Restructuring Costs

9 Months Ended

Aug. 01, 2020

Restructuring and Related Activities [Abstract]

RESTRUCTURING COSTS

Ciena has undertaken a number of restructuring activities intended to reduce expense and to better align its workforce and costs with market opportunities, product development and business strategies. The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in Accrued liabilities and other short-term obligations on Ciena’s Condensed Consolidated Balance Sheets, for the nine months ended August 1, 2020 (in thousands):


	Workforce reduction			Consolidation of excess facilities and other restructuring activities			Total
Balance at November 2, 2019	$	3,983		$	11,160		$	15,143
Charges	5,015		⁽¹⁾	9,783		⁽²⁾	14,798
Adjustments related to ASC 842	—			(11,160)		⁽³⁾	(11,160)
Cash payments	(7,335)			(9,783)			(17,118)
Balance at August 1, 2020	$	1,663		$	—		$	1,663
Current restructuring liabilities	$	1,663		$	—		$	1,663

⁽¹⁾Reflects a global workforce reduction of 79 employees during the nine months ended August 1, 2020 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes.

⁽²⁾Primarily represents costs and imputed interest expense related to restructured facilities and the redesign of certain business processes.

⁽³⁾Represents restructuring reserve liability recognized as a reduction to Operating ROU assets, net in relation to adoption of ASC 842. See Notes 2 and 15 for further discussion.

The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in Accrued liabilities and other short-term obligations on Ciena’s Condensed Consolidated Balance Sheets for the nine months ended August 3, 2019 (in thousands):


	Workforce reduction			Consolidation of excess facilities			Total
Balance at November 3, 2018	$	2,108		$	1,739		$	3,847
Charges	10,309		⁽¹⁾	1,387		⁽²⁾	11,696


Cash payments	(10,021)			(1,631)			(11,652)
Balance at August 3, 2019	$	2,396		$	1,495		$	3,891
Current restructuring liabilities	$	2,396		$	348		$	2,744
Non-current restructuring liabilities	$	—		$	1,147		$	1,147

⁽¹⁾Reflects a global workforce reduction of approximately 225 employees during the nine months ended August 3, 2019 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes.

(2) Reflects unfavorable lease commitments in connection with a portion of the facilities for certain locations in the United States and India where Ciena has vacated unused space.