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INCOME TAXES
 12 Months Ended
Nov. 01, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
For the periods indicated, the provision for income taxes consists of the following (in thousands):
 Year Ended
 November 1, 2025November 2, 2024October 28, 2023
Provision for income taxes: 
Current: 
Federal$14,881 $70,208 $36,537 
State4,208 14,106 18,860 
Foreign37,034 28,390 28,281 
Total current56,123 112,704 83,678 
Deferred: 
Federal(36,359)(52,300)(8,010)
State13,643 (4,868)(17,354)
Foreign(458)(19,642)10,512 
Total deferred(23,174)(76,810)(14,852)
Provision for income taxes$32,949 $35,894 $68,826 

For the periods indicated, income before provision for income taxes consists of the following (in thousands):
 Year Ended
 November 1, 2025November 2, 2024October 28, 2023
United States$(22,804)$244 $93,682 
Foreign179,091 119,606 229,971 
Total$156,287 $119,850 $323,653 
Ciena’s foreign income tax as a percentage of foreign income may appear disproportionate compared to the expected tax based on the U.S. federal statutory rate and is dependent on the mix of earnings and tax rates in foreign jurisdictions.
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 2025, fiscal 2024 and fiscal 2023 as follows:
 Year Ended
 November 1, 2025November 2, 2024October 28, 2023
Provision at statutory rate21.00 %21.00 %21.00 %
State taxes1.03 %5.60 %1.65 %
Withholding and other foreign taxes5.87 %3.53 %(0.09)%
Research and development credit(34.10)%(40.23)%(16.78)%
Non-deductible compensation10.04 %13.92 %5.29 %
U.S. Taxation on foreign activity1.20 %9.59 %5.08 %
Foreign Nontaxable interest0.01 %(2.96)%(1.06)%
Taxation on foreign inflation0.41 %3.03 %1.34 %
Rate change7.58 %4.46 %(3.71)%
Valuation allowance14.08 %2.15 %9.44 %
Loss on equity transactions— %— %(1.72)%
Uncertain tax positions(4.65)%8.09 %1.72 %
Other(1.39)%1.77 %(0.89)%
Effective income tax rate21.08 %29.95 %21.27 %

Ciena’s future income tax provisions and deferred tax balances may be affected by the amount of pre-tax income, the jurisdictions where it is earned, the existence and ability to utilize tax attributes and changes in tax laws and business reorganizations.

The significant components of deferred tax assets are as follows (in thousands):
Year Ended
 November 1, 2025November 2, 2024
Deferred tax assets: 
Reserves and accrued liabilities$76,148 $79,272 
Depreciation and amortization734,427 760,685 
NOL and credit carry forward243,193 211,792 
Other45,109 26,574 
Gross deferred tax assets1,098,877 1,078,323 
Valuation allowance(214,456)(192,447)
Deferred tax asset, net of valuation allowance$884,421 $885,876 

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 October 29, 2022$80,514 
Increase related to positions taken in prior period9,940 
Reductions related to settlements with taxing authorities(625)
Increase related to positions taken in current period4,960 
Reductions related to expiration of statute of limitations(869)
Unrecognized tax benefits at October 28, 202393,920 
Increase related to positions taken in prior period11,482 
Reductions related to settlements with taxing authorities(4,345)
Increase related to positions taken in current period4,340 
Reductions related to expiration of statute of limitations(116)
Unrecognized tax benefits at November 2, 2024105,281 
Increase related to positions taken in prior period6,771 
Reductions related to settlements with taxing authorities(234)
Increase related to positions taken in current period5,463 
Reductions related to expiration of statute of limitations(21,596)
Unrecognized tax benefits at November 1, 2025$95,685 

If recognized, the entire balance of unrecognized tax benefits would impact the effective tax rate. As statutes of limitation expire, unrecognized tax benefits including interest and penalties related to contingencies may be reversed, resulting in an income tax benefit. Over the next twelve months, Ciena estimates that statutes on approximately $27.0 million of unrecognized tax benefits may expire, which would result in a net tax benefit.

In addition, as of November 1, 2025 and November 2, 2024, Ciena had accrued $17.9 million and $16.3 million of interest and penalties, respectively, related to unrecognized tax benefits included in other long-term obligations on the Consolidated Balance Sheets. Interest and penalties of $1.6 million, $8.2 million and $2.7 million were recorded as a net expense to the provision for income taxes during fiscal 2025, fiscal 2024 and fiscal 2023, respectively.

