Fair Value Measurements

9 Months Ended

Jul. 31, 2018

FAIR VALUE MEASUREMENTS

As of the date indicated, the following table summarizes the assets and liabilities that are recorded at fair value on a recurring basis (in thousands):



	July 31, 2018
	Level 1		Level 2		Total
Assets:
Money market funds	$	579,413	$	—	$	579,413
U.S. government obligations	—		228,462		228,462
Commercial paper	—		69,860		69,860
Foreign currency forward contracts	—		668		668
Forward starting interest rate swaps	—		6,667		6,667
Total assets measured at fair value	$	579,413	$	305,657	$	885,070

Liabilities:
Foreign currency forward contracts	$	—	$	2,968	$	2,968
Total liabilities measured at fair value	$	—	$	2,968	$	2,968



	October 31, 2017
	Level 1		Level 2		Total
Assets:
Money market funds	$	511,355	$	—	$	511,355
U.S. government obligations	—		298,976		298,976
Commercial paper	—		89,865		89,865
Foreign currency forward contracts	—		227		227
Forward starting interest rate swaps	—		218		218
Total assets measured at fair value	$	511,355	$	389,286	$	900,641

Liabilities:
Foreign currency forward contracts	$	—	$	2,129	$	2,129
Total liabilities measured at fair value	$	—	$	2,129	$	2,129

As of the date indicated, the assets and liabilities above are presented on Ciena’s Condensed Consolidated Balance Sheet as follows (in thousands):



	July 31, 2018
	Level 1		Level 2		Total
Assets:
Cash equivalents	$	579,413	$	39,917	$	619,330
Short-term investments	—		228,940		228,940
Prepaid expenses and other	—		668		668
Long-term investments	—		29,465		29,465
Other long-term assets	—		6,667		6,667
Total assets measured at fair value	$	579,413	$	305,657	$	885,070

Liabilities:
Accrued liabilities	$	—	$	2,968	$	2,968
Total liabilities measured at fair value	$	—	$	2,968	$	2,968



	October 31, 2017
	Level 1		Level 2		Total
Assets:
Cash equivalents	$	511,355	$	59,925	$	571,280
Short-term investments	—		279,133		279,133
Prepaid expenses and other	—		227		227
Long-term investments	—		49,783		49,783
Other long-term assets	—		218		218
Total assets measured at fair value	$	511,355	$	389,286	$	900,641

Liabilities:
Accrued liabilities	$	—	$	2,129	$	2,129
Total liabilities measured at fair value	$	—	$	2,129	$	2,129

Ciena did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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