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 periodically entered into which would be designated as cash flow or fair value hedges. As of September 30, 2021, no anticipated foreign-denominated sales have been hedged.

Additionally, 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, 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 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. The change in fair value of the foreign currency purchase contract, at the time of settlement, is included in accumulated other comprehensive loss and is being reclassified to earnings (depreciation and amortization expense) 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 periodically enters into purchase commitments to cover a portion of its anticipated natural gas usage 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 equaled $313 and $1,028, respectively, for the three and nine months ended September 30, 2020. There were no purchases of natural gas under purchase commitments for the three and nine months ended September 30, 2021, and as of September 30, 2021, no purchase commitments for anticipated natural gas usage are outstanding.

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 $369 and $(58) for the three months ended September 30, 2021, and 2020, respectively, and $(705) and $(1,156) for the nine months ended September 30, 2021, and 2020, respectively.

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

	Location	September 30, 2021			December 31, 2020
Fair value hedge contracts	Other current assets	$	293		$	1,123
	Other noncurrent assets		0			332
	Other current liabilities		0			12
Fair value hedged items	Receivables		(293	)		(960	)
	Other current liabilities		0			201
	Other noncurrent liabilities		0			327

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, 2021, and 2020, and the amount 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, 2021	Beginning of the Period		Recognized			Reclassified			End of the Period
Foreign currency purchase contracts	$	148	$	0		$	6		$	142
Futures contracts – copper and aluminum		276		(8	)		298			(30	)
	$	424	$	(8	)	$	304		$	112
Three Months Ended September 30, 2020
Foreign currency purchase contracts	$	176	$	0		$	7		$	169
Futures contracts – copper and aluminum		72		227			(17	)		316
	$	248	$	227		$	(10	)	$	485

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
Nine Months Ended September 30, 2020
Foreign currency purchase contracts	$	189	$	0		$	20		$	169
Futures contracts – copper and aluminum		102		27			(187	)		316
	$	291	$	27		$	(167	)	$	485

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 September 30,					Nine Months Ended September 30,
	of Operations	12 Months			2021		2020			2021		2020
Foreign currency purchase contracts	Depreciation and amortization	$	28		$	6	$	7		$	20	$	20
Futures contracts – copper and aluminum	Costs of products sold (excluding depreciation and amortization)	$	(30	)	$	298	$	(17	)	$	1,004	$	(187	)