Earnings (Loss) Per Share Calculation

12 Months Ended

Oct. 31, 2019

The following tables (in thousands except per share amounts) show a reconciliation of the numerator and denominator of the Basic EPS and the Diluted EPS. Basic EPS is computed using the weighted average number of common shares outstanding. Diluted EPS is computed using the weighted average number of the following, in each case, to the extent the effect is not anti-dilutive: (i) common shares outstanding, (ii) shares issuable upon vesting of restricted stock units and (iii) shares issuable under Ciena’s employee stock purchase plan and upon exercise of outstanding stock options, using the treasury stock method.

Numerator



	Year Ended October 31,
	2019		2018			2017
Net income (loss)	$	253,434	$	(344,690	)	$	1,261,953
Less: Loss on fair value of debt conversion liability			(12,894		)	—
Add: Interest expense associated with 0.875% Convertible Senior Notes due 2017	—		—			853
Add: Interest expense associated with 3.75% Convertible Senior Notes due 2018 (Original Notes)	—		—			7,224
Add: Interest expense associated with 4.0% Convertible Senior Notes due 2020	—		—			8,691
Net income (loss) used to calculate Diluted EPS	$	253,434	$	(357,584	)	$	1,278,721

Denominator



	Year Ended October 31,
	2019	2018	2017
Basic weighted average shares outstanding	155,720	143,738	141,997
Add: Shares underlying outstanding stock options, employee stock purchase plan and restricted stock units	1,892	—	1,354
Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (New Notes)	—	—	404
Add: Shares underlying 0.875% Convertible Senior Notes due 2017	—	—	3,032
Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (Original Notes)	—	—	13,934
Add: Shares underlying 4.0% Convertible Senior Notes due 2020	—	—	9,198
Diluted weighted average shares outstanding	157,612	143,738	169,919

EPS



	Year Ended October 31,
	2019		2018			2017
Basic EPS	$	1.63	$	(2.40	)	$	8.89
Diluted EPS	$	1.61	$	(2.49	)	$	7.53

The following table summarizes the weighted average shares excluded from the calculation of the denominator for Diluted EPS due to their anti-dilutive effect for the fiscal years indicated (in thousands):



	Year Ended October 31,
	2019	2018		2017
Shares underlying stock options and restricted stock units	234	2,235		958
Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (New Notes)	—	1,780	—	—
3.75% Convertible Senior Notes due October 15, 2018 (Original Notes)	—	2,883		—
4.0% Convertible Senior Notes due December 15, 2020	—	9,123		—
Total shares excluded due to anti-dilutive effect	234	16,021		958