Share-Based Compensation Expense (Tables)

12 Months Ended

Oct. 31, 2017

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

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, 2016	1,387		$	26.90
Granted	—		—
Exercised	(224	)	10.76
Canceled	(288	)	29.44
Balance as of October 31, 2017	875		$	30.19

Summarizes information with respect to stock options outstanding

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



					Options Outstanding at						Vested Options at
					October 31, 2017						October 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	2.59	$	8.66	$	801	65	2.54	$	8.64	$	794
$	11.34	—	$	17.24	176	4.61	13.43		1,321		172	4.55	13.40		1,293
$	17.50	—	$	30.46	127	1.56	25.91		73		121	1.32	26.20		60
$	31.93	—	$	37.10	291	1.53	35.08		—		290	1.53	35.08		—
$	37.82	—	$	55.63	216	3.76	46.30		—		216	3.76	46.30		—
$	1.88	—	$	55.63	875	2.78	$	30.19	$	2,195	864	2.73	$	30.35	$	2,147

Summary of valuation assumptions for Cyan options

Ciena used the following assumptions for option-based awards issued in exchange for Cyan options in fiscal 2015:



Expected volatility	35.87	%
Risk-free interest rate	1.26	%
Expected term (years)	0.72-6.88
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, 2016	4,280		$	19.96	$	83,511
Granted	2,489
Vested	(2,057	)
Canceled or forfeited	(569	)
Balance as of October 31, 2017	4,143		$	21.46	$	86,721

Share-based compensation expense

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



	Year Ended October 31,
	2017		2016			2015
Product costs	$	2,672	$	2,457		$	2,400
Service costs	2,487		2,479			2,156
Share-based compensation expense included in cost of goods sold	5,159		4,936			4,556
Research and development	12,957		13,870			10,665
Sales and marketing	12,846		15,138			15,539
General and administrative	17,321		17,342			17,018
Acquisition and integration costs	—		714			7,588
Share-based compensation expense included in operating expense	43,124		47,064			50,810
Share-based compensation expense capitalized in inventory, net	77		(7		)	(26		)
Total share-based compensation	$	48,360	$	51,993		$	55,340