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LEASES

12 Months Ended

Nov. 02, 2024

Leases [Abstract]

LEASES

LEASES

Ciena leases approximately 1.1 million square feet of facilities globally. Ciena’s corporate headquarters are located in Hanover, Maryland. Ciena’s largest facilities are research and development centers located in Ottawa, Canada and Gurgaon, India. Ciena also leases smaller engineering facilities in the United States, Canada, and Europe. 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 8 years. Certain leases provide for options to extend up to 10 years and/or options to terminate within 4 years.

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

			Classification						Balance at November 2, 2024						Balance at October 28, 2023
Operating leases:
Operating ROU Assets			Operating right-of-use assets						$	27,417					$	35,140
Operating lease liabilities			Operating lease liabilities and Long-term operating lease liabilities						$	39,562					$	49,914
Finance leases:
Buildings, gross			Equipment, building, furniture and fixtures, net						$	67,517					$	67,904
Less: accumulated depreciation			Equipment, building, furniture and fixtures, net						(34,206)						(30,079)
Buildings, net									$	33,311					$	37,825
Finance lease liabilities			Accrued liabilities and other short-term obligations and other long-term obligations						$	47,917					$	52,145

ROU assets that involve subleased or vacant space aggregate $4.9 million as of November 2, 2024. Finance lease buildings, net, that involve subleased or vacant space aggregate $5.3 million as of November 2, 2024. 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.

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

									Year Ended						Year Ended						Year Ended
			Classification						November 2, 2024						October 28, 2023						October 29, 2022
Operating lease costs			Operating expense						$	13,595					$	16,080					$	17,966
Finance lease cost:
Amortization of finance ROU asset			Operating expense						4,406						4,448						4,592
Interest on finance lease liabilities			Interest expense						3,769						4,069						4,601
Total finance lease cost									8,175						8,517						9,193
Non-capitalized lease cost			Operating expense						954						910						917
Variable lease cost(1)			Operating expense						2,562						3,421						5,898
Net lease cost(2)									$	25,286					$	28,928					$	33,974

(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 $5.3 million, $6.5 million, and $12.8 million for the fiscal years ended November 2, 2024, October 28, 2023, and October 29, 2022, 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 November 2, 2024 were as follows (in thousands):

Fiscal Year			Operating Leases						Finance Leases						Total
2025			$	15,601					$	7,749					$	23,350
2026			11,187						7,779						18,966
2027			6,587						8,049						14,636
2028			2,157						8,319						10,476
2029			2,578						8,319						10,897
Thereafter			5,393						22,937						28,330
Total lease payments			43,503						63,152						106,655
Less: Imputed interest			(3,941)						(15,235)						(19,176)
Present value of lease liabilities			39,562						47,917						87,479
Less: Current portion of present value of minimum lease payments			14,455						4,395						18,850
Long-term portion of present value of minimum lease payments			$	25,107					$	43,522					$	68,629

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 November 2, 2024						As of October 28, 2023
Operating leases			4.00						4.07
Finance leases			7.71						8.71
Weighted-average discount rates:
Operating leases			4.29		%				3.88		%
Finance leases			7.56		%				7.56		%

LEASES

LEASES

Ciena leases approximately 1.1 million square feet of facilities globally. Ciena’s corporate headquarters are located in Hanover, Maryland. Ciena’s largest facilities are research and development centers located in Ottawa, Canada and Gurgaon, India. Ciena also leases smaller engineering facilities in the United States, Canada, and Europe. 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 8 years. Certain leases provide for options to extend up to 10 years and/or options to terminate within 4 years.

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

			Classification						Balance at November 2, 2024						Balance at October 28, 2023
Operating leases:
Operating ROU Assets			Operating right-of-use assets						$	27,417					$	35,140
Operating lease liabilities			Operating lease liabilities and Long-term operating lease liabilities						$	39,562					$	49,914
Finance leases:
Buildings, gross			Equipment, building, furniture and fixtures, net						$	67,517					$	67,904
Less: accumulated depreciation			Equipment, building, furniture and fixtures, net						(34,206)						(30,079)
Buildings, net									$	33,311					$	37,825
Finance lease liabilities			Accrued liabilities and other short-term obligations and other long-term obligations						$	47,917					$	52,145

ROU assets that involve subleased or vacant space aggregate $4.9 million as of November 2, 2024. Finance lease buildings, net, that involve subleased or vacant space aggregate $5.3 million as of November 2, 2024. 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.

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

									Year Ended						Year Ended						Year Ended
			Classification						November 2, 2024						October 28, 2023						October 29, 2022
Operating lease costs			Operating expense						$	13,595					$	16,080					$	17,966
Finance lease cost:
Amortization of finance ROU asset			Operating expense						4,406						4,448						4,592
Interest on finance lease liabilities			Interest expense						3,769						4,069						4,601
Total finance lease cost									8,175						8,517						9,193
Non-capitalized lease cost			Operating expense						954						910						917
Variable lease cost(1)			Operating expense						2,562						3,421						5,898
Net lease cost(2)									$	25,286					$	28,928					$	33,974

(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 $5.3 million, $6.5 million, and $12.8 million for the fiscal years ended November 2, 2024, October 28, 2023, and October 29, 2022, 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 November 2, 2024 were as follows (in thousands):

Fiscal Year			Operating Leases						Finance Leases						Total
2025			$	15,601					$	7,749					$	23,350
2026			11,187						7,779						18,966
2027			6,587						8,049						14,636
2028			2,157						8,319						10,476
2029			2,578						8,319						10,897
Thereafter			5,393						22,937						28,330
Total lease payments			43,503						63,152						106,655
Less: Imputed interest			(3,941)						(15,235)						(19,176)
Present value of lease liabilities			39,562						47,917						87,479
Less: Current portion of present value of minimum lease payments			14,455						4,395						18,850
Long-term portion of present value of minimum lease payments			$	25,107					$	43,522					$	68,629

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 November 2, 2024						As of October 28, 2023
Operating leases			4.00						4.07
Finance leases			7.71						8.71
Weighted-average discount rates:
Operating leases			4.29		%				3.88		%
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
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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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
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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