## Table 0 ##
(1) Represents the total contract/notional amount of the derivatives outstanding and includes both written and purchased credit derivatives.
(2) Excludes $2.0 billion of long-term debt designated as a hedge of foreign currency risk.
ALM and Risk Management Derivatives The Corporation’s ALM and risk management activities include the use of derivatives to mitigate risk to the Corporation including both derivatives that are designated as hedging instruments and economic hedges.
Interest rate, commodity, credit and foreign exchange contracts are utilized in the Corporation’s ALM and risk management activities.
The Corporation maintains an overall interest rate risk management strategy that incorporates the use of interest rate contracts to minimize significant fluctuations in earnings that are caused by interest rate volatility.
The Corporation’s goal is to manage interest rate sensitivity so that movements in interest rates do not significantly adversely affect earnings.
As a result of interest rate fluctuations, hedged fixed-rate assets and liabilities appreciate or depreciate in fair value.
Gains or losses on the derivative instruments that are linked to the hedged fixed-rate assets and liabilities are expected to substantially offset this unrealized appreciation or depreciation.
Interest rate contracts, which are generally non-leveraged generic interest rate and basis swaps, options, futures and forwards, are used by the Corporation in the management of its interest rate risk position.
Non-leveraged generic interest rate swaps involve the exchange of fixedrate and variable-rate interest payments based on the contractual underlying notional amount.
Basis swaps involve the exchange of interest payments based on the contractual underlying notional amounts, where both the pay rate and the receive rate are floating rates based on differ ent indices.
Option products primarily consist of caps, floors and swaptions.
Futures contracts used for the Corporation’s ALM activities are primarily index futures providing for cash payments based upon the movements of an underlying rate index.
Interest rate and market risk can be substantial in the mortgage business.
Market risk is the risk that values of mortgage assets or revenues will be adversely affected by changes in market conditions such as interest rate movements.
To hedge interest rate risk in mortgage banking production income, the Corporation utilizes forward loan sale commitments and other derivative instruments including purchased options.
The Corporation also utilizes derivatives such as interest rate options, interest rate swaps, forward settlement contracts and euro-dollar futures as economic hedges of the fair value of MSRs.
For additional information on MSRs, see Note 22 – Mortgage Servicing Rights.
The Corporation uses foreign currency contracts to manage the foreign exchange risk associated with certain foreign currency-denominated assets and liabilities, as well as the Corporation’s investments in foreign subsidiaries.
Foreign exchange contracts, which include spot and forward contracts, represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon price on an agreedupon settlement date.
Exposure to loss on these contracts will increase or decrease over their respective lives as currency exchange and interest rates fluctuate.
While the Company has no legal or contractual obligation to do so, it routinely makes cash investments in the course of launching sponsored funds.
The Company also may voluntarily elect to provide its sponsored funds with additional direct or indirect financial support based on its business objectives.
The Company did not provide financial or other support to its sponsored funds during fiscal year 2019.
During fiscal year 2018, the Company purchased $32.6 million of certain equity and debt securities from two sponsored funds.
Note 13 – Taxes on Income The Tax Cuts and Jobs Act (“the Tax Act”), which was enacted into law in the U. S.  in December 2017, includes various changes to the tax law, including a permanent reduction in the corporate income tax rate and assessment of a one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiaries’ earnings.
The estimated related changes in the Company’s deferred tax assets and deferred tax liabilities resulted in a $35.6 million decrease in deferred tax assets, an $88.9 million decrease in deferred tax liabilities and a $53.3 million net tax benefit in fiscal year 2018.
The Company also reclassified $0.1 million from accumulated other comprehensive loss to retained earnings related to stranded tax effects resulting from the change in tax rate during fiscal year 2018.
The Company completed its analysis of the Tax Act impact during the first quarter of fiscal year 2019 with no significant adjustment to the provisional amounts previously recorded.
