INVENTORIES

As of the dates indicated, inventories are comprised of the following (in thousands):



	October 31,
	2013			2014
Raw materials	$	53,274		$	64,853
Work-in-process	7,773			8,371
Finished goods	153,855			165,799
Deferred cost of goods sold	75,764			75,763
	290,666			314,786
Provision for excess and obsolescence	(41,563		)	(60,126		)
	$	249,103		$	254,660

Ciena writes down its inventory for estimated obsolescence or unmarketable inventory by an amount equal to the difference between the cost of inventory and the estimated net realizable value based on assumptions about future demand and market conditions. During fiscal 2013 and fiscal 2014, recorded provisions for inventory reserves were primarily related to engineering design changes and the discontinuance of certain parts and components used in the manufacture of our Optical Transport products, including our Corestream® Agility Optical Transport platform, and Converged Packet Optical products. Deductions from the provision for excess and obsolete inventory relate to disposal activities.

The following table summarizes the activity in Ciena’s reserve for excess and obsolete inventory for the fiscal years indicated (in thousands):



	Balance at
Year ended	beginning of						Balance at
October 31,	fiscal year		Provisions		Disposals		end of fiscal year
2012	$	31,771	$	23,438	$	15,199	$	40,010
2013	$	40,010	$	19,938	$	18,385	$	41,563
2014	$	41,563	$	32,332	$	13,769	$	60,126