Inventories

6 Months Ended

May 01, 2021

INVENTORIES

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


	May 1, 2021		October 31, 2020
Raw materials	$	139,430	$	119,481
Work-in-process	10,809		13,738
Finished goods	234,220		210,050
Deferred cost of goods sold	57,390		40,747
Gross inventories	441,849		384,016
Provision for excess and obsolescence	(40,616)		(39,637)
Inventories, net	$	401,233	$	344,379

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 2021, Ciena recorded a provision for excess and obsolescence of $10.4 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.