Interest and Other Income, Net

3 Months Ended

Jan. 31, 2020

Other Income and Expenses [Abstract]

INTEREST AND OTHER INCOME, NET

The components of interest and other income, net, are as follows (in thousands):



	Quarter Ended January 31,
	2020			2019
Interest income	$	3,390		$	3,872
Gains on non-hedge designated foreign currency forward contracts	637			22
Foreign currency exchange gains (losses)	(771		)	783
Other	390			(424		)
Interest and other income, net	$	3,646		$	4,253

Ciena Corporation, as the U.S. parent entity, uses the U.S. Dollar as its functional currency; however, some of its foreign branch offices and subsidiaries use local currencies as their functional currencies. Ciena recorded $0.8 million in foreign

currency exchange rate losses during the first three months of fiscal 2020 and $0.8 million in foreign currency exchange rate gains during the first three months of fiscal 2019, as a result of monetary assets and liabilities that were transacted in a currency other than the entity’s functional currency, and the related remeasurement adjustments were recorded in interest and other income, net, on the Condensed Consolidated Statements of Operations. From time to time, Ciena uses foreign currency forwards to hedge this type of balance sheet exposure. These forwards are not designated as hedges for accounting purposes, and any net gain or loss associated with these derivatives is reported in interest and other income, net, on the Condensed Consolidated Statements of Operations. During the first three months of fiscal 2020, Ciena recorded gains of $0.6 million from non-hedge designated foreign currency forward contracts. During the first three months of fiscal 2019, Ciena recorded minimal gains from non-hedge designated foreign currency forward contracts.