The estimated transition tax expense recognized in fiscal year 2018 of $983.2 million was net of an $87.6 million tax benefit related to U. S.  taxation of deemed foreign dividends.
This benefit was reversed during fiscal year 2019 upon issuance of final regulations by the U. S.  Department of Treasury, resulting in increased income tax expense and gross unrecognized tax benefits.
The remaining federal portion of the transition tax liability was $827.9 million at September 30, 2019, and will be paid over the next seven years, with 8% of the original liability payable in each of the next four years, 15% in year five, 20% in year six and 25% in year seven.
The Tax Act reduced the federal corporate income tax rate from 35% to 21% effective January 1, 2018.
The Company’s federal statutory rate for fiscal year 2018 was a blended rate of 24.5%, based on the pre- and post-Tax Act rates.
Prior to the Tax Act, the Company had not provided for U. S.  income taxes on undistributed earnings and other outside basis differences of its non-U.
S.  subsidiaries as it was the Company’s intention for these tax basis differences to remain indefinitely reinvested.
Following the Company’s change in policy effective January 1, 2018 to repatriate earnings of substantially all non-U.
S.  subsidiaries, other outside basis differences, which arose primarily from purchase accounting adjustments, undistributed earnings that are considered indefinitely reinvested and foreign earnings that are restricted by operational and regulatory requirements, remain indefinitely reinvested.
These basis differences could reverse through sales of the subsidiaries or the receipt of dividends from the subsidiaries, as well as various other events, none of which are considered probable as of September 30, 2019.
The Company has made no provision for U. S.  income taxes on these outside basis differences, and determination of the amount of unrecognized deferred tax liability related to such basis differences is not practicable.
Taxes on income were as follows:
## Table 1 ##
The Company had a tax shortfall of $8.7 million in fiscal year 2017 associated with stock-based compensation plans, which increased the amount of income taxes that would have otherwise been payable and was reflected as a component of stockholders’ equity.
Income tax effects of stock-based awards are recognized in income tax expense beginning in fiscal year 2018 in accordance with revised accounting guidance.
Bristol-Myers Squibb 40 Otsuka BMS has a worldwide commercialization agreement with Otsuka Pharmaceutical Co. , Ltd.  (Otsuka), to codevelop and copromote Abilify, excluding certain Asian countries.
The U. S.  portion of the agreement was amended in 2009 and 2012 and expires upon the expected loss of product exclusivity in April 2015.
The agreement expires in all European Union (EU) countries in June 2014 and in each other nonU.
S.  country where we have the exclusive right to sell Abilify, the agreement expires on the later of April 2015 or loss of exclusivity in any such country.
Both parties actively participate in joint executive governance and operating committees.
Although Otsuka assumed responsibility for providing and funding all sales force efforts effective January 2013 (under the 2012 U. S.  amendment), BMS is responsible for funding certain operating expenses up to various annual limits in 2013 through 2015.
BMS purchases the active pharmaceutical ingredient (API) from Otsuka and completes the manufacture of the product for subsequent sale to third-party customers in the U. S.  and certain other countries.
Otsuka assumed responsibility for providing and funding sales force efforts in the EU effective April 2013.
BMS also provides certain other services including distribution, customer management and pharmacovigilence.
Otsuka is the principal for third-party product sales in the U. S. , United Kingdom (UK), Germany, France, Spain and Italy (beginning March 1, 2013) and BMS is the principal for thirdparty product sales when it is the exclusive distributor for or has an exclusive right to sell Abilify which is in the remaining territories.
Alliance and other revenue is recognized for only BMS’s share of total net sales to third-party customers in these territories.
In the U. S. , BMS’s contractual share was 51.5% in 2012 and 53.5% in 2011.
Beginning January 1, 2013, BMS’s contractual share changed to the percentages of total U. S.  net sales set forth in the table below.
An assessment of BMS's expected annual contractual share is completed each quarterly reporting period and adjusted based upon reported U. S.  Abilify net sales at December 31, 2013.
