744 Software and Software-Related Services 69,808 32,536 7,123 Global Services 172,205 159,882 157,915 Total segment profit 823,126 770,457 709,782 Less: non-performance operating expenses Selling and marketing 394,060 356,169 349,731 General and administrative 160,133 142,604 132,828 Amortization of intangible assets 15,737 33,029 61,508 Acquisition and integration costs 5,111 — 4,613 Significant asset impairments and restructuring costs 18,139 23,933 4,933 Add: other non-performance financial items Interest and other income (loss), net (12,029 ) 913 (12,569 ) Interest expense (55,249 ) (55,852 ) (56,656 ) Loss on extinguishment and modification of debt (13,887 ) (3,657 ) (226 ) Less: Provision (benefit) for income taxes 493,471 (1,105,827 ) 14,134 Total net income (loss) $ (344,690 ) $ 1,261,953 $ 72,584 |
Ciena's geographic distribution of revenue and long-lived assets | For the periods below, Ciena’s geographic distribution of revenue was as follows (in thousands): Year Ended October 31, 2018 2017 2016 North America $ 1,886,450 $ 1,736,047 $ 1,689,263 EMEA 464,876 404,099 393,705 CALA 140,177 164,308 195,085 APAC 602,783 497,233 322,520 Total $ 3,094,286 $ 2,801,687 $ 2,600,573 For the periods below, Ciena’s geographic distribution of equipment, building, furniture and fixtures, net, was as follows (in thousands): October 31, 2018 2017 Canada $ 198,028 $ 203,491 United States 75,479 90,482 Other International 18,560 14,492 Total $ 292,067 $ 308,465 |
Schedule of revenue by major customers by reporting segments | For the periods below, customers accounting for at least 10% of Ciena’s revenue were as follows (in thousands): October 31, 2018 2017 2016 AT&T $ 374,576 $ 448,943 $ 479,077 Verizon 318,013 288,048 n/a Total $ 692,589 $ 736,991 $ 479,077 ________________________________ n/a Denotes revenue representing less than 10% of total revenue for the period |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future annual minimum lease commitments under non-cancelable operating leases | The following table summarizes our future annual minimum lease commitments under non-cancelable leases that are not recorded on the balance sheet as of October 31, 2018 (in thousands): 2019 2020 2021 2022 2023 Thereafter Total Operating leases $ 28,912 $ 24,348 $ 21,320 $ 15,839 $ 13,142 $ 47,047 $ 150,608 |
Ciena Corporation and Signifi_3
Ciena Corporation and Significant Accounting Policies and Estimates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Jan. 31, 2019 | Oct. 31, 2017 | |
Significant Accounting Policies [Line Items] | |||
Minority equity investments | $ 8,056 | $ 6,000 | |
Expected economic lives of finite-lived intangible assets (in years) | 7 years | ||
Expected number of years Spares usage cost is expensed | 4 years | ||
Cumulative amount of temporary differences for unremitted foreign earnings for which a deferred tax liability has not been recognized | $ 336,000 | ||
One-time employee termination benefits related to service period (in days) | 60 days | ||
Cumulative effect of adoption of new accounting standard | 62,123 | ||
Retained earnings | $ (4,947,652) | (4,664,253) | |
Deferred revenue | $ 169,457 | 185,007 | |
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Foreign exchange contract maturities | 24 months | ||
Equipment, furniture and fixtures | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives capitalized and amortized straight-line (in years) | 2 years | ||
Equipment, furniture and fixtures | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives capitalized and amortized straight-line (in years) | 5 years | ||
Software and website development | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives capitalized and amortized straight-line (in years) | 2 years | ||
Software and website development | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives capitalized and amortized straight-line (in years) | 5 years | ||
Retained Earnings | |||
Significant Accounting Policies [Line Items] | |||
Cumulative effect of adoption of new accounting standard | 61,291 | ||
Retained Earnings | Accounting Standards Update 2016-09, Excess Tax Benefit Component | |||
Significant Accounting Policies [Line Items] | |||
Cumulative effect of adoption of new accounting standard | 62,100 | ||
Retained Earnings | Accounting Standards Update 2016-09, Forfeiture Rate Component | |||
Significant Accounting Policies [Line Items] | |||
Cumulative effect of adoption of new accounting standard | $ 800 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Scenario, Forecast | Accounting Standards Update 2014-09 | |||
Significant Accounting Policies [Line Items] | |||
Retained earnings | $ 49,200 | ||
Deferred revenue | (30,200) | ||
Unbilled accounts receivable | $ 29,600 | ||
3.75% Convertible Senior Notes due October 15, 2018 (New) | |||
Significant Accounting Policies [Line Items] | |||
Interest rate on convertible notes | 3.75% |
Business Combinations (Details)
Business Combinations (Details) - USD ($) | Oct. 01, 2018 | Jul. 02, 2018 | Feb. 01, 2016 | Oct. 31, 2018 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 |
Business Acquisition [Line Items] | |||||||
Acquisition-related costs | $ 5,111,000 | $ 0 | $ 4,613,000 | ||||
DonRiver Holdings, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition-related costs | $ 3,500,000 | ||||||
Undiscounted contingent consideration, maximum | $ 28,500,000 | ||||||
Contingent consideration agreement term | 3 years | ||||||
Contingent consideration revenue measurement term | 25 months | ||||||
Contingent consideration | $ 10,900,000 | ||||||
Acquisition of business, net of cash acquired | $ 43,283,000 | ||||||
DonRiver Holdings, LLC | Customer relationships and contracts | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets, useful life | 7 years | ||||||
DonRiver Holdings, LLC | Developed technology | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets, useful life | 7 years | ||||||
Packet Design, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition-related costs | $ 1,600,000 | ||||||
Acquisition of business, net of cash acquired | $ 41,100,000 | ||||||
Packet Design, LLC | Customer relationships and contracts | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets, useful life | 3 years | ||||||
Packet Design, LLC | Developed technology | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets, useful life | 5 years | ||||||
TeraXion Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition of business, net of cash acquired | $ 32,000,000 | ||||||
TeraXion Inc. | Developed technology | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets, useful life | 5 years | ||||||
Contingent Consideration | DonRiver Holdings, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Undiscounted contingent consideration, maximum | $ 15,000,000 | ||||||
Undiscounted contingent consideration, minimum | 0 | ||||||
Contingent Compensation | DonRiver Holdings, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Undiscounted contingent consideration, maximum | 13,500,000 | ||||||
Undiscounted contingent consideration, minimum | $ 0 |
Business Combinations - Conside
Business Combinations - Consideration Transferred (Details) - DonRiver Holdings, LLC $ in Thousands | Oct. 01, 2018USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 43,283 |
Contingent consideration | 10,900 |
Total purchase price | $ 54,183 |
Business Combinations - Purchas
Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 01, 2018 | Jul. 02, 2018 | Oct. 31, 2017 | Feb. 01, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 297,968 | $ 267,458 | |||
Packet Design, LLC | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 642 | ||||
Accounts receivable | 1,525 | ||||
Prepaid expenses and other long term assets | 450 | ||||
Equipment, furniture and fixtures | 31 | ||||
Goodwill | 20,304 | ||||
Accounts payable | (165) | ||||
Accrued liabilities | (657) | ||||
Deferred revenue | (5,176) | ||||
Total purchase price | 41,054 | ||||
Packet Design, LLC | Customer relationships and contracts | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | 2,200 | ||||
Packet Design, LLC | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 21,900 | ||||
DonRiver Holdings, LLC | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 1,025 | ||||
Accounts receivable | 4,790 | ||||
Prepaid expenses and other long term assets | 372 | ||||
Goodwill | 10,453 | ||||
Deferred revenue | (193) | ||||
Other current and long term liabilities | (9,664) | ||||
Total purchase price | 54,183 | ||||
DonRiver Holdings, LLC | Customer relationships and contracts | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | 37,700 | ||||
DonRiver Holdings, LLC | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 9,700 | ||||
TeraXion Inc. | |||||
Business Acquisition [Line Items] | |||||
Inventory | $ 119 | ||||
Equipment, furniture and fixtures | 1,381 | ||||
Goodwill | 10,083 | ||||
Total purchase price | 32,000 | ||||
TeraXion Inc. | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | 16,468 | ||||
TeraXion Inc. | In-process technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 3,949 |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018USD ($)employee | Oct. 31, 2017USD ($)employee | Oct. 31, 2016USD ($)employee | |
