Interest and Other Income, Net

3 Months Ended

Jan. 30, 2021

Other Income and Expenses [Abstract]

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


	Quarter Ended
	January 30,		February 1,
	2021		2020
Interest income	$	534	$	3,390

Gains on non-hedge designated foreign currency forward contracts	4,530		637
Foreign currency exchange losses	(6,918)		(771)

Other	733		390
Interest and other income (loss), net	$	(1,121)	$	3,646

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 $6.9 million and $0.8 million in foreign currency exchange rate losses during the first three months of fiscal 2021 and 2020, 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 (loss), 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. 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 three months of fiscal 2021 and 2020, respectively, Ciena recorded gains of $4.5 million and $0.6 million from non-hedge designated foreign currency forward contracts.