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Segments and Entity-Wide Disclosures | 6 Months Ended
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May 02, 2020
Segment Reporting [Abstract] |
Segments and Entity-Wide Disclosures | SEGMENTS AND ENTITY-WIDE DISCLOSURES Segment Reporting Ciena has the following operating segments for reporting purposes: (i) Networking Platforms; (ii) Platform Software and Services; (iii) Blue Planet Automation Software and Services; and (iv) Global Services. During fiscal 2019, Ciena separated its previous Software and Software-Related Services segment into two stand-alone operating segments. Because Ciena previously disclosed its Platform Software and Services and Blue Planet Automation Software and Services as distinct product lines in its presentation of segment revenue for Software and Software-Related Services, there is no significant change to the presentation of segment revenues as a result of this separation. Comparative periods have been retrospectively adjusted to disclose segment profit for Platform Software and Services and Blue Planet Automation Software and Services. See Note 3 to Ciena’s Condensed Consolidated Financial Statements. Ciena's long-lived assets, including equipment, building, furniture and fixtures, right-of-use assets, finite-lived intangible assets and maintenance spares, are not reviewed by Ciena's chief operating decision maker for purposes of evaluating performance and allocating resources. As of May 2, 2020, equipment, building, furniture and fixtures, net, totaled $260.9 million, and operating right-of-use assets totaled $47.9 million both of which support asset groups within Ciena’s four operating segments and unallocated selling and general and administrative activities. As of May 2, 2020, finite-lived intangible assets, goodwill and maintenance spares are assigned to asset groups within the following segments (in thousands):
| May 2, 2020
| Networking Platforms |  | Platform Software and Services |  | Blue Planet Automation Software and Services |  | Global Services |  | Total
Other intangible assets, net | $ | 15,586 |  |  | $ | — |  |  | $ | 99,950 |  |  | $ | — |  |  | $ | 115,536 |
Goodwill | $ | 65,029 |  |  | $ | 156,191 |  |  | $ | 89,049 |  |  | $ | — |  |  | $ | 310,269 |
Maintenance spares, net | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 58,476 |  |  | $ | 58,476 |
Segment Revenue The table below sets forth Ciena’s segment revenue for the respective periods (in thousands):
| Quarter Ended |  | Six Months Ended
| May 2, |  | May 4, |  | May 2, |  | May 4,
| 2020 |  | 2019 |  | 2020 |  | 2019
Revenue: |  |  |  |  |  |  |
Networking Platforms |  |  |  |  |  |  |
Converged Packet Optical | $ | 654,294 |  |  | $ | 623,838 |  |  | $ | 1,245,844 |  |  | $ | 1,172,835 |
Packet Networking | 64,167 |  |  | 73,138 |  |  | 131,675 |  |  | 144,707 |
Total Networking Platforms | 718,461 |  |  | 696,976 |  |  | 1,377,519 |  |  | 1,317,542 |
Platform Software and Services | 44,985 |  |  | 35,229 |  |  | 96,873 |  |  | 76,827 |
Blue Planet Automation Software and Services | 15,017 |  |  | 12,473 |  |  | 30,482 |  |  | 27,447 |
Global Services |  |  |  |  |  |  |
Maintenance Support and Training | 71,479 |  |  | 68,788 |  |  | 133,271 |  |  | 130,065 |
Installation and Deployment | 34,242 |  |  | 41,322 |  |  | 69,196 |  |  | 71,944 |
Consulting and Network Design | 9,869 |  |  | 10,223 |  |  | 19,624 |  |  | 19,713 |
Total Global Services | 115,590 |  |  | 120,333 |  |  | 222,091 |  |  | 221,722 |
Consolidated revenue | $ | 894,053 |  |  | $ | 865,011 |  |  | $ | 1,726,965 |  |  | $ | 1,643,538 |
Segment Profit (Loss) Segment profit (loss) is determined based on internal performance measures used by Ciena’s chief executive officer to assess the performance of each operating segment in a given period. In connection with that assessment, the chief executive officer excludes the following items: selling and marketing costs; general and administrative costs; amortization of intangible assets; significant asset impairments and restructuring costs; acquisition and integration costs; interest and other income (loss), net; interest expense; loss on extinguishment and modification of debt and provision for income taxes. The table below sets forth Ciena’s segment profit (loss) and the reconciliation to consolidated net income during the respective periods indicated (in thousands):
| Quarter Ended |  | Six Months Ended
| May 2, |  | May 4, |  | May 2, |  | May 4,
| 2020 |  | 2019 |  | 2020 |  | 2019
Segment profit (loss): |  |  |  |  |  |  |
