Accrued Liabilities

12 Months Ended

Oct. 31, 2021

Note 12. Accrued Liabilities

Accrued liabilities as of October 31, 2021 and 2020 consisted of the following (in thousands):


	October 31,		October 31,
	2021		2020
Accrued payroll and employee benefits	$	2,544	$	4,461
Accrued product warranty cost ⁽¹⁾		72		97
Accrued service agreement and PPA costs⁽²⁾		9,112		7,037
Accrued legal, taxes, professional and other		4,371		4,086
Accrued liabilities	$	16,099	$	15,681

(1)	The decrease in accrued product warranty cost represents a reduction related to actual warranty activity as contracts progress through the warranty period. Product warranty expense for the years ended October 31, 2021 and 2020 was $0.03 million and $0.1 million, respectively.

(2)

Accrued service agreement costs represent loss accruals on service contracts of $6.5 million as of October 31, 2021, which increased from $5.5 million as of October 31, 2020. The increase is the result of a change in estimates regarding timing of future module exchanges. The accruals for performance guarantees on service agreements and PPAs increased from $1.4 million as of October 31, 2020 to $2.5 million as of October 31, 2021.