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 September 30, 2022, approximately 33%, or $2,196, of anticipated copper purchases over the next 10 months and 40%, or $812, of anticipated aluminum purchases over the next 10 months are hedged. At September 30, 2021, approximately 43%, or $2,593, of anticipated copper purchases over the next eight months and 56%, or $637, 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 September 30, 2022, the Corporation has purchase commitments covering approximately 25%, or $941, of anticipated natural gas usage through December 31, 2023, for one of its subsidiaries and approximately 28%, or $1,674, of anticipated electricity usage through December 31, 2025, for two of its subsidiaries. Purchases of natural gas and electricity under previously existing commitments equaled $438 and $2,676 for the three and nine months ended September 30, 2022, respectively. There were no purchases of natural gas or electricity under previously existing commitments for the three and nine months ended September 30, 2021.

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 were 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 began being amortized to earnings (depreciation and amortization) over the life of the underlying assets.

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.

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

Gains (losses) on foreign exchange transactions included in other income – net equaled $1,809 and $3,368 for the three and nine months ended September 30, 2022, respectively, and $369 and $(705) for the three and nine months ended September 30, 2021, respectively.

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 September 30, 2022, and 2021, 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.

Three Months Ended September 30, 2022	Beginning of the Period			Recognized			Reclassified			End of the Period
Foreign currency purchase contracts	$	122		$	0		$	7		$	115
Futures contracts – copper and aluminum		(662	)		(251	)		(374	)		(539	)
	$	(540	)	$	(251	)	$	(367	)	$	(424	)
Three Months Ended September 30, 2021
Foreign currency purchase contracts	$	148		$	0		$	6		$	142
Futures contracts – copper and aluminum		276			(8	)		298			(30	)
	$	424		$	(8	)	$	304		$	112
Nine Months Ended September 30, 2022
Foreign currency purchase contracts	$	135		$	0		$	20		$	115
Futures contracts – copper and aluminum		142			(809	)		(128	)		(539	)
	$	277		$	(809	)	$	(108	)	$	(424	)
Nine Months Ended September 30, 2021
Foreign currency purchase contracts	$	162		$	0		$	20		$	142
Futures contracts – copper and aluminum		427			547			1,004			(30	)
	$	589		$	547		$	1,024		$	112

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 Twelve Months			Three Months Ended September 30,					Nine Months Ended September 30,
	of Operations	12 Months			2022			2021		2022			2021
Foreign currency purchase contracts	Depreciation and amortization	$	28		$	7		$	6	$	20		$	20
Futures contracts – copper and aluminum	Costs of products sold (excluding depreciation and amortization)	$	(557	)	$	(386	)	$	298	$	(132	)	$	1,004