Activity and balance of the restructuring liability accounts | |||
Balance at beginning of period | $ 2,939 | $ 2,838 | $ 1,279 |
Additional liability recorded | 18,743 | 11,315 | 4,933 |
Adjustment to previous estimates | (1,048) | ||
Cash payments | (17,835) | (10,166) | (3,374) |
Balance at end of period | 3,847 | 2,939 | 2,838 |
Current restructuring liabilities | 2,610 | ||
Non-current restructuring liabilities | 1,237 | ||
Workforce reduction | |||
Activity and balance of the restructuring liability accounts | |||
Balance at beginning of period | 1,291 | 868 | 591 |
Additional liability recorded | 14,853 | 5,883 | 2,844 |
Adjustment to previous estimates | 0 | ||
Cash payments | (14,036) | (5,460) | (2,567) |
Balance at end of period | 2,108 | $ 1,291 | $ 868 |
Current restructuring liabilities | 2,108 | ||
Non-current restructuring liabilities | $ 0 | ||
Restructuring and Related Cost, Positions Eliminated [Abstract] | |||
Number of employees in workforce reduction | employee | 240 | 100 | 75 |
Consolidation of excess facilities | |||
Activity and balance of the restructuring liability accounts | |||
Balance at beginning of period | $ 1,648 | $ 1,970 | $ 688 |
Additional liability recorded | 3,890 | 5,432 | 2,089 |
Adjustment to previous estimates | (1,048) | ||
Cash payments | (3,799) | (4,706) | (807) |
Balance at end of period | 1,739 | $ 1,648 | $ 1,970 |
Current restructuring liabilities | 502 | ||
Non-current restructuring liabilities | $ 1,237 |
Interest and Other Income (Lo_3
Interest and Other Income (Loss), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 13,703 | $ 6,579 | $ 4,058 |
Gain (loss) on non-hedge designated foreign currency forward contracts | 6,791 | (1,198) | (23,355) |
Foreign currency exchange gains (losses) | (19,434) | (4,376) | 5,870 |
Loss on fair value of debt conversion liability | (12,070) | 0 | 0 |
Other | (1,019) | (92) | 858 |
Interest and other income (loss), net | $ (12,029) | $ 913 | $ (12,569) |
Short-Term and Long-Term Inve_3
Short-Term and Long-Term Investments (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Aug. 30, 2018 | Oct. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | |||
Debt conversion liability | $ 164,212 | $ 152,100 | $ 0 |
Amortized Cost | 208,357 | ||
Estimated Fair Value | 207,951 | ||
U.S. government obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 198,394 | 299,408 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (406) | (432) | |
Estimated Fair Value | 197,988 | 298,976 | |
Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 9,963 | 29,939 | |
Gross Unrealized Gains | 0 | 1 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 9,963 | 29,940 | |
Short-term Investments | U.S. government obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 139,365 | 249,498 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (347) | (305) | |
Estimated Fair Value | 139,018 | 249,193 | |
Short-term Investments | Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 9,963 | 29,939 | |
Gross Unrealized Gains | 0 | 1 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 9,963 | 29,940 | |
Other Long-term Investments | U.S. government obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 59,029 | 49,910 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (59) | (127) | |
Estimated Fair Value | $ 58,970 | $ 49,783 |
Short-Term and Long-Term Inve_4
Short-Term and Long-Term Investments - Legal Maturities of Debt Investments (Details) $ in Thousands | Oct. 31, 2018USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost, Less than one year | $ 149,328 |
Amortized cost, Due in 1-2 years | 59,029 |
Amortized Cost | 208,357 |
Estimated fair value, Less than one year | 148,981 |
Estimated fair value, Due in 1-2 years | 58,970 |
Estimated Fair Value | $ 207,951 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Aug. 30, 2018 | Oct. 31, 2017 |
Assets: | |||
U.S. government obligations | $ 207,951 | ||
Liabilities: | |||
Debt conversion liability | 164,212 | $ 152,100 | $ 0 |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Money market funds | 590,684 | 511,355 | |
U.S. government obligations | 197,988 | 298,976 | |
Commercial paper | 69,888 | 89,865 | |
Foreign currency forward contracts | 133 | 227 | |
Forward starting interest rate swaps | 779 | 218 | |
Total assets measured at fair value | 859,472 | 900,641 | |
Liabilities: | |||
Foreign currency forward contracts | 3,231 | 2,129 | |
Debt conversion liability | 164,212 | ||
Contingent consideration | 10,900 | ||
Total liabilities measured at fair value | 178,343 | 2,129 | |
Level 1 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Money market funds | 590,684 | 511,355 | |
U.S. government obligations | 0 | 0 | |
Commercial paper | 0 | 0 | |
Foreign currency forward contracts | 0 | 0 | |
Forward starting interest rate swaps | 0 | 0 | |
Total assets measured at fair value | 590,684 | 511,355 | |
Liabilities: | |||
Foreign currency forward contracts | 0 | 0 | |
Debt conversion liability | 0 | ||
Contingent consideration | 0 | ||
Total liabilities measured at fair value | 0 | 0 | |
Level 2 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Money market funds | 0 | 0 | |
U.S. government obligations | 197,988 | 298,976 | |
Commercial paper | 69,888 | 89,865 | |
Foreign currency forward contracts | 133 | 227 | |
Forward starting interest rate swaps | 779 | 218 | |
Total assets measured at fair value | 268,788 | 389,286 | |
Liabilities: | |||
Foreign currency forward contracts | 3,231 | 2,129 | |
Debt conversion liability | 164,212 | ||
Contingent consideration | 0 | ||
Total liabilities measured at fair value | 167,443 | 2,129 | |
Level 3 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Money market funds | 0 | 0 | |
U.S. government obligations | 0 | 0 | |
Commercial paper | 0 | 0 | |
Foreign currency forward contracts | 0 | 0 | |
Forward starting interest rate swaps | 0 | 0 | |
Total assets measured at fair value | 0 | 0 | |
Liabilities: | |||
Foreign currency forward contracts | 0 | 0 | |
Debt conversion liability | 0 | ||
Contingent consideration | 10,900 | ||
Total liabilities measured at fair value | $ 10,900 | $ 0 |
Fair Value Measurements - Balan
Fair Value Measurements - Balance Sheet Items (Details) - USD ($) $ in Thousands | Oct. 01, 2018 | Oct. 31, 2018 | Aug. 30, 2018 | Oct. 31, 2017 |
Liabilities: | ||||
Debt conversion liability | $ 164,212 | $ 152,100 | $ 0 | |
Fair Value, Measurements, Recurring | ||||
Assets: | ||||
Total assets measured at fair value | 859,472 | 900,641 | ||
Liabilities: | ||||
Debt conversion liability | 164,212 | |||
Total liabilities measured at fair value | 178,343 | 2,129 | ||
Fair Value, Measurements, Recurring | Cash equivalents | ||||
Assets: | ||||
Cash equivalents | 650,609 | 571,280 | ||
Fair Value, Measurements, Recurring | Short-term investments | ||||
Assets: | ||||
Short-term investments | 148,981 | 279,133 | ||
Fair Value, Measurements, Recurring | Prepaid expenses and other | ||||
Assets: | ||||
Prepaid expenses and other | 133 | 227 | ||
Fair Value, Measurements, Recurring | Long-term investments | ||||
Assets: | ||||
Long-term investments | 58,970 | 49,783 | ||
Fair Value, Measurements, Recurring | Other long-term assets | ||||
Assets: | ||||
Other long-term assets | 779 | 218 | ||
Fair Value, Measurements, Recurring | Accrued liabilities | ||||
Liabilities: | ||||
Accrued liabilities | 3,231 | 2,129 | ||
Fair Value, Measurements, Recurring | Debt conversion liability | ||||
Liabilities: | ||||
Debt conversion liability | 164,212 | |||
Fair Value, Measurements, Recurring | Other long-term obligations | ||||
Liabilities: | ||||
Other long-term obligations | 10,900 | |||
Fair Value, Measurements, Recurring | Level 1 | ||||
Assets: | ||||
Total assets measured at fair value | 590,684 | 511,355 | ||
Liabilities: | ||||
Debt conversion liability | 0 | |||
Total liabilities measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | Cash equivalents | ||||
Assets: | ||||
Cash equivalents | 590,684 | 511,355 | ||
Fair Value, Measurements, Recurring | Level 1 | Short-term investments | ||||
Assets: | ||||
Short-term investments | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | Prepaid expenses and other | ||||
Assets: | ||||
Prepaid expenses and other | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | Long-term investments | ||||
Assets: | ||||
Long-term investments | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | Other long-term assets | ||||
Assets: | ||||
Other long-term assets | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | Accrued liabilities | ||||
Liabilities: | ||||
Accrued liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | Debt conversion liability | ||||
Liabilities: | ||||
Debt conversion liability | 0 | |||
Fair Value, Measurements, Recurring | Level 1 | Other long-term obligations | ||||
Liabilities: | ||||
Other long-term obligations | 0 | |||
Fair Value, Measurements, Recurring | Level 2 | ||||
Assets: | ||||
Total assets measured at fair value | 268,788 | 389,286 | ||
Liabilities: | ||||
Debt conversion liability | 164,212 | |||
Total liabilities measured at fair value | 167,443 | 2,129 | ||
Fair Value, Measurements, Recurring | Level 2 | Cash equivalents | ||||
Assets: | ||||