Networking Platforms | $ | 210,987 |  |  | $ | 175,191 |  |  | $ | 379,256 |  |  | $ | 311,782 |
Platform Software and Services | 21,668 |  |  | 12,477 |  |  | 50,619 |  |  | 32,940 |
Blue Planet Automation Software and Services | (4,399 | ) |  | (5,941 | ) |  | (7,512 | ) |  | (7,988 | )
Global Services | 53,540 |  |  | 54,981 |  |  | 99,068 |  |  | 94,682 |
Total segment profit | 281,796 |  |  | 236,708 |  |  | 521,431 |  |  | 431,416 |
Less: Non-performance operating expenses |  |  |  |  |  |  |
Selling and marketing | 101,214 |  |  | 103,502 |  |  | 208,280 |  |  | 201,615 |
General and administrative | 42,030 |  |  | 42,154 |  |  | 84,498 |  |  | 81,397 |
Amortization of intangible assets | 5,839 |  |  | 5,529 |  |  | 11,692 |  |  | 11,057 |
Significant asset impairments and restructuring costs | 3,811 |  |  | 4,068 |  |  | 8,283 |  |  | 6,341 |
Acquisition and integration costs | 1,414 |  |  | 1,135 |  |  | 3,233 |  |  | 2,743 |
Add: Other non-performance financial items |  |  |  |  |  |  |
Interest expense and other income (loss), net | (10,525 | ) |  | (9,715 | ) |  | (15,694 | ) |  | (14,903 | )
Loss on extinguishment and modification of debt | — |  |  | — |  |  | (646 | ) |  | — |
Less: Provision for income taxes | 25,308 |  |  | 17,867 |  |  | 35,122 |  |  | 27,006 |
Consolidated net income | $ | 91,655 |  |  | $ | 52,738 |  |  | $ | 153,983 |  |  | $ | 86,354 |
Entity-Wide Reporting Ciena’s operating segments each engage in business across three geographic regions: Americas; Europe, Middle East and Africa (“EMEA”); and Asia-Pacific, Japan and India (“APAC”). Americas include activities in North America and South America (previously, Caribbean and Latin America (“CALA”)). The following table reflects Ciena’s geographic distribution of revenue principally based on the relevant location for Ciena’s delivery of products and performance of services. For the periods below, Ciena’s geographic distribution of revenue was as follows (in thousands):
|  | Quarter Ended |  | Six Months Ended
|  | May 2, |  | May 4, |  | May 2, |  | May 4,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Americas |  | 650,381 |  |  | 615,492 |  |  | 1,224,385 |  |  | 1,131,973 |
EMEA |  | 141,431 |  |  | 114,993 |  |  | 271,396 |  |  | 244,183 |
APAC |  | 102,241 |  |  | 134,526 |  |  | 231,184 |  |  | 267,382 |
Total |  | $ | 894,053 |  |  | $ | 865,011 |  |  | $ | 1,726,965 |  |  | $ | 1,643,538 |
Ciena’s revenue includes $598.4 million and $545.6 million of United States revenue for the second quarter of fiscal 2020 and 2019, respectively. For the six months ended May 2, 2020 and May 4, 2019, United States revenue was $1.1 billion and $1.0 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, and operating right-of-use assets, with any country accounting for at least 10% of total equipment, building, furniture and fixtures, net, and operating right-of-use assets specifically identified. Equipment, building, furniture and fixtures, net, and operating right-of-use assets attributable to geographic regions outside of the U.S. and Canada are reflected as “Other International.” For the periods below, Ciena’s geographic distribution of equipment, building, furniture and fixtures, net, and operating right-of-use assets was as follows (in thousands):
| May 2, 2020 |  | November 2, 2019
Canada | $ | 198,334 |  |  | $ | 211,901 |
United States | 75,110 |  |  | 58,119 |
Other International | 35,287 |  |  | 16,864 |
Total | $ | 308,731 |  |  | $ | 286,884 |
For the periods below, the only customers that accounted for at least 10% of Ciena’s revenue were as follows (in thousands):
| Quarter Ended |  | Six Months Ended
| May 2, |  | May 4, |  | May 2, |  | May 4,
| 2020 |  | 2019 |  | 2020 |  | 2019
AT&T | $ | 105,630 |  |  | $ | 108,416 |  |  | $ | 189,640 |  |  | $ | 195,125 |
Verizon | n/a |  |  | 106,350 |  |  | 203,630 |  |  | 202,587 |
Web-scale provider | n/a |  |  | n/a |  |  | n/a |  |  | 174,853 |
Total | $ | 105,630 |  |  | $ | 214,766 |  |  | $ | 393,270 |  |  | $ | 572,565 |
n/a | Denotes revenue representing less than 10% of total revenue for the period
The Web-scale provider noted above contributed greater than 10% of total revenue for the first time in fiscal 2019 and purchased products from each of Ciena’s operating segments excluding Blue Planet Automation Software and Services. The other customers identified above purchased products and services from each of Ciena’s operating segments.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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