Expected amount of AOCI to be reclassified in the next 12 months

[Table of Contents](#ica158fb683c247fdb170955b492f9216_7)HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIESNotes to Consolidated Financial Statements (Continued)The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships recognized in Other Comprehensive Income ("OCI") were as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Gains (Losses) Recognized in OCI on Derivatives |
|  | 2021 |  | 2020 |  | 2019 |
|  | In millions |
| Derivatives in Cash Flow Hedging relationship |  |  |  |  |  |
| Foreign exchange contracts | $ | (50) |  |  | $ | (34) |  |  | $ | 307  |  |
| Interest rate contracts | —  |  |  | (6) |  |  | 1  |  |
| Derivatives in Net Investment Hedging relationship |  |  |  |  |  |
| Foreign exchange contracts | (33) |  |  | 56  |  |  | 2 |
| Total | $ | (83) |  |  | $ | 16  |  |  | $ | 310  |  |

As of October 31, 2021, the Company expects to reclassify an estimated net accumulated other comprehensive gain of approximately $57 million, net of taxes, to earnings in the next twelve months along with the earnings effects of the related forecasted transactions associated with cash flow hedges.Effect of Derivative Instruments on the Consolidated Statements of EarningsThe pre-tax effect of derivative instruments on the Consolidated Statements of Earnings were as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Gains (Losses) Recognized in Income |
|  | 2021 |  | 2020 |  | 2019 |
|  | Net revenue |  | Interest and other, net |  | Net revenue |  | Interest and other, net |  | Net revenue |  | Interest and other, net |
|  | In millions |
| Total amounts of income and expense line items presented in the Consolidated Statements of Earnings in which the effects of fair value hedges, cash flow hedges and derivatives not designated as hedging instruments are recorded | $ | 27,784  |  |  | $ | (211) |  |  | $ | 26,982  |  |  | $ | (215) |  |  | $ | 29,135  |  |  | $ | (177) |  |
| Gains (losses) on derivatives in fair value hedging relationships |  |  |  |  |  |  |  |  |  |  |  |
| Interest rate contracts |  |  |  |  |  |  |  |  |  |  |  |
| Hedged items | $ | —  |  |  | $ | 125  |  |  | $ | —  |  |  | $ | (159) |  |  | $ | —  |  |  | $ | (414) |  |
| Derivatives designated as hedging instruments | —  |  |  | (125) |  |  | —  |  |  | 159  |  |  | —  |  |  | 414  |  |
| Gains (losses) on derivatives in cash flow hedging relationships |  |  |  |  |  |  |  |  |  |  |  |
| Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |
| Amount of gains (losses) reclassified from accumulated other comprehensive income into income | (81) |  |  | (73) |  |  | 38  |  |  | (14) |  |  | 233  |  |  | 138  |  |
| Interest rate contracts |  |  |  |  |  |  |  |  |  |  |  |
| Amount of gains (losses) reclassified from accumulated other comprehensive income into income | —  |  |  | (2) |  |  | —  |  |  | (3) |  |  | —  |  |  | —  |  |
| Gains (losses) on derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |
| Foreign exchange contracts | —  |  |  | (68) |  |  | —  |  |  | 44  |  |  | —  |  |  | (134) |  |
| Other derivatives | —  |  |  | 6  |  |  | —  |  |  | (5) |  |  | —  |  |  | 8  |  |
| Total gains (losses) | $ | (81) |  |  | $ | (137) |  |  | $ | 38  |  |  | $ | 22  |  |  | $ | 233  |  |  | $ | 12  |  |

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