0000936395-19-000040 | 10-Q | XBRL Viewer

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Cover Page - shares	9 Months Ended
Cover Page - shares	Jul. 31, 2019	Sep. 06, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2019
Document Transition Report	false
Entity File Number	001-36250
Entity Registrant Name	Ciena Corp
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-2725311
Entity Address, Address Line One	7035 Ridge Road
Entity Address, City or Town	Hanover
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	21076
City Area Code	410
Local Phone Number	694-5700
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	CIEN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		154,696,211
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Central Index Key	0000936395
Current Fiscal Year End Date	--10-31

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Revenue:
Total revenue	$ 960,606	$ 818,817	$ 2,604,144	$ 2,194,930
Cost of goods sold:
Total cost of goods sold	536,254	467,274	1,481,774	1,278,315
Gross profit	424,352	351,543	1,122,370	916,615
Operating expenses:
Research and development	139,880	121,133	406,482	356,581
Selling and marketing	104,230	95,395	305,845	281,269
General and administrative	42,695	38,212	124,092	115,594
Amortization of intangible assets	5,529	3,837	16,586	11,083
Significant asset impairments and restructuring costs	5,355	6,359	11,696	16,679
Acquisition and integration costs	1,362	1,333	4,105	1,333
Total operating expenses	299,051	266,269	868,806	782,539
Income from operations	125,301	85,274	253,564	134,076
Interest and other income (loss), net	1,050	(1,543)	5,059	1,328
Interest expense	(9,404)	(13,611)	(28,316)	(40,376)
Income before income taxes	116,947	70,120	230,307	95,028
Provision for income taxes	30,198	19,280	57,204	503,695
Net income (loss)	$ 86,749	$ 50,840	$ 173,103	$ (408,667)
Basic net income (loss) per common share (in dollars per share)	$ 0.56	$ 0.35	$ 1.11	$ (2.84)
Diluted net income (loss) per potential common share (in dollars per share)	$ 0.55	$ 0.34	$ 1.10	$ (2.84)
Weighted average basic common shares outstanding (in shares)	155,488	143,400	156,013	143,766
Weighted average dilutive potential common shares outstanding (in shares)	157,455	159,998	157,949	143,766
Products
Revenue:
Total revenue	$ 810,588	$ 691,758	$ 2,163,808	$ 1,821,593
Cost of goods sold:
Total cost of goods sold	454,921	399,886	1,246,413	1,085,574
Services
Revenue:
Total revenue	150,018	127,059	440,336	373,337
Cost of goods sold:
Total cost of goods sold	$ 81,333	$ 67,388	$ 235,361	$ 192,741

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Net income (loss)	$ 86,749	$ 50,840	$ 173,103	$ (408,667)
Change in unrealized gain (loss) on available-for-sale securities, net of tax	168	279	581	(59)
Change in cumulative translation adjustments	1,943	(3,230)	(1,903)	(2,161)
Other comprehensive income (loss)	(4,558)	(3,633)	(17,984)	2,312
Total comprehensive income (loss)	82,191	47,207	155,119	(406,355)
Change in unrealized gain (loss) on foreign currency forward contracts, net of tax
Change in unrealized gain (loss) on foreign currency forward contracts and forward starting interest rate swaps, net of tax	2,047	(1,032)	2,751	(1,067)
Change in unrealized gain (loss) on forward starting interest rate swap, net of tax
Change in unrealized gain (loss) on foreign currency forward contracts and forward starting interest rate swaps, net of tax	$ (8,716)	$ 350	$ (19,413)	$ 5,599

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2019	Oct. 31, 2018
Current assets:
Cash and cash equivalents	$ 723,229	$ 745,423
Short-term investments	119,670	148,981
Accounts receivable, net of allowance for doubtful accounts of $16.3 million and $17.4 million as of July 31, 2019 and October 31, 2018, respectively.	798,884	786,502
Inventories	356,818	262,751
Prepaid expenses and other	292,631	198,945
Total current assets	2,291,232	2,142,602
Long-term investments	0	58,970
Equipment, building, furniture and fixtures, net	280,630	292,067
Goodwill	297,884	297,968
Other intangible assets, net	121,270	148,225
Deferred tax asset, net	700,206	745,039
Other long-term assets	84,486	71,652
Total assets	3,775,708	3,756,523
Current liabilities:
Accounts payable	356,716	340,582
Accrued liabilities and other short-term obligations	325,137	340,075
Deferred revenue	102,182	111,134
Current portion of long-term debt	7,000	7,000
Debt conversion liability	0	164,212
Total current liabilities	791,035	963,003
Long-term deferred revenue	42,848	58,323
Other long-term obligations	140,523	119,413
Long-term debt, net	681,918	686,450
Total liabilities	1,656,324	1,827,189
Commitments and contingencies (Note 20)
Stockholders’ equity:
Preferred stock – par value $0.01; 20,000,000 shares authorized; zero shares issued and outstanding	0	0
Common stock – par value $0.01; 290,000,000 shares authorized; 155,113,012 and 154,318,531 shares issued and outstanding	1,551	1,543
Additional paid-in capital	6,866,341	6,881,223
Accumulated other comprehensive loss	(23,764)	(5,780)
Accumulated deficit	(4,724,744)	(4,947,652)
Total stockholders’ equity	2,119,384	1,929,334
Total liabilities and stockholders’ equity	$ 3,775,708	$ 3,756,523

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jul. 31, 2019	Oct. 31, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 16.3	$ 17.4
Stockholders’ equity:
Preferred stock par value per share (in dollars per share)	$ 0.1	$ 0.01
Preferred stock shares authorized (in shares)	20,000,000	20,000,000
Preferred stock shares issued (in shares)	0	0
Preferred stock shares outstanding (in shares)	0	0
Common stock par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	290,000,000	290,000,000
Common stock shares issued (in shares)	155,113,012	154,318,531
Common stock shares outstanding (in shares)	155,113,012	154,318,531

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Cash flows provided by operating activities:
Net income (loss)	$ 173,103	$ (408,667)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements	65,071	63,104
Share-based compensation costs	44,446	38,896
Amortization of intangible assets	26,610	18,196
Deferred taxes	35,949	491,863
Provision for inventory excess and obsolescence	18,833	19,942
Provision for warranty	15,933	15,715
Other	743	18,164
Changes in assets and liabilities:
Accounts receivable	(2,517)	(112,696)
Inventories	(115,427)	17,751
Prepaid expenses and other	(85,039)	(11,163)
Accounts payable, accruals and other obligations	(9,005)	14,840
Deferred revenue	4,427	(4,710)
Net cash provided by operating activities	173,127	161,235
Cash flows provided by (used in) investing activities:
Payments for equipment, furniture, fixtures and intellectual property	(49,063)	(50,386)
Purchase of available for sale securities	(127,601)	(217,715)
Proceeds from maturities of available for sale securities	120,000	290,000
Proceeds from sales of available for sale securities	98,263	0
Settlement of foreign currency forward contracts, net	(3,155)	4,759
Acquisition of business, net of cash acquired	0	(40,412)
Purchase of equity investment	(2,667)	(1,433)
Net cash provided by (used in) investing activities	35,777	(15,187)
Cash flows used in financing activities:
Payment of long-term debt	(5,250)	(3,000)
Payment of capital lease obligations	(2,599)	(2,811)
Payment for debt conversion liability	(111,268)	0
Shares repurchased for tax withholdings on vesting of stock unit awards	(23,234)	0
Repurchases of common stock - repurchase program	(110,484)	(73,512)
Proceeds from issuance of common stock	22,895	22,735
Net cash used in financing activities	(229,940)	(56,588)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	392	(3,759)
Net increase (decrease) in cash, cash equivalents and restricted cash	(20,644)	85,701
Cash, cash equivalents and restricted cash at beginning of period	745,434	640,513
Cash, cash equivalents and restricted cash at end of period	724,790	726,214
Supplemental disclosure of cash flow information
Cash paid during the period for interest	29,921	31,561
Cash paid during the period for income taxes, net	21,573	20,099
Non-cash investing activities
Purchase of equipment in accounts payable	4,328	5,677
Non-cash financing activities
Repurchase of common stock in accrued liabilities from repurchase program	1,441	1,275
Conversion of debt conversion liability into 1,585,140 shares of common stock	$ 52,944	$ 0

Condensed Consolidated Statements of Cash Flows (Parenthetical)	9 Months Ended
	Jul. 31, 2019 shares
Statement of Cash Flows [Abstract]
Conversion of debt conversion liability into 1,585,140 shares of common stock (in shares)	1,585,140

Condensed Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in-Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Oct. 31, 2017		143,043,227
Beginning balance at Oct. 31, 2017	$ 2,136,342	$ 1,430	$ 6,810,182	$ (11,017)	$ (4,664,253)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(408,667)				(408,667)
Other comprehensive income (loss)	2,312			2,312
Repurchase of common stock - repurchase program (in shares)		(3,028,118)
Repurchase of common stock - repurchase program	(74,787)	$ (30)	(74,757)
Issuance of shares from employee equity plans (in shares)		3,035,071
Issuance of shares from employee equity plans	22,735	$ 31	22,704
Share-based compensation expense	38,896		38,896
Ending balance (in shares) at Jul. 31, 2018		143,050,180
Ending balance at Jul. 31, 2018	$ 1,778,954	$ 1,431	6,797,857	(8,705)	(5,011,629)
Beginning balance (in shares) at Oct. 31, 2018	154,318,531	154,318,531
Beginning balance at Oct. 31, 2018	$ 1,929,334	$ 1,543	6,881,223	(5,780)	(4,947,652)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	173,103				173,103
Other comprehensive income (loss)	(17,984)			(17,984)
Repurchase of common stock - repurchase program (in shares)		(2,881,564)
Repurchase of common stock - repurchase program	(111,925)	$ (29)	(111,896)
Issuance of shares from employee equity plans (in shares)		2,717,534
Issuance of shares from employee equity plans	22,895	$ 27	22,868
Share-based compensation expense	44,446		44,446
Settlement of debt conversion liability (in shares)		1,585,140
Settlement of debt conversion liability	52,944	$ 16	52,928
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares)		(626,629)
Shares repurchased for tax withholdings on vesting of stock unit awards	$ (23,234)	$ (6)	(23,228)
Ending balance (in shares) at Jul. 31, 2019	155,113,012	155,113,012
Ending balance at Jul. 31, 2019	$ 2,119,384	$ 1,551	$ 6,866,341	$ (23,764)	$ (4,724,744)

Interim Financial Statements	9 Months Ended
Interim Financial Statements	Jul. 31, 2019
Quarterly Financial Data [Abstract]
Interim Financial Statements	INTERIM FINANCIAL STATEMENTS The interim financial statements included herein for Ciena Corporation and its wholly owned subsidiaries (“Ciena”) have been prepared by Ciena, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). In the opinion of management, the financial statements included in this report reflect all normal recurring adjustments that Ciena considers necessary for the fair statement of the results of operations of Ciena for the interim periods covered and of the financial position of Ciena at the date of the interim balance sheets. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The Condensed Consolidated Balance Sheet as of October 31, 2018 was derived from audited financial statements, but does not include all disclosures required by GAAP. However, Ciena believes that the disclosures are adequate to understand the information presented herein. The operating results for interim periods are not necessarily indicative of the operating results for the entire year. These financial statements should be read in conjunction with Ciena’s audited consolidated financial statements and the notes thereto included in Ciena’s annual report on Form 10-K for the fiscal year ended October 31, 2018. Ciena has a 52 or 53-week fiscal year, with quarters ending on the Saturday nearest to the last day of January, April, July and October, respectively, of each year. Fiscal 2019 is a 52-week fiscal year. Fiscal 2018 was a 53-week fiscal year with the additional week occurring in the fourth quarter. For purposes of financial statement presentation, each fiscal year is described as having ended on October 31, and the fiscal quarters are described as having ended on January 31, April 30 and July 31 of each fiscal year.

Significant Accounting Policies

9 Months Ended

Jul. 31, 2019

Accounting Policies [Abstract]

Significant Accounting Policies

SIGNIFICANT ACCOUNTING POLICIES

Except for the changes in certain policies described below, there have been no material changes to Ciena’s significant accounting policies, compared to the accounting policies described in Note 1, Ciena Corporation and Significant Accounting Policies and Estimates, in Notes to Consolidated Financial Statements in Item 8 of Part II of Ciena’s annual report on Form 10-K for the fiscal year ended October 31, 2018.

Newly Issued Accounting Standards - Effective

Revenue Recognition

In May 2014, the Financial Accounting Standards Board (“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 standards on revenue recognition and eliminates industry-specific guidance. The underlying principle of ASC 606 is to recognize revenue when a customer obtains control of the promised products or services at an amount that reflects the consideration that is expected to be received in exchange for those products or services. ASC 606 also requires additional disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows related to contracts with customers.

ASC 606 allows two methods of adoption: (i) retrospectively to each prior period presented (“full retrospective method”), or (ii) retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption (“modified retrospective method”). Effective upon the start of its first quarter of fiscal 2019, Ciena adopted ASC 606 using the modified retrospective method and accordingly recognized the cumulative effect in accumulated deficit for those contracts that were not completed as of October 31, 2018. Accordingly, results for the reporting periods after October 31, 2018 are presented under ASC 606, while prior periods have not been adjusted and continue to be reported in accordance with Ciena’s historical revenue recognition practices. Refer to Opening Balance Adjustments below for the impact of ASC 606 adoption on Ciena’s Condensed Consolidated Financial Statements. In connection with its adoption of ASC 606, Ciena has implemented new accounting policies and processes, and incorporated such into its existing internal control environment as necessary to support the requirements of ASC 606.

Revenue Recognition Timing Differences

The adoption of ASC 606 requires Ciena to recognize revenue when the customer obtains control of promised products or services in an amount that reflects the consideration that Ciena would expect to receive in exchange for those products or services. Under the prior revenue standard, the timing of revenue recognition for delivered products or services was limited to

such amount not contingent upon future delivery of products or service or future performance obligations, or subject to customer-specified return or privileges. In the case of multiple element software arrangements for which vendor-specific objective evidence (“VSOE”) of undelivered maintenance did not exist, under the prior revenue standard, Ciena recognized revenue for the entire arrangement over the maintenance term. The adoption of ASC 606 requires Ciena to determine the stand-alone selling price for each of the software and software-related deliverables of such multiple element arrangements at contract inception. Consequently, under ASC 606, certain software deliverables will be recognized at a point in time rather than over a period of time. In addition, under ASC 606, 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.

Revenue Recognition Policy Under ASC 606

Ciena recognizes revenue when control of the promised products or services is transferred to its customer, in an amount that reflects the consideration to which Ciena expects to be entitled in exchange for those products or services.

Ciena determines revenue recognition by applying the following five-step approach:

•identification of the contract, or contracts, with a customer;

•identification of the performance obligations in the contract;

•determination of the transaction price;

•allocation of the transaction price to the performance obligations in the contract; and

•recognition of revenue when, or as, Ciena satisfies a performance obligation.

Generally, Ciena makes sales pursuant to purchase orders placed by customers under framework agreements that govern the general commercial terms and conditions of the sale of Ciena’s products and services. These purchase orders under framework agreements are used to determine the identification of the contract or contracts with this customer. Purchase orders typically include the description, quantity, and price of each product or service purchased. Purchase orders may include one-line bundled pricing for both products and services. Accordingly, purchase orders can include various combinations of products and services that are generally distinct and accounted for as separate performance obligations. Ciena evaluates each promised product and service offering to determine whether it represents a distinct performance obligation. In doing so, Ciena considers, among other things, customary business practices, whether the customer can benefit from the product or service on its own or together with other resources that are readily available, and whether Ciena’s commitment to transfer the product or service to the customer is separately identifiable from other obligations in the purchase order. For transactions where Ciena delivers the product or services, Ciena is typically the principal and records revenue and costs of goods sold on a gross basis.