Cash equivalents | 59,925 | 59,925 | ||
Fair Value, Measurements, Recurring | Level 2 | Short-term investments | ||||
Assets: | ||||
Short-term investments | 148,981 | 279,133 | ||
Fair Value, Measurements, Recurring | Level 2 | Prepaid expenses and other | ||||
Assets: | ||||
Prepaid expenses and other | 133 | 227 | ||
Fair Value, Measurements, Recurring | Level 2 | Long-term investments | ||||
Assets: | ||||
Long-term investments | 58,970 | 49,783 | ||
Fair Value, Measurements, Recurring | Level 2 | Other long-term assets | ||||
Assets: | ||||
Other long-term assets | 779 | 218 | ||
Fair Value, Measurements, Recurring | Level 2 | Accrued liabilities | ||||
Liabilities: | ||||
Accrued liabilities | 3,231 | 2,129 | ||
Fair Value, Measurements, Recurring | Level 2 | Debt conversion liability | ||||
Liabilities: | ||||
Debt conversion liability | 164,212 | |||
Fair Value, Measurements, Recurring | Level 2 | Other long-term obligations | ||||
Liabilities: | ||||
Other long-term obligations | 0 | |||
Fair Value, Measurements, Recurring | Level 3 | ||||
Assets: | ||||
Total assets measured at fair value | 0 | 0 | ||
Liabilities: | ||||
Debt conversion liability | 0 | |||
Total liabilities measured at fair value | 10,900 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Cash equivalents | ||||
Assets: | ||||
Cash equivalents | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Short-term investments | ||||
Assets: | ||||
Short-term investments | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Prepaid expenses and other | ||||
Assets: | ||||
Prepaid expenses and other | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Long-term investments | ||||
Assets: | ||||
Long-term investments | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Other long-term assets | ||||
Assets: | ||||
Other long-term assets | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Accrued liabilities | ||||
Liabilities: | ||||
Accrued liabilities | 0 | $ 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Debt conversion liability | ||||
Liabilities: | ||||
Debt conversion liability | 0 | |||
Fair Value, Measurements, Recurring | Level 3 | Other long-term obligations | ||||
Liabilities: | ||||
Other long-term obligations | $ 10,900 | |||
DonRiver Holdings, LLC | ||||
Liabilities: | ||||
Contingent consideration agreement term | 3 years |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Concentration Risk [Line Items] | |||
Unbilled receivables | $ 40,900 | $ 26,100 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of period | 17,580 | 3,963 | $ 2,963 |
Provisions | 2,700 | 18,221 | 1,701 |
Net Deductions | 2,902 | 4,604 | 701 |
Balance at end of period | $ 17,378 | $ 17,580 | $ 3,963 |
One Unidentified Customer | Customer Concentration Risk | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Net accounts receivable percentage | 10.00% | ||
Two Unidentified Customers | Customer Concentration Risk | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Net accounts receivable percentage | 23.00% | ||
APC Region Customer | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Provisions | $ 13,700 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2018 | Oct. 31, 2017 | |
Inventories | |||||
Raw materials | $ 67,468 | $ 52,898 | |||
Work-in-process | 9,589 | 18,623 | |||
Finished goods | 188,575 | 185,488 | |||
Deferred cost of goods sold | 48,057 | 61,340 | |||
Inventories before provision | 313,689 | 318,349 | |||
Provision for excess and obsolescence | $ (51,206) | $ (62,503) | $ (53,001) | (50,938) | (51,206) |
Total inventories | $ 262,751 | $ 267,143 | |||
Reserve for excess and obsolete inventory [Roll Forward] | |||||
Valuation allowance, beginning balance | 51,206 | 62,503 | 53,001 | ||
Provisions | 30,615 | 35,459 | 33,713 | ||
Disposals | 30,883 | 46,756 | 24,211 | ||
Valuation allowance, ending balance | $ 50,938 | $ 51,206 | $ 62,503 |
Prepaid Expenses and Other (Det
Prepaid Expenses and Other (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Prepaid expenses and other | |||
Prepaid VAT and other taxes | $ 82,518 | $ 91,647 | |
Product demonstration equipment, net | 37,623 | 40,713 | |
Prepaid expenses | 32,987 | 26,114 | |
Other non-trade receivables | 25,716 | 9,655 | |
Deferred deployment expense | 19,342 | 26,934 | |
Financing receivable | 626 | 2,049 | |
Derivative assets | 133 | 227 | |
Prepaid expenses and other | 198,945 | 197,339 | |
Depreciation of product demonstration equipment | $ 9,000 | $ 10,000 | $ 10,700 |
Equipment, Building, Furnitur_3
Equipment, Building, Furniture and Fixtures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |||
Equipment, building, furniture and fixtures, gross | $ 670,877 | $ 650,916 | |
Accumulated depreciation and amortization | (378,810) | (342,451) | |
Equipment, building, furniture and fixtures, net | 292,067 | 308,465 | |
Equipment Furniture Fixtures And Leasehold Improvements | |||
Equipment, furniture and fixtures (Textuals) [Abstract] | |||
Depreciation of equipment, furniture and fixtures, and amortization of leasehold improvements | 75,300 | 67,200 | $ 52,700 |
Equipment, furniture and fixtures | |||
Property, Plant and Equipment, Net [Abstract] | |||
Equipment, building, furniture and fixtures, gross | 504,714 | 486,451 | |
Building subject to capital lease | |||
Property, Plant and Equipment, Net [Abstract] | |||
Equipment, building, furniture and fixtures, gross | 71,968 | 76,702 | |
Leasehold improvements | |||
Property, Plant and Equipment, Net [Abstract] | |||
Equipment, building, furniture and fixtures, gross | $ 94,195 | $ 87,763 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Intangible Assets | |||
Accumulated Amortization | $ (603,541) | $ (582,736) | |
Net Intangible | 148,225 | ||
Total intangible assets, gross | 751,766 | 683,733 | |
Intangible assets, net | 148,225 | 100,997 | |
Intangible Assets (Textuals) [Abstract] | |||
Fully amortized intangible assets eliminated from gross intangible assets and accumulated amortization | 5,000 | 34,000 | |
Amortization of intangible assets | 25,806 | 45,713 | $ 78,298 |
Expected future amortization of finite-lived intangible assets | |||
2,019 | 35,375 | ||
2,020 | 34,019 | ||
2,021 | 30,841 | ||
2,022 | 24,820 | ||
2,023 | 10,011 | ||
Thereafter | 13,159 | ||
Net Intangible | 148,225 | ||
In-process research and development | |||
Intangible Assets | |||
In-process research and development | 0 | 671 | |
Developed technology | |||
Intangible Assets | |||
Gross Intangible | 373,581 | 341,255 | |
Accumulated Amortization | (285,233) | (266,693) | |
Net Intangible | 88,348 | 74,562 | |
Expected future amortization of finite-lived intangible assets | |||
Net Intangible | 88,348 | 74,562 | |
Patents and licenses | |||
Intangible Assets | |||
Gross Intangible | 3,565 | 7,165 | |
Accumulated Amortization | (1,958) | (6,535) | |
Net Intangible | 1,607 | 630 | |
Expected future amortization of finite-lived intangible assets | |||
Net Intangible | 1,607 | 630 | |
Customer relationships, covenants not to compete, outstanding purchase orders and contracts | |||
Intangible Assets | |||
Gross Intangible | 374,620 | 334,642 | |
Accumulated Amortization | (316,350) | (309,508) | |
Net Intangible | 58,270 | 25,134 | |
Expected future amortization of finite-lived intangible assets | |||
Net Intangible | $ 58,270 | $ 25,134 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 12 Months Ended |
Oct. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | $ 267,458 |
Acquisitions | 30,757 |
Impairments | 0 |
Translation | (247) |
Goodwill ending balance | 297,968 |
Software and Software-Related Services | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 201,428 |
Acquisitions | 30,757 |
Impairments | 0 |
Translation | 0 |
Goodwill ending balance | 232,185 |
Networking Platforms | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 66,030 |
Acquisitions | 0 |
Impairments | 0 |
Translation | (247) |
Goodwill ending balance | $ 65,783 |
Other Balance Sheet Details (De
Other Balance Sheet Details (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Other long-term assets | |||
Maintenance spares inventory, net | $ 45,679 | $ 46,872 | |
Minority equity investments | 8,056 | 6,000 | |
Forward starting interest rate swaps | 779 | 218 | |
Deferred debt issuance costs, net | 720 | 1,041 | |
Financing receivable | 0 | 1,052 | |
Other | 16,418 | 8,410 | |
Total | 71,652 | 63,593 | |
Revolving Credit Facility | |||
Other Balance Sheet Details (Textuals) [Abstract] | |||
Amortization of debt issuance costs included in interest expense | $ 300 | $ 300 | $ 400 |
Other Balance Sheet Details - A
Other Balance Sheet Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 |
Accrued liabilities | ||||
Compensation, payroll related tax and benefits | $ 140,277 | $ 113,272 | ||
Warranty | 44,740 | 42,456 | $ 52,324 | $ 56,654 |
Vacation | 42,507 | 39,778 | ||
Capital lease obligations | 3,547 | 3,772 | ||
Interest payable | 1,072 | 3,612 | ||
Other | 107,932 | 120,044 | ||
Total | $ 340,075 | $ 322,934 |
Other Balance Sheet Details -_2
Other Balance Sheet Details - Accrued Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Beginning balance | $ 42,456 | $ 52,324 | $ 56,654 |
Current Year Provisions | 20,992 | 7,965 | 15,483 |
Settlements | 18,708 | 17,833 | 19,813 |