BMS's annual contractual share was 34.0% in 2013.
The alliance and other revenue recognized in any interim period or quarter does not exceed the amounts that are due under the contract.
## Table 2 ##
In the United Kingdom, Germany, France, Spain, and Italy (beginning on March 1, 2013), BMS’s contractual share of third-party net sales is 65%.
In these countries and the U. S. , alliance and other revenue is recognized when Abilify is shipped and all risks and rewards of ownership have been transferred to third-party customers.
Under the terms of the 2009 U. S.  amendment, BMS paid Otsuka $400 million in 2009, which is amortized as a reduction of alliance and other revenue through the expected loss of U. S.  exclusivity in April 2015.
The unamortized balance is included in other assets.
Otsuka receives a royalty based on 1.5% of total U. S.  net sales, which is included in cost of products sold.
Otsuka was responsible for 30% of the U. S.  expenses related to the commercialization of Abilify from 2010 through 2012.
BMS and Otsuka also have an alliance for Sprycel and Ixempra (ixabepilone) in the U. S. , Japan and the EU.
While both parties actively participate in various governance committees, BMS has control over the decision making.
Both parties co-promote the product.
BMS is responsible for the development and manufacture of the product.
BMS is also the principal in the end-customer product sales.
A fee is paid to Otsuka based on the following percentages of annual net sales of Sprycel and Ixempra:
## Table 3 ##
During these annual periods, Otsuka contributes 20% of the first $175 million of certain commercial operational expenses relating to the Oncology Products in the Oncology Territory and 1% of such costs in excess of $175 million.
The U. S.  extension and the oncology alliance include a change-of-control provision in the case of an acquisition of BMS.
If the acquiring company does not have a competing product to Abilify, then the new company will assume the Abilify agreement (as amended) and the oncology alliance as it exists today.
If the acquiring company has a product that competes with Abilify, Otsuka can elect to request the
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued) Software Segment Separation Transaction On September 1, 2017, we completed the separation and merger of our Software business segment with Micro Focus (collectively, the ‘‘Seattle Transaction’’).
The Seattle Transaction was accomplished by a series of transactions among Micro Focus, HPE, Seattle SpinCo, Inc.  (a wholly-owned subsidiary of HPE) (‘‘Seattle’’), and Seattle Merger Sub, Inc. , an indirect wholly-owned subsidiary of Micro Focus (‘‘Merger Sub’’).
We transferred the Software business segment to Seattle and distributed all of the shares of Seattle to HPE stockholders.
HPE stockholders received 0.13732611 American Depository Shares (‘‘Micro Focus ADSs’’) in the new company, each of which represents one ordinary share of Micro Focus, for every one share of HPE common stock held at the close of business on the record date.
Following the share distribution, the Merger Sub merged with and into Seattle, which became an indirect wholly-owned subsidiary of Micro Focus.
With the completion of the Everett and Seattle Transactions, we have reclassified the historical financial results of our former Enterprise Services segment (‘‘former ES segment’’) and our former Software segment to Net loss from discontinued operations in our Consolidated and Combined Statements of Earnings, and to assets and liabilities of discontinued operations in our Consolidated Balance Sheets.
The following Overview, Results of Operations and Liquidity discussions and analysis compare fiscal 2017 to fiscal 2016 and fiscal 2016 to fiscal 2015, unless otherwise noted.
The Capital Resources and Contractual and Other Obligations discussions present information as of October 31, 2017, unless otherwise noted.
For purposes of this MD&A section, we use the terms ‘‘Hewlett Packard Enterprise,’’ ‘‘HPE,’’ ‘‘the Company,’’ ‘‘we,’’ ‘‘us,’’ and ‘‘our’’ to refer to Hewlett Packard Enterprise Company.
References in this MD&A section to ‘‘former Parent’’ refer to HP Inc.  We are an industry leading technology company that enables customers to go further, faster.