Purchase orders are invoiced based upon the terms set forth either in the purchase order or the framework agreement, as applicable. Generally, sales of products and software licenses are invoiced upon shipment or delivery. Maintenance and software subscription services are invoiced quarterly or annually in advance of the service term. Ciena’s other service offerings are generally invoiced upon completion of the service. Payment terms and cash received typically range from 30 to 90 days from the invoicing date. Historically, Ciena has not provided any material financing arrangements to its customers. As a practical expedient, Ciena does not adjust the amount of consideration it will receive for the effects of a significant financing component as it expects, at contract inception, that the period between Ciena transfer of the products or services to the customer, and customer payment for the products or services will be one year or less. Shipping and handling fees invoiced to customers are included in revenue, with the associated expense included in product cost of goods sold. Ciena records revenue net of any associated sales taxes.

Ciena recognizes revenue upon the transfer of control of promised products or services to a customer. Transfer of control occurs once the customer has the contractual right to use the product, generally upon shipment or delivery to the customer. Transfer of control can also occur over time for services such as software subscription, maintenance, installation, and various professional services as the customer receives the benefit over the contract term.

Significant Judgments

Revenue is allocated among performance obligations based on standalone selling price (“SSP”). SSP reflects the price at which Ciena would expect to sell that product or service on a stand-alone basis at contract inception and that Ciena would expect to be entitled to receive for the promised products or services. SSP is estimated for each distinct performance obligation, and judgment may be required in its determination. The best evidence of SSP is the observable price of a product or service when Ciena sells the products separately in similar circumstances and to similar customers. In instances where SSP is not directly observable, Ciena determines SSP using information that may include market conditions and other observable inputs.

Ciena applies judgment in determining the transaction price, as Ciena may be required to estimate variable consideration when determining the amount of revenue to recognize. Variable consideration can include various rebate, cooperative marketing, and other incentive programs that Ciena offers to its distributors, partners and customers. When determining the amount of revenue to recognize, Ciena estimates the expected usage of these programs, applying the expected value or most likely estimate and updates the estimate at each reporting period as actual utilization data becomes available. Ciena also considers any customer right of return and any actual or potential payment of liquidated damages, contractual or similar penalties, or other claims for performance failures or delays in determining the transaction price, where applicable.

When transfer of control is judged to be over time for installation and professional service arrangements, Ciena applies the input method to determine the amount of revenue to be recognized in a given period. Utilizing the input method, Ciena recognizes revenue based on the ratio of actual costs incurred to date to the total estimated costs expected to be incurred. Revenue for software subscription and maintenance is recognized ratably over the period during which the services are performed.

Capitalized Contract Acquisition Costs

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 considers each customer purchase in combination with the corresponding framework agreement, if applicable, as a contract. Ciena has elected to implement the practical expedient, which allows for incremental costs to be recognized as an expense when incurred if the period of the asset recognition is one year or less. If the period of the asset recognition is greater than one year, Ciena amortizes these costs over the period of performance. Ciena considers sales commissions incurred upon receipt of purchase orders placed by customers as incremental costs to obtain such purchase orders. The practical expedient method is applied to the purchase order as a whole and thus the capitalized costs of obtaining a purchase order is applied even if the purchase order contains more than one performance obligation. In cases where a purchase order includes various distinct products or services with both short-term (one year or less) and long-term (more than a year) performance periods, the cost of commissions incurred for the total value of the purchase order is capitalized and subsequently amortized as each performance obligation is recognized.

For the additional disclosures required as part of ASC 606, see Note 3 below.

Impact of ASC 606 Adoption

The following table summarizes the impact of adopting ASC 606 on Ciena’s Condensed Consolidated Statements of Operations (in millions):



	Quarter Ended July 31, 2019
	As Reported		Adjustments			Balances without adoption of ASC 606

Total revenue	$	960,606	$	(2,413	)	$	958,193
Total cost of goods sold	$	536,254	$	1,789		$	538,043
Net income	$	86,749	$	(3,879	)	$	82,870
Diluted net income per potential common share	$	0.55	$	(0.02	)	$	0.53



	Nine Months Ended July 31, 2019
	As Reported		Adjustments			Balances without adoption of ASC 606

Total revenue	$	2,604,144	$	(27,533	)	$	2,576,611
Total cost of goods sold	$	1,481,774	$	(20,776	)	$	1,460,998
Net income	$	173,103	$	(4,781	)	$	168,322
Diluted net income per potential common share	$	1.10	$	(0.03	)	$	1.07

For the third quarter and first nine months of fiscal 2019, the increase in revenue from adoption of ASC 606 was primarily the result of installation and deployment services revenue that was recognized over a period of time rather than at a point in time under the prior revenue recognition standard. The adoption of ASC 606 did not have a material impact to Ciena’s Condensed Consolidated Balance Sheets or any impact on net cash provided by operating activities as of July 31, 2019. See “Revenue Recognition Timing Differences” above. For additional information regarding ASC 606, see Note 3 below.

Opening Balance Adjustments

The following table summarizes the cumulative effect of the changes made to Ciena’s Condensed Consolidated Balance Sheets in connection with the adoption of ASC 606 (in millions):



	Balance at October 31, 2018			New Revenue Recognition Standard				Adjusted Balance at November 1, 2018
ASSETS:
Accounts receivable, net	$	786,502		$	12,509		⁽¹⁾	$	799,011
Inventories	$	262,751		(2,486		)	⁽²⁾	$	260,265
Prepaid expenses and other	$	198,945		21,470			⁽³⁾	$	220,415
Deferred tax asset, net	$	745,039		(14,439		)	⁽⁴⁾	$	730,600
Other long-term assets	$	71,652		3,998			⁽⁵⁾	$	75,650

Total assets	$	3,756,523		$	21,052			$	3,777,575

LIABILITIES AND STOCKHOLDERS’ EQUITY:
Deferred revenue	$	111,134		$	(14,403	)	⁽⁶⁾	$	96,731
Long-term deferred revenue	$	58,323		(14,350		)	⁽⁷⁾	$	43,973
Accumulated deficit	$	(4,947,652	)	49,805			⁽⁸⁾	$	(4,897,847	)

Total liabilities and stockholders’ equity	$	3,756,523		$	21,052			$	3,777,575


(1)	Unpaid accounts receivable and related deferred revenue related to rights and obligations in a contract are interdependent and therefore recorded net within Ciena’s balance sheet. This represents an increase of $12.5 million from the reversal of certain net unpaid accounts receivable and related deferred revenue.


(2)	Represents a decrease of $2.5 million in deferred costs of goods sold due to change in revenue recognition for certain product sales.

(3)

Represents increases of $27.5 million in unbilled accounts receivable for change in recognizing revenue for installation services, $3.9 million in unbilled accounts receivable from change in recognizing revenue for certain product sales and $9.6 million related to short-term capitalized acquisition costs (e.g., commissions) and a decrease of $19.5 million related to prepaid cost of installation services.


(4)	Represents a decrease of $14.4 million in deferred tax asset, net, related to the unrecognized income tax effects of the net adjustments from the new revenue recognition standard.


(5)	Represents an increase of $4.0 million related to long-term capitalized acquisition costs (e.g., commissions).

(6)

Represents decreases of $23.6 million in deferred revenue, primarily due to a change in revenue recognition for certain multiple-element software arrangements and $1.7 million in deferred revenue, primarily due to a change in revenue recognition for certain product sales, and increases of $2.7 million for a change in revenue recognition from certain maintenance services and $8.2 million from the reversal of balance sheet netting for certain unpaid invoices included in accounts receivable, net and deferred revenue.


(7)	Represents a decrease of $18.6 million in long-term deferred revenue, primarily due to a change in revenue recognition for certain multiple-element software arrangements and an increase of $4.3 million from the reversal of balance sheet netting for certain unpaid invoices included in accounts receivable, net and long-term deferred revenue.


(8)	Accumulated deficit impact from the adjustments noted above.

Intangibles

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.

Ciena adopted ASU 2018-15 during the first quarter of fiscal 2019. The application of this accounting standard did not have a material impact on Ciena's Condensed Consolidated Financial Statements.

Restricted Cash in Statement of Cash Flows

In November 2016, the FASB issued ASU 2016-18 (“ASU 2016-18”), Statement of Cash Flows (Topic 230): Restricted Cash, which broadens the classification and presentation of changes in restricted cash in the statement of cash flows. Ciena adopted ASU 2016-18 during the first quarter of fiscal 2019. The application of this accounting standard update did not have a material impact on Ciena’s Condensed Consolidated Statements of Cash Flows. Prior period information has been retrospectively adjusted due to the adoption of ASU 2016-18, Statement of Cash Flows, Restricted Cash at the beginning of the first quarter of fiscal 2019.

Newly Issued Accounting Standards - Not Yet Effective

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. 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 recognized as assets and liabilities on Ciena’s balance sheet. ASU 2016-02 is effective for Ciena beginning in the first quarter of fiscal 2020. Ciena is continuing to evaluate other possible impacts of the adoption of ASU 2016-02 on its Consolidated Financial Statements and disclosures.

In June 2016, the FASB issued ASU No. 2016-13 (“ASU 2016-13”), Financial Instruments - Credit Losses, which requires measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. ASU 2016-13 is effective for Ciena beginning in the first quarter of fiscal 2021 and early adoption is permitted. Ciena is currently evaluating the impact of this accounting standard update 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 and early adoption is permitted. Ciena is currently evaluating this guidance to determine the impact on its disclosures.

Revenue

9 Months Ended

Jul. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

Disaggregation of Revenue

Ciena’s disaggregated revenue represents similar groups that depict the nature, amount, and timing of revenue and cash flows for Ciena’s various offerings. The sales cycle, contractual obligations, customer requirements, and go-to-market strategies may differ for each of its product categories, resulting in different economic risk profiles for each category.

The tables below (in thousands) set forth Ciena’s disaggregated revenue for the respective period:



	Quarter Ended July 31, 2019
	Networking Platforms		Software and Software-Related Services		Global Services		Total
Product lines:
Converged Packet Optical	$	724,245	$	—	$	—	$	724,245
Packet Networking	71,823		—		—		71,823
Platform Software and Services	—		37,312		—		37,312
Blue Planet Automation Software and Services	—		10,530		—		10,530
Maintenance Support and Training	—		—		65,936		65,936
Installation and Deployment	—		—		39,802		39,802
Consulting and Network Design	—		—		10,958		10,958
Total revenue by product line	$	796,068	$	47,842	$	116,696	$	960,606

Timing of revenue recognition:
Products and services at a point in time	$	796,068	$	14,598	$	4,804	$	815,470
Services transferred over time	—		33,244		111,892		145,136
Total revenue by timing of revenue recognition	$	796,068	$	47,842	$	116,696	$	960,606



	Nine Months Ended July 31, 2019
	Networking Platforms		Software and Software-Related Services		Global Services		Total
Product lines:
Converged Packet Optical	$	1,897,080	$	—	$	—	$	1,897,080
Packet Networking	216,529		—		—		216,529
Platform Software and Services	—		114,139		—		114,139
Blue Planet Automation Software and Services	—		37,977		—		37,977
Maintenance Support and Training	—		—		196,002		196,002
Installation and Deployment	—		—		111,746		111,746
Consulting and Network Design	—		—		30,671		30,671
Total revenue by product line	$	2,113,609	$	152,116	$	338,419	$	2,604,144

Timing of revenue recognition:
Products and services at a point in time	$	2,113,609	$	51,017	$	13,945	$	2,178,571
Products and services transferred over time	—		101,099		324,474		425,573
Total revenue by timing of revenue recognition	$	2,113,609	$	152,116	$	338,419	$	2,604,144



	Quarter Ended July 31, 2019		Nine Months Ended July 31, 2019
Geographic distribution:
North America	$	617,000	$	1,678,599
EMEA	169,532		413,715
CALA	39,261		109,635
APAC	134,813		402,195
Total revenue by geographic distribution	$	960,606	$	2,604,144


•	Networking Platforms reflects sales of Ciena’s Converged Packet Optical and Packet Networking product lines.


•	Converged Packet Optical - includes the 6500 Packet-Optical Platform, 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.

•

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 Condensed Consolidated Statements of Operations. Ciena’s hardware with the embedded operating system software and enhanced software features are considered distinct performance obligations for which the revenue is generally recognized upfront at a point in time upon transfer of control.

•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 networks 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, LLC (“Packet Design”). Ciena acquired the inventory management software solution as a part of its acquisition of DonRiver Holdings, LLC (“DonRiver”). Services revenue includes sales of subscription, installation, support, consulting and design services related to Ciena’s Blue Planet Automation Platform.

•

Ciena’s Platform Software and Services provides analytics, data, and planning tools to assist customers in managing Ciena’s Networking Platforms products in their networks. Ciena’s platform software includes its Manage, Control and Plan (MCP) domain controller solution, 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. Platform software-related services revenue includes sales of subscription, installation, support, and consulting services related to Ciena’s software platforms, operating system software and enhanced software features embedded in each of the Networking Platforms product lines above.

Revenue from the software portions of this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Revenue from services portions of this segment is included in services revenue on the Condensed Consolidated Statements of Operations.

Ciena’s software platform revenue typically reflects either perpetual or term-based software licenses, and these sales are considered a distinct performance obligation where revenue is generally recognized upfront at a point in time upon transfer of control. Revenue from software subscription and support are recognized ratably over the period during which the services are performed. Revenue from professional services for solution customization, software and solution support services, consulting and design, and build-operate-transfer services relating to Ciena’s software offerings are recognized over time with Ciena applying the input method to determine the amount of revenue to be recognized in a given period.


•	Global Services reflects sales of a broad range of Ciena’s services for maintenance support and training, installation and deployment, and consulting and network design activities. Revenue from this segment is included in services revenue on the Condensed Consolidated Statements of Operations.

Ciena’s Global Services are considered a distinct performance obligation where revenue is generally recognized over time. Revenue from maintenance support is recognized ratably over the period during which the services are performed. Revenue from installation and deployment services and consulting and network design services are recognized over time with Ciena applying the input method to determine the amount of revenue to be recognized in a given period. Revenue from training services is generally recognized at a point in time upon completion of the service.

Contract Balances

The following table provides information about receivables, contract assets and contract liabilities (deferred revenue) from contracts with customers (in thousands):



	Balance at July 31, 2019		Adjusted Balance at November 1, 2018
Accounts receivable, net	$	798,884	$	799,011
Contract assets	$	74,348	$	31,380
Deferred revenue	$	145,030	$	140,704

Our contract assets represent unbilled accounts receivable where transfer of a product or service has occurred but invoicing is conditional upon completion of future performance obligations. These amounts are primarily related to installation and deployment and professional services arrangements where transfer of control has occurred but Ciena has not yet invoiced the customer.

Contract liabilities consist of deferred revenue and represent advanced payments against non-cancelable customer orders received prior to revenue recognition. Ciena recognized approximately $77.4 million of revenue during the first nine months of fiscal 2019 that was included in the deferred revenue balance at November 1, 2018. Revenue recognized due to changes in transaction price from performance obligations satisfied or partially satisfied in previous periods was immaterial during the nine months ended July 31, 2019.