Balance at end of period | $ 44,740 | 42,456 | 52,324 |
Adjustment on prior year provisions | $ (9,700) | $ (5,300) |
Other Balance Sheet Details - D
Other Balance Sheet Details - Deferred Revenue (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Deferred Revenue Arrangement [Line Items] | ||
Total | $ 169,457 | $ 185,007 |
Less current portion | (111,134) | (102,418) |
Long-term deferred revenue | 58,323 | 82,589 |
Products | ||
Deferred Revenue Arrangement [Line Items] | ||
Total | 42,474 | 49,135 |
Services | ||
Deferred Revenue Arrangement [Line Items] | ||
Total | $ 126,983 | $ 135,872 |
Other Balance Sheet Details - O
Other Balance Sheet Details - Other Long-Term Obligations (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Capital lease obligations | $ 68,245 | $ 73,407 |
Income tax liability | 15,894 | 15,445 |
Deferred tenant allowance | 7,244 | 8,162 |
Straight-line rent | 6,750 | 7,267 |
Contingent consideration | 10,900 | 0 |
Other | 10,380 | 7,068 |
Other long-term obligations | $ 119,413 | $ 111,349 |
Other Balance Sheet Details - F
Other Balance Sheet Details - Future Minimum Capital Lease Payments (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
2,019 | $ 8,654 | |
2,020 | 7,674 | |
2,021 | 7,569 | |
2,022 | 7,883 | |
2,023 | 8,090 | |
Thereafter | 75,413 | |
Net minimum capital lease payments | 115,283 | |
Less: Amount representing interest | (43,491) | |
Present value of minimum lease payments | 71,792 | |
Less: Current portion of present value of minimum lease payments | (3,547) | $ (3,772) |
Long-term portion of present value of minimum lease payments | $ 68,245 | $ 73,407 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) shares in Millions | Nov. 15, 2018 | Oct. 31, 2018 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 15, 2018 | Sep. 28, 2018 | Aug. 30, 2018 | Aug. 02, 2017 | Jan. 30, 2017 |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Embedded conversion feature | $ 164,212,000 | $ 164,212,000 | $ 0 | $ 152,100,000 | ||||||
Loss on fair value of debt conversion liability | 12,070,000 | 0 | $ 0 | |||||||
Term Loan Payable due January 30, 2022 | Secured Debt | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Term loan principal amount | $ 700,000,000 | $ 700,000,000 | $ 400,000,000 | |||||||
Term Loan Payable due September 28, 2025 | Secured Debt | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Term loan principal amount | $ 700,000,000 | |||||||||
3.75% Convertible Senior Notes due October 15, 2018 (New) | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Interest rate on convertible notes | 3.75% | 3.75% | ||||||||
3.75% Convertible Senior Notes due October 15, 2018 (New) | Convertible Notes Payable | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Interest rate on convertible notes | 3.75% | |||||||||
Maximum cash settlement of convertible debt | $ 400,000,000 | $ 400,000,000 | ||||||||
Embedded conversion feature | $ 152,100,000 | $ 152,100,000 | ||||||||
Maximum | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Foreign exchange contract maturities | 24 months | |||||||||
Foreign Exchange Forward | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Gain on unwounding of interest rate swaps | $ (1,674,000) | (295,000) | (823,000) | |||||||
Interest Rate Swap | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Gain on unwounding of interest rate swaps | 6,199,000 | 6,185,000 | $ (445,000) | |||||||
Designated as Hedging Instrument | Foreign Exchange Forward | Cash Flow Hedging | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Notional principal of contract | 163,200,000 | $ 163,200,000 | 86,100,000 | |||||||
Designated as Hedging Instrument | Foreign Exchange Forward | Cash Flow Hedging | Maximum | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Foreign exchange contract maturities | 24 months | |||||||||
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedging | Term Loan Payable due January 30, 2022 | Secured Debt | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Gain on unwounding of interest rate swaps | 6,800,000 | |||||||||
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedging | Term Loan Payable due September 28, 2025 | Secured Debt | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Notional principal of contract | $ 350,000,000 | $ 350,000,000 | ||||||||
Interest rate swap fix | 50.00% | 50.00% | ||||||||
Fixed interest amount resulting from interest rate swap | 2.957% | 2.957% | ||||||||
Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Notional principal of contract | $ 162,600,000 | $ 162,600,000 | $ 83,400,000 | |||||||
Not Designated as Hedging Instrument | Foreign Exchange Forward | Maximum | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Foreign exchange contract maturities | 12 months | |||||||||
Subsequent Event | 3.75% Convertible Senior Notes due October 15, 2018 (New) | Convertible Notes Payable | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Cash paid for embedded conversion feature | $ 111,300,000 | |||||||||
Shares issued for embedded conversion feature (in shares) | 1.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | $ 2,136,342 | ||
Balance at end of the period | 1,929,334 | $ 2,136,342 | |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (11,017) | (24,329) | $ (22,126) |
Other comprehensive gain (loss) before reclassifications | 3,481 | 12,381 | (6,489) |
Amounts reclassified from AOCI | 1,756 | 931 | 4,286 |
Balance at end of the period | (5,780) | (11,017) | (24,329) |
Unrealized Gain/(Loss) on Available-for-Sale Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (451) | 139 | (78) |
Other comprehensive gain (loss) before reclassifications | 26 | (590) | 217 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Balance at end of the period | (425) | (451) | 139 |
Unrealized Gain/Losses on Derivative Instruments | Foreign Exchange Forward | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (1,386) | (1,091) | (268) |
Other comprehensive gain (loss) before reclassifications | (3,242) | 1,290 | (1,453) |
Amounts reclassified from AOCI | 1,568 | (1,585) | 630 |
Balance at end of the period | (3,060) | (1,386) | (1,091) |
Unrealized Gain/Losses on Derivative Instruments | Interest Rate Swap | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | 218 | (5,967) | (5,522) |
Other comprehensive gain (loss) before reclassifications | 6,011 | 3,669 | (4,101) |
Amounts reclassified from AOCI | 188 | 2,516 | 3,656 |
Balance at end of the period | 6,417 | 218 | (5,967) |
Cumulative Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (9,398) | (17,410) | (16,258) |
Other comprehensive gain (loss) before reclassifications | 686 | 8,012 | (1,152) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Balance at end of the period | $ (8,712) | $ (9,398) | $ (17,410) |
Short-Term and Long-Term Debt -
Short-Term and Long-Term Debt - Net Carrying Values of Term Loans (Details) - Secured Debt - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Debt Instrument [Line Items] | ||
Net Carrying Amount | $ 693,450 | $ 392,972 |
Term Loan Payable due January 30, 2022 | ||
Debt Instrument [Line Items] | ||
Net Carrying Amount | 0 | 392,972 |
Term Loan Payable due September 28, 2025 | ||
Debt Instrument [Line Items] | ||
Net Carrying Amount | $ 693,450 | $ 0 |
Short-Term and Long-Term Debt_2
Short-Term and Long-Term Debt (Details) | Oct. 31, 2018USD ($)$ / sharesshares | Oct. 15, 2018USD ($)shares | Sep. 28, 2018USD ($) | Jan. 30, 2017USD ($) | Dec. 27, 2012USD ($) | Dec. 27, 2012USD ($) | Oct. 31, 2018USD ($)$ / shares | Oct. 31, 2018USD ($)$ / sharesshares | Oct. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Aug. 30, 2018USD ($) | Aug. 02, 2017USD ($) | Oct. 18, 2010USD ($)$ / shares |
Debt Instrument [Line Items] | |||||||||||||
Debt conversion liability | $ 164,212,000 | $ 164,212,000 | $ 164,212,000 | $ 0 | $ 152,100,000 | ||||||||
Loss on extinguishment of debt | $ 10,039,000 | 0 | $ 0 | ||||||||||
3.75% Convertible Senior Notes due October 15, 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 3.75% | 3.75% | 3.75% | ||||||||||
Shares issued upon conversion of debt (in shares) | shares | 3,038,208 | ||||||||||||
3.75% Convertible Senior Notes due October 15, 2018 (New) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 3.75% | 3.75% | 3.75% | ||||||||||
4.0% Convertible Senior Notes due December 15, 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 4.00% | 4.00% | 4.00% | ||||||||||
Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Deferred debt issuance costs | $ 4,300,000 | $ 4,300,000 | $ 4,300,000 | 3,100,000 | |||||||||
Amortization of debt issuance costs included in interest expense | 700,000 | 500,000 | |||||||||||
Secured Debt | Term Loan Payable due September 28, 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Deferred debt issuance costs | 4,250,000 | $ 1,900,000 | 4,250,000 | 4,250,000 | |||||||||
Aggregate principal amount | 700,000,000 | ||||||||||||
Loan principal balance | 700,000,000 | 699,100,000 | 700,000,000 | 700,000,000 | |||||||||
Installment payment | 1,750,000 | ||||||||||||
Debt issuance costs expensed | 3,800,000 | ||||||||||||
Debt discount | 2,300,000 | $ 900,000 | 2,300,000 | 2,300,000 | |||||||||
