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INCOME TAXES (Tables) | 12 Months Ended
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Oct. 30, 2021
Income Tax Disclosure [Abstract] |
Provision (benefit) for income taxes | For the periods indicated, the provision (benefit) for income taxes consists of the following (in thousands):
| Year Ended
| October 30, 2021 |  | October 31, 2020 |  | November 2, 2019
Provision (benefit) for income taxes: |  |  |  |  |
Current: |  |  |  |  |
Federal | $ | 72,603 |  |  | $ | 4,363 |  |  | $ | 13,143 |
State | 21,400 |  |  | 13,328 |  |  | 16,945 |
Foreign | 25,021 |  |  | 12,640 |  |  | 9,816 |
Total current | 119,024 |  |  | 30,331 |  |  | 39,904 |
Deferred: |  |  |  |  |
Federal | (21,942) |  |  | 60,679 |  |  | 31,872 |
State | (11,546) |  |  | 4,607 |  |  | (9,159) |
Foreign | (122,981) |  |  | (947) |  |  | (2,861) |
Total deferred | (156,469) |  |  | 64,339 |  |  | 19,852 |
Provision (benefit) for income taxes | $ | (37,445) |  |  | $ | 94,670 |  |  | $ | 59,756 |
Income before provision (benefit) for income taxes | For the periods indicated, income before provision (benefit) for income taxes consists of the following (in thousands):
| Year Ended
| October 30, 2021 |  | October 31, 2020 |  | November 2, 2019
United States | $ | 298,514 |  |  | $ | 387,697 |  |  | $ | 256,461 |
Foreign | 164,237 |  |  | 68,264 |  |  | 56,729 |
Total | $ | 462,751 |  |  | $ | 455,961 |  |  | $ | 313,190 |
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 2021, fiscal 2020 and fiscal 2019 as follows:
| Year Ended
| October 30, 2021 |  | October 31, 2020 |  | November 2, 2019
Provision at statutory rate | 21.00 | % |  | 21.00 | % |  | 21.00 | %
Intercompany IP Restructuring Transaction | (25.85) | % |  | — | % |  | — | %
Base Erosion and Anti-Abuse Tax | — | % |  | (1.02) | % |  | 3.60 | %
State taxes | 3.73 | % |  | 2.21 | % |  | 2.18 | %
Foreign taxes | 2.76 | % |  | 0.51 | % |  | (0.37) | %
Research and development credit | (7.99) | % |  | (7.74) | % |  | (7.53) | %
Non-deductible compensation | 1.68 | % |  | 1.79 | % |  | 1.01 | %
Foreign Derived Intangible Income | (1.82) | % |  | (2.07) | % |  | — | %
Transition tax | — | % |  | 0.02 | % |  | 0.29 | %
Rate Change | (4.33) | % |  | 3.04 | % |  | (0.41) | %
Valuation allowance | 1.77 | % |  | 3.58 | % |  | (2.13) | %
Other | 0.96 | % |  | (0.56) | % |  | 1.44 | %
Effective income tax rate | (8.09) | % |  | 20.76 | % |  | 19.08 | %
Significant components of deferred tax assets and liabilities | The significant components of DTA are as follows (in thousands):
| Year Ended
| October 30, 2021 |  | October 31, 2020
Deferred tax assets: |  |  |
Reserves and accrued liabilities | $ | 69,950 |  |  | $ | 73,825 |
Depreciation and amortization | 677,729 |  |  | 504,233 |
NOL and credit carry forward | 165,087 |  |  | 188,157 |
Other | 47,048 |  |  | 33,017 |
Gross deferred tax assets | 959,814 |  |  | 799,232 |
Valuation allowance | (159,634) |  |  | (151,427) |
Deferred tax asset, net of valuation allowance | $ | 800,180 |  |  | $ | 647,805 |
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 November 3, 2018 | $ | 96,363 |
Increase related to positions taken in current 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 |
Decrease related to positions taken in prior period | (22,854) |
Reductions related to settlements with taxing authorities | (654) |
Increase related to positions taken in current period | 5,510 |
Reductions related to expiration of statute of limitations | (659) |
Unrecognized tax benefits at October 30, 2021 | $ | 77,091 |
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 2, 2019 |  | $ | 142,650 |  |  | $ | 27,459 |  |  | $ | 34,131 |  |  | $ | 135,978 |
October 31, 2020 |  | $ | 135,978 |  |  | $ | 25,749 |  |  | $ | 10,300 |  |  | $ | 151,427 |
October 30, 2021 |  | $ | 151,427 |  |  | $ | 17,897 |  |  | $ | 9,690 |  |  | $ | 159,634 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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