SHARE-BASED COMPENSATION EXPENSE (Tables)

9 Months Ended

Jul. 31, 2017

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 period indicated (shares in thousands):

	Shares Underlying Options Outstanding		Weighted Average Exercise Price
Balance at October 31, 2016	1,387		$	26.90
Exercised	(223	)	10.74
Canceled	(270	)	28.80
Balance at July 31, 2017	894		$	30.35

Summarizes information with respect to stock options outstanding

The following table summarizes information with respect to stock options outstanding at July 31, 2017, based on Ciena’s closing stock price on the last trading day of Ciena’s third fiscal quarter of 2017 (shares and intrinsic value in thousands):

					Options Outstanding at						Vested Options at
					July 31, 2017						July 31, 2017
					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
$	1.88	—	$	11.16	65	2.84	$	8.66	$	1,094	64	2.78	$	8.64	$	1,082
$	11.34	—	$	17.24	178	4.84	13.44		2,130		172	4.76	13.39		2,065
$	17.50	—	$	30.46	127	1.82	25.90		222		119	1.48	26.35		172
$	31.93	—	$	37.10	299	1.74	35.10		—		299	1.74	35.10		—
$	37.82	—	$	55.63	225	3.92	46.17		—		224	3.91	46.19		—
$	1.88	—	$	55.63	894	3.00	$	30.35	$	3,446	878	2.92	$	30.56	$	3,319

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 at October 31, 2016	4,280		$	19.96	$	83,511
Granted	2,211
Vested	(1,687	)
Canceled or forfeited	(476	)
Balance at July 31, 2017	4,328		$	21.36	$	110,051

Share-based compensation expense

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

	Quarter Ended July 31,						Nine Months Ended July 31,
	2017			2016			2017		2016
Product costs	$	709		$	645		$	1,978	$	1,845
Service costs	619			637			1,926		1,922
Share-based compensation expense included in cost of sales	1,328			1,282			3,904		3,767
Research and development	3,139			3,479			10,001		10,698
Sales and marketing	3,242			3,590			9,628		12,248
General and administrative	4,321			4,284			13,191		14,381
Acquisition and integration costs	—			—			—		714
Share-based compensation expense included in operating expense	10,702			11,353			32,820		38,041
Share-based compensation expense capitalized in inventory, net	(17		)	(13		)	119		24
Total share-based compensation	$	12,013		$	12,622		$	36,843	$	41,832