Capitalized Contract Acquisition Costs

Capitalized contract acquisition costs consist of deferred sales commissions and were $13.2 million and $13.6 million as of July 31, 2019 and November 1, 2018, respectively, and were included in other current assets and other assets. The amortization expense associated with these costs was $12.5 million during the first nine months of fiscal 2019 and was included in sales and marketing expense.

Remaining Performance Obligations

Remaining Performance Obligations (RPO) are comprised of non-cancelable customer purchase orders for products and services that are awaiting transfer of control for revenue recognition under the applicable contract terms. As of July 31, 2019, the aggregate amount of RPO was $1.15 billion. As of July 31, 2019, Ciena expects approximately 83% of the RPO to be recognized as revenue within the next twelve months.

Business Combinations (Notes)

9 Months Ended

Jul. 31, 2019

Business Combinations [Abstract]

Business Combinations

BUSINESS COMBINATIONS

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, for approximately $41 million in cash. This transaction has been accounted for as the acquisition of a business.

During the third quarter of fiscal 2018, Ciena incurred approximately $1.3 million of acquisition-related costs associated with this transaction. These costs and expenses included 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 consideration	$	41,054

Customer relationships and contracts represent agreements with existing Packet Design customers and have an 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.

Pro forma disclosures have not been included due to immateriality.

Restructuring Costs

9 Months Ended

Jul. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring Costs

RESTRUCTURING COSTS

Ciena has undertaken a number of restructuring activities intended to reduce expense and to 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 nine months ended July 31, 2019 (in thousands):



	Workforce reduction				Consolidation of excess facilities				Total
Balance at October 31, 2018	$	2,108			$	1,739			$	3,847
Additional liability recorded	10,309			⁽¹⁾	1,387			⁽²⁾	11,696
Cash payments	(10,021		)		(1,631		)		(11,652		)
Balance at July 31, 2019	$	2,396			$	1,495			$	3,891
Current restructuring liabilities	$	2,396			$	348			$	2,744
Non-current restructuring liabilities	$	—			$	1,147			$	1,147


(1)	Reflects a global workforce reduction of approximately 225 employees during the nine months ended July 31, 2019 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes.


(2)	Reflects unfavorable lease commitments in connection with a portion of the facilities for certain locations in the United States and India where Ciena has vacated unused space.

The following table sets forth the restructuring activity and balance of the restructuring liability accounts for the nine months ended July 31, 2018 (in thousands):



	Workforce reduction				Consolidation of excess facilities				Total
Balance at October 31, 2017	$	1,291			$	1,648			$	2,939
Additional liability recorded	12,876			⁽¹⁾	3,803			⁽²⁾	16,679
Cash payments	(10,987		)		(3,084		)		(14,071		)
Balance at July 31, 2018	$	3,180			$	2,367			$	5,547
Current restructuring liabilities	$	3,180			$	1,076			$	4,256
Non-current restructuring liabilities	$	—			$	1,291			$	1,291


(1)	Reflects a global workforce reduction of approximately 230 employees during the nine months ended July 31, 2018 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes.

(2)

Reflects unfavorable lease commitments in connection with a portion of facilities located in Petaluma, California and Gurgaon, India.

Interest and Other Income (Loss), Net

9 Months Ended

Jul. 31, 2019

Other Income and Expenses [Abstract]

Interest and Other Income (Loss), Net

INTEREST AND OTHER INCOME (LOSS), NET

The components of interest and other income, net, are as follows (in thousands):



	Quarter Ended July 31,						Nine Months Ended July 31,
	2019			2018			2019			2018
Interest income	$	3,475		$	3,620		$	10,866		$	9,276
Gains (losses) on non-hedge designated foreign currency forward contracts	119			2,182			(757		)	4,351
Foreign currency exchange losses	(2,373		)	(6,879		)	(4,585		)	(11,670		)
Other	(171		)	(466		)	(465		)	(629		)
Interest and other income (loss), net	$	1,050		$	(1,543	)	$	5,059		$	1,328

Ciena Corporation, as the U.S. parent entity, uses the U.S. Dollar as its functional currency; however, some of its foreign branch offices and subsidiaries use local currencies as their functional currencies. Ciena recorded $4.6 million and $11.7 million in foreign currency exchange rate losses during the first nine months of fiscal 2019 and fiscal 2018, respectively, as a result of monetary assets and liabilities that were transacted in a currency other than the entity’s functional currency, and the remeasurement adjustments were recorded in interest and other income (loss), net on the Condensed Consolidated Statements of Operations. From time to time, Ciena uses foreign currency forwards to hedge this type of balance sheet exposure. These forwards are not designated as hedges for accounting purposes, and any net gain or loss associated with these derivatives is reported in interest and other income (loss), net on the Condensed Consolidated Statements of Operations. During the first nine months of fiscal 2019, Ciena recorded losses of $0.8 million from non-hedge designated foreign currency forward contracts. During the first nine months of fiscal 2018, Ciena recorded gains of $4.4 million from non-hedge designated foreign currency forward contracts.

Income Taxes	9 Months Ended
Income Taxes	Jul. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES On December 22, 2017, the Tax Cuts and Jobs Act (the "Tax Act") was enacted. The Tax Act significantly revised the U.S. corporate income tax laws by, among other things, lowering the statutory corporate income 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. The enactment of the Tax Act resulted in Ciena recording a provisional tax expense of $472.8 million in fiscal 2018. The effective tax rate for the third quarter and nine months ended July 31, 2019 was lower than the effective tax rate for the third quarter and nine months ended July 31, 2018, primarily due to the impact of the Tax Act. The reduction of the U.S. federal corporate income tax rate from 35% to 21% effective January 1, 2018, required the remeasurement of net deferred tax assets and liabilities (“DTA”). Ciena also recorded U.S. transition tax in the nine months ended July 31, 2018. As of July 31, 2019, Ciena continues to maintain a valuation allowance primarily related to state and foreign net operating losses and credits that Ciena estimates it will not be able to use. Ciena will continue to monitor its forecasts and results and may adjust the valuation allowance as conditions change.

Short-Term and Long-Term Investments

9 Months Ended

Jul. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Short-Term and Long-Term Investments

SHORT-TERM AND LONG-TERM INVESTMENTS

As of the dates indicated, investments are comprised of the following (in thousands):



	July 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. government obligations:
Included in short-term investments	$	119,490	$	180	$	—	$	119,670
	$	119,490	$	180	$	—	$	119,670



	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

The following table summarizes the final legal maturities of debt investments at July 31, 2019 (in thousands):



	Amortized Cost		Estimated Fair Value
Less than one year	$	119,490	$	119,670

Fair Value Measurements

9 Months Ended

Jul. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

As of the date indicated, the following table summarizes the assets and liabilities that are recorded at fair value on a recurring basis (in thousands):



	July 31, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	595,556	$	—	$	—	$	595,556
U.S. government obligations	—		119,670		—		119,670
Foreign currency forward contracts	—		882		—		882
Total assets measured at fair value	$	595,556	$	120,552	$	—	$	716,108

Liabilities:
Foreign currency forward contracts	$	—	$	1,029	$	—	$	1,029
Forward starting interest rate swap	—		20,963		—		20,963
Contingent consideration	—		—		10,900		10,900
Total liabilities measured at fair value	$	—	$	21,992	$	10,900	$	32,892



	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

As of the date indicated, the assets and liabilities above are presented on Ciena’s Condensed Consolidated Balance Sheets as follows (in thousands):



	July 31, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	595,556	$	—	$	—	$	595,556
Short-term investments	—		119,670		—		119,670
Prepaid expenses and other	—		882		—		882
Total assets measured at fair value	$	595,556	$	120,552	$	—	$	716,108

Liabilities:
Accrued liabilities	$	—	$	1,029	$	7,491	$	8,520
Other long-term obligations	—		20,963		3,409		24,372
Total liabilities measured at fair value	$	—	$	21,992	$	10,900	$	32,892



	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

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 both accrued liabilities and 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. The contingent consideration is valued by applying the income approach based upon a discounted cash flow technique using Monte Carlo simulations. As of July 31, 2019, there was no material change to the fair value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventories

9 Months Ended

Jul. 31, 2019

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

As of the dates indicated, inventories are comprised of the following (in thousands):



	July 31, 2019			October 31, 2018
Raw materials	$	102,240		$	67,468
Work-in-process	15,456			9,589
Finished goods	193,487			188,575
Deferred cost of goods sold	93,448			48,057
	404,631			313,689
Provision for excess and obsolescence	(47,813		)	(50,938		)
	$	356,818		$	262,751

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 the first nine months of fiscal 2019, Ciena recorded a provision for excess and obsolescence of $18.8 million, primarily related to a decrease in the forecasted demand for certain Networking Platforms products. Deductions from the provision for excess and obsolete inventory relate primarily to disposal activities.

Prepaid Expenses and Other

9 Months Ended

Jul. 31, 2019

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAID EXPENSES AND OTHER

As of the dates indicated, prepaid expenses and other are comprised of the following (in thousands):



	July 31, 2019		October 31, 2018
Prepaid VAT and other taxes	$	84,359	$	82,518
Contract assets for unbilled accounts receivable	74,348		—
Product demonstration equipment, net	39,977		37,623
Prepaid expenses	46,666		32,987
Other non-trade receivables	36,798		25,716
Capitalized commissions - short term	9,601		—
Financing receivable	—		626
Deferred deployment expense	—		19,342
Derivative assets	882		133
	$	292,631	$	198,945

Depreciation of product demonstration equipment was $6.5 million and $6.8 million during the first nine months of fiscal 2019 and 2018, respectively.

Accrued Liabilities and Other Short-Term Obligations

9 Months Ended

Jul. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Accrued Liabilities and Other Short-Term Obligations

ACCRUED LIABILITIES AND OTHER SHORT-TERM OBLIGATIONS

As of the dates indicated, accrued liabilities and other short-term obligations are comprised of the following (in thousands):



	July 31, 2019		October 31, 2018
Compensation, payroll related tax and benefits	$	125,651	$	140,277
Warranty	46,680		44,740
Vacation ⁽¹⁾	22,076		42,507
Contingent consideration	7,491		—
Capital lease obligations	2,798		3,547
Interest payable	1,062		1,072
Other	119,379		107,932
	$	325,137	$	340,075

⁽¹⁾ Reduction is primarily due to the payout of North America vacation accruals in conjunction with adoption of a new vacation policy.

The following table summarizes the activity in Ciena’s accrued warranty for the fiscal periods indicated (in thousands):



Nine Months Ended July 31,	Beginning Balance		Current Period Provisions	Settlements		Ending Balance
2018	$	42,456	15,715	(14,021	)	$	44,150
2019	$	44,740	15,933	(13,993	)	$	46,680

Settlement of Conversions of 3.75% Convertible Senior Notes due October 15, 2018 (“New Notes”)

Debt Conversion Liability Associated With the 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 fair value of $164.2 million. 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.

Derivative Instruments	9 Months Ended
Derivative Instruments	Jul. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	DERIVATIVE INSTRUMENTS Foreign Currency Derivatives As of July 31, 2019 and October 31, 2018, Ciena had forward contracts to hedge its foreign exchange exposure in order to reduce the variability in its Canadian Dollar- and Indian Rupee-denominated expense, which principally relates to research and development activities. The notional amount of these contracts was approximately $142.0 million and $163.2 million as of July 31, 2019 and October 31, 2018, respectively. These foreign exchange contracts have maturities of 24 months or less and have been designated as cash flow hedges. During the first nine months of fiscal 2019 and fiscal 2018, in order to hedge foreign exchange exposures of certain balance sheet items, Ciena entered into forward contracts to mitigate risk due to variability in various currencies. The notional amount of these contracts was approximately $193.3 million and $162.6 million as of July 31, 2019 and October 31, 2018, respectively. These foreign exchange contracts have maturities of 12 months or less and have not been designated as hedges for accounting purposes. Interest Rate Derivatives Ciena is exposed to floating rates of LIBOR interest on its term loan borrowings (see Note 15 below) and has hedged such risk by entering into floating to fixed interest rate swap arrangements (“interest rate swaps”). The interest rate swaps fix the LIBOR rate for $350.0 million of the 2025 Term Loan at 2.957% through September 2023. The total notional amount of interest rate swaps in effect was $350.0 million as of July 31, 2019 and October 31, 2018. Ciena expects the variable rate payments to be received under the terms of the interest rate swaps to offset exactly the forecasted variable rate payments on the equivalent notional amounts of the term loan. These derivative contracts have been designated as cash flow hedges. Other information regarding Ciena’s derivatives is immaterial for separate financial statement presentation. See Note 6 and Note 9 above.

Accumulated Other Comprehensive Income

9 Months Ended

Jul. 31, 2019

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income

ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table summarizes the changes in accumulated balances of other comprehensive income (“AOCI”), net of tax, for the nine months ended July 31, 2019:



	Unrealized			Unrealized Loss on			Unrealized Loss on			Cumulative
	Loss on Available-for-sale Securities			Foreign Currency Forward Contracts			Forward Starting Interest Rate Swaps			Foreign Currency Translation Adjustment			Total
Balance at October 31, 2018	$	(425	)	$	(3,060	)	$	6,417		$	(8,712	)	$	(5,780	)
Other comprehensive income (loss) before reclassifications	581			(349		)	(18,370		)	(1,903		)	(20,041		)
Amounts reclassified from AOCI	—			3,100			(1,043		)	—			2,057
Balance at July 31, 2019	$	156		$	(309	)	$	(12,996	)	$	(10,615	)	$	(23,764	)

The following table summarizes the changes in AOCI, net of tax, for the nine months ended July 31, 2018:



	Unrealized			Unrealized Loss on			Unrealized Gain on		Cumulative
	Loss on Available-for-sale Securities			Foreign Currency Forward Contracts			Forward Starting Interest Rate Swaps		Foreign Currency Translation Adjustment			Total
Balance at October 31, 2017	$	(451	)	$	(1,386	)	$	218	$	(9,398	)	$	(11,017	)
Other comprehensive income (loss) before reclassifications	(59		)	(9		)	5,330		(2,161		)	3,101
Amounts reclassified from AOCI	—			(1,058		)	269		—			(789		)
Balance at July 31, 2018	$	(510	)	$	(2,453	)	$	5,817	$	(11,559	)	$	(8,705	)

All amounts reclassified from AOCI related to settlement (gains) losses on foreign currency forward contracts designated as cash flow hedges impacted revenue and research and development expense on the Condensed 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 Condensed Consolidated Statements of Operations.

Short-Term and Long-Term Debt

9 Months Ended

Jul. 31, 2019

Debt Disclosure [Abstract]

Short-Term and Long-Term Debt

SHORT-TERM AND LONG-TERM DEBT

Outstanding Term Loan Payable

2025 Term Loan

The net carrying value of Ciena’s Term Loan due September 28, 2025 (the “2025 Term Loan”) was comprised of the following for the fiscal periods indicated (in thousands):



	July 31, 2019		October 31, 2018
Term Loan Payable due September 28, 2025	$	688,918	$	693,450

Deferred debt issuance costs that were deducted from the carrying amounts of the 2025 Term Loan totaled $3.8 million at July 31, 2019 and $4.3 million 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 2025 Term Loan. The amortization of deferred debt issuance costs for the 2025 Term Loan is included in interest expense, and was $0.5 million during the first nine months of fiscal 2019. The carrying value of the 2025 Term Loan listed above is also net of any unamortized debt discounts.

