Accrued Liabilities

12 Months Ended

Oct. 31, 2014

Note 9. Accrued Liabilities

Accrued liabilities at October 31, 2014 and 2013 consisted of the following:



	2014		2013
Accrued payroll and employee benefits	$	4,432	$	4,647
Accrued contract and operating costs	34		87
Accrued product warranty costs ⁽¹⁾	1,156		860
Accrued service agreement costs	3,882		4,186
Accrued B1200 repair and upgrade program and modules due POSCO Energy ⁽²⁾	—		7,267
Accrued taxes, legal, professional and other	2,562		4,865
	$	12,066	$	21,912

(1)

Activity in the accrued product warranty costs during the year ended October 31, 2014 and 2013 included additions for estimates of potential future warranty obligations of $2.4 million and $1.2 million, respectively, on contracts in the warranty period and reductions related to actual warranty spend of $1.2 million and $0.3 million, respectively, as contracts progress through the warranty period or are beyond the warranty period.


(2)	The balance of the accrual at October 31, 2013 related to three replacement modules due to POSCO Energy, which were delivered in the first quarter of 2014.