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v3.22.2.2

INCOME TAXES (Tables) | 12 Months Ended
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Oct. 29, 2022
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 29, 2022 |  | October 30, 2021 |  | October 31, 2020
Provision (benefit) for income taxes: |  |  |  |  |
Current: |  |  |  |  |
Federal | $ | 27,479 |  |  | $ | 72,603 |  |  | $ | 4,363 |
State | 10,289 |  |  | 21,400 |  |  | 13,328 |
Foreign | 19,337 |  |  | 25,021 |  |  | 12,640 |
Total current | 57,105 |  |  | 119,024 |  |  | 30,331 |
Deferred: |  |  |  |  |
Federal | (30,032) |  |  | (21,942) |  |  | 60,679 |
State | 520 |  |  | (11,546) |  |  | 4,607 |
Foreign | 2,010 |  |  | (122,981) |  |  | (947) |
Total deferred | (27,502) |  |  | (156,469) |  |  | 64,339 |
Provision (benefit) for income taxes | $ | 29,603 |  |  | $ | (37,445) |  |  | $ | 94,670 |
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 29, 2022 |  | October 30, 2021 |  | October 31, 2020
United States | $ | 28,784 |  |  | $ | 298,514 |  |  | $ | 387,697 |
Foreign | 153,721 |  |  | 164,237 |  |  | 68,264 |
Total | $ | 182,505 |  |  | $ | 462,751 |  |  | $ | 455,961 |
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 2022, fiscal 2021 and fiscal 2020 as follows:
| Year Ended
| October 29, 2022 |  | October 30, 2021 |  | October 31, 2020
Provision at statutory rate | 21.00 | % |  | 21.00 | % |  | 21.00 | %
Intercompany IP Restructuring Transaction | — | % |  | (25.85) | % |  | — | %
Base Erosion and Anti-Abuse Tax | — | % |  | — | % |  | (1.02) | %
State taxes | 2.31 | % |  | 3.73 | % |  | 2.21 | %
Foreign taxes | (1.37) | % |  | 2.76 | % |  | 0.51 | %
Research and development credit | (23.66) | % |  | (7.99) | % |  | (7.74) | %
Non-deductible compensation | 5.26 | % |  | 1.68 | % |  | 1.79 | %
Foreign derived intangible income | — | % |  | (1.82) | % |  | (2.07) | %
Global intangible low taxed income | 1.73 | % |  | — | % |  | — | %
Foreign Nontaxable interest | (1.90) | % |  | — | % |  | — | %
Taxation on foreign inflation | 1.41 | % |  | 0.16 | % |  | (0.01) | %
Transition tax | — | % |  | — | % |  | 0.02 | %
Rate change | 1.27 | % |  | (4.33) | % |  | 3.04 | %
Valuation allowance | 8.35 | % |  | 1.77 | % |  | 3.58 | %
Other | 1.82 | % |  | 0.80 | % |  | (0.55) | %
Effective income tax rate | 16.22 | % |  | (8.09) | % |  | 20.76 | %
Significant components of deferred tax assets and liabilities | The significant components of deferred tax assets are as follows (in thousands):
| Year Ended
| October 29, 2022 |  | October 30, 2021
Deferred tax assets: |  |  |
Reserves and accrued liabilities | $ | 76,839 |  |  | $ | 69,950 |
Depreciation and amortization | 690,636 |  |  | 677,729 |
NOL and credit carry forward | 154,707 |  |  | 165,087 |
Other | 63,902 |  |  | 47,048 |
Gross deferred tax assets | 986,084 |  |  | 959,814 |
Valuation allowance | (162,076) |  |  | (159,634) |
Deferred tax asset, net of valuation allowance | $ | 824,008 |  |  | $ | 800,180 |
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 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 |
Increase related to positions taken in prior period | 4,732 |
Reductions related to settlements with taxing authorities | (3,229) |
Increase related to positions taken in current period | 2,959 |
Reductions related to expiration of statute of limitations | (1,039) |
Unrecognized tax benefits at October 29, 2022 | $ | 80,514 |
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
October 31, 2020 |  | $ | 135,978 |  |  | $ | 25,749 |  |  | $ | 10,300 |  |  | $ | 151,427 |
October 30, 2021 |  | $ | 151,427 |  |  | $ | 17,897 |  |  | $ | 9,690 |  |  | $ | 159,634 |
October 29, 2022 |  | $ | 159,634 |  |  | $ | 15,245 |  |  | $ | 12,803 |  |  | $ | 162,076 |

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