Accrued Liabilities

12 Months Ended

Oct. 31, 2019

Accrued Liabilities Current [Abstract]

Note 12. Accrued Liabilities

Accrued liabilities as of October 31, 2019 and 2018 consisted of the following (in thousands):

	2019		2018
Accrued payroll and employee benefits	$	2,282	$	2,550
Accrued product warranty costs ⁽¹⁾		144		147
Accrued service agreement and PPA costs ⁽²⁾		4,047		2,029
Accrued legal, taxes, professional and other		4,979		2,906
Accrued liabilities	$	11,452	$	7,632

(1)

Activity in the accrued product warranty costs for the years ended October 31, 2019 and 2018 included additions for estimates of future warranty obligations of $0.1 million and $0.4 million, respectively, on contracts in the warranty period and reductions related to actual warranty spend of $0.1 million and $0.6 million, respectively, as contracts progress through the warranty period or are beyond the warranty period.

(2)

The loss accruals on service contracts were $0.9 million as of October 31, 2018, which increased to $3.3 million as of October 31, 2019. The increase is a result of the adoption of Topic 606 and an increase in the estimate for future module cost exchanges. The accruals for performance guarantees on service agreements and PPAs decreased from $1.1 million as of October 31, 2018 to $0.8 million as of October 31, 2019 as a result of the acquisition of the Bridgeport Fuel Cell Project as amounts previously recorded in connection with the Bridgeport Fuel Cell Project service agreement were settled in connection with the acquisition of the Bridgeport Fuel Cell Project on May 9, 2019.