Equity investments

[Table of Contents](#ica158fb683c247fdb170955b492f9216_7)HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIESNotes to Consolidated Financial Statements (Continued)in fiscal 2021, $44 million in fiscal 2020 and $64 million in fiscal 2019. Time deposits were primarily issued by institutions outside the U.S. as of October 31, 2021 and October 31, 2020. The estimated fair value of the available-for-sale investments may not be representative of values that will be realized in the future.Contractual maturities of investments in available-for-sale debt securities were as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|   | As of October 31, 2021 |
|   | Amortized Cost |  | Fair Value |
|   | In millions |
|  |  |  |  |
| Due in one to five years | 26  |  |  | 26  |  |
| Due in more than five years | 123  |  |  | 138  |  |
|  | $ | 149  |  |  | $ | 164  |  |

Non-marketable equity investments in privately held companies are included in Long-term financing receivables and other assets in the Consolidated Balance Sheets. These non-marketable equity investments are carried either at fair value or under the measurement alternative.The carrying amount of those non-marketable equity investments accounted for under the measurement alternative was $253 million and $295 million as of October 31, 2021 and 2020, respectively. During the twelve months ended October 31, 2021, the Company recorded an unrealized gain of $64 million on these investments.The carrying amount of those non-marketable equity investments accounted for under the fair value option was $129 million as of October 31, 2021. During the twelve months ended October 31, 2021, the Company recorded an unrealized gain of $50 million on these investments.Equity investments with readily determinable fair values are included in Long-term financing receivables and other assets in the Consolidated Balance Sheets. The carrying amount of such equity investments amounted to $57 million as of October 31, 2021. During the twelve months ended October 31, 2021, the Company recorded an unrealized gain of $25 million on these investments.Investments in equity securities that are accounted for using the equity method are included in Investments in equity interests in the Consolidated Balance Sheets. These amounted to $2.2 billion at October 31, 2021 and 2020. For additional information, see Note 20, "Equity Method Investments".Derivative InstrumentsThe Company is a global company exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of its business. As part of its risk management strategy, the Company uses derivative instruments, primarily forward contracts, interest rate swaps and total return swaps to hedge certain foreign currency, interest rate and, to a lesser extent, equity exposures. The Company's objective is to offset gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them, thereby reducing volatility of earnings or protecting the fair value of assets and liabilities. The Company does not have any leveraged derivatives and does not use derivative contracts for speculative purposes. The Company may designate its derivative contracts as fair value hedges, cash flow hedges or hedges of the foreign currency exposure of a net investment in a foreign operation ("net investment hedges"). Additionally, for derivatives not designated as hedging instruments, the Company categorizes those economic hedges as other derivatives. Derivative instruments are recognized at fair value in the Consolidated Balance Sheets. The change in fair value of the derivative instruments is recognized in the Consolidated Statements of Earnings or Consolidated Statements of Comprehensive Income depending upon the type of hedge as further discussed below. The Company classifies cash flows from its derivative programs with the activities that correspond to the underlying hedged items in the Consolidated Statements of Cash Flows.As a result of its use of derivative instruments, the Company is exposed to the risk that its counterparties will fail to meet their contractual obligations. To mitigate counterparty credit risk, the Company has a policy of only entering into derivative contracts with carefully selected major financial institutions based on their credit ratings and other factors, and the Company maintains dollar risk limits that correspond to each financial institution's credit rating and other factors. The Company's established policies and procedures for mitigating credit risk include reviewing and establishing limits for credit exposure and periodically reassessing the creditworthiness of its counterparties. Master netting agreements also mitigate credit exposure to counterparties by permitting the Company to net amounts due from the Company to a counterparty against amounts due to the Company from the same counterparty under certain conditions.114
