Counterparty collateral

[Table of Contents](#ica158fb683c247fdb170955b492f9216_7)HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIESNotes to Consolidated Financial Statements (Continued)Offsetting of Derivative InstrumentsThe Company recognizes all derivative instruments on a gross basis in the Consolidated Balance Sheets. The Company's derivative instruments are subject to master netting arrangements and collateral security arrangements. The Company does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under collateral security agreements. As of October 31, 2021 and 2020, information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements was as follows:

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|   | As of October 31, 2021 |
|   | In the Consolidated Balance Sheets |  |   |  |   |
|   | (i) |  | (ii) |  | (iii) = (i)–(ii) |  | (iv) |  | (v) |  |   |  | (vi) = (iii)–(iv)–(v) |
|   |   |  |   |  |   |  | Gross AmountsNot Offset |  |   |  |   |
|   | GrossAmountRecognized |  | GrossAmountOffset |  | Net AmountPresented |  | Derivatives |  | FinancialCollateral |  |   |  | Net Amount |
|   | In millions |
| Derivative assets | $ | 407  |  |  | $ | —  |  |  | $ | 407  |  |  | $ | 123  |  |  | $ | 173  |  |  | (1) |  | $ | 111  |  |
| Derivative liabilities | $ | 127  |  |  | $ | —  |  |  | $ | 127  |  |  | $ | 123  |  |  | $ | 5  |  |  | (2) |  | $ | (1) |  |



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|   | As of October 31, 2020 |
|   | In the Consolidated Balance Sheets |  |   |  |  |
|   | (i) |  | (ii) |  | (iii) = (i)–(ii) |  | (iv) |  | (v) |  | (vi) = (iii)–(iv)–(v) |
|   |   |  |   |  |   |  | Gross AmountsNot Offset |  |   |  |   |
|   | GrossAmountRecognized |  | GrossAmountOffset |  | Net AmountPresented |  | Derivatives |  | FinancialCollateral |  |   |  | Net Amount |
|   | In millions |
| Derivative assets | $ | 510  |  |  | $ | —  |  |  | $ | 510  |  |  | $ | 137  |  |  | $ | 321  |  |  | (1) |  | $ | 52  |  |
| Derivative liabilities | $ | 194  |  |  | $ | —  |  |  | $ | 194  |  |  | $ | 137  |  |  | $ | 55  |  |  | (2) |  | $ | 2  |  |



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(1)Represents the cash collateral posted by counterparties as of the respective reporting date for the Company's asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.(2)Represents the collateral posted by the Company in cash or through re-use of counterparty cash collateral as of the respective reporting date for the Company's liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. As of October 31, 2021 and 2020 the entire amount of the collateral posted of $5 million and $55 million, respectively, was through re-use of counterparty collateral. The amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges were as follows: 

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|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Carrying amount of the hedged assets/ (liabilities) |  | Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/ (liabilities) |
|  | As of |  | As of |
| Balance Sheet Line Item of Hedged Item | October 31, 2021 |  | October 31, 2020 |  | October 31, 2021 |  | October 31, 2020 |
|  | In millions |  | In millions |
| Notes payable and short-term borrowings | $ | (1,365) |  |  | $ | —  |  |  | $ | (15) |  |  | $ | —  |  |
| Long-term debt | $ | (2,573) |  |  | $ | (4,059) |  |  | $ | (80) |  |  | $ | (220) |  |

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