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Income Taxes (Tables) | 12 Months Ended
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Oct. 31, 2020
Income Tax Disclosure [Abstract] |
Provision (benefit) for income taxes | For the periods indicated, the provision for income taxes consists of the following (in thousands):
| Year Ended |
| October 31, 2020 |  | November 2, 2019 |  | November 3, 2018 |
Provision for income taxes: |  |  |  |  |  |
Current: |  |  |  |  |  |
Federal | $ | 4,363 |  |  | $ | 13,143 |  |  | $ | 8,327 |  |
State | 13,328 |  |  | 16,945 |  |  | 8,219 |  |
Foreign | 12,640 |  |  | 9,816 |  |  | 13,294 |  |
Total current | 30,331 |  |  | 39,904 |  |  | 29,840 |  |
Deferred: |  |  |  |  |  |
Federal | 60,679 |  |  | 31,872 |  |  | 475,951 |  | (1)
State | 4,607 |  |  | (9,159) |  |  | (8,202) |  |
Foreign | (947) |  |  | (2,861) |  |  | (4,118) |  |
Total deferred | 64,339 |  |  | 19,852 |  |  | 463,631 |  |
Provision for income taxes | $ | 94,670 |  |  | $ | 59,756 |  |  | $ | 493,471 |  |
(1) The income tax expense for 2018 includes the impact of the remeasurement of the net deferred tax assets and the federal transition tax. See further discussion below.
Income before provision (benefit) for income taxes | For the periods indicated, income before provision for income taxes consists of the following (in thousands):
| Year Ended
| October 31, 2020 |  | November 2, 2019 |  | November 3, 2018
United States | $ | 387,697 |  |  | $ | 256,461 |  |  | $ | 106,972 |
Foreign | 68,264 |  |  | 56,729 |  |  | 41,809 |
Total | $ | 455,961 |  |  | $ | 313,190 |  |  | $ | 148,781 |
Tax provision (benefit) reconciles to the amount computed by multiplying income or loss before income taxes by the U.S. federal statutory rate of 35% | For the periods indicated, the tax provision reconciles to the amount computed by multiplying income before income taxes by the U.S. federal statutory rate of 21% for fiscal 2020 and fiscal 2019, and 23.4% for fiscal 2018 (see note below) as follows:
| Year Ended
| October 31, 2020 |  | November 2, 2019 |  | November 3, 2018
Provision at statutory rate | 21.00 | % |  | 21.00 | % |  | 23.41 | %
Deferred tax assets remeasurement | — | % |  | — | % |  | 294.56 | %
Base Erosion and Anti-Abuse Tax | (1.02) | % |  | 3.60 | % |  | — | %
State taxes | 2.21 | % |  | 2.18 | % |  | (0.16) | %
Foreign taxes | 0.51 | % |  | (0.37) | % |  | 1.22 | %
Research and development credit | (7.74) | % |  | (7.53) | % |  | (8.80) | %
Non-deductible compensation | 1.79 | % |  | 1.01 | % |  | 3.39 | %
Fair value of debt conversion liability | — | % |  | — | % |  | 1.90 | %
Transition tax | 0.02 | % |  | 0.29 | % |  | 23.23 | %
Valuation allowance | 3.58 | % |  | (2.13) | % |  | (11.95) | %
Other | 0.41 | % |  | 1.03 | % |  | 4.88 | %
Effective income tax rate | 20.76 | % |  | 19.08 | % |  | 331.68 | %
Significant components of deferred tax assets and liabilities | The significant components of DTA are as follows (in thousands):
| Year Ended
| October 31, 2020 |  | November 2, 2019
Deferred tax assets: |  |  |
Reserves and accrued liabilities | $ | 73,825 |  |  | $ | 54,183 |
Depreciation and amortization | 504,233 |  |  | 455,007 |
NOL and credit carry forward | 188,157 |  |  | 302,325 |
Other | 33,017 |  |  | 39,405 |
Gross deferred tax assets | 799,232 |  |  | 850,920 |
Valuation allowance | (151,427) |  |  | (135,978) |
Deferred tax asset, net of valuation allowance | $ | 647,805 |  |  | $ | 714,942 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):
| Amount
Unrecognized tax benefits at October 28, 2017 | $ | 141,582 |
Decrease related to positions taken in prior period | (46,400) |
Increase related to positions taken in current period | 2,482 |
Reductions related to expiration of statute of limitations | (1,301) |
Unrecognized tax benefits at November 3, 2018 | 96,363 |
Increase related to positions taken in prior period | 1,959 |
Reductions related to settlements with taxing authorities | (1,224) |
Reductions related to expiration of statute of limitations | (2,494) |
Unrecognized tax benefits at November 2, 2019 | 94,604 |
Increase related to positions taken in prior period | 653 |
Increase related to positions taken in current period | 1,151 |
Reductions related to expiration of statute of limitations | (660) |
Unrecognized tax benefits at October 31, 2020 | $ | 95,748 |
Summary of valuation allowance against the gross deferred tax assets | The following table summarizes the activity in Ciena’s valuation allowance against its gross deferred tax assets (in thousands):
Year Ended |  | Beginning Balance |  | Additions |  | Deductions |  | Ending Balance
November 3, 2018 |  | $ | 185,898 |  |  | $ | 23,720 |  |  | $ | 66,968 |  |  | $ | 142,650 |
November 2, 2019 |  | $ | 142,650 |  |  | $ | 27,459 |  |  | $ | 34,131 |  |  | $ | 135,978 |
October 31, 2020 |  | $ | 135,978 |  |  | $ | 25,749 |  |  | $ | 10,300 |  |  | $ | 151,427 |

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