SHARE-BASED COMPENSATION EXPENSE

9 Months Ended

Jul. 31, 2021

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION EXPENSEAmended and Restated ESPP

Ciena makes shares of its common stock available for purchase under its Amended and Restated Ciena Corporation Employee Stock Purchase Plan (the “ESPP”). Under the ESPP, eligible employees may enroll in a twelve-month offer period that begins in December and June of each year. Each offer period includes two six-month purchase periods. Employees may purchase a limited number of shares of Ciena common stock at 85% of the fair market value on either the day immediately preceding the offer date or the purchase date, whichever is lower. The ESPP is considered compensatory for purposes of share-based compensation expense. On January 29, 2021, Ciena’s Board of Directors adopted an amendment and restatement of the ESPP to increase the number of shares available for issuance thereunder by 8.7 million and eliminate the evergreen mechanism thereunder, which became effective upon its approval by Ciena’s stockholders on April 1, 2021. Unless earlier terminated, the ESPP will terminate on April 1, 2031.

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


	Quarter Ended				Nine Months Ended
	July 31,		August 1,		July 31,		August 1,
	2021		2020		2021		2020
Product	$	1,037	$	960	$	2,488	$	2,458
Service	1,315		1,007		3,941		2,885
Share-based compensation expense included in cost of goods sold	2,352		1,967		6,429		5,343
Research and development	5,541		4,286		16,179		12,957
Sales and marketing	6,534		5,180		18,960		15,057
General and administrative	8,237		5,940		21,338		17,442

Share-based compensation expense included in operating expense	20,312		15,406		56,477		45,456
Share-based compensation expense capitalized in inventory, net	(193)		(114)		64		39
Total share-based compensation	$	22,471	$	17,259	$	62,970	$	50,838

As of July 31, 2021, total unrecognized share-based compensation expense was approximately $160.6 million, which relates to unvested stock unit awards and is expected to be recognized over a weighted-average period of 1.58 years.