9. Derivatives

Aluminum Forward Contracts

From time to time we use aluminum forward contracts to hedge the fluctuations in the purchase price of aluminum extrusions we use in production. These contracts are initially designated as cash flow hedges since they are believed to be highly effective in offsetting changes in the cash flows attributable to forecasted purchases of aluminum. However, in 2014, we designated all of our then existing aluminum hedges as ineffective. The change in value of those aluminum forward contracts was recognized in other expense, net, on the consolidated statement of operations for the year ended January 2, 2016 and totaled $0.4 million.

There were no derivative financial instruments or related activity during the year ended December 30, 2017, or December 31, 2016. The following represents the gains (losses) on derivative financial instruments for the year ended January 2, 2016, and their classifications within the accompanying consolidated financial statements (in thousands):

Derivatives in Cash Flow Hedging Relationships

Amount of Gain or
(Loss) Recognized
in OCI on
Derivatives
(Effective Portion)

Location of Gain or
(Loss) Reclassified
from Accumulated
OCI into Income
(Effective Portion)

Amount of Loss
Reclassified from
Accumulated OCI
into Income
(Effective Portion)

Year Ended

January 2,

2016

Aluminum contracts

126

Cost of sales

—


	Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion)		Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion)
			Year Ended
			January 2,
			2016
Aluminum contracts		Other expense, net	($	388	)