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LEASES

12 Months Ended

Oct. 30, 2021

Leases [Abstract]

LEASES

LEASES

Ciena leases over 1.3 million square feet of facilities globally. Ciena’s principal executive offices are located in Hanover, Maryland. Ciena’s largest facilities are research and development centers located in Ottawa, Canada and Gurgaon, India. Ciena also has engineering facilities located in San Jose, California; Alpharetta, Georgia; Quebec, Canada; and Pune and Bangalore, India. In addition, Ciena leases various smaller offices in regions throughout the world to support sales and services operations. Office facilities are leased under various non-cancelable operating or finance leases. Ciena's current leases have remaining terms that vary up to 11 years. Certain leases provide for options to extend up to ten years and/or options to terminate within five years.

Leases included in the Consolidated Balance Sheets for the fiscal periods indicated were as follows (in thousands):

			Classification						Balance as of October 30, 2021						Balance as of October 31, 2020
Operating leases:
Operating ROU Assets			Operating right-of-use assets						$	44,285					$	57,026
Operating lease liabilities			Operating lease liabilities and Long-term operating lease liabilities						60,196						80,450
Finance leases:
Buildings, gross			Equipment, building, furniture and fixtures, net						$	76,123					$	70,791
Less: accumulated depreciation			Equipment, building, furniture and fixtures, net						(24,027)						(17,837)
Buildings, net									$	52,096					$	52,954
Finance lease liabilities			Accrued liabilities and other short-term obligations and other long-term obligations						$	66,203					$	64,401

ROU assets that involve subleased or vacant space aggregate $3.5 million as of October 30, 2021. These assets may become impaired if tenants are unable to service their obligations under the sublease, and/or if the estimates as to occupancy are not realized, either of which may be more likely as COVID-19 impacts evolve.

For the periods indicated, the components of lease expense included in the Consolidated Statement of Operations were as follows (in thousands):

									Year Ended						Year Ended
			Classification						October 30, 2021						October 31, 2020
Operating lease costs			Operating expense						$	16,602					$	17,544
Finance lease cost:
Amortization of finance ROU asset			Operating expense						4,773						4,465
Interest on finance lease liabilities			Interest expense						4,882						4,777
Total finance lease cost									9,655						9,242
Non-capitalized lease cost			Operating expense						1,152						2,976
Variable lease cost(1)			Operating expense						5,690						5,185
Net lease cost(2)									$	33,099					$	34,947

(1) Variable lease costs include expenses relating to insurance, taxes, maintenance and other costs required by the applicable operating lease. Variable lease costs are determined by whether they are to be included in base rent and if amounts are based on a consumer price index.

(2) Excludes other operating expense of $8.8 million and $11.0 million for the fiscal years ended October 30, 2021 and October 31, 2020, respectively, related to amortization of leasehold improvements.

Future minimum lease payments and the present value of minimum lease payments related to operating and finance leases as of October 30, 2021 were as follows (in thousands):

			Operating Leases						Finance Leases						Total
2022			$	19,882					$	8,338					$	28,220
2023			15,153						8,557						23,710
2024			12,264						8,557						20,821
2025			7,935						8,730						16,665
2026			4,408						8,764						13,172
Thereafter			3,860						53,714						57,574
Total lease payments			63,502						96,660						160,162
Less: Imputed interest			(3,306)						(30,457)						(33,763)
Present value of lease liabilities			60,196						66,203						126,399
Less: Current portion of present value of minimum lease payments			18,632						3,620						22,252
Long-term portion of present value of minimum lease payments			$	41,564					$	62,583					$	104,147

The weighted average remaining lease terms and weighted average discount rates for operating and finance leases were as follows (in thousands):

Weighted-average remaining lease term in years:			As of October 30, 2021						As of October 31, 2020
Operating leases			4.06						4.87
Finance leases			10.71						11.71
Weighted-average discount rates:
Operating leases			2.49		%				2.82		%
Finance leases			7.56		%				7.56		%

