Fair Value Measurements

12 Months Ended

Oct. 31, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

As of the dates indicated, the following tables summarize the fair value of assets and liabilities that were recorded at fair value on a recurring basis (in thousands):

	October 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	889,293	$	—	$	—	$	889,293
Bond mutual fund	50,361		—		—		50,361
Deferred compensation plan assets	8,213		—		—		8,213
U.S. government obligations	—		232,893		—		232,893
Foreign currency forward contracts	—		82		—		82
Total assets measured at fair value	$	947,867	$	232,975	$	—	$	1,180,842
Liabilities:
Foreign currency forward contracts	$	—	$	681	$	—	$	681
Forward starting interest rate swaps	—		28,513		—		28,513
Total liabilities measured at fair value	$	—	$	29,194	$	—	$	29,194

	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 dates indicated, the assets and liabilities above were presented on Ciena’s Consolidated Balance Sheet as follows (in thousands):

	October 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	939,654	$	—	$	—	$	939,654
Short-term investments	—		150,667		—		150,667
Prepaid expenses and other	—		82		—		82
Other long-term assets	8,213		82,226		—		90,439
Total assets measured at fair value	$	947,867	$	232,975	$	—	$	1,180,842
Liabilities:
Accrued liabilities and other short-term obligations	$	—	$	681	$	—	$	681
Other long-term obligations	—		28,513		—		28,513
Total liabilities measured at fair value	$	—	$	29,194	$	—	$	29,194

	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.As of October 31, 2020, none of Ciena’s existing liabilities were classified as Level 3. As of November 2, 2019, Ciena’s Level 3 liability included $3.7 million in accrued liabilities and other short-term obligations. This reflected a contingent consideration element of a three-year payout arrangement associated with Ciena’s purchase of DonRiver in the fourth quarter of fiscal 2018. During the third quarter of fiscal 2020, the total contingent consideration liability was recorded as a reduction to expense in acquisition and integration costs on the Consolidated Statements of Operations to reflect the fair value of the consideration using the income approach. No contingent consideration liability remains in Other long-term obligations on the Consolidated Balance Sheets as of October 31, 2020.