INVENTORIES

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



	January 31, 2017			October 31, 2016
Raw materials	$	43,503		$	44,644
Work-in-process	13,959			12,852
Finished goods	197,651			156,402
Deferred cost of goods sold	83,853			59,856
	338,966			273,754
Provision for excess and obsolescence	(54,371		)	(62,503		)
	$	284,595		$	211,251

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 2017, Ciena recorded a provision for excess and obsolescence of $5.4 million, primarily related to a decrease in the forecasted demand for certain Networking Platform products. Deductions from the provision for excess and obsolete inventory relate primarily to disposal activities.