INTEREST AND OTHER INCOME (LOSS), NET

3 Months Ended

Jan. 31, 2017

Other Income and Expenses [Abstract]

INTEREST AND OTHER INCOME (LOSS), NET

INTEREST AND OTHER INCOME (LOSS), NET

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

	Quarter Ended January 31,
	2017			2016
Interest income	$	1,282		$	686
Gains (losses) on non-hedge designated foreign currency forward contracts	1,024			(4,614		)
Foreign currency exchange losses	(2,417		)	(4,377		)
Other	481			(471		)
Interest and other income (loss), net	$	370		$	(8,776	)

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 the local currency as their functional currency. During the first three months of fiscal 2017 and the first three months of fiscal 2016, Ciena recorded $2.4 million and $4.4 million in foreign currency exchange rate losses, respectively, as a result of monetary assets and liabilities that were transacted in a currency other than the entity's functional currency, and the re-measurement adjustments were recorded in interest and other income (loss), net on the Condensed Consolidated Statement of Operations. From time to time, Ciena uses foreign currency forwards to hedge these balance sheet exposures. 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 (loss), net on the Condensed Consolidated Statement of Operations. During the first three months of fiscal 2017 and fiscal 2016, Ciena recorded gains of $1.0 million and losses of $4.6 million, respectively, from non-hedge designated foreign currency forward contracts.