With a deep and comprehensive portfolio, spanning the cloud to the data center to the intelligent edge, our technology and services help customers around the world deliver business outcomes.
Our legacy dates back to a partnership founded in 1939 by William R.  Hewlett and David Packard, and we strive every day to uphold and enhance that legacy through our dedication to providing innovative technological solutions to our customers.
We organize our business into three segments for financial reporting purposes: the Enterprise Group (‘‘EG’’), Financial Services (‘‘FS’’) and Corporate Investments.
The following provides an overview of our key financial metrics by segment for fiscal 2017, as compared to fiscal 2016:

<table><tr><td></td><td colspan="7">December 31, 2008</td></tr><tr><td></td><td></td><td colspan="2">Gross Derivative Assets</td><td></td><td colspan="2">Gross Derivative Liabilities</td><td></td></tr><tr><td>(Dollars in billions)</td><td>Contract/ Notional<sup>-1</sup></td><td>Trading Derivatives and Economic Hedges</td><td>Qualifying Accounting Hedges<sup>-2</sup></td><td>Total</td><td>Trading Derivatives and Economic Hedges</td><td>Qualifying Accounting Hedges<sup>-2</sup></td><td>Total</td></tr><tr><td> Interest rate contracts</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Swaps</td><td>$26,577.4</td><td>$1,213.2</td><td>$2.2</td><td>$1,215.4</td><td>$1,186.0</td><td>$–</td><td>$1,186.0</td></tr><tr><td>Futures and forwards</td><td>4,432.1</td><td>5.1</td><td>–</td><td>5.1</td><td>7.9</td><td>–</td><td>7.9</td></tr><tr><td>Written options</td><td>1,731.1</td><td>–</td><td>–</td><td>–</td><td>62.7</td><td>–</td><td>62.7</td></tr><tr><td>Purchased options</td><td>1,656.6</td><td>60.3</td><td>–</td><td>60.3</td><td>–</td><td>–</td><td>–</td></tr><tr><td> Foreign exchange contracts</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Swaps</td><td>438.9</td><td>17.5</td><td>3.6</td><td>21.1</td><td>20.5</td><td>1.3</td><td>21.8</td></tr><tr><td>Spot, futures and forwards</td><td>1,376.5</td><td>52.3</td><td>–</td><td>52.3</td><td>51.3</td><td>–</td><td>51.3</td></tr><tr><td>Written options</td><td>199.8</td><td>–</td><td>–</td><td>–</td><td>7.5</td><td>–</td><td>7.5</td></tr><tr><td>Purchased options</td><td>175.7</td><td>8.0</td><td>–</td><td>8.0</td><td>–</td><td>–</td><td>–</td></tr><tr><td> Equity contracts</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Swaps</td><td>34.7</td><td>1.8</td><td>–</td><td>1.8</td><td>1.0</td><td>–</td><td>1.0</td></tr><tr><td>Futures and forwards</td><td>14.1</td><td>0.3</td><td>–</td><td>0.3</td><td>0.1</td><td>–</td><td>0.1</td></tr><tr><td>Written options</td><td>214.1</td><td>–</td><td>–</td><td>–</td><td>31.6</td><td>0.1</td><td>31.7</td></tr><tr><td>Purchased options</td><td>217.5</td><td>32.6</td><td>–</td><td>32.6</td><td>–</td><td>–</td><td>–</td></tr><tr><td> Commodity contracts</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Swaps</td><td>2.1</td><td>2.4</td><td>–</td><td>2.4</td><td>2.1</td><td>–</td><td>2.1</td></tr><tr><td>Futures and forwards</td><td>9.6</td><td>1.2</td><td>–</td><td>1.2</td><td>1.0</td><td>–</td><td>1.0</td></tr><tr><td>Written