ACCOUNTS RECEIVABLE

12 Months Ended

Oct. 29, 2022

Receivables [Abstract]

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

As of October 29, 2022, two customers accounted for 13.0% and 11.0% of net accounts receivable, respectively. As of October 30, 2021, two customers accounted for 15.0% and 10.0% of net accounts receivable, respectively. Ciena has not historically experienced a significant amount of bad debt expense. The following table summarizes the activity in Ciena’s allowance for credit losses for the fiscal years indicated (in thousands):

Year Ended	Beginning Balance		Effect of adoption of new accounting standard (Note 1)		Provisions		Net Deductions		Ending Balance
October 31, 2020(1)	$	20,101	$	—	$	8,855	$	18,358	$	10,598
October 30, 2021	$	10,598	$	2,206	$	2,346	$	4,238	$	10,912
October 29, 2022(2)	$	10,912	$	—	$	4,199	$	4,153	$	10,958

(1)The net deduction in Ciena’s allowance for credit losses as of October 31, 2020 is primarily due to the final settlement from a significant asset impairment of $12.2 million for a trade receivable related to a single customer in the APAC region recorded in fiscal 2017.

(2)On March 7, 2022, Ciena announced its decision to suspend its business operations in Russia immediately. As a result, Ciena’s allowance for doubtful accounts includes a provision for a significant asset impairment of $1.8 million for a trade receivable related to this decision.

Accounts Receivable Factoring

During fiscal 2022, the gross amount of trade accounts receivables sold totaled approximately $11.8 million. Prior to the start of fiscal 2022, Ciena had not entered into any factoring arrangements. Factoring related interest expense recorded to interest and other income (loss), net was $0.6 million for fiscal 2022.