INTEREST AND OTHER INCOME, NET

9 Months Ended

Jul. 29, 2023

Other Income and Expenses [Abstract]

The components of interest and other income, net, are as follows for the periods indicated (in thousands):


	Quarter Ended				Nine Months Ended
	July 29,		July 30,		July 29,		July 30,
	2023		2022		2023		2022
Interest income	$	12,835	$	2,774	$	30,365	$	4,962

Gains (losses) on non-hedge designated foreign currency forward contracts	1,679		(985)		(2,885)		(2,911)
Foreign currency exchange gains (losses)	(4,031)		(788)		(2,927)		2,711

Gain (loss) on cost method equity investments, net	(87)		—		26,368		4,120
Other	(209)		(635)		(210)		(4,022)
Interest and other income, net	$	10,187	$	366	$	50,711	$	4,860

During the first quarter of fiscal 2023, the acquisition of Tibit triggered the remeasurement of Ciena’s previously held investment in Tibit to fair value, which resulted in Ciena recognizing a gain on its cost method equity investment of $26.5 million. See Note 4 above.

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. During the first nine months of fiscal 2023, Ciena recorded $2.9 million in foreign currency exchange rate losses as a result of monetary assets and liabilities that were transacted in a currency other than Ciena’s functional currency. During the first nine months of fiscal 2022, Ciena recorded $2.7 million in foreign currency exchange rate gains as a result of monetary assets and liabilities that were transacted in a currency other than Ciena’s functional currency. 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. 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 each of the first nine months of fiscal 2023 and 2022, Ciena recorded losses of $2.9 million from non-hedge designated foreign currency forward contracts.