Certain divisions of the ALP segment are subject to risk from increases in the price of commodities (copper and aluminum) used in the production of inventory. To minimize this risk, futures contracts are entered into which are designated as cash flow hedges. At December 31, 2022, approximately 43% or $2,216 of anticipated copper purchases over the next eight months and 57% or $751 of anticipated aluminum purchases over the next seven months are hedged. At December 31, 2021, approximately 67% or $3,434 of anticipated copper purchases over the next eight months and 56% or $684 of anticipated aluminum purchases over the next six months were hedged.

At December 31, 2022, the Corporation has purchase commitments covering approximately 25% or $760 of anticipated natural gas usage through December 31, 2023, for one of its subsidiaries and approximately 25% or $1,547 of anticipated electricity usage through December 31, 2025, for one of its subsidiaries. Purchases of natural gas and electricity under previously existing commitments approximated $3,077 for 2022. No purchase commitments for anticipated natural gas usage were outstanding during 2021; however, at December 31, 2021, the Corporation had purchase commitments covering approximately 29% or $1,753 of anticipated natural gas usage through December 31, 2023, for one of its subsidiaries and approximately 34% or $2,125 of anticipated electricity usage through December 31, 2024, for two of its subsidiaries. The commitments qualify as normal purchases and, accordingly, are not reflected on the consolidated balance sheet.

The Corporation previously entered into foreign currency purchase contracts to manage the volatility associated with euro-denominated progress payments to be made for certain machinery and equipment. Upon occurrence of an anticipated purchase and placement of the underlying fixed assets in service, the foreign currency purchase contract is settled and the change in fair value deferred in accumulated other comprehensive loss is reclassified to earnings (depreciation and amortization expense) over the life of the underlying asset. As of December 31, 2010, all contracts had been settled, the underlying fixed assets were placed in service and the change in fair value of the foreign currency purchase contract deferred in accumulated other comprehensive loss is being amortized to earnings over the life of the underlying assets.

No portion of the existing cash flow hedges is considered to be ineffective, including any ineffectiveness arising from the unlikelihood of an anticipated transaction to occur. Additionally, no amounts have been excluded from assessing the effectiveness of a hedge. The Corporation does not enter into derivative transactions for speculative purposes and, therefore, holds no derivative instruments for trading purposes.

The change in the fair value of the cash flow contracts is recorded as a component of accumulated other comprehensive loss. Amounts recognized as and reclassified from accumulated other comprehensive loss are recorded as a component of other comprehensive income (loss) and are summarized below. Amounts are after-tax, where applicable. Certain amounts recognized as or reclassified from comprehensive income (loss) for 2022 and 2021 have no tax effect due to the Corporation recording a valuation allowance against the deferred income tax assets in the related jurisdictions.


For the Year Ended December 31, 2022	Beginning of the Year		Recognized			Reclassified			End of the Year
Foreign currency purchase contracts	$	135	$	—		$	27		$	108
Future contracts – copper and aluminum		142		(512	)		(414	)		44
Change in fair value	$	277	$	(512	)	$	(387	)	$	152

For the Year Ended December 31, 2021
Foreign currency purchase contracts	$	162	$	—		$	27		$	135
Future contracts – copper and aluminum		427		774			1,059			142
Change in fair value	$	589	$	774		$	1,086		$	277

The change in fair value reclassified or expected to be reclassified from accumulated other comprehensive loss to earnings is summarized below. All amounts are pre-tax.


	Location of Gain (Loss) in	Estimated to be Reclassified in the Next		Years Ended December 31,
	Consolidated Statements of Operations	12 Months		2022			2021
Foreign currency purchase contracts	Depreciation and amortization	$	27	$	27		$	27
Futures contracts – copper and aluminum	Costs of products sold (excluding depreciation and amortization)		44		(414	)		1,059

Losses on foreign exchange transactions included in other income (expense) approximated $2,293 and $(1,134) for 2022 and 2021, respectively.