Installment payment, percentage | 0.25% | ||||||||||||
Prepayment premium | 1.00% | ||||||||||||
Secured Debt | Term Loan Payable due September 28, 2025 | London Interbank Offered Rate (LIBOR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
LIBOR interest floor | 0.00% | ||||||||||||
Basis spread on variable rate | 2.00% | ||||||||||||
Secured Debt | Term Loan Payable due September 28, 2025 | Base Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.00% | ||||||||||||
Interest rate floor | 1.00% | ||||||||||||
Secured Debt | Term Loan Payable due January 30, 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Deferred debt issuance costs | $ 2,400,000 | ||||||||||||
Aggregate principal amount | 700,000,000 | $ 400,000,000 | 700,000,000 | 700,000,000 | |||||||||
Aggregate principal amount of debt repurchased | 394,000,000 | ||||||||||||
Proceeds from term loan | 305,100,000 | ||||||||||||
Installment payment | $ 1,000,000 | ||||||||||||
Debt discount | $ 1,400,000 | ||||||||||||
Convertible Notes Payable | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Deferred debt issuance costs | 2,100,000 | ||||||||||||
Amortization of debt issuance costs included in interest expense | $ 1,400,000 | $ 1,800,000 | $ 2,700,000 | ||||||||||
Convertible Notes Payable | 3.75% Convertible Senior Notes due October 15, 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 350,000,000 | ||||||||||||
Loan principal balance | $ 61,300,000 | ||||||||||||
Interest rate | 3.75% | ||||||||||||
Conversion ratio | 0.0495872 | ||||||||||||
Initial conversion price per share equivalent (in dollars per share) | $ / shares | $ 20.17 | ||||||||||||
Shares issued upon conversion of debt (in shares) | shares | 3,000,000 | ||||||||||||
Convertible Notes Payable | 3.75% Convertible Senior Notes due October 15, 2018 (New) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Loan principal balance | $ 288,700,000 | ||||||||||||
Interest rate | 3.75% | ||||||||||||
Exchange fee ratio | 0.00250 | ||||||||||||
Exchange fee price | $ 721,000 | ||||||||||||
Maximum cash settlement of convertible debt | $ 400,000,000 | $ 400,000,000 | |||||||||||
Debt conversion liability | $ 152,100,000 | $ 152,100,000 | $ 152,100,000 | ||||||||||
Payments of convertible debt | $ 288,700,000 | ||||||||||||
Convertible Notes Payable | 4.0% Convertible Senior Notes due December 15, 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 187,500,000 | $ 187,500,000 | |||||||||||
Interest rate | 4.00% | 4.00% | |||||||||||
Conversion ratio | 0.0490557 | ||||||||||||
Initial conversion price per share equivalent (in dollars per share) | $ / shares | $ 20.39 | $ 20.39 | $ 20.39 | ||||||||||
Shares issued upon conversion of debt (in shares) | shares | 9,200,000 | ||||||||||||
Payments of convertible debt | $ 13,500,000 | ||||||||||||
Accretion rate of principal amount | 1.85% | ||||||||||||
Redemption option, closing price to conversion price, minimum percentage | 130.00% | ||||||||||||
Minimum number of trading days in 30 consecutive trading day period prior to redemption notice date where closing price exceeds conversion price by a minimum percentage | 20 days | ||||||||||||
Interest rate, effective percentage | 7.00% | 7.00% | |||||||||||
Fair value of debt component | $ 170,400,000 | $ 170,400,000 | |||||||||||
Net carrying amount of equity component | 43,100,000 | 43,100,000 | |||||||||||
Interest on convertible debt, tax expense | $ 0 | ||||||||||||
Loss on extinguishment of debt | $ 9,900,000 | ||||||||||||
4.0% Convertible Senior Notes due March 15, 2015 | Convertible Notes Payable | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt conversion original amount | $ 187,500,000 |
Short-Term and Long-Term Debt_3
Short-Term and Long-Term Debt - Liability Components of Term Loan (Details) - Secured Debt - USD ($) $ in Thousands | Oct. 31, 2018 | Sep. 28, 2018 | Oct. 31, 2017 |
Debt Instrument [Line Items] | |||
Deferred Debt Issuance Costs | $ (4,300) | $ (3,100) | |
Net Carrying Value | 693,450 | 392,972 | |
Term Loan Payable due September 28, 2025 | |||
Debt Instrument [Line Items] | |||
Principal Balance | 700,000 | $ 699,100 | |
Unamortized Discount | (2,300) | (900) | |
Deferred Debt Issuance Costs | (4,250) | $ (1,900) | |
Net Carrying Value | $ 693,450 | $ 0 |
Short-Term and Long-Term Debt_4
Short-Term and Long-Term Debt - Carrying Value and Estimated Fair Value of Term Loan (Details) - Secured Debt - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Debt Instrument [Line Items] | ||
Net Carrying Amount | $ 693,450 | $ 392,972 |
Term Loan Payable due September 28, 2025 | ||
Debt Instrument [Line Items] | ||
Net Carrying Amount | 693,450 | $ 0 |
Fair Value | $ 702,625 |
Short-Term and Long-Term Debt_5
Short-Term and Long-Term Debt - Net Carrying Values of Convertible Debt (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 | Aug. 02, 2017 | Dec. 27, 2012 | Oct. 18, 2010 |
3.75% Convertible Senior Notes due October 15, 2018 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.75% | ||||
3.75% Convertible Senior Notes due October 15, 2018 (New) | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.75% | ||||
4.0% Convertible Senior Notes due December 15, 2020 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.00% | ||||
Convertible Notes Payable | |||||
Debt Instrument [Line Items] | |||||
Net carrying value | $ 0 | $ 543,009 | |||
Convertible Notes Payable | 3.75% Convertible Senior Notes due October 15, 2018 | |||||
Debt Instrument [Line Items] | |||||
Net carrying value | 0 | 61,071 | |||
Interest rate | 3.75% | ||||
Convertible Notes Payable | 3.75% Convertible Senior Notes due October 15, 2018 (New) | |||||
Debt Instrument [Line Items] | |||||
Net carrying value | 0 | 287,221 | |||
Interest rate | 3.75% | ||||
Convertible Notes Payable | 4.0% Convertible Senior Notes due December 15, 2020 | |||||
Debt Instrument [Line Items] | |||||
Net carrying value | $ 0 | $ 194,717 | |||
Interest rate | 4.00% |
ABL Credit Facility (Details)
ABL Credit Facility (Details) | Oct. 31, 2018USD ($) |
Letter of Credit | |
Line of Credit Facility [Line Items] | |
Letters of credit collateralized by the credit facility | $ 61,700,000 |
Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Current borrowing capacity | 250,000,000 |
Line of credit outstanding | $ 0 |
Earnings (Loss) Per Share Cal_3
Earnings (Loss) Per Share Calculation - Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Oct. 31, 2018 | Oct. 15, 2018 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Aug. 02, 2017 | Dec. 27, 2012 | Oct. 18, 2010 |
Numerator | ||||||||
Net income (loss) | $ (344,690) | $ 1,261,953 | $ 72,584 | |||||
Less: Loss on fair value of debt conversion liability | (12,894) | 0 | 0 | |||||
Net income (loss) used to calculate Diluted EPS | $ (357,584) | $ 1,278,721 | $ 77,385 | |||||
Denominator | ||||||||
Basic weighted average shares outstanding (in shares) | 143,738 | 141,997 | 138,312 | |||||
Shares underlying outstanding stock options, employee stock purchase plan and restricted stock units (in shares) | 0 | 1,354 | 1,311 | |||||
Diluted weighted average shares outstanding (in shares) | 143,738 | 169,919 | 150,704 | |||||
Earning Per Share [Abstract] | ||||||||
Basic EPS (in dollars per share) | $ (2.40) | $ 8.89 | $ 0.52 | |||||
Diluted EPS (in dollars per share) | (2.49) | $ 7.53 | $ 0.51 | |||||
Loss on fair value of debt conversion liability (in dollars per share | $ 0.09 | |||||||
3.75% Convertible Senior Notes due October 15, 2018 (New) | ||||||||
Denominator | ||||||||
Shares underlying Convertible Senior Notes due (in shares) | 0 | 404 | 0 | |||||
Earning Per Share [Abstract] | ||||||||
Interest rate on convertible notes | 3.75% | 3.75% | ||||||
0.875% Convertible Senior Notes due June 15, 2017 | ||||||||
Numerator | ||||||||
Interest expense associated with Convertible Senior Notes due | $ 0 | $ 853 | $ 4,801 | |||||
Denominator | ||||||||
Shares underlying Convertible Senior Notes due (in shares) | 0 | 3,032 | 11,081 | |||||
Earning Per Share [Abstract] | ||||||||
Interest rate on convertible notes | 0.875% | 0.875% | ||||||
3.75% Convertible Senior Notes due October 15, 2018 (Original) | ||||||||
Numerator | ||||||||
Interest expense associated with Convertible Senior Notes due | $ 0 | $ 7,224 | $ 0 | |||||
Denominator | ||||||||
Shares underlying Convertible Senior Notes due (in shares) | 0 | 13,934 | 0 | |||||
Earning Per Share [Abstract] | ||||||||
Interest rate on convertible notes | 3.75% | 3.75% | ||||||
4.0% Convertible Senior Notes due December 15, 2020 | ||||||||
Numerator | ||||||||
Interest expense associated with Convertible Senior Notes due | $ 0 | $ 8,691 | $ 0 | |||||
Denominator | ||||||||
Shares underlying Convertible Senior Notes due (in shares) | 0 | 9,198 | 0 | |||||
Earning Per Share [Abstract] | ||||||||
Interest rate on convertible notes | 4.00% | 4.00% | ||||||
Convertible Notes Payable | 3.75% Convertible Senior Notes due October 15, 2018 (New) | ||||||||
Earning Per Share [Abstract] | ||||||||
Interest rate on convertible notes | 3.75% | |||||||
Payments of convertible debt | $ 288,700 | |||||||
Convertible Notes Payable | 3.75% Convertible Senior Notes due October 15, 2018 (Original) | ||||||||
Earning Per Share [Abstract] | ||||||||
