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Business Combinations | 6 Months Ended
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May 02, 2020
Business Combinations [Abstract] |
Business Combinations | BUSINESS COMBINATIONS Centina Systems, Inc. Acquisition On November 2, 2019 Ciena acquired Centina Systems, Inc. (“Centina”), a provider of service assurance analytics and network performance management solutions, for approximately $34.0 million in cash. This transaction has been accounted for as the acquisition of a business. During the first six months of fiscal 2020, Ciena incurred approximately $0.7 million of acquisition-related costs associated with this transaction. These costs primarily reflect fees associated with financial, legal and accounting advisors. 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 | $ | 5,718 |
Accounts receivable | 610 |
Prepaid expenses and other | 536 |
Equipment, furniture and fixtures | 17 |
Goodwill | 13,055 |
Customer relationships and contracts | 400 |
Developed technology | 22,200 |
Accounts payable | (47 | )
Accrued liabilities | (286 | )
Deferred revenue | (1,493 | )
Deferred tax liability | (6,692 | )
Total purchase consideration | $ | 34,018 |
Customer relationships and contracts represent agreements with existing Centina customers and have an estimated useful life of two years. Developed technology represents purchased technology that has reached technological feasibility and for which Centina 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 Centina is primarily related to expected synergies. The total goodwill amount was recorded in the Blue Planet Automation Software and Services segment. The goodwill is not deductible for income tax purposes. Pro forma disclosures have not been included due to immateriality.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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