Accrued Liabilities and Other Short-Term Obligations

3 Months Ended

Jan. 31, 2018

Balance Sheet Related Disclosures [Abstract]

Accrued Liabilities and Other Short-Term Obligations

ACCRUED LIABILITIES AND OTHER SHORT-TERM OBLIGATIONS

As of the dates indicated, accrued liabilities and other short-term obligations are comprised of the following (in thousands):

	January 31, 2018		October 31, 2017
Compensation, payroll related tax and benefits(1)	$	68,526	$	113,272
Warranty	42,526		42,456
Vacation	39,628		39,778
Capital lease obligations	3,934		3,772
Interest payable	4,867		3,612
Other	108,683		120,044
	$	268,164	$	322,934

(1) Reduction is primarily due to the timing of bonus payments to employees under Ciena's annual cash incentive compensation plan.

The following table summarizes the activity in Ciena’s accrued warranty for the fiscal periods indicated (in thousands):

Three Months Ended January 31,	Beginning Balance		Current Period Provisions (1)	Settlements		Ending Balance
2017	$	52,324	553	(4,225	)	$	48,652
2018	$	42,456	4,657	(4,587	)	$	42,526

(1) As a result of lower than expected actual failure rates, Ciena adjusted its fiscal 2017 provision for warranty. These adjustments for previous years provisions had the effect of reducing warranty provision by $3.6 million for the three months ended January 31, 2017.