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INCOME TAXES (Tables)

12 Months Ended

Oct. 28, 2023

Schedule of Provision (Benefit) for Income Taxes

For the periods indicated, the provision (benefit) for income taxes consists of the following (in thousands):


	Year Ended
	October 28, 2023		October 29, 2022		October 30, 2021
Provision (benefit) for income taxes:
Current:
Federal	$	36,537	$	27,479	$	72,603
State	18,860		10,289		21,400
Foreign	28,281		19,337		25,021
Total current	83,678		57,105		119,024
Deferred:
Federal	(8,010)		(30,032)		(21,942)
State	(17,354)		520		(11,546)
Foreign	10,512		2,010		(122,981)
Total deferred	(14,852)		(27,502)		(156,469)
Provision (benefit) for income taxes	$	68,826	$	29,603	$	(37,445)

Schedule of Income before Provision (Benefit) for Income Taxes

For the periods indicated, income before provision (benefit) for income taxes consists of the following (in thousands):


	Year Ended
	October 28, 2023		October 29, 2022		October 30, 2021
United States	$	93,682	$	28,784	$	298,514
Foreign	229,971		153,721		164,237
Total	$	323,653	$	182,505	$	462,751

Schedule of Tax Provision (Benefit) Reconciles to the Amount Computed by Multiplying Income or Loss Before Income Taxes by the U.S. Federal Statutory Rate of 35%

For the periods indicated, the tax provision reconciles to the amount computed by multiplying income before income taxes by the U.S. federal statutory rate of 21% for fiscal 2023, fiscal 2022 and fiscal 2021 as follows:


	Year Ended
	October 28, 2023		October 29, 2022		October 30, 2021
Provision at statutory rate	21.00	%	21.00	%	21.00	%
Intercompany IP Restructuring Transaction	—	%	—	%	(25.85)	%

State taxes	1.65	%	2.31	%	3.73	%
Withholding and other foreign taxes	(0.09)	%	(1.37)	%	2.76	%
Research and development credit	(16.78)	%	(23.66)	%	(7.99)	%
Non-deductible compensation	5.29	%	5.26	%	1.68	%
Foreign derived intangible income	—	%	—	%	(1.82)	%
US Taxation on foreign activity	5.08	%	1.73	%	—	%
Foreign Nontaxable interest	(1.06)	%	(1.90)	%	—	%
Taxation on foreign inflation	1.34	%	1.41	%	0.16	%
Rate change	(3.71)	%	1.27	%	(4.33)	%
Valuation allowance	9.44	%	8.35	%	1.77	%
Loss on equity transactions	(1.72)	%	—	%	—	%
Uncertain tax positions	1.72	%	1.62	%	0.63	%
Other	(0.89)	%	0.20	%	0.17	%
Effective income tax rate	21.27	%	16.22	%	(8.09)	%

Schedule of Significant Components of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets are as follows (in thousands):


	Year Ended
	October 28, 2023		October 29, 2022
Deferred tax assets:
Reserves and accrued liabilities	$	82,160	$	76,839
Depreciation and amortization	712,098		690,636
NOL and credit carry forward	197,984		154,707
Other	6,934		63,902
Gross deferred tax assets	999,176		986,084
Valuation allowance	(189,870)		(162,076)
Deferred tax asset, net of valuation allowance	$	809,306	$	824,008

Schedule of Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits, excluding Interest and Penalties

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):


	Amount
Unrecognized tax benefits at October 31, 2020	$	95,748
Decrease related to positions taken in prior period	(22,854)
Reductions related to settlements with taxing authorities	(654)
Increase related to positions taken in current period	5,510
Reductions related to expiration of statute of limitations	(659)
Unrecognized tax benefits at October 30, 2021	77,091
Increase related to positions taken in prior period	4,732
Reductions related to settlements with taxing authorities	(3,229)
Increase related to positions taken in current period	2,959
Reductions related to expiration of statute of limitations	(1,039)
Unrecognized tax benefits at October 29, 2022	80,514
Increase related to positions taken in prior period	9,940
Reductions related to settlements with taxing authorities	(625)
Increase related to positions taken in current period	4,960
Reductions related to expiration of statute of limitations	(869)
Unrecognized tax benefits at October 28, 2023	$	93,920

Schedule of Valuation Allowance Against the Gross Deferred Tax Assets

The following table summarizes the activity in Ciena’s valuation allowance against its gross deferred tax assets (in thousands):


Year Ended	Beginning Balance		Additions		Deductions		Ending Balance
October 30, 2021	$	151,427	$	17,897	$	9,690	$	159,634
October 29, 2022	$	159,634	$	15,245	$	12,803	$	162,076
October 28, 2023	$	162,076	$	28,746	$	952	$	189,870