Certain divisions of the ALP segment are subject to risk from increases in the price of commodities (aluminum and copper) used in the production of inventory. To minimize this risk, futures contracts are entered into which are designated as cash flow hedges. In March 2025, given the dramatic escalation in the price of copper futures and sufficient supply of copper through approximately mid-2025, the Corporation terminated its existing futures contracts for copper resulting in a pre-tax termination gain of approximately $559. The termination gain will be reclassified to earnings when the projected sales occur. Approximately $537 of the termination gain is expected to be released to earnings in 2025 with the balance expected to be released in the first quarter of 2026. At March 31, 2025, approximately 50%, or $394, of anticipated aluminum purchases over the next four months are hedged. At March 31, 2024, approximately 52%, or $2,787, of anticipated copper purchases over the next nine months and 56%, or $566, of anticipated aluminum purchases over the next six months were hedged.

The Corporation periodically enters into purchase commitments to cover a portion of its anticipated natural gas and electricity usage. The commitments qualify as normal purchases and, accordingly, are not reflected on the condensed consolidated balance sheets. At March 31, 2025, the Corporation has purchase commitments covering approximately 26%, or $1,198, of anticipated natural gas usage through December 31, 2025 for two of its subsidiaries and approximately 32%, or $945, of anticipated electricity usage through December 31, 2025 for two of its subsidiaries. At March 31, 2024, the Corporation had purchase commitments covering approximately 6%, or $2,365, of anticipated natural gas usage through December 31, 2025 for two of its subsidiaries and approximately 12%, or $1,440, of anticipated electricity usage through December 31, 2025 for two of its subsidiaries. Purchases of natural gas and electricity under previously existing commitments equaled $1,124 and $979 for the three months ended March 31, 2025 and 2024, respectively.

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 asset in service, the foreign currency purchase contract was settled and the change in fair value of the foreign currency purchase contract was deferred in accumulated other comprehensive loss and is being reclassified to earnings (depreciation and amortization expense) over the life of the underlying asset (approximately 15 years, through 2026).

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.

Gain (loss) on foreign exchange transactions included in other expense – net equaled $221 for the three months ended March 31, 2025, and $(492) for the three months ended March 31, 2024.

The change in the fair value of the cash flow contracts is recorded as a component of accumulated other comprehensive loss. The balances as of March 31, 2025 and 2024 and the amounts recognized as and reclassified from accumulated other comprehensive loss for each of the periods are summarized below. Amounts are after tax where applicable. Certain amounts recognized as comprehensive income (loss) or reclassified from accumulated other comprehensive loss have no tax effect due to the Corporation having a valuation allowance recorded against the deferred income tax assets for the jurisdiction where the income or expense is recognized.


	Beginning of the Period			Recognized		Reclassified			End of the Period
'Three Months Ended March 31, 2025
Foreign currency purchase contracts	$	54		$	—	$	6		$	48
Futures contracts – copper and aluminum		(156	)		780		53			571
	$	(102	)	$	780	$	59		$	619
Three Months Ended March 31, 2024
Foreign currency purchase contracts	$	81		$	—	$	6		$	75
Futures contracts – copper and aluminum		105			52		(17	)		174
	$	186		$	52	$	(11	)	$	249

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 Statements	Estimated to be Reclassified in the Next 12 Months		Three Months Ended March 31,
	of Operations			2025		2024
Foreign currency purchase contracts	Depreciation and amortization	$	27	$	6	$	6
Futures contracts – copper and aluminum	Costs of products sold (excluding depreciation and amortization)	$	587	$	55	$	(18	)