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Derivatives | 12 Months Ended
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Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Derivatives Objectives and Strategies for Using Derivative Instruments Commodity Price Risk. We utilize a cash flow hedging program to mitigate our exposure to volatility in the prices of metal commodities used in our production processes. Our hedging program includes the use of futures contracts to lock in prices, and as a result, we are subject to derivative losses should the metal commodity prices decrease and gains should the prices increase. We utilize a dollar cost averaging strategy so that a higher percentage of commodity price exposures are hedged near-term with lower percentages hedged at future dates. This strategy allows for protection against near-term price volatility while allowing us to adjust to market price movements over time. Interest Rate Risk. A portion of our debt bears interest at variable interest rates, and as a result, we are subject to variability in the cash paid for interest. To mitigate a portion of that risk, we may choose to engage in an interest rate swap hedging strategy to eliminate the variability of interest payment cash flows. We are not currently hedged against interest rate risk. Foreign Currency Risk. Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of assets and liabilities arising in foreign currencies. We seek to mitigate the impact of currency exchange rate movements on certain short-term transactions by periodically entering into foreign currency forward contracts. Cash Flow Hedges We have commodity futures contracts and foreign exchange forward contracts designated as cash flows hedges that are scheduled to mature through June 2027 and February 2026, respectively. We currently have cash flow hedge contracts with a notional amount of 86.4 million pounds of aluminum and copper. Unrealized gains or losses from our cash flow hedges are included in AOCL and are expected to be reclassified into earnings within the next 18 months based on the prices of the commodities and foreign currencies at the settlement dates. We recorded the following amounts related to our cash flow hedges in AOCL (in millions):
| As of December 31,
| 2025 |  | 2024
Unrealized (gains) losses, net on unsettled contracts | $ | (23.3) |  |  | $ | 2.0 |
Income tax expense (benefit) | 5.4 |  |  | (0.6) |
Unrealized (gains) losses included in AOCL, net of tax (1) | $ | (17.9) |  |  | $ | 1.4 |
(1) Assuming commodity and foreign currency prices remain constant, we expect to reclassify $17.1 million of derivative gains into earnings within the next 12 months.

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