CANADIAN EMERGENCY WAGE SUBSIDY

12 Months Ended

Oct. 28, 2023

Unusual or Infrequent Items, or Both [Abstract]

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 expired in October 2021. The subsidy covered 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 Consolidated Statements of Operations to which the grant activity relates. Amounts from the CEWS program positively impacted Ciena’s operating expense and measures of profit in the year ended October 30, 2021. For the fiscal year ended October 30, 2021, Ciena recorded a CAD$52.2 million ($41.3 million) benefit, net of certain fees, related to CEWS for claim periods beginning March 15, 2020, including CAD$43.9 million ($35.4 million) related to employee wages during fiscal 2020. There was no CEWS activity in fiscal 2023 or 2022.

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


	Year Ended October 30, 2021

Product	$	4,283
Service	2,667
CEWS benefit in cost of goods sold	6,950
Research and development	29,519
Sales and marketing	2,604
General and administrative	2,207
CEWS benefit in operating expense	34,330
Total CEWS benefit	$	41,280