Share-Based Compensation Expense (Tables)

12 Months Ended

Oct. 31, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of stock option activity

The following table is a summary of Ciena's stock option activity for the periods indicated (shares in thousands):

	Shares Underlying Options Outstanding		Weighted Average Exercise Price
Balance as of October 31, 2008	6,399		$	48.84
Granted	234		8.63
Exercised	(107	)	2.33
Canceled	(988	)	61.40
Balance as of October 31, 2009	5,538		45.80
Granted	86		12.42
Exercised	(103	)	5.21
Canceled	(519	)	95.00
Balance as of October 31, 2010	5,002		40.96
Granted	—		—
Exercised	(411	)	14.88
Canceled	(901	)	97.64
Balance as of October 31, 2011	3,690		$	30.01

Summarizes information with respect to stock options outstanding

The following table summarizes information with respect to stock options outstanding at October 31, 2011, based on Ciena’s closing stock price on the last trading day of Ciena’s fiscal 2011 (shares and intrinsic value in thousands):

					Options Outstanding at						Vested Options at
					October 31, 2011						October 31, 2011
					Number	Weighted Average Remaining	Weighted				Number	Weighted Average Remaining	Weighted
Range of					of	Contractual	Average		Aggregate		of	Contractual	Average		Aggregate
Exercise					Underlying	Life	Exercise		Intrinsic		Underlying	Life	Exercise		Intrinsic
Price					Shares	(Years)	Price		Value		Shares	(Years)	Price		Value
$	0.94	—	$	16.31	380	6.03	$	8.20	$	2,161	277	5.43	$	7.48	$	1,780
$	16.52	—	$	17.29	404	3.76	16.69		—		393	3.67	16.67		—
$	17.43	—	$	24.50	555	3.63	20.49		—		545	3.57	20.49		—
$	24.69	—	$	28.28	422	5.01	26.98		—		414	4.99	26.98		—
$	28.61	—	$	31.43	284	3.85	29.78		—		276	3.77	29.76		—
$	31.71	—	$	32.55	524	1.34	31.72		—		521	1.31	31.72		—
$	33.00	—	$	37.10	350	5.54	35.17		—		337	5.51	35.19		—
$	37.31	—	$	47.32	511	2.95	44.72		—		508	2.93	44.72		—
$	47.53	—	$	167.09	257	0.57	66.85		—		257	0.57	66.85		—
$	267.52	—	$	267.52	3	0.75	267.52		—		3	0.75	267.52		—
$	0.94	—	$	267.52	3,690	3.61	$	30.01	$	2,161	3,531	3.45	$	30.64	$	1,780

Weighted average assumptions for option-based awards

During fiscal 2009 and fiscal 2010, Ciena estimated the fair value of each option award on the date of grant using the Black-Scholes option-pricing model, with the weighted average assumptions in the table below. Ciena did not grant any option-based awards during fiscal 2011.

	Year Ended October 31,
	2009	2010
Expected volatility	65.0%	61.9%
Risk-free interest rate	1.7%-3.1%	2.0%-3.0%
Expected term (years)	5.2-5.3	5.3-5.5
Expected dividend yield	0.0%	0.0%

Summary of Restricted Stock Unit Activity

The following table is a summary of Ciena's restricted stock unit activity for the period indicated, with the aggregate fair value of the balance outstanding at the end of each period, based on Ciena's closing stock price on the last trading day of the relevant period (shares and aggregate fair value in thousands):

	Restricted Stock Units Outstanding		Weighted Average Grant Date Fair Value Per Share		Aggregate Fair Value
Balance as of October 31, 2008	1,849		$	30.85	$	17,773
Granted	3,364
Vested	(1,358	)
Canceled or forfeited	(139	)
Balance as of October 31, 2009	3,716		14.67		43,591
Granted	3,643
Vested	(1,846	)
Canceled or forfeited	(322	)
Balance as of October 31, 2010	5,191		13.81		71,681
Granted	2,064
Vested	(2,466	)
Canceled or forfeited	(491	)
Balance as of October 31, 2011	4,298		$	16.28	$	59,399

Share-based compensation expense

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

	Year Ended October 31,
	2009			2010		2011
Product costs	$	2,116		$	2,140	$	2,269
Service costs	1,599			1,717		1,881
Share-based compensation expense included in cost of goods sold	3,715			3,857		4,150
Research and development	10,006			9,310		10,149
Sales and marketing	10,861			10,950		12,182
General and administrative	10,380			9,959		11,140
Acquisition and integration costs	—			1,342		308
Share-based compensation expense included in operating expense	31,247			31,561		33,779
Share-based compensation expense capitalized in inventory, net	(524		)	142		1
Total share-based compensation	$	34,438		$	35,560	$	37,930