The principal balance, unamortized debt discount, deferred debt issuance costs, net carrying value and fair value of the 2025 Term Loan were as follows as of July 31, 2019 (in thousands):




	Principal Balance		Unamortized Debt Discount			Deferred Debt Issuance Costs			Net Carrying Value		Fair Value⁽¹⁾
Term Loan Payable due September 28, 2025	$	694,750	$	(2,043	)	$	(3,789	)	$	688,918	$	696,487

(1)

The 2025 Term Loan is categorized as Level 2 in the fair value hierarchy. Ciena estimated the fair value of the 2025 Term Loan using a market approach based upon observable inputs, such as current market transactions involving comparable securities.

Earnings Per Share Calculation

9 Months Ended

Jul. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share Calculation

EARNINGS 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 stock unit awards; and (iii) shares issuable under Ciena’s employee stock purchase plan and upon exercise of outstanding stock options, using the treasury stock method.



	Quarter Ended July 31,				Nine Months Ended July 31,
Numerator	2019		2018		2019		2018
Net income (loss)	$	86,749	$	50,840	$	173,103	$	(408,667	)
Add: Interest expense associated with 3.75% Convertible Senior Notes due 2018 (Original)	—		464		—		—
Add: Interest expense associated with 4.0% Convertible Senior Notes due 2020	—		2,624		—		—
Net income (loss) used to calculate Diluted EPS	$	86,749	$	53,928	$	173,103	$	(408,667	)



	Quarter Ended July 31,		Nine Months Ended July 31,
Denominator	2019	2018	2019	2018
Basic weighted average shares outstanding	155,488	143,400	156,013	143,766
Add: Shares underlying outstanding stock options and stock unit awards and issuable under employee stock purchase plan	1,967	1,330	1,936	—
Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (New)	—	3,032	—	—
Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (Original)	—	3,038	—	—
Add: Shares underlying 4.0% Convertible Senior Notes due 2020	—	9,198	—	—
Dilutive weighted average shares outstanding	157,455	159,998	157,949	143,766



	Quarter Ended July 31,				Nine Months Ended July 31,
EPS	2019		2018		2019		2018
Basic EPS	$	0.56	$	0.35	$	1.11	$	(2.84	)
Diluted EPS	$	0.55	$	0.34	$	1.10	$	(2.84	)

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 periods indicated (in thousands):



	Quarter Ended July 31,		Nine Months Ended July 31,
	2019	2018	2019	2018
Shares underlying stock options and stock unit awards	253	318	256	2,183
3.75% Convertible Senior Notes due 2018 (Original)	—	—	—	3,038
3.75% Convertible Senior Notes due 2018 (New)	—	—	—	2,125
4.0% Convertible Senior Notes due 2020	—	—	—	9,198
Total shares excluded due to anti-dilutive effect	253	318	256	16,544

Stockholders' Equity

9 Months Ended

Jul. 31, 2019

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

Stock Repurchase Program

On December 13, 2018, Ciena announced that its Board of Directors authorized a program to repurchase up to $500 million of Ciena’s common stock. The amount and timing of repurchases are subject to a variety of factors including liquidity, cash flow, stock price, and general business and market conditions. The program may be modified, suspended, or discontinued at any time.

The following table summarizes activity of the stock repurchase program, reported based on trade date:



	Shares Repurchased	Weighted-Average Price per Share		Amount Repurchased (in thousands)
Cumulative balance at October 31, 2018	—	$	—	$	—
Repurchase of common stock under the stock repurchase program	2,881,564	38.84		111,925
Cumulative balance at July 31, 2019	2,881,564	$	38.84	$	111,925

The purchase price for the shares of Ciena’s stock repurchased is reflected as a reduction of common stock and additional paid-in capital.

Stock Repurchases Related to Stock Unit Award Tax Withholdings

Ciena repurchases shares of common stock to satisfy employee tax withholding obligations due upon vesting of stock unit awards. The purchase price of $23.2 million for the shares of Ciena’s stock repurchased during the first nine months of fiscal 2019 is reflected as a reduction to stockholders’ equity. Ciena is required to allocate the purchase price of the repurchased shares as a reduction of common stock and additional paid-in capital.

Share-Based Compensation Expense

9 Months Ended

Jul. 31, 2019

Share-based Payment Arrangement [Abstract]

Share-Based Compensation Expense

SHARE-BASED COMPENSATION EXPENSE

The following table summarizes share-based compensation expense for the periods indicated (in thousands):



	Quarter Ended July 31,						Nine Months Ended July 31,
	2019			2018			2019		2018
Product costs	$	781		$	783		$	2,120	$	2,279
Service costs	783			618			2,460		1,965
Share-based compensation expense included in cost of sales	1,564			1,401			4,580		4,244
Research and development	3,560			3,082			11,034		10,133
Sales and marketing	4,192			3,417			12,323		10,505
General and administrative	5,813			4,538			16,416		14,121
Share-based compensation expense included in operating expense	13,565			11,037			39,773		34,759
Share-based compensation expense capitalized in inventory, net	(45		)	(101		)	93		(107		)
Total share-based compensation	$	15,084		$	12,337		$	44,446	$	38,896

As of July 31, 2019, total unrecognized share-based compensation expense was approximately $98.8 million, which relates to unvested stock unit awards and is expected to be recognized over a weighted-average period of 1.5 years.

Segments and Entity-Wide Disclosures

9 Months Ended

Jul. 31, 2019

Segment Reporting [Abstract]

Segments and Entity-Wide Disclosures

SEGMENTS AND ENTITY-WIDE DISCLOSURES

Segment Reporting

Ciena has the following operating segments for reporting purposes: (i) Networking Platforms; (ii) Software and Software-Related Services; and (iii) Global Services. See Note 3 to Ciena’s Condensed Consolidated Financial Statements included in Item 1 of Part I of this report.

Ciena's long-lived assets, including equipment, building, furniture and fixtures, finite-lived intangible assets and maintenance spares, are not reviewed by Ciena's chief operating decision maker for purposes of evaluating performance and allocating resources. As of July 31, 2019, equipment, building, furniture and fixtures, net totaled $280.6 million, primarily supporting asset groups within Ciena’s Networking Platforms and Software and Software-Related Services segments and supporting Ciena’s unallocated selling and general and administrative activities. As of July 31, 2019, $22.7 million of Ciena’s intangible assets, net were assigned to asset groups within Ciena’s Networking Platforms segment and $98.6 million of Ciena’s intangible assets, net were assigned to asset groups within Ciena’s Software and Software-Related Services segment. As of July 31, 2019, $65.7 million of Ciena’s Goodwill was assigned to asset groups within Ciena’s Networking Platforms segment and $232.2 million of Ciena’s Goodwill was assigned to asset groups within Ciena’s Software and Software-Related Services segment. As of July 31, 2019, all of the maintenance spares, net, totaling $51.1 million, were assigned to asset groups within Ciena’s Global Services segment.

Segment Revenue

The table below (in thousands) sets forth Ciena’s segment revenue for the respective periods:



	Quarter Ended July 31,				Nine Months Ended July 31,
	2019		2018		2019		2018
Revenue:
Networking Platforms
Converged Packet Optical	$	724,245	$	592,892	$	1,897,080	$	1,548,189
Packet Networking	71,823		84,559		216,529		216,977
Total Networking Platforms	796,068		677,451		2,113,609		1,765,166

Software and Software-Related Services
Platform Software and Services	37,312		36,818		114,139		117,347
Blue Planet Automation Software and Services	10,530		4,365		37,977		16,068
Total Software and Software-Related Services	47,842		41,183		152,116		133,415

Global Services
Maintenance Support and Training	65,936		60,897		196,002		177,759
Installation and Deployment	39,802		31,262		111,746		89,487
Consulting and Network Design	10,958		8,024		30,671		29,103
Total Global Services	116,696		100,183		338,419		296,349

Consolidated revenue	$	960,606	$	818,817	$	2,604,144	$	2,194,930

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; significant asset impairments and restructuring costs; acquisition and integration costs; interest and other income (loss), net; interest expense; and provision for income taxes.

The table below (in thousands) sets forth Ciena’s segment profit and the reconciliation to consolidated net income (loss) during the respective periods indicated:



	Quarter Ended July 31,						Nine Months Ended July 31,
	2019			2018			2019			2018
Segment profit:
Networking Platforms	$	230,610		$	181,603		$	542,391		$	396,995
Software and Software-Related Services	6,029			9,305			30,982			41,216
Global Services	47,833			39,502			142,515			121,823
Total segment profit	284,472			230,410			715,888			560,034
Less: Non-performance operating expenses
Selling and marketing	104,230			95,395			305,845			281,269
General and administrative	42,695			38,212			124,092			115,594
Amortization of intangible assets	5,529			3,837			16,586			11,083
Significant asset impairments and restructuring costs	5,355			6,359			11,696			16,679
Acquisition and integration costs	1,362			1,333			4,105			1,333
Add: Other non-performance financial items
Interest expense and other income (loss), net	(8,354		)	(15,154		)	(23,257		)	(39,048		)
Less: Provision for income taxes	30,198			19,280			57,204			503,695
Consolidated net income (loss)	$	86,749		$	50,840		$	173,103		$	(408,667	)

Entity-Wide Reporting

Ciena’s revenue includes $592.2 million and $469.2 million of United States revenue for the third quarter of fiscal 2019 and 2018, respectively. Ciena’s revenue also includes $83.6 million of India revenue for the third quarter of fiscal 2018. For the nine months ended July 31, 2019 and 2018, United States revenue was $1.60 billion and $1.25 billion, respectively. No other country accounted for 10% or more 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 U.S. 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):



	July 31, 2019		October 31, 2018
Canada	$	201,126	$	198,028
United States	62,231		75,479
Other International	17,273		18,560
Total	$	280,630	$	292,067

For the periods below, as applicable, AT&T, Verizon and a Web-scale provider were the only customers that accounted for at least 10% of Ciena’s revenue as follows (in thousands):



	Quarter Ended July 31,				Nine Months Ended July 31,
	2019		2018		2019		2018
AT&T	n/a		$	87,389	$	297,049	$	263,453
Verizon	118,875		97,103		314,000		221,475
Web-scale provider	123,253		86,364		298,106		n/a
Total	$	242,128	$	270,856	$	909,155	$	484,928



n/a	Denotes revenue representing less than 10% of total revenue for the period

The customers identified above purchased products and services from each of Ciena’s operating segments.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Jul. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Canadian Grant During fiscal 2018, Ciena entered into agreements related to the Evolution of Networking Services through a Corridor in Quebec and Ontario for Research and Innovation (“ENCQOR”) project with the Canadian federal government, the government of the province of Ontario and the government of the province of Quebec to develop a 5G technology corridor between Quebec and Ontario to promote research and development, small business enterprises and entrepreneurs in Canada. Under these agreements, Ciena can receive up to an aggregate CAD$57.6 million (approximately $43.6 million) in reimbursement from the three Canadian government entities for eligible costs over a period commencing on February 20, 2017 and ending on March 31, 2022. Ciena anticipates receiving recurring disbursements over this period. Amounts received under the agreements are subject to recoupment in the event that Ciena fails to achieve certain minimum investment, employment and project milestones. As of July 31, 2019, Ciena has recorded CAD$25.9 million (approximately $19.6 million) in cumulative benefits as a reduction in research and development expense of which CAD$9.3 million (approximately $7.0 million) was recorded in the first nine months of fiscal 2019. As of July 31, 2019, amounts receivable from this grant were CAD$10.8 million (approximately $8.2 million). Tax Contingencies Ciena is subject to various tax liabilities arising in the ordinary course of business. Ciena does not expect that the ultimate settlement of these tax liabilities will have a material effect on its results of operations, financial position or cash flows. Litigation 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 lawsuits 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 alleged 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 sought 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 was subject to notice to class members and approval by the court. On August 8, 2019, the court approved the settlement and entered judgment in the case. The terms of the 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 Ciena’s financial results. Internal Investigation As first disclosed in Ciena’s Form 10-K for fiscal 2017, during that year 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. In September 2017, Ciena voluntarily contacted the SEC and the U.S. Department of Justice (the “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 declined to prosecute this matter and that its investigation into this matter is closed. On September 9, 2019, the SEC advised that it has concluded its investigation into this matter and that its staff does not intend to recommend any enforcement action by the SEC against Ciena. 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.

Subsequent Events	9 Months Ended
Subsequent Events	Jul. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Stock Repurchase Program From the end of the third quarter of fiscal 2019 through September 6, 2019, Ciena repurchased an additional 417,819 shares of its common stock, for an aggregate purchase price of $17.3 million at an average price of $41.38 per share, inclusive of repurchases pending settlement. As of September 6, 2019, Ciena has repurchased an aggregate of 3,299,383 shares and has an aggregate of $370.8 million of authorized funds remaining under its Stock Repurchase Program.

Significant Accounting Policies (Policies)

9 Months Ended

Jul. 31, 2019

Accounting Policies [Abstract]

Newly Issued Accounting Standards - Effective and Not Yet Effective

Newly Issued Accounting Standards - Effective

Revenue Recognition

Revenue Recognition Timing Differences

Revenue Recognition Policy Under ASC 606

Ciena determines revenue recognition by applying the following five-step approach:

•identification of the contract, or contracts, with a customer;

•identification of the performance obligations in the contract;

•determination of the transaction price;

•allocation of the transaction price to the performance obligations in the contract; and

•recognition of revenue when, or as, Ciena satisfies a performance obligation.

Significant Judgments

Capitalized Contract Acquisition Costs

For the additional disclosures required as part of ASC 606, see Note 3 below.

Impact of ASC 606 Adoption

The following table summarizes the impact of adopting ASC 606 on Ciena’s Condensed Consolidated Statements of Operations (in millions):



	Quarter Ended July 31, 2019
	As Reported		Adjustments			Balances without adoption of ASC 606

Total revenue	$	960,606	$	(2,413	)	$	958,193
Total cost of goods sold	$	536,254	$	1,789		$	538,043
Net income	$	86,749	$	(3,879	)	$	82,870
Diluted net income per potential common share	$	0.55	$	(0.02	)	$	0.53



	Nine Months Ended July 31, 2019
	As Reported		Adjustments			Balances without adoption of ASC 606

Total revenue	$	2,604,144	$	(27,533	)	$	2,576,611
Total cost of goods sold	$	1,481,774	$	(20,776	)	$	1,460,998
Net income	$	173,103	$	(4,781	)	$	168,322
Diluted net income per potential common share	$	1.10	$	(0.03	)	$	1.07

Opening Balance Adjustments

The following table summarizes the cumulative effect of the changes made to Ciena’s Condensed Consolidated Balance Sheets in connection with the adoption of ASC 606 (in millions):



	Balance at October 31, 2018			New Revenue Recognition Standard				Adjusted Balance at November 1, 2018
ASSETS:
Accounts receivable, net	$	786,502		$	12,509		⁽¹⁾	$	799,011
Inventories	$	262,751		(2,486		)	⁽²⁾	$	260,265
Prepaid expenses and other	$	198,945		21,470			⁽³⁾	$	220,415
Deferred tax asset, net	$	745,039		(14,439		)	⁽⁴⁾	$	730,600
Other long-term assets	$	71,652		3,998			⁽⁵⁾	$	75,650

Total assets	$	3,756,523		$	21,052			$	3,777,575

LIABILITIES AND STOCKHOLDERS’ EQUITY:
Deferred revenue	$	111,134		$	(14,403	)	⁽⁶⁾	$	96,731
Long-term deferred revenue	$	58,323		(14,350		)	⁽⁷⁾	$	43,973
Accumulated deficit	$	(4,947,652	)	49,805			⁽⁸⁾	$	(4,897,847	)

Total liabilities and stockholders’ equity	$	3,756,523		$	21,052			$	3,777,575


(1)	Unpaid accounts receivable and related deferred revenue related to rights and obligations in a contract are interdependent and therefore recorded net within Ciena’s balance sheet. This represents an increase of $12.5 million from the reversal of certain net unpaid accounts receivable and related deferred revenue.