Interest rate on convertible notes | 3.75% | |||||||
Convertible Notes Payable | 4.0% Convertible Senior Notes due December 15, 2020 | ||||||||
Earning Per Share [Abstract] | ||||||||
Interest rate on convertible notes | 4.00% | |||||||
Payments of convertible debt | $ 13,500 |
Earnings (Loss) Per Share Cal_4
Earnings (Loss) Per Share Calculation (Details) - 3.75% Convertible Senior Notes due October 15, 2018 (New) - shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Interest rate on convertible notes | 3.75% | ||
Shares underlying Convertible Senior Notes due (in shares) | 0 | 404 | 0 |
Earnings (Loss) Per Share Cal_5
Earnings (Loss) Per Share Calculation - Weighted Average Shares Excluded from Calculation of Denominator for Basic and Diluted EPS (Details) - shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total excluded due to anti-dilutive effect (in shares) | 16,021 | 958 | 28,435 |
3.75% Convertible Senior Notes due October 15, 2018 (New) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Interest rate on convertible notes | 3.75% | ||
3.75% Convertible Senior Notes due October 15, 2018 (Original) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Interest rate on convertible notes | 3.75% | ||
4.0% Convertible Senior Notes due December 15, 2020 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Interest rate on convertible notes | 4.00% | ||
Shares underlying stock options and restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total excluded due to anti-dilutive effect (in shares) | 2,235 | 958 | 1,882 |
Convertible Senior Notes | 3.75% Convertible Senior Notes due October 15, 2018 (New) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total excluded due to anti-dilutive effect (in shares) | 1,780 | 0 | 0 |
Convertible Senior Notes | 3.75% Convertible Senior Notes due October 15, 2018 (Original) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total excluded due to anti-dilutive effect (in shares) | 2,883 | 0 | 17,355 |
Convertible Senior Notes | 4.0% Convertible Senior Notes due December 15, 2020 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total excluded due to anti-dilutive effect (in shares) | 9,123 | 0 | 9,198 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2018 | Dec. 07, 2017 | |
Equity [Abstract] | ||
Stock repurchase program authorized amount | $ 300,000,000 | |
Shares repurchased for tax withholdings on vesting of restricted stock units | $ 4,757,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Repurchase Program (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Oct. 31, 2018USD ($)$ / sharesshares | |
Shares Repurchased | |
Beginning balance (in shares) | shares | 0 |
Repurchase of common stock under the stock repurchase program (in shares) | shares | 4,290,801 |
Ending balance (in shares) | shares | 4,290,801 |
Weighted-Average Price per Share | |
Beginning balance (in USD per share) | $ / shares | $ 0 |
Repurchase of common stock under the stock repurchase program (in USD per share) | $ / shares | 25.86 |
Ending balance (in USD per share) | $ / shares | $ 25.86 |
Amount Repurchased (in thousands) | |
Beginning balance | $ | $ 0 |
Repurchase of common stock under the stock repurchase program | $ | 110,981 |
Ending balance | $ | $ 110,981 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Current: | |||
Federal | $ 8,327 | $ 0 | $ 0 |
State | 8,219 | 6,342 | 5,281 |
Foreign | 13,294 | 14,563 | 9,969 |
Total current | 29,840 | 20,905 | 15,250 |
Deferred: | |||
Federal | 475,951 | (1,047,699) | 0 |
State | (8,202) | (77,429) | 0 |
Foreign | (4,118) | (1,604) | (1,116) |
Total deferred | 463,631 | (1,126,732) | (1,116) |
Provision (benefit) for income taxes | $ 493,471 | $ (1,105,827) | $ 14,134 |
Income Taxes - Income before Pr
Income Taxes - Income before Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Income (loss) before provision (benefit) for income taxes: | |||
United States | $ 106,972 | $ 114,242 | $ 58,237 |
Foreign | 41,809 | 41,884 | 28,481 |
Income before income taxes | $ 148,781 | $ 156,126 | $ 86,718 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Oct. 31, 2018 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Nov. 01, 2017 | Oct. 31, 2015 | |
Valuation Allowance [Line Items] | ||||||
Provision at statutory rate | 23.41% | 35.00% | 35.00% | |||
Income tax expense | $ 493,471 | $ (1,105,827) | $ 14,134 | |||
Transition tax related to the Tax Act | $ 10,500 | 34,600 | ||||
Remeasurement of net DTA related to the Tax Act | 438,200 | |||||
Net transition tax payable related to the Tax Act | 8,600 | 8,600 | ||||
Unrecognized tax benefits, interest and penalties accrued | 3,500 | 3,500 | 4,000 | |||
Interest and penalties expense | 1,100 | 600 | 1,200 | |||
Cumulative unremitted earnings of non-U.S. affiliates | 336,000 | 336,000 | ||||
Cumulative amount of temporary differences for unremitted foreign earnings for which a deferred tax liability has not been recognized | 23,000 | 23,000 | ||||
Valuation allowance | 142,650 | 142,650 | 185,898 | $ 1,489,780 | $ 1,495,672 | |
Operating loss carryforwards | 1,270,000 | 1,270,000 | ||||
Income tax credit carryforwards subject to expiration | $ 100,000 | $ 100,000 | ||||
Recognition of all excess tax benefits previously unrecognized | 62,123 | |||||
Retained Earnings | ||||||
Valuation Allowance [Line Items] | ||||||
Recognition of all excess tax benefits previously unrecognized | $ 61,291 | |||||
Retained Earnings | Accounting Standards Update 2016-09 | ||||||
Valuation Allowance [Line Items] | ||||||
Recognition of all excess tax benefits previously unrecognized | $ 62,100 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Income tax rate reconciliation: | |||
Provision at statutory rate | 23.41% | 35.00% | 35.00% |
Deferred tax assets remeasurement | 294.56% | 0.00% | 0.00% |
State taxes | (0.16%) | 2.29% | 4.00% |
Foreign taxes | 1.22% | (0.35%) | 3.11% |
Research and development credit | (8.80%) | (15.38%) | (22.61%) |
Non-deductible compensation | 3.39% | 3.45% | 5.16% |
Fair value of debt conversion liability | 1.90% | 0.00% | 0.00% |
Transition tax | 23.23% | 0.00% | 0.00% |
Valuation allowance | (11.95%) | (739.97%) | (7.33%) |
Other | 4.88% | 6.67% | (1.03%) |
Effective income tax rate | 331.68% | (708.29%) | 16.30% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 |
Deferred tax assets: | ||||
Reserves and accrued liabilities | $ 40,959 | $ 56,597 | ||
Depreciation and amortization | 353,838 | 451,385 | ||
NOL and credit carry forward | 483,495 | 803,622 | ||
Other | 9,397 | 29,398 | ||
Gross deferred tax assets | 887,689 | 1,341,002 | ||
Valuation allowance | (142,650) | (185,898) | $ (1,489,780) | $ (1,495,672) |
Deferred tax asset, net of valuation allowance | $ 745,039 | $ 1,155,104 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties | |||
Unrecognized tax benefits, beginning balance | $ 141,582 | $ 30,668 | $ 27,536 |
Increase related to positions taken in prior period | 122 | 2,187 | |
Increase related to positions taken in current period | 2,482 | 111,412 | 2,654 |
Decrease related to positions taken in prior period | (46,400) | ||
Reductions related to expiration of statute of limitations | (1,301) | (620) | (1,709) |
Unrecognized tax benefits, ending balance | $ 96,363 | $ 141,582 | $ 30,668 |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowance of Gross Deferred Tax Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Valuation allowance against gross deferred tax assets: | |||
Valuation allowance, beginning balance | $ 185,898 | $ 1,489,780 | $ 1,495,672 |
Additions | 23,720 | 0 | 0 |
Deductions | 66,968 | 1,303,882 | 5,892 |
Valuation allowance, ending balance | $ 142,650 | $ 185,898 | $ 1,489,780 |
Share-Based Compensation Expe_3
Share-Based Compensation Expense (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Oct. 31, 2018USD ($)period$ / sharesshares | Oct. 31, 2017USD ($)$ / sharesshares | Oct. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted during the period (in shares) | 0 | 0 | 0 |
Unrecognized share-based compensation | $ | $ 77.3 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of service-based awards (in years) | 4 years | ||
Intrinsic value of option exercised | $ | $ 2.2 | $ 3.1 | $ 5.7 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of restricted stock units vested and converted into common stock | $ | $ 54.3 | $ 49.5 | $ 50.3 |
Weighted average fair value of each restricted stock unit granted (per share) | $ / shares | $ 22.46 | $ 23.29 | $ 19.81 |
Nonvested award compensation cost not yet recognized, period for recognition | 1 year 5 months 12 days | ||
Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of service-based awards (in years) | 3 years | ||
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of service-based awards (in years) | 4 years | ||
2017 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum expiration period of incentive awards (in years) | 10 years | ||
Number of shares authorized (in shares) | 8,900,000 | ||
Remaining authorized shares available for issuance (in shares) | 7,200,000 | ||
2017 Omnibus Incentive Plan | Employee Stock Options and Stock Appreciation Rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum expiration period of incentive awards (in years) | 10 years | ||
