Other Balance Sheet Details

12 Months Ended

Oct. 31, 2019

Balance Sheet Related Disclosures [Abstract]

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



	October 31,
	2019		2018
Maintenance spares inventory, net	$	55,482	$	45,679
Cost method investments	10,727		8,056
Capitalized contract acquisition costs	3,994		—
Deferred debt issuance costs, net ⁽¹⁾	1,609		720
Restricted cash	42		11
Forward starting interest rate swaps	—		779
Other	17,132		16,407
	$	88,986	$	71,652

⁽¹⁾ Deferred debt issuance costs relate to Ciena’s senior secured asset-based revolving credit facility (the “ABL Credit Facility”) entered into during fiscal 2019 and its predecessor credit facility (described in Note 18 below). The amortization of deferred debt issuance costs for the ABL Credit Facility and its predecessor is included in interest expense, and was $0.3 million, $0.3 million and $0.3 million for fiscal 2019, fiscal 2018 and fiscal 2017, respectively.

As of the dates indicated, accrued liabilities and other short-term obligations are comprised of the following (in thousands):



	October 31,
	2019		2018
Compensation, payroll related tax and benefits	$	182,363	$	140,277
Warranty	48,498		44,740
Vacation ⁽¹⁾	22,290		42,507
Contingent Consideration	4,372		—
Capital lease obligations	2,764		3,547
Interest payable	1,007		1,072
Other	121,446		107,932
	$	382,740	$	340,075

⁽¹⁾ Reduction is primarily due to the payout of North America vacation accruals in conjunction with Ciena’s adoption of a new vacation policy during fiscal 2019.

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



Year ended	Beginning		Current Year				Ending
October 31,	Balance		Provisions ⁽¹⁾		Settlements		Balance
2017	$	52,324	$	7,965	$	17,833	$	42,456
2018	$	42,456	$	20,992	$	18,708	$	44,740
2019	$	44,740	$	23,105	$	19,347	$	48,498

⁽¹⁾As a result of actual failure rates lower than expected, Ciena adjusted its fiscal 2017 provisions for warranty. These adjustments for previous fiscal year provisions had the effect of reducing warranty provisions by $9.7 million for fiscal 2017. During fiscal 2018 and fiscal 2019, Ciena determined that failure rates for prior estimates remained unchanged, and accordingly did not make any adjustments for previous fiscal year provisions not yet settled. As a result, Ciena’s warranty provision for fiscal 2018 and fiscal 2019 increased as compared to fiscal 2017.

As of the dates indicated, deferred revenue is comprised of the following (in thousands):



	October 31,
	2019			2018
Products	$	27,366		$	42,474
Services	129,507			126,983
	156,873			169,457
Less current portion	(111,381		)	(111,134		)
Long-term deferred revenue	$	45,492		$	58,323

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



	October 31,
	2019		2018
Capital lease obligations	$	65,284	$	68,245
Income tax liability	20,546		15,894
Interest rate swap liability	21,093		—
Deferred tenant allowance	6,248		7,244
Straight-line rent	5,434		6,750
Contingent consideration	3,705		10,900
Other	26,437		10,380
	$	148,747	$	119,413

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 October 31, 2019 (in thousands):



Year Ending October 31,	Amount
2020	$	7,652
2021	7,547
2022	7,860
2023	8,067
2024	8,067
Thereafter	67,126
Net minimum capital lease payments	106,319
Less: Amount representing interest	(38,271		)
Present value of minimum lease payments	68,048
Less: Current portion of present value of minimum lease payments	(2,764		)
Long-term portion of present value of minimum lease payments	$	65,284