CIENA CORPCIEN
CIENA CORP Leases Disclosure
LEASES
Ciena leases approximately 1.2 million square feet of facilities globally. Ciena’s corporate headquarters are located in Maryland, United States. Ciena’s largest facilities are research and development centers located in Ottawa, Canada and Gurgaon, India. Office facilities are leased under various non-cancelable operating or finance leases. Ciena's current leases have remaining terms that vary up to 10 years. Certain leases provide for options to extend up to 10 years and/or options to terminate within 3 years.
Leases included on the Consolidated Balance Sheets for the fiscal periods indicated were as follows (in thousands):
| Classification | Balance at November 1, 2025 | Balance at November 2, 2024 | |||||||||||||||
Operating leases (1) | |||||||||||||||||
| Operating ROU Assets | Operating right-of-use assets | $ | 38,613 | $ | 27,417 | ||||||||||||
| Operating lease liabilities | Operating lease liabilities and Long-term operating lease liabilities | $ | 46,472 | $ | 39,562 | ||||||||||||
| Finance leases: | |||||||||||||||||
| Buildings, gross | Equipment, building, furniture and fixtures, net | $ | 67,242 | $ | 67,517 | ||||||||||||
| Less: accumulated depreciation | (38,348) | (34,206) | |||||||||||||||
| Buildings, net | $ | 28,894 | $ | 33,311 | |||||||||||||
| Finance lease liabilities | Accrued liabilities and other short-term obligations and other long-term obligations | $ | 43,344 | $ | 47,917 | ||||||||||||
(1) Ciena added two new ten-year operating leases to its portfolio in the second quarter of fiscal 2025. The addition of these operating leases increased both operating right-of-use (“ROU”) assets and lease liabilities for fiscal 2025.
ROU assets that involve subleased or vacant space aggregate to an amount of $3.5 million as of November 1, 2025. Finance lease buildings, net, that involve subleased or vacant space aggregate to an amount of $3.9 million as of November 1, 2025. These assets may become impaired if tenants are unable to service their obligations under the sublease, and/or if the estimates as to occupancy are not realized.
For the periods indicated, the components of lease expense included in the Consolidated Statements of Operations were as follows (in thousands):
| Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
| Classification | November 1, 2025 | November 2, 2024 | October 28, 2023 | ||||||||||||||||||||
| Operating lease costs | Operating expense | $ | 13,607 | $ | 13,595 | $ | 16,080 | ||||||||||||||||
| Finance lease cost: | |||||||||||||||||||||||
| Amortization of finance ROU asset | Operating expense | 4,283 | 4,406 | 4,448 | |||||||||||||||||||
| Interest on finance lease liabilities | Interest expense | 3,356 | 3,769 | 4,069 | |||||||||||||||||||
| Total finance lease cost | 7,639 | 8,175 | 8,517 | ||||||||||||||||||||
| Non-capitalized lease cost | Operating expense | 736 | 954 | 910 | |||||||||||||||||||
Variable lease cost(1) | Operating expense | 2,688 | 2,562 | 3,421 | |||||||||||||||||||
Net lease cost(2) | $ | 24,670 | $ | 25,286 | $ | 28,928 | |||||||||||||||||
(1) Variable lease costs include expenses relating to insurance, taxes, maintenance and other costs required by the applicable operating lease. Variable lease costs are determined by whether they are to be included in base rent and if amounts are based on a consumer price index.
(2) Excludes other operating expense of $5.3 million, $5.3 million, and $6.5 million for the fiscal years ended November 1, 2025, November 2, 2024, and October 28, 2023, respectively, related to amortization of leasehold improvements.
Future minimum lease payments and the present value of minimum lease payments related to operating and finance leases as of November 1, 2025 were as follows (in thousands):
| Fiscal Year | Operating Leases | Finance Leases | Total | ||||||||||||||
| 2026 | $ | 15,639 | $ | 7,748 | $ | 23,387 | |||||||||||
| 2027 | 9,965 | 8,016 | 17,981 | ||||||||||||||
| 2028 | 5,078 | 8,285 | 13,363 | ||||||||||||||
| 2029 | 5,653 | 8,285 | 13,938 | ||||||||||||||
| 2030 | 4,631 | 8,437 | 13,068 | ||||||||||||||
| Thereafter | 13,142 | 14,406 | 27,548 | ||||||||||||||
| Total lease payments | 54,108 | 55,177 | 109,285 | ||||||||||||||
Less: Imputed interest | (7,636) | (11,833) | (19,469) | ||||||||||||||
| Present value of lease liabilities | 46,472 | 43,344 | 89,816 | ||||||||||||||
| Less: Current portion of present value of minimum lease payments | 13,956 | 4,741 | 18,697 | ||||||||||||||
| Long-term portion of present value of minimum lease payments | $ | 32,516 | $ | 38,603 | $ | 71,119 | |||||||||||
The weighted average remaining lease terms and weighted average discount rates for operating and finance leases were as follows (in thousands):
As of November 1, 2025 | As of November 2, 2024 | ||||||||||
| Weighted-average remaining lease term in years: | |||||||||||
Operating leases | 5.51 | 4.00 | |||||||||
Finance leases | 6.71 | 7.71 | |||||||||
| Weighted-average discount rates: | |||||||||||
Operating leases | 4.99 | % | 4.29 | % | |||||||
Finance leases | 7.56 | % | 7.56 | % | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 12, 2025 | Showing above |
| 2024 | Dec 20, 2024 | |
| 2023 | Dec 15, 2023 | |
| 2022 | Dec 16, 2022 | |
| 2021 | Dec 17, 2021 | |
| 2020 | Dec 18, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.