EQUIPMENT, BUILDING, FURNITURE AND FIXTURES

6 Months Ended

Apr. 30, 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):



	April 30, 2017			October 31, 2016
Equipment, furniture and fixtures	$	468,630		$	451,029
Building subject to capital lease	42,347			22,529
Construction in progress subject to build-to-suit lease	33,157			57,602
Leasehold improvements	78,136			60,011
	622,270			591,171
Accumulated depreciation and amortization	(322,478		)	(302,765		)
	$	299,792		$	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 the first day of Ciena's second quarter of fiscal 2017, occupancy of one of the office buildings was complete, and, as such, Ciena recorded a capital lease of $20.7 million for this building which will be depreciated over the lease term. This occupancy also reduced the build-to-suit construction in progress asset and the corresponding long-term liability. As of April 30, 2017, total costs remaining under this build-to-suit arrangement were $33.2 million. The remaining build-to-suit arrangement is expected 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 of the depreciation of equipment, furniture and fixtures and the amortization of leasehold improvements was $30.6 million and $24.8 million for the first six months of fiscal 2017 and 2016, respectively.