(2)	Represents a decrease of $2.5 million in deferred costs of goods sold due to change in revenue recognition for certain product sales.

(3)


(4)	Represents a decrease of $14.4 million in deferred tax asset, net, related to the unrecognized income tax effects of the net adjustments from the new revenue recognition standard.


(5)	Represents an increase of $4.0 million related to long-term capitalized acquisition costs (e.g., commissions).

(6)


(7)	Represents a decrease of $18.6 million in long-term deferred revenue, primarily due to a change in revenue recognition for certain multiple-element software arrangements and an increase of $4.3 million from the reversal of balance sheet netting for certain unpaid invoices included in accounts receivable, net and long-term deferred revenue.


(8)	Accumulated deficit impact from the adjustments noted above.

Intangibles

Ciena adopted ASU 2018-15 during the first quarter of fiscal 2019. The application of this accounting standard did not have a material impact on Ciena's Condensed Consolidated Financial Statements.

Restricted Cash in Statement of Cash Flows

Newly Issued Accounting Standards - Not Yet Effective

Significant Accounting Policies (Tables)

9 Months Ended

Jul. 31, 2019

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table summarizes the cumulative effect of the changes made to Ciena’s Condensed Consolidated Balance Sheets in connection with the adoption of ASC 606 (in millions):



	Balance at October 31, 2018			New Revenue Recognition Standard				Adjusted Balance at November 1, 2018
ASSETS:
Accounts receivable, net	$	786,502		$	12,509		⁽¹⁾	$	799,011
Inventories	$	262,751		(2,486		)	⁽²⁾	$	260,265
Prepaid expenses and other	$	198,945		21,470			⁽³⁾	$	220,415
Deferred tax asset, net	$	745,039		(14,439		)	⁽⁴⁾	$	730,600
Other long-term assets	$	71,652		3,998			⁽⁵⁾	$	75,650

Total assets	$	3,756,523		$	21,052			$	3,777,575

LIABILITIES AND STOCKHOLDERS’ EQUITY:
Deferred revenue	$	111,134		$	(14,403	)	⁽⁶⁾	$	96,731
Long-term deferred revenue	$	58,323		(14,350		)	⁽⁷⁾	$	43,973
Accumulated deficit	$	(4,947,652	)	49,805			⁽⁸⁾	$	(4,897,847	)

Total liabilities and stockholders’ equity	$	3,756,523		$	21,052			$	3,777,575


(1)	Unpaid accounts receivable and related deferred revenue related to rights and obligations in a contract are interdependent and therefore recorded net within Ciena’s balance sheet. This represents an increase of $12.5 million from the reversal of certain net unpaid accounts receivable and related deferred revenue.


(2)	Represents a decrease of $2.5 million in deferred costs of goods sold due to change in revenue recognition for certain product sales.

(3)


(4)	Represents a decrease of $14.4 million in deferred tax asset, net, related to the unrecognized income tax effects of the net adjustments from the new revenue recognition standard.


(5)	Represents an increase of $4.0 million related to long-term capitalized acquisition costs (e.g., commissions).

(6)


(7)	Represents a decrease of $18.6 million in long-term deferred revenue, primarily due to a change in revenue recognition for certain multiple-element software arrangements and an increase of $4.3 million from the reversal of balance sheet netting for certain unpaid invoices included in accounts receivable, net and long-term deferred revenue.


(8)	Accumulated deficit impact from the adjustments noted above.

The following table summarizes the impact of adopting ASC 606 on Ciena’s Condensed Consolidated Statements of Operations (in millions):



	Quarter Ended July 31, 2019
	As Reported		Adjustments			Balances without adoption of ASC 606

Total revenue	$	960,606	$	(2,413	)	$	958,193
Total cost of goods sold	$	536,254	$	1,789		$	538,043
Net income	$	86,749	$	(3,879	)	$	82,870
Diluted net income per potential common share	$	0.55	$	(0.02	)	$	0.53



	Nine Months Ended July 31, 2019
	As Reported		Adjustments			Balances without adoption of ASC 606

Total revenue	$	2,604,144	$	(27,533	)	$	2,576,611
Total cost of goods sold	$	1,481,774	$	(20,776	)	$	1,460,998
Net income	$	173,103	$	(4,781	)	$	168,322
Diluted net income per potential common share	$	1.10	$	(0.03	)	$	1.07

Revenue (Tables)

9 Months Ended

Jul. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The tables below (in thousands) set forth Ciena’s disaggregated revenue for the respective period:



	Quarter Ended July 31, 2019
	Networking Platforms		Software and Software-Related Services		Global Services		Total
Product lines:
Converged Packet Optical	$	724,245	$	—	$	—	$	724,245
Packet Networking	71,823		—		—		71,823
Platform Software and Services	—		37,312		—		37,312
Blue Planet Automation Software and Services	—		10,530		—		10,530
Maintenance Support and Training	—		—		65,936		65,936
Installation and Deployment	—		—		39,802		39,802
Consulting and Network Design	—		—		10,958		10,958
Total revenue by product line	$	796,068	$	47,842	$	116,696	$	960,606

Timing of revenue recognition:
Products and services at a point in time	$	796,068	$	14,598	$	4,804	$	815,470
Services transferred over time	—		33,244		111,892		145,136
Total revenue by timing of revenue recognition	$	796,068	$	47,842	$	116,696	$	960,606



	Nine Months Ended July 31, 2019
	Networking Platforms		Software and Software-Related Services		Global Services		Total
Product lines:
Converged Packet Optical	$	1,897,080	$	—	$	—	$	1,897,080
Packet Networking	216,529		—		—		216,529
Platform Software and Services	—		114,139		—		114,139
Blue Planet Automation Software and Services	—		37,977		—		37,977
Maintenance Support and Training	—		—		196,002		196,002
Installation and Deployment	—		—		111,746		111,746
Consulting and Network Design	—		—		30,671		30,671
Total revenue by product line	$	2,113,609	$	152,116	$	338,419	$	2,604,144

Timing of revenue recognition:
Products and services at a point in time	$	2,113,609	$	51,017	$	13,945	$	2,178,571
Products and services transferred over time	—		101,099		324,474		425,573
Total revenue by timing of revenue recognition	$	2,113,609	$	152,116	$	338,419	$	2,604,144



	Quarter Ended July 31, 2019		Nine Months Ended July 31, 2019
Geographic distribution:
North America	$	617,000	$	1,678,599
EMEA	169,532		413,715
CALA	39,261		109,635
APAC	134,813		402,195
Total revenue by geographic distribution	$	960,606	$	2,604,144

Contract Balances

The following table provides information about receivables, contract assets and contract liabilities (deferred revenue) from contracts with customers (in thousands):



	Balance at July 31, 2019		Adjusted Balance at November 1, 2018
Accounts receivable, net	$	798,884	$	799,011
Contract assets	$	74,348	$	31,380
Deferred revenue	$	145,030	$	140,704

Business Combinations (Tables)

9 Months Ended

Jul. 31, 2019

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

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 consideration	$	41,054

Restructuring Costs (Tables)

9 Months Ended

Jul. 31, 2019

Restructuring and Related Activities [Abstract]

Schedule of Activity and Balance of the Restructuring Liability Accounts

The following table sets forth the restructuring activity and balance of the restructuring liability accounts for the nine months ended July 31, 2019 (in thousands):



	Workforce reduction				Consolidation of excess facilities				Total
Balance at October 31, 2018	$	2,108			$	1,739			$	3,847
Additional liability recorded	10,309			⁽¹⁾	1,387			⁽²⁾	11,696
Cash payments	(10,021		)		(1,631		)		(11,652		)
Balance at July 31, 2019	$	2,396			$	1,495			$	3,891
Current restructuring liabilities	$	2,396			$	348			$	2,744
Non-current restructuring liabilities	$	—			$	1,147			$	1,147


(1)	Reflects a global workforce reduction of approximately 225 employees during the nine months ended July 31, 2019 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes.


(2)	Reflects unfavorable lease commitments in connection with a portion of the facilities for certain locations in the United States and India where Ciena has vacated unused space.

The following table sets forth the restructuring activity and balance of the restructuring liability accounts for the nine months ended July 31, 2018 (in thousands):



	Workforce reduction				Consolidation of excess facilities				Total
Balance at October 31, 2017	$	1,291			$	1,648			$	2,939
Additional liability recorded	12,876			⁽¹⁾	3,803			⁽²⁾	16,679
Cash payments	(10,987		)		(3,084		)		(14,071		)
Balance at July 31, 2018	$	3,180			$	2,367			$	5,547
Current restructuring liabilities	$	3,180			$	1,076			$	4,256
Non-current restructuring liabilities	$	—			$	1,291			$	1,291


(1)	Reflects a global workforce reduction of approximately 230 employees during the nine months ended July 31, 2018 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes.

(2)

Reflects unfavorable lease commitments in connection with a portion of facilities located in Petaluma, California and Gurgaon, India.

Interest and Other Income, Net (Tables)

9 Months Ended

Jul. 31, 2019

Other Income and Expenses [Abstract]

Schedule of Interest and Other Income, Net

The components of interest and other income, net, are as follows (in thousands):



	Quarter Ended July 31,						Nine Months Ended July 31,
	2019			2018			2019			2018
Interest income	$	3,475		$	3,620		$	10,866		$	9,276
Gains (losses) on non-hedge designated foreign currency forward contracts	119			2,182			(757		)	4,351
Foreign currency exchange losses	(2,373		)	(6,879		)	(4,585		)	(11,670		)
Other	(171		)	(466		)	(465		)	(629		)
Interest and other income (loss), net	$	1,050		$	(1,543	)	$	5,059		$	1,328

Short-Term and Long-Term Investments (Tables)

9 Months Ended

Jul. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Schedule of Short-Term and Long-Term Investments

As of the dates indicated, investments are comprised of the following (in thousands):



	July 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. government obligations:
Included in short-term investments	$	119,490	$	180	$	—	$	119,670
	$	119,490	$	180	$	—	$	119,670



	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

Schedule of Legal Maturities of Debt Investments

The following table summarizes the final legal maturities of debt investments at July 31, 2019 (in thousands):



	Amortized Cost		Estimated Fair Value
Less than one year	$	119,490	$	119,670

Fair Value Measurements (Tables)

9 Months Ended

Jul. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of the Fair Value of Assets and Liabilities Recorded on a Recurring Basis

As of the date indicated, the following table summarizes the assets and liabilities that are recorded at fair value on a recurring basis (in thousands):



	July 31, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	595,556	$	—	$	—	$	595,556
U.S. government obligations	—		119,670		—		119,670
Foreign currency forward contracts	—		882		—		882
Total assets measured at fair value	$	595,556	$	120,552	$	—	$	716,108

Liabilities:
Foreign currency forward contracts	$	—	$	1,029	$	—	$	1,029
Forward starting interest rate swap	—		20,963		—		20,963
Contingent consideration	—		—		10,900		10,900
Total liabilities measured at fair value	$	—	$	21,992	$	10,900	$	32,892



	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

Schedule of Assets and Liabilities as Presented on Ciena's Condensed Consolidated Balance Sheets

As of the date indicated, the assets and liabilities above are presented on Ciena’s Condensed Consolidated Balance Sheets as follows (in thousands):



	July 31, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	595,556	$	—	$	—	$	595,556
Short-term investments	—		119,670		—		119,670
Prepaid expenses and other	—		882		—		882
Total assets measured at fair value	$	595,556	$	120,552	$	—	$	716,108

Liabilities:
Accrued liabilities	$	—	$	1,029	$	7,491	$	8,520
Other long-term obligations	—		20,963		3,409		24,372
Total liabilities measured at fair value	$	—	$	21,992	$	10,900	$	32,892



	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

Inventories (Tables)

9 Months Ended

Jul. 31, 2019

Inventory Disclosure [Abstract]

Schedule of Inventories

As of the dates indicated, inventories are comprised of the following (in thousands):



	July 31, 2019			October 31, 2018
Raw materials	$	102,240		$	67,468
Work-in-process	15,456			9,589
Finished goods	193,487			188,575
Deferred cost of goods sold	93,448			48,057
	404,631			313,689
Provision for excess and obsolescence	(47,813		)	(50,938		)
	$	356,818		$	262,751

Prepaid Expenses and Other (Tables)

9 Months Ended

Jul. 31, 2019

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid expenses and other

As of the dates indicated, prepaid expenses and other are comprised of the following (in thousands):



	July 31, 2019		October 31, 2018
Prepaid VAT and other taxes	$	84,359	$	82,518
Contract assets for unbilled accounts receivable	74,348		—
Product demonstration equipment, net	39,977		37,623
Prepaid expenses	46,666		32,987
Other non-trade receivables	36,798		25,716
Capitalized commissions - short term	9,601		—
Financing receivable	—		626
Deferred deployment expense	—		19,342
Derivative assets	882		133
	$	292,631	$	198,945

Accrued Liabilities and Other Short-Term Obligations (Tables)

9 Months Ended

Jul. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Schedule of Accrued Liabilities

As of the dates indicated, accrued liabilities and other short-term obligations are comprised of the following (in thousands):



	July 31, 2019		October 31, 2018
Compensation, payroll related tax and benefits	$	125,651	$	140,277
Warranty	46,680		44,740
Vacation ⁽¹⁾	22,076		42,507
Contingent consideration	7,491		—
Capital lease obligations	2,798		3,547
Interest payable	1,062		1,072
Other	119,379		107,932
	$	325,137	$	340,075

⁽¹⁾ Reduction is primarily due to the payout of North America vacation accruals in conjunction with adoption of a new vacation policy.

