Canadian Emergency Wage Subsidy

6 Months Ended

May 01, 2021

Unusual or Infrequent Items, or Both [Abstract]

CANADIAN EMERGENCY WAGE SUBSIDY

In April 2020, the Canadian government introduced the Canada Emergency Wage Subsidy (“CEWS”) to help employers offset a portion of their employee wages for a limited period in response to the COVID-19 outbreak, retroactive to March 15, 2020. The CEWS program has been extended through June 2021, with a proposed extension through September 2021. The subsidy covers employers of all sizes and across all sectors.

Ciena accounts for proceeds from government grants as a reduction of expense when there is reasonable assurance that Ciena has met the required conditions associated with the grant and that grant proceeds will be received. Grant benefits are recorded to the particular line item of the Condensed Consolidated Statement of Operations to which the grant activity relates. During the second quarter and six months ended May 1, 2021, Ciena recorded a CAD$51.1 million ($40.4 million) benefit, net of certain fees, related to CEWS for claim periods beginning March 15, 2020, including CAD$43.9 million ($34.7 million) related to employee wages during fiscal 2020. As of May 1, 2021, amounts receivable from this subsidy were CAD$4.8 million ($3.9 million).

The following table summarizes CEWS for the periods indicated (in thousands):


	Quarter Ended				Six Months Ended
	May 1,		May 2,		May 1,		May 2,
	2021		2020		2021		2020
Product	$	4,189	$	—	$	4,189	$	—
Service	2,620		—		2,620		—
CEWS benefit in cost of goods sold	6,809		—		6,809		—
Research and development	28,923		—		28,923		—
Sales and marketing	2,551		—		2,551		—
General and administrative	2,161		—		2,161		—
CEWS benefit in operating expense	33,635		—		33,635		—
Total CEWS benefit	$	40,444	$	—	$	40,444	$	—