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Other Balance Sheet Details
9 Months Ended
Jul. 31, 2015
Balance Sheet Related Disclosures [Abstract]  
OTHER BALANCE SHEET DETAILS
OTHER BALANCE SHEET DETAILS
As of the dates indicated, other long-term assets are comprised of the following (in thousands):

 
October 31,
2014
 
July 31,
2015
Maintenance spares, net
$
54,101

 
$
58,959

Deferred debt issuance costs, net
15,160

 
11,889

Other
4,815

 
7,499

 
$
74,076

 
$
78,347



Deferred debt issuance costs relate to Ciena's convertible notes payable (described in Note 15 below), Term Loan (described in Note 15 below) and our ABL Credit Facility (described in Note 16 below). Deferred debt issuance costs are amortized using the straight-line method, which approximates the effect of the effective interest rate method, through the maturity of the related debt. The amortization of deferred debt issuance costs is included in interest expense, and was $3.6 million and $3.6 million during the first nine months of fiscal 2014 and fiscal 2015, respectively.
As of the dates indicated, accrued liabilities and other short-term obligations are comprised of the following (in thousands):
 
October 31,
2014
 
July 31,
2015
Compensation, payroll related tax and benefits
82,207

 
79,794

Warranty
55,997

 
53,834

Vacation
35,126

 
31,990

Capital lease obligations
7,788

 
6,319

Interest payable
6,409

 
5,817

Other
89,081

 
94,937

 
$
276,608

 
$
272,691



The following table summarizes the activity in Ciena’s accrued warranty for the fiscal periods indicated (in thousands):

Nine months ended
Beginning
 
 
 
 
 
Ending
July 31,
Balance
 
Provisions
 
Settlements
 
Balance
2014
$
56,303

 
18,720

 
(17,581
)
 
$
57,442

2015
$
55,997

 
12,549

 
(14,712
)
 
$
53,834


The decrease in the first nine months of fiscal 2015 warranty provision compared to the first nine months of fiscal 2014 was due to lower failure rates and reduced component and labor repair costs.
As of the dates indicated, deferred revenue is comprised of the following (in thousands):

 
October 31,
2014
 
July 31,
2015
Products
$
50,457

 
$
56,355

Services
95,161

 
112,278

 
145,618

 
168,633

Less current portion
(104,688
)
 
(114,902
)
Long-term deferred revenue
$
40,930

 
$
53,731



As of the dates indicated, other long-term obligations are comprised of the following (in thousands):

 
October 31, 2014
 
July 31,
2015
Income tax liability
$
14,342

 
$
13,810

Deferred tenant allowance
10,839

 
10,057

Straight-line rent
5,174

 
5,801

Capital lease obligations
4,589

 
13,977

Construction liability

 
8,770

Forward starting interest rate swap
2,083

 
4,968

Other
8,363

 
6,099

 
$
45,390

 
$
63,482


 
Ciena capitalizes construction in progress and records a corresponding long-term liability for build-to-suit lease agreements where Ciena is considered the owner during the construction period for accounting purposes. 

The following is a schedule by fiscal years of future minimum lease payments under capital leases and the present value of minimum lease payments as of July 31, 2015 (in thousands):

Period ended October 31,
 
2015 (remaining three months)
$
1,934

2016
6,055

2017
1,628

2018
1,290

2019
1,290

Thereafter
19,808

Net minimum capital lease payments
32,005

Less: Amount representing interest
(11,709
)
Present value of minimum lease payments
20,296

Less: Current portion of present value of minimum lease payments
(6,319
)
Long-term portion of present value of minimum lease payments
$
13,977