Schedule of Accrued Warranties

The following table summarizes the activity in Ciena’s accrued warranty for the fiscal periods indicated (in thousands):



Nine Months Ended July 31,	Beginning Balance		Current Period Provisions	Settlements		Ending Balance
2018	$	42,456	15,715	(14,021	)	$	44,150
2019	$	44,740	15,933	(13,993	)	$	46,680

Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Jul. 31, 2019

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income

The following table summarizes the changes in accumulated balances of other comprehensive income (“AOCI”), net of tax, for the nine months ended July 31, 2019:



	Unrealized			Unrealized Loss on			Unrealized Loss on			Cumulative
	Loss on Available-for-sale Securities			Foreign Currency Forward Contracts			Forward Starting Interest Rate Swaps			Foreign Currency Translation Adjustment			Total
Balance at October 31, 2018	$	(425	)	$	(3,060	)	$	6,417		$	(8,712	)	$	(5,780	)
Other comprehensive income (loss) before reclassifications	581			(349		)	(18,370		)	(1,903		)	(20,041		)
Amounts reclassified from AOCI	—			3,100			(1,043		)	—			2,057
Balance at July 31, 2019	$	156		$	(309	)	$	(12,996	)	$	(10,615	)	$	(23,764	)

The following table summarizes the changes in AOCI, net of tax, for the nine months ended July 31, 2018:



	Unrealized			Unrealized Loss on			Unrealized Gain on		Cumulative
	Loss on Available-for-sale Securities			Foreign Currency Forward Contracts			Forward Starting Interest Rate Swaps		Foreign Currency Translation Adjustment			Total
Balance at October 31, 2017	$	(451	)	$	(1,386	)	$	218	$	(9,398	)	$	(11,017	)
Other comprehensive income (loss) before reclassifications	(59		)	(9		)	5,330		(2,161		)	3,101
Amounts reclassified from AOCI	—			(1,058		)	269		—			(789		)
Balance at July 31, 2018	$	(510	)	$	(2,453	)	$	5,817	$	(11,559	)	$	(8,705	)

Short-Term and Long-Term Debt (Tables)

9 Months Ended

Jul. 31, 2019

Debt Disclosure [Abstract]

Schedule of Carrying Values and Estimated Fair Values of Convertible Notes

The net carrying value of Ciena’s Term Loan due September 28, 2025 (the “2025 Term Loan”) was comprised of the following for the fiscal periods indicated (in thousands):



	July 31, 2019		October 31, 2018
Term Loan Payable due September 28, 2025	$	688,918	$	693,450

Schedule of Debt Details

The principal balance, unamortized debt discount, deferred debt issuance costs, net carrying value and fair value of the 2025 Term Loan were as follows as of July 31, 2019 (in thousands):




	Principal Balance		Unamortized Debt Discount			Deferred Debt Issuance Costs			Net Carrying Value		Fair Value⁽¹⁾
Term Loan Payable due September 28, 2025	$	694,750	$	(2,043	)	$	(3,789	)	$	688,918	$	696,487

(1)

Earnings Per Share Calculation (Tables)

9 Months Ended

Jul. 31, 2019

Earnings Per Share [Abstract]

Schedule of Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share



	Quarter Ended July 31,				Nine Months Ended July 31,
Numerator	2019		2018		2019		2018
Net income (loss)	$	86,749	$	50,840	$	173,103	$	(408,667	)
Add: Interest expense associated with 3.75% Convertible Senior Notes due 2018 (Original)	—		464		—		—
Add: Interest expense associated with 4.0% Convertible Senior Notes due 2020	—		2,624		—		—
Net income (loss) used to calculate Diluted EPS	$	86,749	$	53,928	$	173,103	$	(408,667	)



	Quarter Ended July 31,		Nine Months Ended July 31,
Denominator	2019	2018	2019	2018
Basic weighted average shares outstanding	155,488	143,400	156,013	143,766
Add: Shares underlying outstanding stock options and stock unit awards and issuable under employee stock purchase plan	1,967	1,330	1,936	—
Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (New)	—	3,032	—	—
Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (Original)	—	3,038	—	—
Add: Shares underlying 4.0% Convertible Senior Notes due 2020	—	9,198	—	—
Dilutive weighted average shares outstanding	157,455	159,998	157,949	143,766



	Quarter Ended July 31,				Nine Months Ended July 31,
EPS	2019		2018		2019		2018
Basic EPS	$	0.56	$	0.35	$	1.11	$	(2.84	)
Diluted EPS	$	0.55	$	0.34	$	1.10	$	(2.84	)

Schedule of 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 periods indicated (in thousands):



	Quarter Ended July 31,		Nine Months Ended July 31,
	2019	2018	2019	2018
Shares underlying stock options and stock unit awards	253	318	256	2,183
3.75% Convertible Senior Notes due 2018 (Original)	—	—	—	3,038
3.75% Convertible Senior Notes due 2018 (New)	—	—	—	2,125
4.0% Convertible Senior Notes due 2020	—	—	—	9,198
Total shares excluded due to anti-dilutive effect	253	318	256	16,544

Stockholders' Equity (Tables)

9 Months Ended

Jul. 31, 2019

Equity [Abstract]

Schedule of Stock Repurchase Program

of the stock repurchase program, reported based on trade date:



	Shares Repurchased	Weighted-Average Price per Share		Amount Repurchased (in thousands)
Cumulative balance at October 31, 2018	—	$	—	$	—
Repurchase of common stock under the stock repurchase program	2,881,564	38.84		111,925
Cumulative balance at July 31, 2019	2,881,564	$	38.84	$	111,925

Share-Based Compensation Expense (Tables)

9 Months Ended

Jul. 31, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Share-Based Compensation Expense

The following table summarizes share-based compensation expense for the periods indicated (in thousands):



	Quarter Ended July 31,						Nine Months Ended July 31,
	2019			2018			2019		2018
Product costs	$	781		$	783		$	2,120	$	2,279
Service costs	783			618			2,460		1,965
Share-based compensation expense included in cost of sales	1,564			1,401			4,580		4,244
Research and development	3,560			3,082			11,034		10,133
Sales and marketing	4,192			3,417			12,323		10,505
General and administrative	5,813			4,538			16,416		14,121
Share-based compensation expense included in operating expense	13,565			11,037			39,773		34,759
Share-based compensation expense capitalized in inventory, net	(45		)	(101		)	93		(107		)
Total share-based compensation	$	15,084		$	12,337		$	44,446	$	38,896

Segments and Entity-Wide Disclosures (Tables)

9 Months Ended

Jul. 31, 2019

Segment Reporting [Abstract]

Schedule of Segment Revenue

The table below (in thousands) sets forth Ciena’s segment revenue for the respective periods:



	Quarter Ended July 31,				Nine Months Ended July 31,
	2019		2018		2019		2018
Revenue:
Networking Platforms
Converged Packet Optical	$	724,245	$	592,892	$	1,897,080	$	1,548,189
Packet Networking	71,823		84,559		216,529		216,977
Total Networking Platforms	796,068		677,451		2,113,609		1,765,166

Software and Software-Related Services
Platform Software and Services	37,312		36,818		114,139		117,347
Blue Planet Automation Software and Services	10,530		4,365		37,977		16,068
Total Software and Software-Related Services	47,842		41,183		152,116		133,415

Global Services
Maintenance Support and Training	65,936		60,897		196,002		177,759
Installation and Deployment	39,802		31,262		111,746		89,487
Consulting and Network Design	10,958		8,024		30,671		29,103
Total Global Services	116,696		100,183		338,419		296,349

Consolidated revenue	$	960,606	$	818,817	$	2,604,144	$	2,194,930

Schedule of 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 (loss) during the respective periods indicated:



	Quarter Ended July 31,						Nine Months Ended July 31,
	2019			2018			2019			2018
Segment profit:
Networking Platforms	$	230,610		$	181,603		$	542,391		$	396,995
Software and Software-Related Services	6,029			9,305			30,982			41,216
Global Services	47,833			39,502			142,515			121,823
Total segment profit	284,472			230,410			715,888			560,034
Less: Non-performance operating expenses
Selling and marketing	104,230			95,395			305,845			281,269
General and administrative	42,695			38,212			124,092			115,594
Amortization of intangible assets	5,529			3,837			16,586			11,083
Significant asset impairments and restructuring costs	5,355			6,359			11,696			16,679
Acquisition and integration costs	1,362			1,333			4,105			1,333
Add: Other non-performance financial items
Interest expense and other income (loss), net	(8,354		)	(15,154		)	(23,257		)	(39,048		)
Less: Provision for income taxes	30,198			19,280			57,204			503,695
Consolidated net income (loss)	$	86,749		$	50,840		$	173,103		$	(408,667	)

Schedule of Ciena's Geographic Distribution of Revenue and Long-Lived Assets

For the periods below, Ciena’s geographic distribution of equipment, building, furniture and fixtures, net, was as follows (in thousands):



	July 31, 2019		October 31, 2018
Canada	$	201,126	$	198,028
United States	62,231		75,479
Other International	17,273		18,560
Total	$	280,630	$	292,067

Schedule of Revenue by Major Customers by Reporting Segments

For the periods below, as applicable, AT&T, Verizon and a Web-scale provider were the only customers that accounted for at least 10% of Ciena’s revenue as follows (in thousands):



	Quarter Ended July 31,				Nine Months Ended July 31,
	2019		2018		2019		2018
AT&T	n/a		$	87,389	$	297,049	$	263,453
Verizon	118,875		97,103		314,000		221,475
Web-scale provider	123,253		86,364		298,106		n/a
Total	$	242,128	$	270,856	$	909,155	$	484,928



n/a	Denotes revenue representing less than 10% of total revenue for the period

Significant Accounting Policies - Impact of Adopting ASC 606 on Condensed Consolidated Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 960,606	$ 818,817	$ 2,604,144	$ 2,194,930
Total cost of goods sold	536,254	467,274	1,481,774	1,278,315
Net income (loss)	$ 86,749	$ 50,840	$ 173,103	$ (408,667)
Diluted net income (loss) per potential common share (in dollars per share)	$ 0.55	$ 0.34	$ 1.10	$ (2.84)
Adjustments \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ (2,413)		$ (27,533)
Total cost of goods sold	1,789		(20,776)
Net income (loss)	$ (3,879)		$ (4,781)
Diluted net income (loss) per potential common share (in dollars per share)	$ (0.02)		$ (0.03)
Balances without adoption of ASC 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 958,193		$ 2,576,611
Total cost of goods sold	538,043		1,460,998
Net income (loss)	$ 82,870		$ 168,322
Diluted net income (loss) per potential common share (in dollars per share)	$ 0.53		$ 1.07

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Significant Accounting Policies - Cumulative Effect of the Changes Made to Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Nov. 01, 2018	Oct. 31, 2018
ASSETS:
Accounts receivable, net	$ 798,884	$ 799,011	$ 786,502
Inventories	356,818	260,265	262,751
Prepaid expenses and other	292,631	220,415	198,945
Deferred tax asset, net	700,206	730,600	745,039
Other long-term assets	84,486	75,650	71,652
Total assets	3,775,708	3,777,575	3,756,523
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Deferred revenue	102,182	96,731	111,134
Long-term deferred revenue	42,848	43,973	58,323
Accumulated deficit	(4,724,744)	(4,897,847)	(4,947,652)
Total liabilities and stockholders’ equity	3,775,708	3,777,575	3,756,523
Capitalized Contract Acquisition Costs
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Capitalized acquisition costs, short term	$ 9,601		$ 0
Adjustments \| Accounting Standards Update 2014-09
ASSETS:
Accounts receivable, net		12,509
Inventories		(2,486)
Prepaid expenses and other		21,470
Deferred tax asset, net		(14,439)
Other long-term assets		3,998
Total assets		21,052
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Deferred revenue		(14,403)
Long-term deferred revenue		(14,350)
Accumulated deficit		49,805
Total liabilities and stockholders’ equity		21,052
Adjustments \| Installation \| Accounting Standards Update 2014-09
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Unbilled accounts receivable		27,500
Adjustments \| Product \| Accounting Standards Update 2014-09
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Unbilled accounts receivable		3,900
Adjustments \| Multiple Element Software Arrangements \| Accounting Standards Update 2014-09
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Deferred revenue		(23,600)
Long-term deferred revenue		(18,600)
Adjustments \| Product Sales Other Than Multiple Element Software Arrangements \| Accounting Standards Update 2014-09
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Deferred revenue		(1,700)
Adjustments \| Maintenance Services Other Than Multiple Element Software Arrangements \| Accounting Standards Update 2014-09
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Deferred revenue		2,700
Adjustments \| Products and Services With Unpaid Invoices \| Accounting Standards Update 2014-09
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Deferred revenue		8,200
Long-term deferred revenue		4,300
Adjustments \| Capitalized Contract Acquisition Costs \| Accounting Standards Update 2014-09
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Capitalized acquisition costs, short term		9,600
Capitalized acquisition costs, long term		4,000
Adjustments \| Prepaid Costs of Installation Services \| Accounting Standards Update 2014-09
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Capitalized acquisition costs, short term		$ (19,500)

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 960,606	$ 818,817	$ 2,604,144	$ 2,194,930
Products and services at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	815,470		2,178,571
Services transferred over time
Disaggregation of Revenue [Line Items]
Total revenue	145,136		425,573
Converged Packet Optical
Disaggregation of Revenue [Line Items]
Total revenue	724,245		1,897,080
Packet Networking
Disaggregation of Revenue [Line Items]
Total revenue	71,823		216,529
Platform Software and Services
Disaggregation of Revenue [Line Items]
Total revenue	37,312		114,139
Blue Planet Automation Software and Services
Disaggregation of Revenue [Line Items]
Total revenue	10,530		37,977
Maintenance Support and Training
Disaggregation of Revenue [Line Items]
Total revenue	65,936		196,002
Installation and Deployment
Disaggregation of Revenue [Line Items]
Total revenue	39,802		111,746
Consulting and Network Design
Disaggregation of Revenue [Line Items]
Total revenue	10,958		30,671
Networking Platforms \| Operating Segments
Disaggregation of Revenue [Line Items]
Total revenue	796,068	677,451	2,113,609	1,765,166
Networking Platforms \| Operating Segments \| Products and services at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	796,068		2,113,609
Networking Platforms \| Operating Segments \| Services transferred over time
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Networking Platforms \| Operating Segments \| Converged Packet Optical
Disaggregation of Revenue [Line Items]
Total revenue	724,245	592,892	1,897,080	1,548,189
Networking Platforms \| Operating Segments \| Packet Networking
Disaggregation of Revenue [Line Items]
Total revenue	71,823	84,559	216,529	216,977
Networking Platforms \| Operating Segments \| Platform Software and Services
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Networking Platforms \| Operating Segments \| Blue Planet Automation Software and Services
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Networking Platforms \| Operating Segments \| Maintenance Support and Training
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Networking Platforms \| Operating Segments \| Installation and Deployment
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Networking Platforms \| Operating Segments \| Consulting and Network Design
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Software and Software-Related Services \| Operating Segments
Disaggregation of Revenue [Line Items]
Total revenue	47,842	41,183	152,116	133,415
Software and Software-Related Services \| Operating Segments \| Products and services at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	14,598		51,017
Software and Software-Related Services \| Operating Segments \| Services transferred over time
Disaggregation of Revenue [Line Items]
Total revenue	33,244		101,099
Software and Software-Related Services \| Operating Segments \| Converged Packet Optical
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Software and Software-Related Services \| Operating Segments \| Packet Networking
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Software and Software-Related Services \| Operating Segments \| Platform Software and Services
Disaggregation of Revenue [Line Items]
Total revenue	37,312	36,818	114,139	117,347
Software and Software-Related Services \| Operating Segments \| Blue Planet Automation Software and Services
Disaggregation of Revenue [Line Items]
Total revenue	10,530	4,365	37,977	16,068
Software and Software-Related Services \| Operating Segments \| Maintenance Support and Training
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Software and Software-Related Services \| Operating Segments \| Installation and Deployment
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Software and Software-Related Services \| Operating Segments \| Consulting and Network Design
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Global Services \| Operating Segments
Disaggregation of Revenue [Line Items]
Total revenue	116,696	100,183	338,419	296,349
Global Services \| Operating Segments \| Products and services at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	4,804		13,945
Global Services \| Operating Segments \| Services transferred over time
Disaggregation of Revenue [Line Items]
Total revenue	111,892		324,474
Global Services \| Operating Segments \| Converged Packet Optical
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Global Services \| Operating Segments \| Packet Networking
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Global Services \| Operating Segments \| Platform Software and Services
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Global Services \| Operating Segments \| Blue Planet Automation Software and Services
Disaggregation of Revenue [Line Items]
Total revenue	0		0
Global Services \| Operating Segments \| Maintenance Support and Training
Disaggregation of Revenue [Line Items]
Total revenue	65,936	60,897	196,002	177,759
Global Services \| Operating Segments \| Installation and Deployment
Disaggregation of Revenue [Line Items]
Total revenue	39,802	31,262	111,746	89,487
Global Services \| Operating Segments \| Consulting and Network Design
Disaggregation of Revenue [Line Items]
Total revenue	$ 10,958	$ 8,024	$ 30,671	$ 29,103

