Cattleya Sheath & Prosthechea growth

[Becca]

Hi again! I wanted to find out if the brown paper wrapping looking type stuff in the attached in the first and second photo is what is know as a sheath....I have read different descriptions. It used to be green and has since turned brown....I have not been growing Cattleya's long enough to experience this.

And the third and forth photo is of my Prosthechea (cochleata x garciana) that I bought from Ray a few months ago. It has a funny looking growth that I think might be a forming buds....could some one please clarify what it is? TIA!