CANADIAN EMERGENCY WAGE SUBSIDY

12 Months Ended

Oct. 30, 2021

Unusual or Infrequent Items, or Both [Abstract]

In April 2020, the Canadian government introduced the Canada Emergency Wage Subsidy (“CEWS”) to help employers offset a portion of their employee wages for a limited period in response to the COVID-19 outbreak, retroactive to March 15, 2020. The CEWS program expired October 2021. The subsidy covers employers of all sizes and across all sectors.

Ciena accounts for proceeds from government grants as a reduction of expense when there is reasonable assurance that Ciena has met the required conditions associated with the grant and that grant proceeds will be received. Grant benefits are recorded to the particular line item of the Consolidated Statement of Operations to which the grant activity relates. Amounts from the CEWS program positively impacted Ciena’s operating expense and measures of profit in the year ended October 30, 2021. For the fiscal year ended October 30, 2021, Ciena recorded a CAD$52.2 million ($41.3 million) benefit, net of certain fees, related to CEWS for claim periods beginning March 15, 2020, including CAD$43.9 million ($35.4 million) related to employee wages during fiscal 2020. As of October 30, 2021, no amounts were receivable from this subsidy.

The following table summarizes CEWS for the periods indicated (in thousands):


	Year Ended
	October 30,		October 31,
	2021		2020
Product	$	4,283	$	—
Service	2,667		—
CEWS benefit in cost of goods sold	6,950		—
Research and development	29,519		—
Sales and marketing	2,604		—
General and administrative	2,207		—
CEWS benefit in operating expense	34,330		—
Total CEWS benefit	$	41,280	$	—