SEGMENTS AND ENTITY-WIDE DISCLOSURES

Segment Reporting

Ciena’s internal organizational structure and the management of its business are grouped into the following operating segments:


•	Networking Platforms reflects sales of Ciena’s Converged Packet Optical and Packet Networking product lines.

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Converged Packet Optical — includes the 6500 Packet-Optical Platform, the 5430 Reconfigurable Switching System, Waveserver stackable interconnect system, the family of CoreDirector® Multiservice Optical Switches and the OTN configuration for the 5410 Reconfigurable Switching System. This product line also includes sales of the Z-Series Packet-Optical Platform. In addition, as of the first quarter of fiscal 2018, sales of Optical Transport products are reflected within the Converged Packet Optical product line for all periods presented.


◦	Packet Networking — includes the 3000 family of service delivery switches and service aggregation switches and the 5000 family of service aggregation switches. This product line also includes the 8700 Packetwave Platform and the Ethernet packet configuration for the 5410 Service Aggregation Switch.

The Networking Platforms segment also includes sales of operating system software and enhanced software features embedded in each of the product lines above. Revenue from this segment is included in product revenue on the Condensed Consolidated Statements of Operations.


•	Software and Software-Related Services reflects sales of Ciena’s network virtualization, management, control and orchestration software solutions and software-related services, including subscription, installation, support, and consulting services.


◦	This segment includes Ciena’s Blue Planet network virtualization, service orchestration and network management software platform. Ciena's Blue Planet platform includes multi-domain service orchestration (MDSO), network function virtualization (NFV), management and orchestration (NFV MANO), and Ciena's manage, control and plan (MCP) solution, SDN Multilayer Controller and V-WAN application.

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This segment includes Ciena’s element and network management solutions and planning tools, including the OneControl Unified Management System, ON-Center® Network & Service Management Suite, Ethernet Services Manager, Optical Suite Release and Planet Operate. As Ciena seeks adoption of its Blue Planet software platform and transitions features, functionality and customers to this platform, Ciena expects revenue declines for its other element and network management solutions.

Revenue from the software platforms portion of this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Revenue from software-related services is included in services revenue on the Condensed Consolidated Statements of Operations.


•	Global Services reflects sales of a broad range of Ciena’s services for consulting and network design, installation and deployment, maintenance support and training activities. Revenue from this segment is included in services revenue on the Condensed Consolidated Statements of Operations.

Ciena's long-lived assets, including equipment, building, furniture and fixtures, finite-lived intangible assets and maintenance spares, are not reviewed by Ciena's chief operating decision maker for purposes of evaluating performance and allocating resources. As of January 31, 2018, equipment, building, furniture and fixtures, net totaled $318.8 million primarily supporting asset groups within Ciena's Networking Platforms and Software and Software-Related Services segments and supporting Ciena's unallocated selling and general and administrative activities. As of January 31, 2018, $36.9 million of Ciena's intangible assets, net were assigned to asset groups within Ciena's Networking Platforms segment and $59.6 million of Ciena's intangible assets, net were assigned to asset groups within Ciena's Software and Software-Related Services segment. As of January 31, 2018, all of the maintenance spares, net, totaling $43.7 million, were assigned to asset groups within Ciena's Global Services segment.

Segment Revenue

The table below (in thousands) sets forth Ciena’s segment revenue for the respective periods:



	Quarter Ended January 31,
	2018		2017
Revenue:
Networking Platforms
Converged Packet Optical	$	427,401	$	417,750
Packet Networking	68,632		72,194
Total Networking Platforms	496,033		489,944

Software and Software-Related Services
Software Platforms	29,576		17,049
Software-Related Services	23,911		22,331
Total Software and Software-Related Services	53,487		39,380

Global Services
Maintenance Support and Training	55,958		54,990
Installation and Deployment	30,016		27,919
Consulting and Network Design	10,641		9,264
Total Global Services	96,615		92,173

Consolidated revenue	$	646,135	$	621,497

Segment Profit

Segment profit is determined based on internal performance measures used by Ciena's chief executive officer to assess the performance of each operating segment in a given period. In connection with that assessment, the chief executive officer excludes the following items: selling and marketing costs; general and administrative costs; amortization of intangible assets; significant asset impairments and restructuring costs; interest and other income (loss), net; interest expense; and provisions for income taxes.

The table below (in thousands) sets forth Ciena’s segment profit and the reconciliation to consolidated net income (loss) during the respective periods indicated:



	Quarter Ended January 31,
	2018			2017
Segment profit:
Networking Platforms	$	88,569		$	113,747
Software and Software-Related Services	23,635			7,700
Global Services	41,037			35,469
Total segment profit	153,241			156,916
Less: Non-performance operating expenses
Selling and marketing	88,515			85,002
General and administrative	38,406			35,864
Amortization of intangible assets	3,623			14,551
Significant asset impairments and restructuring costs	5,961			2,395
Add: Other non-performance financial items
Interest expense and other income (loss), net	(12,159		)	(14,833		)
Less: Provision for income taxes	477,940			410
Consolidated net income (loss)	$	(473,363	)	$	3,861

Entity-Wide Reporting

Ciena's revenue includes $383.4 million and $379.7 million of U.S. revenue for the first quarter of fiscal 2018 and 2017, respectively. There were no other countries that accounted for more than 10% of Ciena's revenue in the first quarter of fiscal 2018 and 2017.

The following table reflects Ciena's geographic distribution of equipment, building, furniture and fixtures, net, with any country accounting for at least 10% of total equipment, building, furniture and fixtures, net, specifically identified. Equipment, building, furniture and fixtures, net, attributable to geographic regions outside of the U.S. and Canada are reflected as “Other International.” For the periods below, Ciena's geographic distribution of equipment, building, furniture and fixtures was as follows (in thousands):



	January 31, 2018		October 31, 2017
Canada	$	212,142	$	203,491
United States	86,836		90,482
Other International	19,857		14,492
Total	$	318,835	$	308,465

For the periods below, customers accounting for at least 10% of Ciena’s revenue were as follows (in thousands):



	Quarter Ended January 31,
	2018		2017
AT&T	$	90,645	$	96,437
Verizon	68,445		73,089
Total	$	159,090	$	169,526

The customers identified above purchased products and services from each of Ciena's operating segments.