options</td><td>17.6</td><td>–</td><td>–</td><td>–</td><td>3.8</td><td>–</td><td>3.8</td></tr><tr><td>Purchased options</td><td>15.6</td><td>3.7</td><td>–</td><td>3.7</td><td>–</td><td>–</td><td>–</td></tr><tr><td> Credit derivatives</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Purchased credit derivatives:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Credit default swaps</td><td>1,025.9</td><td>125.7</td><td>–</td><td>125.7</td><td>3.4</td><td>–</td><td>3.4</td></tr><tr><td>Total return swaps</td><td>6.6</td><td>1.8</td><td>–</td><td>1.8</td><td>0.2</td><td>–</td><td>0.2</td></tr><tr><td>Written credit derivatives:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Credit default swaps</td><td>1,000.0</td><td>3.4</td><td>–</td><td>3.4</td><td>118.8</td><td>–</td><td>118.8</td></tr><tr><td>Total return swaps</td><td>6.2</td><td>0.4</td><td>–</td><td>0.4</td><td>0.1</td><td>–</td><td>0.1</td></tr><tr><td>Gross derivative assets/liabilities</td><td></td><td>$1,529.7</td><td>$5.8</td><td>1,535.5</td><td>$1,498.0</td><td>$1.4</td><td>1,499.4</td></tr><tr><td>Less: Legally enforceable master netting agreements</td><td></td><td></td><td></td><td>-1,438.4</td><td></td><td></td><td>-1,438.4</td></tr><tr><td>Less: Cash collateral applied</td><td></td><td></td><td></td><td>-34.8</td><td></td><td></td><td>-30.3</td></tr><tr><td> Total derivative assets/liabilities</td><td></td><td></td><td></td><td>$62.3</td><td></td><td></td><td>$30.7</td></tr></table>
<table><tr><td>for the fiscal years ended September 30,</td><td>2019</td><td>2018</td><td>2017</td></tr><tr><td>Current expense</td><td></td><td></td><td></td></tr><tr><td>Federal</td><td>$343.4</td><td>$1,343.7</td><td>$585.0</td></tr><tr><td>State</td><td>37.0</td><td>38.0</td><td>65.3</td></tr><tr><td>Non-U.S.</td><td>66.8</td><td>141.1</td><td>100.2</td></tr><tr><td>Deferred expense (benefit)</td><td>- 4.9</td><td>- 50.3</td><td>8.9</td></tr><tr><td>Total</td><td>$442.3</td><td>$1,472.5</td><td>$759.4</td></tr></table>
<table><tr><td>Annual U.S. Net Sales</td><td>BMS Share as a % of U.S. Net Sales</td></tr><tr><td>$0 to $2.7 billion</td><td>50%</td></tr><tr><td>$2.7 billion to $3.2 billion</td><td>20%</td></tr><tr><td>$3.2 billion to $3.7 billion</td><td>7%</td></tr><tr><td>$3.7 billion to $4.0 billion</td><td>2%</td></tr><tr><td>$4.0 billion to $4.2 billion</td><td>1%</td></tr><tr><td>In excess of $4.2 billion</td><td>20%</td></tr></table>
<table><tr><td></td><td colspan="2">% of Net Sales</td></tr><tr><td></td><td>2010 - 2012</td><td>2013 - 2020</td></tr><tr><td>$0 to $400 million</td><td>30%</td><td>65%</td></tr><tr><td>$400 million to $600 million</td><td>5%</td><td>12%</td></tr><tr><td>$600 million to $800 million</td><td>3%</td><td>3%</td></tr><tr><td>$800 million to $1.0 billion</td><td>2%</td><td>2%</td></tr><tr><td>In excess of $1.0 billion</td><td>1%</td><td>1%</td></tr></table>

Question: What's the total amount of derivative assets/liabilities excluding Less: Cash collateral applied and Less: Legally enforceable master netting agreements in 2008? (in dollars in billions)
Answer: 3034.9