Interest and Other Income, Net

9 Months Ended

Aug. 01, 2020

Other Income and Expenses [Abstract]

INTEREST AND OTHER INCOME, NETThe components of interest and other income, net, are as follows (in thousands):


	Quarter Ended						Nine Months Ended
	August 1,		August 3,		August 1,		August 3,
	2020		2019		2020		2019
Interest income	$	849	$	3,475	$	6,262	$	10,866

Gains (losses) on non-hedge designated foreign currency forward contracts	1,282		119		3,005		(757)
Foreign currency exchange losses	(2,537)		(2,373)		(7,376)		(4,585)

Other	638		(171)		(678)		(465)
Interest and other income, net	$	232	$	1,050	$	1,213	$	5,059

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 $7.4 million and $4.6 million in foreign currency exchange rate losses during the first nine months of fiscal 2020 and 2019, respectively, 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. See Note 13 for further discussion. 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 nine months of fiscal 2020, Ciena recorded gains of $3.0 million from non-hedge designated foreign currency forward contracts. During the first nine months of fiscal 2019, Ciena recorded losses of $0.8 million from non-hedge designated foreign currency forward contracts.