LEASES

LEASES

Ciena leases over 1.3 million square feet of facilities globally. Ciena’s principal executive offices are located in Hanover, Maryland. Ciena’s largest facilities are research and development centers located in Ottawa, Canada and Gurgaon, India. Ciena also has engineering facilities located in San Jose, California; Alpharetta, Georgia; Quebec, Canada; and Pune and Bangalore, India. In addition, Ciena leases various smaller offices in regions throughout the world to support sales and services operations. Office facilities are leased under various non-cancelable operating or finance leases. Ciena's current leases have remaining terms that vary up to 11 years. Certain leases provide for options to extend up to ten years and/or options to terminate within five years.

Leases included in the Consolidated Balance Sheets for the fiscal periods indicated were as follows (in thousands):

			Classification						Balance as of October 30, 2021						Balance as of October 31, 2020
Operating leases:
Operating ROU Assets			Operating right-of-use assets						$	44,285					$	57,026
Operating lease liabilities			Operating lease liabilities and Long-term operating lease liabilities						60,196						80,450
Finance leases:
Buildings, gross			Equipment, building, furniture and fixtures, net						$	76,123					$	70,791
Less: accumulated depreciation			Equipment, building, furniture and fixtures, net						(24,027)						(17,837)
Buildings, net									$	52,096					$	52,954
Finance lease liabilities			Accrued liabilities and other short-term obligations and other long-term obligations						$	66,203					$	64,401

ROU assets that involve subleased or vacant space aggregate $3.5 million as of October 30, 2021. These assets may become impaired if tenants are unable to service their obligations under the sublease, and/or if the estimates as to occupancy are not realized, either of which may be more likely as COVID-19 impacts evolve.

For the periods indicated, the components of lease expense included in the Consolidated Statement of Operations were as follows (in thousands):

									Year Ended						Year Ended
			Classification						October 30, 2021						October 31, 2020
Operating lease costs			Operating expense						$	16,602					$	17,544
Finance lease cost:
Amortization of finance ROU asset			Operating expense						4,773						4,465
Interest on finance lease liabilities			Interest expense						4,882						4,777
Total finance lease cost									9,655						9,242
Non-capitalized lease cost			Operating expense						1,152						2,976
Variable lease cost(1)			Operating expense						5,690						5,185
Net lease cost(2)									$	33,099					$	34,947

(1) Variable lease costs include expenses relating to insurance, taxes, maintenance and other costs required by the applicable operating lease. Variable lease costs are determined by whether they are to be included in base rent and if amounts are based on a consumer price index.

(2) Excludes other operating expense of $8.8 million and $11.0 million for the fiscal years ended October 30, 2021 and October 31, 2020, respectively, related to amortization of leasehold improvements.

Future minimum lease payments and the present value of minimum lease payments related to operating and finance leases as of October 30, 2021 were as follows (in thousands):

			Operating Leases						Finance Leases						Total
2022			$	19,882					$	8,338					$	28,220
2023			15,153						8,557						23,710
2024			12,264						8,557						20,821
2025			7,935						8,730						16,665
2026			4,408						8,764						13,172
Thereafter			3,860						53,714						57,574
Total lease payments			63,502						96,660						160,162
Less: Imputed interest			(3,306)						(30,457)						(33,763)
Present value of lease liabilities			60,196						66,203						126,399
Less: Current portion of present value of minimum lease payments			18,632						3,620						22,252
Long-term portion of present value of minimum lease payments			$	41,564					$	62,583					$	104,147

The weighted average remaining lease terms and weighted average discount rates for operating and finance leases were as follows (in thousands):

Weighted-average remaining lease term in years:			As of October 30, 2021						As of October 31, 2020
Operating leases			4.06						4.87
Finance leases			10.71						11.71
Weighted-average discount rates:
Operating leases			2.49		%				2.82		%
Finance leases			7.56		%				7.56		%

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- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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