The fair values of the Company’s derivative instruments and the line items on the accompanying condensed consolidated balance sheets to which they were recorded are summarized in the following table:


(in millions)	Balance Sheet Classification	June 30, 2024						December 31, 2023
		Assets		Liabilities		Notional		Assets		Liabilities		Notional
Derivatives designated as hedging instruments:
Interest rate swaps	Other current assets, other assets and other current liabilities	$	9	$	9	$	2,493	$	13	$	51	$	3,300
Cross-currency swaps	Other current liabilities	—		1		2,743		—		108		2,750
Foreign exchange forward contracts	Other current assets and other current liabilities	2		—		118		2		—		121



Total derivatives		$	11	$	10			$	15	$	159

The pre-tax effect of the Company’s cash flow hedging instruments on other comprehensive income is summarized in the following table:


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Interest rate swaps	$	2	$	18	$	38	$	(5)
Foreign exchange forward contracts	2		2		—		5
Total	$	4	$	20	$	38	$	—

The Company expects approximately $33 million of pre-tax unrealized gains related to its foreign exchange contracts and interest rate derivatives included in accumulated other comprehensive (loss) income (“AOCI”) as of June 30, 2024 to be reclassified into earnings within the next twelve months. For the three and six months ended June 30, 2024 and 2023, the total amount, net of income taxes, of the cash flow hedge effect on the accompanying condensed consolidated financial statements of income was $11 million and $7 million, and $20 million and $32 million, respectively.

As of June 30, 2024, the Company's cross-currency swaps were designated as a hedge of its net investment in certain foreign subsidiaries. For the six months ended June 30, 2024, the Company recorded a gain of $107 million within AOCI as a result of these cross-currency swaps. The Company recognized approximately $9 million and $18 million related to the excluded component as a reduction of interest expense for the three and six months ended June 30, 2024, respectively.

As of June 30, 2024, the portion of the Company's foreign currency denominated debt balance (net of original issue discount) designated as a hedge of its net investment in certain foreign subsidiaries totaled €2,688 million ($2,881 million). The amount of foreign exchange gains (losses) related to the net investment hedge included in the cumulative translation adjustment component of AOCI for the six months ended June 30, 2024 and 2023 was $88 million and $(92) million, respectively.