v3.22.2.2
SIGNIFICANT ASSET IMPAIRMENT AND RESTRUCTURING COSTS
9 Months Ended
Jul. 30, 2022
Restructuring and Related Activities [Abstract]  
SIGNIFICANT ASSET IMPAIRMENT AND RESTRUCTURING COSTS SIGNIFICANT ASSET IMPAIRMENT AND RESTRUCTURING COSTS
Restructuring Costs

Ciena has undertaken a number of restructuring activities intended to reduce expense and to align its workforce and costs with market opportunities, product development and business strategies. The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in accrued liabilities and other short-term obligations on the Condensed Consolidated Balance Sheets, for the nine months ended July 30, 2022 (in thousands):
Workforce
reduction
Other restructuring activitiesTotal
Balance at October 30, 2021$781 $— $781 
Charges2,224 
(1)
13,992 
(2)
16,216 
Cash payments(2,423)(13,115)(15,538)
Balance at July 30, 2022$582 $877 $1,459 
Current restructuring liabilities$582 $877 $1,459 

(1) Reflects employee costs associated with workforce reductions during the nine months ended July 30, 2022 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes.
(2) Primarily represents the redesign of certain business processes associated with Ciena’s supply chain and distribution structure reorganization and costs related to restructured real estate facilities.

The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in accrued liabilities and other short-term obligations on the Condensed Consolidated Balance Sheets for the nine months ended July 31, 2021 (in thousands):
Workforce
reduction
Other restructuring activitiesTotal
Balance at October 30, 2020$2,915 $— $2,915 
Charges5,306 
(1)
18,558 
(2)
23,864 
Cash payments(7,051)(18,558)(25,609)
Balance at July 31, 2021$1,170 $— $1,170 
Current restructuring liabilities$1,170 $— $1,170 
(1) Reflects employee costs associated with workforce reductions during the nine months ended July 31, 2021 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes.
(2) Primarily represents the redesign of certain business processes associated with Ciena’s supply chain and distribution structure reorganization and costs related to restructured real estate facilities.

Significant Asset Impairments

In February 2022, armed conflict escalated between Russia and Ukraine. The United States and certain other countries have imposed sanctions on Russia and could impose further sanctions. On March 7, 2022, Ciena announced its decision to suspend its business operations in Russia immediately. As a result, Ciena recorded impairment charges of approximately $4.1 million of which $2.0 million was a provision for credit losses.