Changes in tax laws, regulations, administrative practices, and interpretations may impact Ciena’s tax contingencies. Due to various factors, the amounts ultimately paid, if any, upon the resolution of the issues raised by the taxing authorities may differ from the amounts accrued. It is reasonably possible that within the next twelve months Ciena will receive additional assessments by various tax authorities or possibly reach resolution of income tax controversies in one or more various jurisdictions. These factors could result in changes to our contingencies related to positions on prior years’ tax filings. Ciena cannot currently provide an estimate of potential changes.

As of November 1, 2025, Ciena has approximately $92.3 million of undistributed earnings at foreign subsidiaries that were identified in fiscal 2023 as no longer indefinitely reinvested and $2.0 million of deferred tax liability remaining on Ciena’s Consolidated Balance sheets for the income tax effects related to the future repatriation of these earnings. No additional income tax expense has been provided for any remaining undistributed foreign earnings, or any additional outside basis difference from investments in the foreign subsidiaries, as these amounts continue to be indefinitely reinvested. If the remaining undistributed foreign earnings and profits that are subject to withholding tax of $413.0 million were repatriated to the U.S., the provisional amount of unrecognized deferred tax liability, which is primarily related to foreign withholding taxes, is an estimated $37.0 million, provided that the amount may be lower depending on Ciena’s ability to utilize tax credits associated with the distribution. Additionally, there are no other significant temporary differences for which a deferred tax liability or asset is not being recognized.

As of November 1, 2025, Ciena continues to maintain a valuation allowance of $214.5 million primarily against its gross deferred tax assets. The valuation allowance is primarily related to state and foreign net operating losses and credits that Ciena estimates that it will not be able to use.

The following table summarizes the activity in Ciena’s valuation allowance against its gross deferred tax assets (in thousands):
Year EndedBeginning BalanceAdditionsDeductionsEnding Balance
October 28, 2023$162,076 $28,746 $952 $189,870 
November 2, 2024$189,870 $16,816 $14,239 $192,447 
November 1, 2025$192,447 $22,702 $693 $214,456 

As of November 1, 2025, Ciena had a $75.9 million net operating loss carry forward for U.S. federal income tax which does not expire, and $196.0 million net operating loss carry forwards for U.S. state income taxes which begin to expire in fiscal 2027. As of November 1, 2025, Ciena also had a $187.6 million net operating loss carry forward in non-U.S. jurisdictions which begin to expire in fiscal 2029. Ciena’s ability to use U.S. federal net operating losses is subject to limitations pursuant to the ownership change rules of the Internal Revenue Code Section 382.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law in the United States. The OBBBA includes provisions, such as the permanent extension of certain expiring provision of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions such as bonus depreciation and expensing of domestic research and experimental expenditures. The legislations has multiple effective dates, with certain provisions that became effective in fiscal 2025 and others to be effective in fiscal 2026 and fiscal 2027. Ciena expects future cash tax savings, but does not expect a material impact on its future effective tax rate. The legislation did not have a material impact on Ciena’s consolidated financial statements in fiscal 2025.

Tax authorities periodically audit Ciena’s income tax returns. These audits examine significant tax filing positions, including the timing and amounts of deductions and the allocation of income tax expenses among tax jurisdictions. Ciena is currently under audit in India for 2020 through 2024, in Canada for 2014, and in the United Kingdom for 2016 through 2022. Ciena does not expect the outcome of these audits to have a material adverse effect on Ciena’s consolidated financial position, results of operations or cash flows. Ciena’s major tax jurisdictions and the earliest open tax years are as follows: United States (2022), United Kingdom (2016), Canada (2014), and India (2020).

The Organization for Economic Co-operation and Development has introduced a framework to implement a global minimum tax of 15% for certain highly profitable multinational companies, referred to as Pillar Two or the minimum tax directive. While the United States has not enacted legislation to adopt Pillar Two, certain countries in which Ciena operates have enacted legislation and many aspects of Pillar Two are effective for Ciena beginning in fiscal 2025. Pillar Two taxes are considered an alternative minimum tax accounted for as a period cost that could impact the effective tax rate in the year the Pillar Two tax obligation arises. Therefore, deferred taxes will not be recognized for the estimated effects of future minimum taxes. Pillar Two does not have a material effect on Ciena’s effective tax rate, financial results or cash flows for fiscal 2025.