Fair Value Measurements

6 Months Ended

May 02, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

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):

	May 2, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	699,957	$	—	$	—	$	699,957
Bond mutual fund	50,165		—		—		50,165
Deferred compensation plan assets	6,428		—		—		6,428
U.S. government obligations	—		100,742		—		100,742
Foreign currency forward contracts	—		345		—		345
Total assets measured at fair value	$	756,550	$	101,087	$	—	$	857,637
Liabilities:
Foreign currency forward contracts	$	—	$	9,747	$	—	$	9,747
Forward starting interest rate swaps	—		32,665		—		32,665
Contingent consideration	—		—		3,705		3,705
Total liabilities measured at fair value	$	—	$	42,412	$	3,705	$	46,117

	November 2, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	759,114	$	—	$	—	$	759,114
Deferred compensation plan assets	4,974						4,974
U.S. government obligations	—		119,954		—		119,954
Foreign currency forward contracts	—		1,570		—		1,570
Total assets measured at fair value	$	764,088	$	121,524	$	—	$	885,612
Liabilities:
Foreign currency forward contracts	$	—	$	35	$	—	$	35
Forward starting interest rate swaps	—		21,093		—		21,093
Contingent consideration	—		—		3,705		3,705
Total liabilities measured at fair value	$	—	$	21,128	$	3,705	$	24,833

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

	May 2, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	750,122	$	—	$	—	$	750,122
Short-term investments	—		100,742		—		100,742
Prepaid expenses and other	—		345		—		345
Other long-term assets	6,428		—		—		6,428
Total assets measured at fair value	$	756,550	$	101,087	$	—	$	857,637
Liabilities:
Accrued liabilities and other short-term obligations	$	—	$	9,747	$	3,705	$	13,452
Other long-term obligations	—		32,665		—		32,665
Total liabilities measured at fair value	$	—	$	42,412	$	3,705	$	46,117

	November 2, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	759,114	$	—	$	—	$	759,114
Short-term investments	—		109,940		—		109,940
Prepaid expenses and other	—		1,570		—		1,570
Long-term investments	—		10,014		—		10,014
Other long-term assets	4,974		—		—		4,974
Total assets measured at fair value	$	764,088	$	121,524	$	—	$	885,612
Liabilities:
Accrued liabilities and other short-term obligations	$	—	$	35	$	—	$	35
Other long-term obligations	—		21,093		3,705		24,798
Total liabilities measured at fair value	$	—	$	21,128	$	3,705	$	24,833

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

Ciena’s Level 3 liability includes $3.7 million in accrued liabilities and other short-term obligations as of May 2, 2020. This reflects a contingent consideration element of a three-year payout arrangement associated with Ciena’s purchase of DonRiver Holdings, LLC (“DonRiver”) in the fourth quarter of fiscal 2018. As of May 2, 2020, there was no material change to the fair value.