9.	Derivative Instruments

Certain of the Corporation’s operations are subject to risk from exchange rate fluctuations in connection with sales in foreign currencies. To minimize this risk, foreign currency sales contracts are entered into which are designated as cash flow or fair value hedges. As of June 30, 2018, approximately $20,519 of anticipated foreign-denominated sales has been hedged which are covered by fair value contracts settling at various dates through October 2019.

Additionally, certain of the divisions of the Air and Liquid Processing 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 June 30, 2018, approximately 46% or $2,504 of anticipated copper purchases over the next 11 months and 56% or $557 of anticipated aluminum purchases over the next six months are hedged.

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. As of December 31, 2010, all contracts had been settled and the underlying fixed assets were placed in service.

No portion of the existing cash flow or fair value 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.

As of June 30, 2018, the Corporation has purchase commitments covering 47% or $467 of anticipated natural gas usage for 2018 for one of its subsidiaries. The commitments qualify as normal purchases and, accordingly, are not reflected on the condensed consolidated balance sheet. Purchases of natural gas under previously existing commitments approximated $396 and $818, respectively, for the three and six months ended June 30, 2018. There were no purchases of natural gas under previously existing commitments for the three and six months ended June 30, 2017.

The Corporation does not enter into derivative transactions for speculative purposes and, therefore, holds no derivative instruments for trading purposes.

(Losses) gains on foreign exchange transactions included in other income (expense) approximated $(881) and $361 for the three months ended June 30, 2018, and 2017, respectively, and $(1,702) and $(703) for the six months ended June 30, 2018, and 2017, respectively.

The location and fair value of the foreign currency sales contracts recorded on the condensed consolidated balance sheets were as follows:

	Location	June 30, 2018		December 31, 2017
Fair value hedge contracts	Other current assets	$	61	$	961
	Other noncurrent assets		0		0
	Other current liabilities		703		89
	Other noncurrent liabilities		45		1
Fair value hedged items	Receivables		326		(269	)
	Other current assets		502		169
	Other noncurrent assets		77		16
	Other current liabilities		116		907
	Other noncurrent liabilities		0		0

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 June 30, 2018, and 2017, and the amount recognized as and reclassified from accumulated other comprehensive loss for each of the periods is summarized below. Amounts recognized as comprehensive income (loss) and reclassified from accumulated other comprehensive loss have no tax effect due to deferred income tax assets being fully valued in the related jurisdictions.

Three Months Ended June 30, 2018	Accumulated Other Comprehensive Income (Loss) Beginning of the Year			Plus Recognized as Comprehensive Income (Loss)			Less Gain Reclassified from Accumulated Other Comprehensive Loss		Accumulated Other Comprehensive Income (Loss) End of the Period
Foreign currency purchase contracts	$	232		$	0		$	2	$	230
Futures contracts – copper and aluminum		(17	)		(6	)		90		(113	)
	$	215		$	(6	)	$	92	$	117
Three Months Ended June 30, 2017
Foreign currency purchase contracts	$	209		$	0		$	6	$	203
Futures contracts – copper and aluminum		411			15			161		265
	$	620		$	15		$	167	$	468
Six Months Ended June 30, 2018
Foreign currency purchase contracts	$	239		$	0		$	9	$	230
Futures contracts – copper and aluminum		500			(321	)		292		(113	)
	$	739		$	(321	)	$	301	$	117
Six Months Ended June 30, 2017
Foreign currency purchase contracts	$	216		$	0		$	13	$	203
Futures contracts – copper and aluminum		335			239			309		265
	$	551		$	239		$	322	$	468

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			Three Months Ended June 30,				Six Months Ended June 30,
	of Operations	12 Months			2018		2017		2018		2017
Foreign currency purchase contracts	Depreciation and amortization	$	27		$	2	$	6	$	9	$	13
Futures contracts – copper and aluminum	Costs of products sold (excluding depreciation and amortization)		(113	)		90		161		292		309