Minimum exercise price, percentage of fair market value on grant date (as a percent) | 100.00% | ||
2017 Omnibus Incentive Plan | Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of service-based awards (in years) | 1 year | ||
Employee Stock Purchase Plan | Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining authorized shares available for issuance (in shares) | 4,900,000 | ||
Offer period for ESPP (in years) | 12 months | ||
Number of purchase periods in offer period | period | 2 | ||
Purchase period | 6 months | ||
ESPP discount percentage purchase date | 85.00% | ||
Maximum number of shares increase under ESPP (in shares) | 600,000 | ||
Shares issued under ESPP (in shares) | 1,100,000 | 1,000,000 | 1,100,000 |
Employee Stock Purchase Plan | Employee Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 8,200,000 |
Share-Based Compensation Expe_4
Share-Based Compensation Expense - Summary of Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Shares Underlying Options Outstanding | |||
Beginning Balance (in shares) | 875,000 | ||
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (179,000) | ||
Canceled (in shares) | (420,000) | ||
Ending Balance (in shares) | 276,000 | 875,000 | |
Weighted Average Exercise Price | |||
Beginning Balance (in dollars per share) | $ 30.19 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 12.75 | ||
Canceled (in dollars per share) | 35.46 | ||
Ending Balance (in dollars per share) | $ 33.52 | $ 30.19 |
Share-Based Compensation Expe_5
Share-Based Compensation Expense - Stock Options Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Summarizes information with respect to stock options outstanding | ||
Weighted average exercise price, (in dollars per share) | $ 33.52 | $ 30.19 |
$5.34 to $11.16 | ||
Summarizes information with respect to stock options outstanding | ||
Range of exercise price, lower (in dollars per share) | 5.34 | |
Range of exercise price, upper (in dollars per share) | $ 11.16 | |
Number of underlying shares (in shares) | 14 | |
Weighted average remaining contractual life (in years) | 1 year 3 months 22 days | |
Weighted average exercise price, (in dollars per share) | $ 8.30 | |
Aggregate intrinsic value | $ 323 | |
Number of underlying shares, vested options (in shares) | 14 | |
Weighted average remaining contractual life, vested options (Years) | 1 year 3 months 22 days | |
Weighted average exercise price, vested options (per share) | $ 8.30 | |
Aggregate intrinsic value, vested options | $ 323 | |
$11.34 to $16.79 | ||
Summarizes information with respect to stock options outstanding | ||
Range of exercise price, lower (in dollars per share) | $ 11.34 | |
Range of exercise price, upper (in dollars per share) | $ 16.79 | |
Number of underlying shares (in shares) | 64 | |
Weighted average remaining contractual life (in years) | 3 years 7 months 17 days | |
Weighted average exercise price, (in dollars per share) | $ 13.53 | |
Aggregate intrinsic value | $ 1,191 | |
Number of underlying shares, vested options (in shares) | 64 | |
Weighted average remaining contractual life, vested options (Years) | 3 years 7 months 13 days | |
Weighted average exercise price, vested options (per share) | $ 13.52 | |
Aggregate intrinsic value, vested options | $ 1,185 | |
$17.50 to $25.36 | ||
Summarizes information with respect to stock options outstanding | ||
Range of exercise price, lower (in dollars per share) | $ 17.50 | |
Range of exercise price, upper (in dollars per share) | $ 25.36 | |
Number of underlying shares (in shares) | 11 | |
Weighted average remaining contractual life (in years) | 5 years 7 months 6 days | |
Weighted average exercise price, (in dollars per share) | $ 18.44 | |
Aggregate intrinsic value | $ 156 | |
Number of underlying shares, vested options (in shares) | 11 | |
Weighted average remaining contractual life, vested options (Years) | 5 years 6 months 18 days | |
Weighted average exercise price, vested options (per share) | $ 18.21 | |
Aggregate intrinsic value, vested options | $ 151 | |
$32.06 to $37.10 | ||
Summarizes information with respect to stock options outstanding | ||
Range of exercise price, lower (in dollars per share) | $ 32.06 | |
Range of exercise price, upper (in dollars per share) | $ 37.10 | |
Number of underlying shares (in shares) | 54 | |
Weighted average remaining contractual life (in years) | 3 years 11 months 19 days | |
Weighted average exercise price, (in dollars per share) | $ 35.60 | |
Aggregate intrinsic value | $ 0 | |
Number of underlying shares, vested options (in shares) | 54 | |
Weighted average remaining contractual life, vested options (Years) | 3 years 11 months 19 days | |
Weighted average exercise price, vested options (per share) | $ 35.60 | |
Aggregate intrinsic value, vested options | $ 0 | |
$37.82 to $55.63 | ||
Summarizes information with respect to stock options outstanding | ||
Range of exercise price, lower (in dollars per share) | $ 37.82 | |
Range of exercise price, upper (in dollars per share) | $ 55.63 | |
Number of underlying shares (in shares) | 133 | |
Weighted average remaining contractual life (in years) | 4 years 7 months 2 days | |
Weighted average exercise price, (in dollars per share) | $ 46.29 | |
Aggregate intrinsic value | $ 0 | |
Number of underlying shares, vested options (in shares) | 132 | |
Weighted average remaining contractual life, vested options (Years) | 4 years 7 months 2 days | |
Weighted average exercise price, vested options (per share) | $ 46.29 | |
Aggregate intrinsic value, vested options | $ 0 | |
$5.34 to $55.63 | ||
Summarizes information with respect to stock options outstanding | ||
Range of exercise price, lower (in dollars per share) | $ 5.34 | |
Range of exercise price, upper (in dollars per share) | $ 55.63 | |
Number of underlying shares (in shares) | 276 | |
Weighted average remaining contractual life (in years) | 4 years 1 month 17 days | |
Weighted average exercise price, (in dollars per share) | $ 33.52 | |
Aggregate intrinsic value | $ 1,670 | |
Number of underlying shares, vested options (in shares) | 275 | |
Weighted average remaining contractual life, vested options (Years) | 4 years 1 month 13 days | |
Weighted average exercise price, vested options (per share) | $ 33.56 | |
Aggregate intrinsic value, vested options | $ 1,659 |
Share-Based Compensation Expe_6
Share-Based Compensation Expense - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Summary of Restricted Stock Unit Activity | ||
Restricted shares outstanding, Beginning balance (in shares) | 4,143 | |
Restricted stock units outstanding, granted (in shares) | 2,713 | |
Restricted stock units outstanding, vested (in shares) | (2,155) | |
Restricted stock units outstanding, canceled or forfeited (in shares) | (299) | |
Restricted shares outstanding, Ending balance (in shares) | 4,402 | |
Weighted average grant date fair value per share (in dollars per share) | $ 22.26 | $ 21.46 |
Aggregate fair value | $ 140,943 | $ 86,721 |
Share-Based Compensation Expe_7
Share-Based Compensation Expense - Components of Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Share-based compensation expense | |||
Share-based compensation expense capitalized in inventory, net | $ (101) | $ 77 | $ (7) |
Total share-based compensation | 52,972 | 48,360 | 51,993 |
Share-based compensation expense included in cost of goods sold | |||
Share-based compensation expense | |||
Share-based compensation expense included in operating expense | 5,600 | 5,159 | 4,936 |
Product cost of goods sold | |||
Share-based compensation expense | |||
Share-based compensation expense included in operating expense | 2,984 | 2,672 | 2,457 |
Service cost of goods sold | |||
Share-based compensation expense | |||
Share-based compensation expense included in operating expense | 2,616 | 2,487 | 2,479 |
Share-based compensation expense included in operating expense | |||
Share-based compensation expense | |||
Share-based compensation expense included in operating expense | 47,473 | 43,124 | 47,064 |
Research and development | |||
Share-based compensation expense | |||
Share-based compensation expense included in operating expense | 13,518 | 12,957 | 13,870 |
Sales and marketing | |||
Share-based compensation expense | |||
Share-based compensation expense included in operating expense | 14,246 | 12,846 | 15,138 |
General and administrative | |||
Share-based compensation expense | |||
Share-based compensation expense included in operating expense | 19,709 | 17,321 | 17,342 |
Acquisition and integration costs | |||
Share-based compensation expense | |||
Share-based compensation expense included in operating expense | $ 0 | $ 0 | $ 714 |
Segment and Entity Wide Discl_3
Segment and Entity Wide Disclosures (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 292,067 | $ 308,465 |
Net intangible | 148,225 | |
Maintenance spares inventory net non current | 45,679 | $ 46,872 |
Networking Platforms | ||
Segment Reporting Information [Line Items] | ||
Net intangible | 29,700 | |
Software and Software-Related Services | ||
Segment Reporting Information [Line Items] | ||
Net intangible | $ 118,500 |
Segment and Entity Wide Discl_4
Segment and Entity Wide Disclosures - Segment Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Revenue: | |||
Revenues | $ 3,094,286 | $ 2,801,687 | $ 2,600,573 |
