Interest and Other Income, Net

3 Months Ended

Jan. 31, 2019

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,
	2019			2018
Interest income	$	3,872		$	2,444
Gains (losses) on non-hedge designated foreign currency forward contracts	22			(699		)
Foreign currency exchange gains	783			13
Other	(424		)	(183		)
Interest and other income, net	$	4,253		$	1,575

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 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 remeasurement adjustments were recorded in interest and other income, net on the Condensed Consolidated Statements of Operations. Ciena recorded minimal gains in foreign currency exchange rates for the first three months of fiscal 2018. 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 2019, Ciena recorded minimal gains from non-hedge designated foreign currency forward contracts. During the first three months of fiscal 2018, Ciena recorded losses of $0.7 million from non-hedge designated foreign currency forward contracts.