Revenue - Geographical Distribution of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 960,606	$ 818,817	$ 2,604,144	$ 2,194,930
North America
Disaggregation of Revenue [Line Items]
Total revenue	617,000		1,678,599
EMEA
Disaggregation of Revenue [Line Items]
Total revenue	169,532		413,715
CALA
Disaggregation of Revenue [Line Items]
Total revenue	39,261		109,635
APAC
Disaggregation of Revenue [Line Items]
Total revenue	$ 134,813		$ 402,195

Revenue - Contract Balances (Details) - USD ($)	Jul. 31, 2019	Nov. 01, 2018	Oct. 31, 2018
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 798,884,000	$ 799,011,000	$ 786,502,000
Contract assets	74,348	31,380,000
Deferred revenue	$ 145,030,000	$ 140,704,000

Revenue - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Jul. 31, 2019	Nov. 01, 2018
Revenue from Contract with Customer [Abstract]
Revenue recognized that was previously deferred	$ 77.4
Capitalized contract acquisition costs	13.2	$ 13.6
Amortization of capitalized contract acquisition costs	12.5
Remaining performance obligation	$ 1,150.0

Revenue - Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-08-01	Jul. 31, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percentage of remaining performance obligation	83.00%
Period of remaining performance obligation	12 months

Business Combinations - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 02, 2018	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Business Acquisition [Line Items]
Acquisition and integration costs		$ 1,362	$ 1,333	$ 4,105	$ 1,333
Packet Design, LLC
Business Acquisition [Line Items]
Cash transaction for acquisition	$ 41,000
Acquisition and integration costs	$ 1,300
Customer relationships and contracts \| Packet Design, LLC
Business Acquisition [Line Items]
Estimated useful lives	3 years
Developed technology \| Packet Design, LLC
Business Acquisition [Line Items]
Estimated useful lives	5 years

Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Oct. 31, 2018	Jul. 02, 2018
Business Acquisition [Line Items]
Goodwill	$ 297,884	$ 297,968
Packet Design, LLC
Business Acquisition [Line Items]
Cash and cash equivalents			$ 642
Accounts receivable			1,525
Prepaid expenses and other			450
Equipment, furniture and fixtures			31
Goodwill			20,304
Accounts payable			(165)
Accrued liabilities			(657)
Deferred revenue			(5,176)
Total purchase consideration			41,054
Customer relationships and contracts \| Packet Design, LLC
Business Acquisition [Line Items]
Intangible assets			2,200
Developed technology \| Packet Design, LLC
Business Acquisition [Line Items]
Intangible assets			$ 21,900

Restructuring Costs (Details) $ in Thousands	9 Months Ended
Restructuring Costs (Details) $ in Thousands	Jul. 31, 2019 USD ($) employee	Jul. 31, 2018 USD ($) employee
Activity and balance of the restructuring liability accounts
Balance at beginning of period	$ 3,847	$ 2,939
Additional liability recorded	11,696	16,679
Cash payments	(11,652)	(14,071)
Balance at end of period	3,891	5,547
Current restructuring liabilities	2,744	4,256
Non-current restructuring liabilities	1,147	1,291
Workforce reduction
Activity and balance of the restructuring liability accounts
Balance at beginning of period	2,108	1,291
Additional liability recorded	10,309	12,876
Cash payments	(10,021)	(10,987)
Balance at end of period	2,396	3,180
Current restructuring liabilities	2,396	3,180
Non-current restructuring liabilities	$ 0	$ 0
Number of employee reduction \| employee	225	230
Consolidation of excess facilities
Activity and balance of the restructuring liability accounts
Balance at beginning of period	$ 1,739	$ 1,648
Additional liability recorded	1,387	3,803
Cash payments	(1,631)	(3,084)
Balance at end of period	1,495	2,367
Current restructuring liabilities	348	1,076
Non-current restructuring liabilities	$ 1,147	$ 1,291

Interest and Other Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Other Income and Expenses [Abstract]
Interest income	$ 3,475	$ 3,620	$ 10,866	$ 9,276
Gains (losses) on non-hedge designated foreign currency forward contracts	119	2,182	(757)	4,351
Foreign currency exchange losses	(2,373)	(6,879)	(4,585)	(11,670)
Other	(171)	(466)	(465)	(629)
Interest and other income (loss), net	$ 1,050	$ (1,543)	$ 5,059	$ 1,328

Income Taxes (Details) $ in Millions	12 Months Ended
Income Taxes (Details) $ in Millions	Oct. 31, 2018 USD ($)
Income Tax Disclosure [Abstract]
Provisional tax expense	$ 472.8

Short-Term and Long-Term Investments (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Oct. 31, 2018
U.S. government obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 119,490	$ 198,394
Gross Unrealized Gains	180	0
Gross Unrealized Losses	0	(406)
Estimated Fair Value	119,670	197,988
U.S. government obligations \| Included in short-term investments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	119,490	139,365
Gross Unrealized Gains	180	0
Gross Unrealized Losses	0	(347)
Estimated Fair Value	$ 119,670	139,018
U.S. government obligations \| Included in long-term investments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		59,029
Gross Unrealized Gains		0
Gross Unrealized Losses		(59)
Estimated Fair Value		58,970
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		9,963
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Estimated Fair Value		9,963
Commercial paper \| Included in short-term investments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		9,963
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Estimated Fair Value		$ 9,963

Short-Term and Long-Term Investments - Legal Maturities of Debt Investments (Details) $ in Thousands	Jul. 31, 2019 USD ($)
Amortized Cost
Less than one year	$ 119,490
Estimated Fair Value
Less than one year	$ 119,670

- Fair Value Measurements (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Oct. 31, 2018
Liabilities:
Debt conversion liability	$ 0	$ 164,212
Fair value, Measurements, Recurring
Assets:
Money market funds	595,556	590,684
U.S. government obligations	119,670	197,988
Commercial paper		69,888
Total assets measured at fair value	716,108	859,472
Liabilities:
Debt conversion liability		164,212
Contingent consideration	10,900	10,900
Total liabilities measured at fair value	32,892	178,343
Fair value, Measurements, Recurring \| Level 1
Assets:
Money market funds	595,556	590,684
U.S. government obligations	0	0
Commercial paper		0
Total assets measured at fair value	595,556	590,684
Liabilities:
Debt conversion liability		0
Contingent consideration	0	0
Total liabilities measured at fair value	0	0
Fair value, Measurements, Recurring \| Level 2
Assets:
Money market funds	0	0
U.S. government obligations	119,670	197,988
Commercial paper		69,888
Total assets measured at fair value	120,552	268,788
Liabilities:
Debt conversion liability		164,212
Contingent consideration	0	0
Total liabilities measured at fair value	21,992	167,443
Fair value, Measurements, Recurring \| Level 3
Assets:
Money market funds	0	0
U.S. government obligations	0	0
Commercial paper		0
Total assets measured at fair value	0	0
Liabilities:
Debt conversion liability		0
Contingent consideration	10,900	10,900
Total liabilities measured at fair value	10,900	10,900
Foreign Currency Forward Contracts \| Fair value, Measurements, Recurring
Assets:
Derivative asset	882	133
Liabilities:
Derivative liability	1,029	3,231
Foreign Currency Forward Contracts \| Fair value, Measurements, Recurring \| Level 1
Assets:
Derivative asset	0	0
Liabilities:
Derivative liability	0	0
Foreign Currency Forward Contracts \| Fair value, Measurements, Recurring \| Level 2
Assets:
Derivative asset	882	133
Liabilities:
Derivative liability	1,029	3,231
Foreign Currency Forward Contracts \| Fair value, Measurements, Recurring \| Level 3
Assets:
Derivative asset	0	0
Liabilities:
Derivative liability	0	0
Forward Starting Interest Rate Swaps \| Fair value, Measurements, Recurring
Assets:
Derivative asset		779
Liabilities:
Derivative liability	20,963
Forward Starting Interest Rate Swaps \| Fair value, Measurements, Recurring \| Level 1
Assets:
Derivative asset		0
Liabilities:
Derivative liability	0
Forward Starting Interest Rate Swaps \| Fair value, Measurements, Recurring \| Level 2
Assets:
Derivative asset		779
Liabilities:
Derivative liability	20,963
Forward Starting Interest Rate Swaps \| Fair value, Measurements, Recurring \| Level 3
Assets:
Derivative asset		$ 0
Liabilities:
Derivative liability	$ 0

Fair Value Measurements - Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Jul. 31, 2019
Liabilities:
Debt conversion liability	$ 164,212	$ 0
Fair value, Measurements, Recurring
Assets:
Total assets measured at fair value	859,472	716,108
Liabilities:
Debt conversion liability	164,212
Total liabilities measured at fair value	178,343	32,892
Fair value, Measurements, Recurring \| Cash equivalents
Assets:
Cash equivalents	650,609	595,556
Fair value, Measurements, Recurring \| Short-term investments
Assets:
Short-term investments	148,981	119,670
Fair value, Measurements, Recurring \| Prepaid expenses and other
Assets:
Prepaid expenses and other	133	882
Fair value, Measurements, Recurring \| Long-term investments
Assets:
Long-term investments	58,970
Fair value, Measurements, Recurring \| Other long-term assets
Assets:
Other long-term assets	779
Fair value, Measurements, Recurring \| Accrued liabilities
Liabilities:
Accrued liabilities	3,231	8,520
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	24,372
Fair value, Measurements, Recurring \| Level 1
Assets:
Total assets measured at fair value	590,684	595,556
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	595,556
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
Fair value, Measurements, Recurring \| Level 1 \| Other long-term assets
Assets:
Other long-term assets	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	0
Fair value, Measurements, Recurring \| Level 2
Assets:
Total assets measured at fair value	268,788	120,552
Liabilities:
Debt conversion liability	164,212
Total liabilities measured at fair value	167,443	21,992
Fair value, Measurements, Recurring \| Level 2 \| Cash equivalents
Assets:
Cash equivalents	59,925	0
Fair value, Measurements, Recurring \| Level 2 \| Short-term investments
Assets:
Short-term investments	148,981	119,670
Fair value, Measurements, Recurring \| Level 2 \| Prepaid expenses and other
Assets:
Prepaid expenses and other	133	882
Fair value, Measurements, Recurring \| Level 2 \| Long-term investments
Assets:
Long-term investments	58,970
Fair value, Measurements, Recurring \| Level 2 \| Other long-term assets
Assets:
Other long-term assets	779
Fair value, Measurements, Recurring \| Level 2 \| Accrued liabilities
Liabilities:
Accrued liabilities	3,231	1,029
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	20,963
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	10,900
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
Fair value, Measurements, Recurring \| Level 3 \| Other long-term assets
Assets:
Other long-term assets	0
Fair value, Measurements, Recurring \| Level 3 \| Accrued liabilities
Liabilities:
Accrued liabilities	0	7,491
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	$ 3,409
DonRiver
Liabilities:
Contingent consideration term	3 years

Inventories (Details) - USD ($) $ in Thousands	9 Months Ended
Inventories (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jul. 31, 2018	Nov. 01, 2018	Oct. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 102,240			$ 67,468
Work-in-process	15,456			9,589
Finished goods	193,487			188,575
Deferred cost of goods sold	93,448			48,057
Inventories before provision	404,631			313,689
Provision for excess and obsolescence	(47,813)			(50,938)
Total inventories	356,818		$ 260,265	$ 262,751
Provisions	$ 18,833	$ 19,942

Prepaid Expenses and Other (Details) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Nov. 01, 2018	Oct. 31, 2018
Capitalized Contract Cost [Line Items]
Prepaid VAT and other taxes	$ 84,359			$ 82,518
Product demonstration equipment, net	39,977			37,623
Prepaid expenses	46,666			32,987
Other non-trade receivables	36,798			25,716
Financing receivable	0			626
Deferred deployment expense	0			19,342
Derivative assets	882			133
Prepaid expenses and other	292,631		$ 220,415	198,945
Depreciation of product demonstration equipment	6,500	$ 6,800
Contract assets for unbilled accounts receivable
Capitalized Contract Cost [Line Items]
Contract assets	74,348			0
Capitalized commissions - short term
Capitalized Contract Cost [Line Items]
Contract assets	$ 9,601			$ 0

Accrued Liabilities and Other Short-Term Obligations (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Oct. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Compensation, payroll related tax and benefits	$ 125,651	$ 140,277
Warranty	46,680	44,740	$ 44,150	$ 42,456
Vacation	22,076	42,507
Contingent consideration	7,491	0
Capital lease obligations	2,798	3,547
Interest payable	1,062	1,072
Other	119,379	107,932
Total accrued liabilities and other short-term obligations	$ 325,137	$ 340,075

Accrued Liabilities and Other Short-Term Obligations - Accrued Warranty (Details) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning Balance	$ 44,740	$ 42,456
Current Period Provisions	15,933	15,715
Settlements	(13,993)	(14,021)
Ending Balance	$ 46,680	$ 44,150

Accrued Liabilities and Other Short-Term Obligations - Narrative (Details) - USD ($) shares in Millions		9 Months Ended
	Nov. 15, 2018	Jul. 31, 2019	Jul. 31, 2018	Oct. 31, 2018	Aug. 30, 2018
Debt Instrument [Line Items]
Debt conversion liability		$ 0		$ 164,212,000
Payment for debt conversion liability		$ 111,268,000	$ 0
3.75% Convertible Senior Notes due 2018 (New)
Debt Instrument [Line Items]
Interest rate on convertible notes (as a percent)		3.75%
Convertible notes payable \| 3.75% Convertible Senior Notes due 2018 (New)
Debt Instrument [Line Items]
Interest rate on convertible notes (as a percent)					3.75%
Maximum cash settlement					$ 400,000,000
Debt conversion liability					$ 164,200,000
Payment for debt conversion liability	$ 111,300,000
Shares issued for debt conversion liability (in shares)	1.6

Derivative Instruments (Details) - USD ($) $ in Millions	9 Months Ended
Derivative Instruments (Details) - USD ($) $ in Millions	Jul. 31, 2019	Oct. 31, 2018
Foreign Currency Forward Contracts \| Designated as hedging instrument \| Cash flow hedging
Derivative [Line Items]
Derivative asset, notional amount	$ 142.0	$ 163.2
Derivative maturity (in months)	24 months
Foreign Currency Forward Contracts \| Not designated as hedging instrument
Derivative [Line Items]
Derivative asset, notional amount	$ 193.3	162.6
Derivative maturity (in months)	12 months
Forward Starting Interest Rate Swaps \| Designated as hedging instrument \| Cash flow hedging \| Secured debt \| 2025 Term Loan
Derivative [Line Items]
Derivative asset, notional amount	$ 350.0	$ 350.0
Derivative, fixed interest rate	2.957%

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive income - beginning balance	$ 1,929,334
Other comprehensive income (loss) before reclassifications	(20,041)	$ 3,101
Amounts reclassified from AOCI	2,057	(789)
Accumulated other comprehensive income - ending balance	2,119,384
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive income - beginning balance	(5,780)	(11,017)
Accumulated other comprehensive income - ending balance	(23,764)	(8,705)
Unrealized Loss on Available-for-sale Securities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive income - beginning balance	(425)	(451)
Other comprehensive income (loss) before reclassifications	581	(59)
Amounts reclassified from AOCI	0	0
Accumulated other comprehensive income - ending balance	156	(510)
Unrealized Gain (Loss) Derivatives \| Foreign Currency Forward Contracts
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive income - beginning balance	(3,060)	(1,386)
Other comprehensive income (loss) before reclassifications	(349)	(9)
Amounts reclassified from AOCI	3,100	(1,058)
Accumulated other comprehensive income - ending balance	(309)	(2,453)
Unrealized Gain (Loss) Derivatives \| Forward Starting Interest Rate Swaps
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive income - beginning balance	6,417	218
Other comprehensive income (loss) before reclassifications	(18,370)	5,330
Amounts reclassified from AOCI	(1,043)	269
Accumulated other comprehensive income - ending balance	(12,996)	5,817
Cumulative Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive income - beginning balance	(8,712)	(9,398)
Other comprehensive income (loss) before reclassifications	(1,903)	(2,161)
Amounts reclassified from AOCI	0	0
Accumulated other comprehensive income - ending balance	$ (10,615)	$ (11,559)

