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Share-Based Compensation Expense (Tables)
12 Months Ended
Oct. 31, 2012
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, 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

Granted

 

Exercised
(56
)
 
6.72

Canceled
(427
)
 
51.28

Balance as of October 31, 2012
3,207

 
$
27.58

Summarizes information with respect to stock options outstanding
The following table summarizes information with respect to stock options outstanding at October 31, 2012, based on Ciena’s closing stock price on the last trading day of Ciena’s fiscal 2012 (shares and intrinsic value in thousands):

 
 
 
 
 
 
Options Outstanding at
 
Vested Options at
 
 
 
 
 
 
October 31, 2012
 
October 31, 2012
 
 
 
 
 
 
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

 
318

 
5.03

 
$
8.44

 
$
1,445

 
286

 
4.84

 
$
8.16

 
$
1,387

$
16.52

 

 
$
17.29

 
389

 
2.68

 
16.68

 

 
389

 
2.68

 
16.68

 

$
17.43

 

 
$
24.50

 
529

 
2.48

 
20.46

 

 
529

 
2.48

 
20.46

 

$
24.69

 

 
$
28.28

 
406

 
3.67

 
27.00

 

 
406

 
3.67

 
27.00

 

$
28.61

 

 
$
31.43

 
195

 
3.20

 
29.80

 

 
195

 
3.20

 
29.80

 

$
31.71

 

 
$
32.55

 
506

 
0.31

 
31.72

 

 
506

 
0.31

 
31.72

 

$
33.00

 

 
$
37.10

 
345

 
3.89

 
35.19

 

 
345

 
3.89

 
35.19

 

$
37.31

 

 
$
47.32

 
487

 
1.93

 
44.83

 

 
487

 
1.93

 
44.83

 

$
47.53

 

 
$
55.79

 
32

 
0.80

 
49.35

 

 
32

 
0.80

 
49.35

 

$
0.94

 

 
$
55.79

 
3,207

 
2.66

 
$
27.58

 
$
1,445

 
3,175

 
2.62

 
$
27.75

 
$
1,387

Weighted average assumptions for option-based awards
The following table lists the assumptions used in valuing option-based awards granted in fiscal 2010:

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

Granted
2,433

 
 
 
 
Vested
(1,912
)
 
 
 
 
Canceled or forfeited
(416
)
 
 
 
 
Balance as of October 31, 2012
4,403

 
$
14.16

 
$
56,267

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

 
Year Ended October 31,
 
2010
 
2011
 
2012
Product costs
$
2,140

 
$
2,269

 
$
2,156

Service costs
1,717

 
1,881

 
1,462

Share-based compensation expense included in cost of goods sold
3,857

 
4,150

 
3,618

Research and development
9,310

 
10,149

 
8,567

Sales and marketing
10,950

 
12,182

 
11,558

General and administrative
9,959

 
11,140

 
8,691

Acquisition and integration costs
1,342

 
308

 
7

Share-based compensation expense included in operating expense
31,561

 
33,779

 
28,823

Share-based compensation expense capitalized in inventory, net
142

 
1

 
(47
)
Total share-based compensation
$
35,560

 
$
37,930

 
$
32,394