Inventories

6 Months Ended

May 02, 2020

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

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

	May 2, 2020			November 2, 2019
Raw materials	$	106,193		$	99,041
Work-in-process	11,471			13,657
Finished goods	194,532			226,622
Deferred cost of goods sold	56,904			53,051
Gross inventories	369,100			392,371
Provision for excess and obsolescence	(43,347		)	(47,322		)
Inventories, net	$	325,753		$	345,049

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, which are affected by changes in Ciena’s strategic direction, discontinuance of a product or introduction of newer versions of products, declines in the sales of or forecasted demand for certain products, and general market conditions. During the first six months of fiscal 2020, Ciena recorded a provision for excess and obsolescence of $12.6 million, primarily related to a decrease in the forecasted demand for certain Networking Platforms products. Deductions from the provision for excess and obsolete inventory relate primarily to disposal activities.