Short-Term and Long-Term Debt - Carrying Value of Debt (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Oct. 31, 2018
Secured debt \| 2025 Term Loan
Debt Instrument [Line Items]
Long-term Debt	$ 688,918	$ 693,450

Short-Term and Long-Term Debt (Details) - Secured debt - 2025 Term Loan - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2019	Oct. 31, 2018
Debt Instrument [Line Items]
Debt issuance costs, net	$ 3,789	$ 4,300
Amortization of debt issuance costs included in interest expense	$ 500

Short-Term and Long-Term Debt - Debt Components (Details) - Secured debt - 2025 Term Loan - USD ($) $ in Thousands	Jul. 31, 2019	Oct. 31, 2018
Debt Instrument [Line Items]
Principal Balance	$ 694,750
Unamortized Debt Discount	(2,043)
Deferred Debt Issuance Costs	(3,789)	$ (4,300)
Net Carrying Value	688,918	$ 693,450
Fair Value	$ 696,487

Earnings Per Share Calculation - Earnings Per Share Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Numerator
Net income (loss)	$ 86,749	$ 50,840	$ 173,103	$ (408,667)
Net income (loss) used to calculate Diluted EPS	$ 86,749	$ 53,928	$ 173,103	$ (408,667)
Denominator
Basic weighted average shares outstanding (in shares)	155,488	143,400	156,013	143,766
Add: Shares underlying outstanding stock options and restricted stock units and issuable under employee stock purchase plan (in shares)	1,967	1,330	1,936	0
Dilutive weighted average shares outstanding (in shares)	157,455	159,998	157,949	143,766
EPS
Basic EPS (in dollars per share)	$ 0.56	$ 0.35	$ 1.11	$ (2.84)
Diluted EPS (in dollars per share)	$ 0.55	$ 0.34	$ 1.10	$ (2.84)
3.75% Convertible Senior Notes due 2018 (New)
Denominator
Add: Shares underlying Convertible Senior Notes (in shares)	0	3,032	0	0
EPS
Interest rate on convertible notes (as a percent)	3.75%		3.75%
3.75% Convertible Senior Notes due 2018 (Original)
Numerator
Add: Interest expense associated with Convertible Senior Notes	$ 0	$ 464	$ 0	$ 0
Denominator
Add: Shares underlying Convertible Senior Notes (in shares)	0	3,038	0	0
EPS
Interest rate on convertible notes (as a percent)	3.75%		3.75%
4.0% Convertible Senior Notes due 2020
Numerator
Add: Interest expense associated with Convertible Senior Notes	$ 0	$ 2,624	$ 0	$ 0
Denominator
Add: Shares underlying Convertible Senior Notes (in shares)	0	9,198	0	0
EPS
Interest rate on convertible notes (as a percent)	4.00%		4.00%

Earnings Per Share Calculation - Antidilutive Securities Excluded (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total excluded due to anti-dilutive effect (in shares)	253	318	256	16,544
3.75% Convertible Senior Notes due 2018 (Original)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Interest rate on convertible notes (as a percent)	3.75%		3.75%
3.75% Convertible Senior Notes due 2018 (New)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Interest rate on convertible notes (as a percent)	3.75%		3.75%
4.0% Convertible Senior Notes due 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Interest rate on convertible notes (as a percent)	4.00%		4.00%
Shares underlying stock options and stock unit awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total excluded due to anti-dilutive effect (in shares)	253	318	256	2,183
Convertible Senior Notes \| 3.75% Convertible Senior Notes due 2018 (Original)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total excluded due to anti-dilutive effect (in shares)	0	0	0	3,038
Convertible Senior Notes \| 3.75% Convertible Senior Notes due 2018 (New)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total excluded due to anti-dilutive effect (in shares)	0	0	0	2,125
Convertible Senior Notes \| 4.0% Convertible Senior Notes due 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total excluded due to anti-dilutive effect (in shares)	0	0	0	9,198

Stockholders' Equity (Details) - USD ($)	9 Months Ended
Stockholders' Equity (Details) - USD ($)	Jul. 31, 2019	Jul. 31, 2018	Dec. 13, 2018
Equity [Abstract]
Stock repurchase program authorized amount			$ 500,000,000
Shares repurchased for tax withholdings on vesting of restricted stock units	$ 23,234,000
Payments for repurchase of common stock	$ 23,234,000	$ 0

Stockholders' Equity - Summary of the Stock Repurchase Program (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Jul. 31, 2019 USD ($) $ / shares shares
Shares Repurchased
Cumulative beginning balance (in shares) \| shares	0
Repurchase of common stock under the stock repurchase program (in shares) \| shares	2,881,564
Cumulative ending balance (in shares) \| shares	2,881,564
Weighted-Average Price per Share
Cumulative beginning balance (in dollars per share) \| $ / shares	$ 0
Repurchase of common stock under the stock repurchase program (in dollars per share) \| $ / shares	38.84
Cumulative ending balance (in dollars per share) \| $ / shares	$ 38.84
Amount Repurchased (in thousands)
Cumulative beginning balance \| $	$ 0
Repurchase of common stock under the stock repurchase program \| $	111,925
Cumulative ending balance \| $	$ 111,925

Share-Based Compensation Expense - Expense in Period (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense capitalized in inventory, net	$ (45)	$ (101)	$ 93	$ (107)
Total share-based compensation	15,084	12,337	44,446	38,896
Cost of Sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	1,564	1,401	4,580	4,244
Product costs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	781	783	2,120	2,279
Service costs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	783	618	2,460	1,965
Operating Expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	13,565	11,037	39,773	34,759
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	3,560	3,082	11,034	10,133
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	4,192	3,417	12,323	10,505
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 5,813	$ 4,538	$ 16,416	$ 14,121

Share-Based Compensation Expense (Details) - Restricted stock units (RSUs) $ in Millions	9 Months Ended
	Jul. 31, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation	$ 98.8
Weighted-average period for recognition of share-based compensation (in years)	1 year 6 months

Segments and Entity-Wide Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Oct. 31, 2018
Segment Reporting Information [Line Items]
Equipment, building, furniture and fixtures, net	$ 280,630		$ 280,630		$ 292,067
Goodwill	297,884		297,884		297,968
Maintenance spares, net	51,100		51,100
Net revenue	960,606	$ 818,817	2,604,144	$ 2,194,930
United States
Segment Reporting Information [Line Items]
Equipment, building, furniture and fixtures, net	62,231		62,231		$ 75,479
Net revenue	592,200	469,200	1,600,000	$ 1,250,000
India
Segment Reporting Information [Line Items]
Net revenue		$ 83,600
Networking Platforms
Segment Reporting Information [Line Items]
Intangible assets, net	22,700		22,700
Goodwill	65,700		65,700
Software and Software-Related Services
Segment Reporting Information [Line Items]
Intangible assets, net	98,600		98,600
Goodwill	$ 232,200		$ 232,200

Segments and Entity-Wide Disclosures - Revenue, Profit (Loss) and Net Income (Loss) Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Revenue:
Total revenue	$ 960,606	$ 818,817	$ 2,604,144	$ 2,194,930
Segment profit:
Operating income (loss)	125,301	85,274	253,564	134,076
Less: Non-performance operating expenses
Selling and marketing	104,230	95,395	305,845	281,269
General and administrative	42,695	38,212	124,092	115,594
Amortization of intangible assets	5,529	3,837	16,586	11,083
Significant asset impairments and restructuring costs	5,355	6,359	11,696	16,679
Acquisition and integration costs	1,362	1,333	4,105	1,333
Add: Other non-performance financial items
Interest expense and other income (loss), net	(8,354)	(15,154)	(23,257)	(39,048)
Less: Provision for income taxes	30,198	19,280	57,204	503,695
Net income (loss)	86,749	50,840	173,103	(408,667)
Operating Segments
Segment profit:
Operating income (loss)	284,472	230,410	715,888	560,034
Operating Segments \| Networking Platforms
Revenue:
Total revenue	796,068	677,451	2,113,609	1,765,166
Segment profit:
Operating income (loss)	230,610	181,603	542,391	396,995
Operating Segments \| Software and Software-Related Services
Revenue:
Total revenue	47,842	41,183	152,116	133,415
Segment profit:
Operating income (loss)	6,029	9,305	30,982	121,823
Operating Segments \| Global Services
Revenue:
Total revenue	116,696	100,183	338,419	296,349
Segment profit:
Operating income (loss)	47,833	39,502	142,515	41,216
Converged Packet Optical
Revenue:
Total revenue	724,245		1,897,080
Converged Packet Optical \| Operating Segments \| Networking Platforms
Revenue:
Total revenue	724,245	592,892	1,897,080	1,548,189
Converged Packet Optical \| Operating Segments \| Software and Software-Related Services
Revenue:
Total revenue	0		0
Converged Packet Optical \| Operating Segments \| Global Services
Revenue:
Total revenue	0		0
Packet Networking
Revenue:
Total revenue	71,823		216,529
Packet Networking \| Operating Segments \| Networking Platforms
Revenue:
Total revenue	71,823	84,559	216,529	216,977
Packet Networking \| Operating Segments \| Software and Software-Related Services
Revenue:
Total revenue	0		0
Packet Networking \| Operating Segments \| Global Services
Revenue:
Total revenue	0		0
Platform Software and Services
Revenue:
Total revenue	37,312		114,139
Platform Software and Services \| Operating Segments \| Networking Platforms
Revenue:
Total revenue	0		0
Platform Software and Services \| Operating Segments \| Software and Software-Related Services
Revenue:
Total revenue	37,312	36,818	114,139	117,347
Platform Software and Services \| Operating Segments \| Global Services
Revenue:
Total revenue	0		0
Blue Planet Automation Software and Services
Revenue:
Total revenue	10,530		37,977
Blue Planet Automation Software and Services \| Operating Segments \| Networking Platforms
Revenue:
Total revenue	0		0
Blue Planet Automation Software and Services \| Operating Segments \| Software and Software-Related Services
Revenue:
Total revenue	10,530	4,365	37,977	16,068
Blue Planet Automation Software and Services \| Operating Segments \| Global Services
Revenue:
Total revenue	0		0
Maintenance Support and Training
Revenue:
Total revenue	65,936		196,002
Maintenance Support and Training \| Operating Segments \| Networking Platforms
Revenue:
Total revenue	0		0
Maintenance Support and Training \| Operating Segments \| Software and Software-Related Services
Revenue:
Total revenue	0		0
Maintenance Support and Training \| Operating Segments \| Global Services
Revenue:
Total revenue	65,936	60,897	196,002	177,759
Installation and Deployment
Revenue:
Total revenue	39,802		111,746
Installation and Deployment \| Operating Segments \| Networking Platforms
Revenue:
Total revenue	0		0
Installation and Deployment \| Operating Segments \| Software and Software-Related Services
Revenue:
Total revenue	0		0
Installation and Deployment \| Operating Segments \| Global Services
Revenue:
Total revenue	39,802	31,262	111,746	89,487
Consulting and Network Design
Revenue:
Total revenue	10,958		30,671
Consulting and Network Design \| Operating Segments \| Networking Platforms
Revenue:
Total revenue	0		0
Consulting and Network Design \| Operating Segments \| Software and Software-Related Services
Revenue:
Total revenue	0		0
Consulting and Network Design \| Operating Segments \| Global Services
Revenue:
Total revenue	$ 10,958	$ 8,024	$ 30,671	$ 29,103

Segments and Entity-Wide Disclosures - Geographic Distribution of Equipment, Building, Furniture and Fixtures (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Oct. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Equipment, building, furniture and fixtures, net	$ 280,630	$ 292,067
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Equipment, building, furniture and fixtures, net	201,126	198,028
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Equipment, building, furniture and fixtures, net	62,231	75,479
Other International
Revenues from External Customers and Long-Lived Assets [Line Items]
Equipment, building, furniture and fixtures, net	$ 17,273	$ 18,560

Segments and Entity-Wide Disclosures - Revenue by Major Customers (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Revenue, Major Customer [Line Items]
Total revenue	$ 960,606	$ 818,817	$ 2,604,144	$ 2,194,930
Customer concentration risk \| Sales revenue, net
Revenue, Major Customer [Line Items]
Total revenue	242,128	270,856	909,155	484,928
AT&T \| Customer concentration risk \| Sales revenue, net
Revenue, Major Customer [Line Items]
Total revenue		87,389	297,049	263,453
Verizon \| Customer concentration risk \| Sales revenue, net
Revenue, Major Customer [Line Items]
Total revenue	118,875	97,103	314,000	$ 221,475
Web-scale provider \| Customer concentration risk \| Sales revenue, net
Revenue, Major Customer [Line Items]
Total revenue	$ 123,253	$ 86,364	$ 298,106

Commitments and Contingencies (Details) $ in Thousands, $ in Millions		3 Months Ended		9 Months Ended			29 Months Ended
	Apr. 01, 2014 lawsuit	Jul. 31, 2019 USD ($)	Jul. 31, 2018 USD ($)	Jul. 31, 2019 USD ($) government_entity	Jul. 31, 2019 CAD ($) government_entity	Jul. 31, 2018 USD ($)	Jul. 31, 2019 USD ($)	Jul. 31, 2019 CAD ($)	Jul. 31, 2019 CAD ($)
Loss Contingencies [Line Items]
Maximum amount of Canadian grant		$ 43,600		$ 43,600			$ 43,600		$ 57.6
Number of Canadian government entities \| government_entity				3	3
Total revenue		960,606	$ 818,817	$ 2,604,144		$ 2,194,930
Amounts receivable from grant		8,200		8,200			8,200		$ 10.8
Customer concentration risk \| Sales revenue, net
Loss Contingencies [Line Items]
Total revenue		$ 242,128	$ 270,856	909,155		$ 484,928
Grants
Loss Contingencies [Line Items]
Total revenue				$ 7,000	$ 9.3		$ 19,600	$ 25.9
Beaver County Employees Retirement Fund et al. v. Cyan, Inc. et al.
Loss Contingencies [Line Items]
Number of lawsuits filed \| lawsuit	2

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	9 Months Ended
	Sep. 06, 2019	Jul. 31, 2019	Oct. 31, 2018
Subsequent Event [Line Items]
Stock repurchases (in shares)		2,881,564
Stock repurchases		$ 111,925
Average price of shares repurchased (in dollars per share)		$ 38.84
Aggregate shares repurchased (in shares)		2,881,564	0
Subsequent event
Subsequent Event [Line Items]
Stock repurchases (in shares)	417,819
Stock repurchases	$ 17,300
Average price of shares repurchased (in dollars per share)	$ 41.38
Aggregate shares repurchased (in shares)	3,299,383
Authorized funds remaining under stock repurchase program	$ 370,800

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 49,805,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	62,123,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	49,805,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	61,291,000
Additional Paid-in Capital [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 832,000