Share-Based Compensation Expense

6 Months Ended

May 02, 2020

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION EXPENSE

At Ciena’s 2020 Annual Meeting of Stockholders on April 2, 2020, Ciena’s stockholders approved an amendment to Ciena's 2017 Omnibus Incentive Plan (the “2017 Plan”) to increase the number of shares available for issuance thereunder by 12.2 million shares, which became effective as of such date. As of May 2, 2020, the total number of shares authorized for issuance under the 2017 Plan is 21.1 million and approximately 14.9 million shares remained available for issuance thereunder.

The following table summarizes share-based compensation expense for the periods indicated (in thousands):



	Quarter Ended				Six Months Ended
	May 2,		May 4,		May 2,		May 4,
	2020		2019		2020		2019
Product costs	$	827	$	702	$	1,498	$	1,339
Service costs	1,036		907		1,878		1,677
Share-based compensation expense included in cost of goods sold	1,863		1,609		3,376		3,016
Research and development	4,822		4,083		8,671		7,474
Sales and marketing	5,264		4,346		9,877		8,131
General and administrative	5,975		5,491		11,502		10,603
Share-based compensation expense included in operating expense	16,061		13,920		30,050		26,208
Share-based compensation expense capitalized in inventory, net	53		78		153		138
Total share-based compensation	$	17,977	$	15,607	$	33,579	$	29,362

As of May 2, 2020, total unrecognized share-based compensation expense was approximately $135.1 million, which relates to unvested stock unit awards and is expected to be recognized over a weighted-average period of 1.6 years.