INTEREST AND OTHER INCOME (LOSS), NET

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



	Quarter Ended April 30,						Six Months Ended April 30,
	2018			2017			2018			2017
Interest income	$	3,212		$	1,507		$	5,656		$	2,789
Gains (losses) on non-hedge designated foreign currency forward contracts	2,868			(2,749		)	2,169			(1,725		)
Foreign currency exchange gain (loss)	(4,804		)	1,292			(4,791		)	(1,125		)
Modification of term loan	—			(2,924		)	—			(2,924		)
Other	20			(44		)	(163		)	437
Interest and other income (loss), net	$	1,296		$	(2,918	)	$	2,871		$	(2,548	)

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 $4.8 million and $1.1 million in foreign currency exchange rate losses during the first six months of fiscal 2018 and fiscal 2017, respectively, 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 (loss), net on the Condensed Consolidated Statements 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 Statements of Operations. During the first six months of fiscal 2018, Ciena recorded gains of $2.2 million from non-hedge designated foreign currency forward contracts. During the first six months of fiscal 2017, Ciena recorded losses of $1.7 million from non-hedge designated foreign currency forward contracts.