EQUIPMENT, BUILDING, FURNITURE AND FIXTURES

3 Months Ended

Jan. 31, 2017

Property, Plant and Equipment [Abstract]

EQUIPMENT, BUILDING, FURNITURE AND FIXTURES

As of the dates indicated, equipment, building, furniture and fixtures are comprised of the following (in thousands):



	January 31, 2017			October 31, 2016
Equipment, furniture and fixtures	$	461,146		$	451,029
Building subject to capital lease	22,947			22,529
Construction in progress subject to build-to-suit lease	58,671			57,602
Leasehold improvements	62,349			60,011
	605,113			591,171
Accumulated depreciation and amortization	(311,963		)	(302,765		)
	$	293,150		$	288,406

Ciena capitalizes construction in progress and records a corresponding long-term liability for build-to-suit lease agreements where Ciena is considered the owner, for accounting purposes, during the construction period. On April 15, 2015, Ciena entered into a build-to-suit lease arrangement pursuant to which the landlord will construct, and Ciena will subsequently lease, two new office buildings at its new Ottawa, Canada campus. The landlord will construct the buildings and contribute up to a maximum of CAD$290.00 per rentable square foot in total construction costs plus certain allowances for tenant improvements, and Ciena will be responsible for any additional construction costs. As of January 31, 2017, total costs incurred under this build-to-suit arrangement were $58.7 million. Upon occupancy of the facilities, Ciena expects this arrangement to qualify as a capital lease. As a result, the facilities will be depreciated over the shorter of their useful lives or the lease term.

The total depreciation of equipment, furniture and fixtures, and amortization of leasehold improvements, was $14.3 million and $11.9 million for the first three months of fiscal 2017 and 2016, respectively.