Segments and Entity-Wide Disclosures

6 Months Ended

May 01, 2021

Segment Reporting [Abstract]

Segments and Entity-Wide Disclosures

SEGMENTS AND ENTITY-WIDE DISCLOSURES

Segment Reporting

Ciena has the following operating segments for reporting purposes: (i) Networking Platforms; (ii) Platform Software and Services; (iii) Blue Planet Automation Software and Services; and (iv) Global Services.

Ciena's long-lived assets, including equipment, building, furniture and fixtures, ROU assets, finite-lived intangible assets and maintenance spares, are not reviewed by Ciena's chief operating decision maker for purposes of evaluating performance and allocating resources. As of May 1, 2021, equipment, building, furniture and fixtures, net, totaled $298.3 million, and operating ROU assets totaled $51.0 million both of which support asset groups within Ciena’s four operating segments and unallocated selling and general and administrative activities. As of May 1, 2021, finite-lived intangible assets, goodwill and maintenance spares are assigned to asset groups within the following segments (in thousands):

	Networking Platforms		Platform Software and Services		Blue Planet Automation Software and Services		Global Services		Total
Other intangible assets, net	$	11,395	$	—	$	71,484	$	—	$	82,879
Goodwill	$	66,493	$	156,191	$	89,050	$	—	$	311,734
Maintenance spares, net	$	—	$	—	$	—	$	63,003	$	63,003

Segment Profit (Loss)

Segment profit (loss) is determined based on internal performance measures used by Ciena’s chief executive officer to assess the performance of each operating segment in a given period. In connection with that assessment, the chief executive

officer excludes the following items: selling and marketing costs; general and administrative costs; amortization of intangible assets; significant asset impairments and restructuring costs; acquisition and integration costs; interest and other income (loss), net; interest expense; loss on extinguishment and modification of debt and provision for income taxes.

The table below sets forth Ciena’s segment profit (loss) and the reconciliation to consolidated net income for the periods indicated (in thousands):

	Quarter Ended				Six Months Ended
	May 1,		May 2,		May 1,		May 2,
	2021		2020		2021		2020
Segment profit (loss):
Networking Platforms	$	211,412	$	210,987	$	367,843	$	379,256
Platform Software and Services	36,506		21,668		64,166		50,619
Blue Planet Automation Software and Services	5,688		(4,399)		3,254		(7,512)
Global Services	48,567		53,540		92,060		99,068
Total segment profit	302,173		281,796		527,323		521,431
Less: Non-performance operating expenses
Selling and marketing	110,387		101,214		207,665		208,280
General and administrative	43,635		42,030		83,628		84,498
Amortization of intangible assets	6,019		5,839		11,929		11,692
Significant asset impairments and restructuring costs	8,209		3,811		14,076		8,283
Acquisition and integration costs	294		1,414		601		3,233
Add: Other non-performance financial items
Interest expense and other income (loss), net	(9,059)		(10,525)		(17,540)		(15,694)
Loss on extinguishment and modification of debt	—		—		—		(646)
Less: Provision for income taxes	21,453		25,308		33,419		35,122
Consolidated net income	$	103,117	$	91,655	$	158,465	$	153,983

Entity-Wide Reporting

The following table reflects Ciena’s geographic distribution of equipment, building, furniture and fixtures, net, and operating ROU assets, with any country accounting for at least 10% of total equipment, building, furniture and fixtures, net, and operating ROU assets specifically identified. Equipment, building, furniture and fixtures, net, and operating ROU assets attributable to geographic regions outside of the U.S. and Canada are reflected as “Other International.” For the periods below, Ciena’s geographic distribution of equipment, building, furniture and fixtures, net, and operating ROU assets was as follows (in thousands):

	May 1, 2021		October 31, 2020
Canada	$	247,309	$	214,188
United States	59,229		65,321
Other International	42,788		49,894
Total	$	349,326	$	329,403