Less: non-performance operating expenses | |||
Selling and marketing | 394,060 | 356,169 | 349,731 |
General and administrative | 160,133 | 142,604 | 132,828 |
Amortization of intangible assets | 15,737 | 33,029 | 61,508 |
Acquisition and integration costs | 5,111 | 0 | 4,613 |
Significant asset impairments and restructuring costs | 18,139 | 23,933 | 4,933 |
Add: other non-performance financial items | |||
Interest and other income (loss), net | (12,029) | 913 | (12,569) |
Interest expense | (55,249) | (55,852) | (56,656) |
Loss on extinguishment and modification of debt | (10,039) | 0 | 0 |
Provision (benefit) for income taxes | 493,471 | (1,105,827) | 14,134 |
Net income (loss) | (344,690) | 1,261,953 | 72,584 |
Operating Segments | |||
Revenue: | |||
Revenues | 3,094,286 | 2,801,687 | 2,600,573 |
Segment profit (loss) and the reconciliation to consolidated net income (loss) | |||
Gross profit | 823,126 | 770,457 | 709,782 |
Operating Segments | Networking Platforms | |||
Revenue: | |||
Revenues | 2,478,018 | 2,252,710 | 2,068,783 |
Segment profit (loss) and the reconciliation to consolidated net income (loss) | |||
Gross profit | 581,113 | 578,039 | 544,744 |
Operating Segments | Software and Software-Related Services | |||
Revenue: | |||
Revenues | 200,713 | 161,119 | 125,069 |
Segment profit (loss) and the reconciliation to consolidated net income (loss) | |||
Gross profit | 69,808 | 32,536 | 7,123 |
Operating Segments | Global Services | |||
Revenue: | |||
Revenues | 415,555 | 387,858 | 406,721 |
Segment profit (loss) and the reconciliation to consolidated net income (loss) | |||
Gross profit | 172,205 | 159,882 | 157,915 |
Operating Segments | Converged Packet Optical | Networking Platforms | |||
Revenue: | |||
Revenues | 2,194,519 | 1,939,621 | 1,815,921 |
Operating Segments | Packet Networking | Networking Platforms | |||
Revenue: | |||
Revenues | 283,499 | 313,089 | 252,862 |
Operating Segments | Platform Software and Services | Software and Software-Related Services | |||
Revenue: | |||
Revenues | 173,949 | 145,009 | 117,251 |
Operating Segments | Blue Planet Automation Software and Services | Software and Software-Related Services | |||
Revenue: | |||
Revenues | 26,764 | 16,110 | 7,818 |
Operating Segments | Maintenance Support and Training | Global Services | |||
Revenue: | |||
Revenues | 245,161 | 227,400 | 228,982 |
Operating Segments | Installation and Deployment | Global Services | |||
Revenue: | |||
Revenues | 128,829 | 117,524 | 130,916 |
Operating Segments | Consulting and Network Design | Global Services | |||
Revenue: | |||
Revenues | $ 41,565 | $ 42,934 | $ 46,823 |
Segment and Entity Wide Discl_5
Segment and Entity Wide Disclosures - Entity Wide Reporting (Details) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018USD ($)region | Oct. 31, 2017USD ($) | Oct. 31, 2016USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of geographic regions | region | 4 | ||
Ciena's geographic distribution of revenue | |||
Revenues | $ 3,094,286 | $ 2,801,687 | $ 2,600,573 |
Ciena's geographic distribution of equipment, furniture and fixtures | |||
Equipment, building, furniture and fixtures, net | 292,067 | 308,465 | |
North America | |||
Ciena's geographic distribution of revenue | |||
Revenues | 1,886,450 | 1,736,047 | 1,689,263 |
Canada | |||
Ciena's geographic distribution of equipment, furniture and fixtures | |||
Equipment, building, furniture and fixtures, net | 198,028 | 203,491 | |
UNITED STATES | |||
Ciena's geographic distribution of revenue | |||
Revenues | 1,770,000 | 1,630,000 | 1,580,000 |
Ciena's geographic distribution of equipment, furniture and fixtures | |||
Equipment, building, furniture and fixtures, net | 75,479 | 90,482 | |
EMEA | |||
Ciena's geographic distribution of revenue | |||
Revenues | 464,876 | 404,099 | 393,705 |
CALA | |||
Ciena's geographic distribution of revenue | |||
Revenues | 140,177 | 164,308 | 195,085 |
APAC | |||
Ciena's geographic distribution of revenue | |||
Revenues | 602,783 | 497,233 | $ 322,520 |
Other International | |||
Ciena's geographic distribution of equipment, furniture and fixtures | |||
Equipment, building, furniture and fixtures, net | $ 18,560 | $ 14,492 |
Segment and Entity Wide Discl_6
Segment and Entity Wide Disclosures - Customer Concentration (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Revenue, Major Customer [Line Items] | |||
Revenues | $ 3,094,286 | $ 2,801,687 | $ 2,600,573 |
Revenue | |||
Revenue, Major Customer [Line Items] | |||
Percent of revenue | 56.50% | 55.60% | 51.10% |
Customer Concentration Risk | Sales Revenue, Goods, Net | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 692,589 | $ 736,991 | $ 479,077 |
Customer Concentration Risk | Sales Revenue, Goods, Net | AT&T | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 374,576 | 448,943 | $ 479,077 |
Customer Concentration Risk | Sales Revenue, Goods, Net | Verizon | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 318,013 | $ 288,048 |
Other Employee Benefit Plans (D
Other Employee Benefit Plans (Details) | 12 Months Ended | |||||
Oct. 31, 2018USD ($) | Oct. 31, 2018CAD ($) | Oct. 31, 2017USD ($) | Oct. 31, 2017CAD ($) | Oct. 31, 2016USD ($) | Oct. 31, 2016CAD ($) | |
Schedule of Defined Contribution Pension And Other Postretirement Plans Disclosure [Line Items] | ||||||
Employer discretionary contribution amount | $ 0 | |||||
Defined Contribution Pension Plan Canada | ||||||
Schedule of Defined Contribution Pension And Other Postretirement Plans Disclosure [Line Items] | ||||||
Maximum total employee and employer contribution percentage | 18.00% | 18.00% | ||||
Maximum total employee and employer contribution amount | $ 34,364 | $ 26,230 | ||||
Required employer contribution percent | 1.00% | 1.00% | ||||
Employer matching percentage for eligible employee contribution | 50.00% | 50.00% | ||||
Maximum employer annual contribution amount per employee | $ 3,930 | $ 3,000 | ||||
Employer matching contributions | $ 6,700,000 | $ 5,100,000 | $ 6,200,000 | $ 4,700,000 | $ 5,900,000 | $ 4,500,000 |
Defined Contribution Profit Sharing Plan | ||||||
Schedule of Defined Contribution Pension And Other Postretirement Plans Disclosure [Line Items] | ||||||
Employer matching percentage for eligible employee contribution | 50.00% | 50.00% | ||||
Employer matching contributions | $ 5,800,000 | $ 5,700,000 | $ 5,400,000 | |||
Maximum employee contribution percentage of pre-tax compensation | 60.00% | 60.00% | ||||
Percentage of employee contribution with 50% employer matching contribution | 6.00% | 6.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands, $ in Thousands | 12 Months Ended | 41 Months Ended | |||||
Oct. 31, 2018USD ($)government_entity | Oct. 31, 2018CAD ($)government_entity | Oct. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2022CAD ($) | Oct. 31, 2018CAD ($) | |
Canadian Grant | |||||||
Maximum amount of Canadian grant | $ 45,000 | $ 57,600 | |||||
Number of Canadian government entities | government_entity | 3 | 3 | |||||
Revenues | $ 3,094,286 | $ 2,801,687 | $ 2,600,573 | ||||
Amount receivable from grant | 5,700 | $ 7,500 | |||||
Operating lease, rental expense | |||||||
Rental expense | 24,100 | 30,900 | 26,600 | ||||
Leases | |||||||
2,018 | 28,912 | ||||||
2,019 | 24,348 | ||||||
2,020 | 21,320 | ||||||
2,021 | 15,839 | ||||||
2,022 | 13,142 | ||||||
Thereafter | 47,047 | ||||||
Total leases | 150,608 | ||||||
Restructured facilities and unfavorable lease | |||||||
Operating lease, rental expense | |||||||
Rental expense | $ 1,900 | $ 2,700 | $ 800 | ||||
Revenue | |||||||
Canadian Grant | |||||||
Percent of revenue | 56.50% | 56.50% | 55.60% | 51.10% | |||
ASEAN | Customer Concentration Risk | Revenue | |||||||
Canadian Grant | |||||||
Percent of revenue | 1.50% | 1.50% | |||||
Grant | |||||||
Canadian Grant | |||||||
Revenues | $ 12,900 | $ 16,600 | |||||
Scenario, Forecast | Grant | |||||||
Canadian Grant | |||||||
Revenues | $ 2,300 | $ 2,950 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Millions | Nov. 15, 2018 | Oct. 15, 2018 | Dec. 13, 2018 | Oct. 31, 2018 | Aug. 30, 2018 | Dec. 07, 2017 | Aug. 02, 2017 |
Subsequent Event [Line Items] | |||||||
Stock repurchase program authorized amount | $ 300,000,000 | ||||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Stock repurchase program authorized amount | $ 500,000,000 | ||||||
3.75% Convertible Senior Notes due October 15, 2018 (New) | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate | 3.75% | ||||||
Convertible Notes Payable | 3.75% Convertible Senior Notes due October 15, 2018 (New) | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate | 3.75% | ||||||
Maximum cash settlement of convertible debt | $ 400,000,000 | $ 400,000,000 | |||||
Payments of convertible debt | $ 288,700,000 | ||||||
Convertible Notes Payable | 3.75% Convertible Senior Notes due October 15, 2018 (New) | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Initial conversion price per share equivalent (in dollars per share) | $ 20.17 | ||||||
Cash paid in excess of aggregate principal amount | $ 111,300,000 | ||||||
Shares paid in excess of aggregate principal amount | $ 52,900,000 | ||||||
Shares paid in excess of aggregate principal amount (in shares) | 1.6 |