Inventories

12 Months Ended

Oct. 31, 2020

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


	October 31, 2020		November 2, 2019
Raw materials	$	119,481	$	99,041
Work-in-process	13,738		13,657
Finished goods	210,050		226,622
Deferred cost of goods sold	40,747		53,051
	384,016		392,371
Reserve for excess and obsolescence	(39,637)		(47,322)
	$	344,379	$	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 fiscal 2020, fiscal 2019 and fiscal 2018, Ciena recorded a provision for excess and obsolescence of $24.7 million, $28.1 million, and $30.6 million, respectively, primarily related to a decrease in the forecasted demand for certain Networking Platforms products. Deductions from the provision for excess and obsolete inventory relate to disposal activities.

The following table summarizes the activity in Ciena’s reserve for excess and obsolete inventory for the fiscal years indicated (in thousands):


Year Ended	Beginning Balance		Provisions		Disposals		Ending Balance
November 3, 2018	$	51,206	$	30,615	$	30,883	$	50,938
November 2, 2019	$	50,938	$	28,085	$	31,701	$	47,322
October 31, 2020	$	47,322	$	24,701	$	32,386	$	39,637