INTEREST AND OTHER INCOME (LOSS), NET

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



	Quarter Ended July 31,						Nine Months Ended July 31,
	2017			2016			2017			2016
Interest income	$	1,820		$	1,250		$	4,609		$	2,918
Gains (losses) on non-hedge designated foreign currency forward contracts	834			(4,787		)	(891		)	(20,000		)
Foreign currency exchange gain (loss)	(2,946		)	(839		)	(4,071		)	5,291
Modification of term loan	—			—			(2,924		)	—
Other	(556		)	729			(119		)	335
Interest and other income (loss), net	$	(848	)	$	(3,647	)	$	(3,396	)	$	(11,456	)

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 nine months of fiscal 2017 Ciena recorded $4.1 million in foreign currency exchange rate losses, and during the first nine months of fiscal 2016, Ciena recorded $5.3 million in foreign currency exchange rate gains 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 nine months of fiscal 2017 and fiscal 2016, Ciena recorded losses of $0.9 million and $20.0 million, respectively, from non-hedge designated foreign currency forward contracts.