EQUIPMENT, BUILDING, FURNITURE AND FIXTURES

9 Months Ended

Jul. 31, 2017

Property, Plant and Equipment [Abstract]

EQUIPMENT, BUILDING, FURNITURE AND FIXTURES

EQUIPMENT, BUILDING, FURNITURE AND FIXTURES

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

	July 31, 2017			October 31, 2016
Equipment, furniture and fixtures	$	483,482		$	451,029
Building subject to capital lease	79,002			22,529
Construction in progress subject to build-to-suit lease	—			57,602
Leasehold improvements	86,617			60,011
	649,101			591,171
Accumulated depreciation and amortization	(334,251		)	(302,765		)
	$	314,850		$	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 constructed, and Ciena subsequently leased, two new office buildings at its new Ottawa, Canada campus. The landlord constructed the buildings and contributed up to a maximum of CAD$290.00 per rentable square foot in total construction costs plus certain allowances for tenant improvements, and Ciena was responsible for any additional construction costs. As of May 1, 2017, occupancy for both of the office buildings was complete. As such, Ciena recorded capital leases of $50.4 million for these buildings, which will be depreciated over the lease term and removed the build-to-suit construction in progress asset and the corresponding long-term liability.

The total of the depreciation of equipment, furniture and fixtures and the amortization of leasehold improvements was $48.3 million and $38.5 million for the first nine months of fiscal 2017 and 2016, respectively.