CANADIAN EMERGENCY WAGE SUBSIDY

6 Months Ended

Apr. 30, 2022

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 Condensed Consolidated Statement of Operations to which the grant activity relates. During the second quarter and six months ended May 1, 2021, Ciena recorded a CAD$51.1 million ($40.4 million) benefit, net of certain fees, related to CEWS for claim periods beginning March 15, 2020, including CAD$43.9 million ($34.7 million) related to employee wages during fiscal 2020.

The following table summarizes CEWS for the periods indicated (in thousands, USD):


	Quarter Ended				Six Months Ended
	April 30,		May 1,		April 30,		May 1,
	2022		2021		2022		2021
Product	$	—	$	4,189	$	—	$	4,189
Service	—		2,620		—		2,620
CEWS benefit in cost of goods sold	—		6,809		—		6,809
Research and development	—		28,923		—		28,923
Sales and marketing	—		2,551		—		2,551
General and administrative	—		2,161		—		2,161
CEWS benefit in operating expense	—		33,635		—		33,635
Total CEWS benefit	$	—	$	40,444	$	—	$	40,444