Share-Based Compensation Expense

9 Months Ended

Aug. 01, 2020

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION EXPENSE

At Ciena’s 2020 Annual Meeting of Stockholders on April 2, 2020, Ciena’s stockholders approved an amendment to Ciena's 2017 Omnibus Incentive Plan (the “2017 Plan”) to increase the number of shares available for issuance thereunder by 12.2 million shares, which became effective as of such date. As of August 1, 2020, the total number of shares authorized for issuance under the 2017 Plan is 21.1 million and approximately 14.8 million shares remained available for issuance thereunder.

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


	Quarter Ended						Nine Months Ended
	August 1,		August 3,		August 1,		August 3,
	2020		2019		2020		2019
Product costs	$	960	$	781	$	2,458	$	2,120
Service costs	1,007		783		2,885		2,460
Share-based compensation expense included in cost of goods sold	1,967		1,564		5,343		4,580
Research and development	4,286		3,560		12,957		11,034
Sales and marketing	5,180		4,192		15,057		12,323
General and administrative	5,940		5,813		17,442		16,416

Share-based compensation expense included in operating expense	15,406		13,565		45,456		39,773
Share-based compensation expense capitalized in inventory, net	(114)		(45)		39		93
Total share-based compensation	$	17,259	$	15,084	$	50,838	$	44,446

As of August 1, 2020, total unrecognized share-based compensation expense was approximately $125.6 million, which relates to unvested stock unit awards and is expected to be recognized over a weighted-average period of 1.54 years.