SHARE-BASED COMPENSATION EXPENSE

9 Months Ended

Jul. 29, 2023

Share-Based Payment Arrangement [Abstract]

The following table summarizes share-based compensation expense for the periods indicated (in thousands):


	Quarter Ended				Nine Months Ended
	July 29,		July 30,		July 29,		July 30,
	2023		2022		2023		2022
Products	$	1,118	$	1,002	$	3,324	$	2,960
Services	2,687		1,940		7,643		5,467
Share-based compensation expense included in cost of goods sold	3,805		2,942		10,967		8,427
Research and development	10,954		8,233		30,919		23,372
Selling and marketing	8,770		8,075		25,949		23,196
General and administrative	9,377		7,579		27,313		22,825

Share-based compensation expense included in operating expense	29,101		23,887		84,181		69,393
Share-based compensation expense capitalized in inventory, net	127		28		257		7
Total share-based compensation expense	$	33,033	$	26,857	$	95,405	$	77,827

As of July 29, 2023, total unrecognized share-based compensation expense was approximately $231.5 million, which relates to unvested stock unit awards and is expected to be recognized over a weighted-average period of 1.45 years.

Stock Unit Awards

Beginning in December 2022, Ciena introduced a benefit, under which, upon completion of ten years of service and reaching age 60, executive officers who are residents of the United States, the United Kingdom, or Canada and who provide 12 months’ notice of their retirement will receive continued vesting of all of their granted but unvested restricted stock unit (“RSU”) awards and a pro-rated amount of their performance stock unit awards and market stock unit awards. Other employees in these countries will be subject to the same eligibility and notice requirements, but will receive acceleration of their granted but unvested RSU awards upon retirement. This program accelerates the recognition of share-based compensation expense.