INVENTORIES

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



	January 31, 2016			October 31, 2015
Raw materials	$	51,925		$	53,082
Work-in-process	13,448			9,120
Finished goods	117,878			125,966
Deferred cost of goods sold	76,371			55,995
	259,622			244,163
Provision for excess and obsolescence	(53,958		)	(53,001		)
	$	205,664		$	191,162

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 the first three months of fiscal 2016, Ciena recorded a provision for excess and obsolescence of $7.0 million, primarily related to a decrease in the forecasted demand for certain Converged Packet Optical and Optical Transport products. Deductions from the provision for excess and obsolete inventory relate primarily to disposal activities.