Inventories

9 Months Ended

Aug. 01, 2020

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

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

	August 1, 2020		November 2, 2019
Raw materials	$	133,642	$	99,041
Work-in-process	12,615		13,657
Finished goods	215,323		226,622
Deferred cost of goods sold	45,050		53,051
Gross inventories	406,630		392,371
Provision for excess and obsolescence	(43,030)		(47,322)
Inventories, net	$	363,600	$	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 nine months of fiscal 2020, Ciena recorded a provision for excess and obsolescence of $20.2 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.