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Share-Based Compensation Expense (Tables)
 12 Months Ended
Oct. 31, 2020
Share-based Payment Arrangement [Abstract]  
Summary of stock option activity The following table is a summary of Ciena’s stock option activity for the periods indicated (shares in thousands):
Shares
Underlying
Options
Outstanding		Weighted
Average
Exercise Price
Balance as of November 2, 2019220 $35.54 
Granted— — 
Exercised(105)$40.27 
Canceled(8)$28.22 
Balance as of October 31, 2020107 $31.41 
Assumptions for awards granted Assumptions for awards granted during fiscal 2020, fiscal 2019 and fiscal 2018 included the following:
Year Ended
 October 31, 2020November 2, 2019November 3, 2018
Expected volatility of Ciena common stock, which is a weighted average of implied volatility and historical volatility31.77%34.10%34.93%
Historical volatility of Ciena common stock
36.29%36.80%38.24%
Historical volatility of S&P Networking Index18.40%17.39%17.14%
Correlation coefficient
0.58910.62510.6597
Expected life in years2.872.872.89
Risk-free interest rate1.65%2.62%1.94%
Expected dividend yield0.0%0.0%0.0%
Summarizes information with respect to stock options outstanding
The following table summarizes information with respect to stock options outstanding at October 31, 2020, based on Ciena’s closing stock price on the last trading day of Ciena’s fiscal 2020 (shares and intrinsic value in thousands):
   Options Outstanding and Vested at
October 31, 2020
NumberWeighted
Average
Remaining		Weighted
Range ofofContractualAverageAggregate
ExerciseUnderlyingLifeExerciseIntrinsic
PriceShares(Years)PriceValue
$11.34 — $15.00 37 2.33$13.60 $943 
$17.50 — $18.22 9 1.97$18.16 203 
$32.06 — $37.10 19 2.26$35.89 67 
$41.52 — $55.63 42 2.63$47.87 — 
$11.34 — $55.63 107 2.41$31.41 $1,213 
Summary of restricted stock unit activity
The following table is a summary of Ciena’s restricted stock unit activity for the period indicated, with the aggregate fair value of the balance outstanding at the end of each period, based on Ciena’s closing stock price on the last trading day of the relevant period (shares and aggregate fair value in thousands):
Restricted
Stock Units
Outstanding		Weighted
Average
Grant Date
Fair Value
Per Share		Aggregate Fair
Value
Balance as of November 2, 20194,010 $27.94 $146,091 
Granted2,195   
Vested(1,945)  
Canceled or forfeited(211)  
Balance as of October 31, 20204,049 $35.08 $159,498 
Share-based compensation expense
The following table summarizes share-based compensation expense for the periods indicated (in thousands):
 Year Ended
 October 31, 2020November 2, 2019November 3, 2018
Product cost of goods sold$3,182 $2,868 $2,984 
Service cost of goods sold3,853 3,175 2,616 
Share-based compensation expense included in cost of goods sold7,035 6,043 5,600 
Research and development16,987 14,321 13,518 
Sales and marketing20,194 16,474 14,246 
General and administrative23,424 22,841 19,709 
Share-based compensation expense included in operating expense60,605 53,636 47,473 
Share-based compensation expense capitalized in inventory, net118 57 (101)
Total share-based compensation$67,758 $59,736 $52,972