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Accrued Liabilities and Other Short-Term Obligations
 6 Months Ended
Apr. 30, 2019
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):
 
April 30,
2019
 
October 31,
2018
Compensation, payroll related tax and benefits (1)
$
94,235

 
$
140,277

Warranty
44,907

 
44,740

Vacation (2)
21,648

 
42,507

Contingent consideration
7,491

 
—

Capital lease obligations
3,011

 
3,547

Interest payable
1,000

 
1,072

Other
119,125

 
107,932

 
$
291,417

 
$
340,075


(1) Reduction is primarily due to the timing of bonus payments to employees under Ciena's annual cash incentive compensation plan.
(2) Reduction is primarily due to the payout of North America vacation accruals in conjunction with adoption of a new vacation policy.

The following table summarizes the activity in Ciena’s accrued warranty for the fiscal periods indicated (in thousands):
Six Months Ended April 30,
 
Beginning Balance
 
Current Period Provisions
 
Settlements
 
Ending Balance
2018
 
$
42,456

 
10,565

 
(9,629
)
 
$
43,392

2019
 
$
44,740

 
9,276

 
(9,109
)
 
$
44,907


Settlement of Conversions of 3.75% Convertible Senior Notes due October 15, 2018 (“New Notes”)
 
Debt Conversion Liability Associated With the New Notes
The New Notes provided Ciena the option, at its election, to settle conversions of such notes for cash, shares of its common stock, or a combination of cash and shares equal to the aggregate amount due upon conversion. On August 30, 2018, Ciena notified the noteholders that it had elected to settle conversion of the New Notes in a combination of cash and shares, provided that the cash portion would not exceed an aggregate amount of $400 million. Ciena became obligated to settle a portion of the conversion feature in cash and reclassified the cash conversion feature from equity to a derivative liability at its fair value of $164.2 million. On November 15, 2018, Ciena paid approximately $111.3 million in cash and issued 1.6 million shares in settlement of this embedded conversion feature.