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Derivative Instruments
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments

Note 13 – Derivative Instruments

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, 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. For the nine months ended September 30, 2025, $495 of the termination gain has been released to earnings, with the balance expected to be released over the next five months. At September 30, 2025, approximately 75%, or $571, of anticipated aluminum purchases over the next six months are hedged. At September 30, 2024, approximately 43%, or $2,853, of anticipated copper purchases over the next nine months and 56%, or $615, 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, 2025, the Corporation has purchase commitments covering approximately 26%, or $286, of anticipated natural gas usage through December 31, 2025 for one of its subsidiaries and approximately 31%, or $198, of anticipated electricity usage through December 31, 2025 for one of its subsidiaries. At September 30, 2024, the Corporation had purchase commitments covering approximately 3%, or $1,568, of anticipated natural gas usage through December 31, 2025 for two of its subsidiaries and approximately 9%, or $945 of anticipated electricity usage through December 31, 2025 for two of its subsidiaries. Purchases of natural gas and electricity under previously existing commitments equaled $756 and $2,841 for the three and nine months ended September 30, 2025, respectively, and $674 and $2,507 for the three and nine months ended September 30, 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.

Loss on foreign exchange transactions included in other income – net equaled $(57) and $(1,188) for the three and nine months ended September 30, 2025, respectively, and $(1,130) and $(1,320) for the three and nine months ended September 30, 2024, 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, 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 (loss) income 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, 2025

 

Beginning of
the Period

 

 

Recognized

 

 

Reclassified

 

 

End of
the Period

 

Foreign currency purchase contracts

 

$

40

 

 

$

—

 

 

$

6

 

 

$

34

 

Futures contracts – copper and aluminum

 

 

316

 

 

 

22

 

 

 

238

 

 

 

100

 

 

$

356

 

 

$

22

 

 

$

244

 

 

$

134

 

Three Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency purchase contracts

 

$

67

 

 

$

—

 

 

$

6

 

 

$

61

 

Futures contracts – copper and aluminum

 

 

62

 

 

 

174

 

 

 

7

 

 

 

229

 

 

$

129

 

 

$

174

 

 

$

13

 

 

$

290

 

Nine Months Ended September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency purchase contracts

 

$

54

 

 

$

—

 

 

$

20

 

 

$

34

 

Futures contracts – copper and aluminum

 

 

(156

)

 

 

820

 

 

 

564

 

 

 

100

 

 

$

(102

)

 

$

820

 

 

$

584

 

 

$

134

 

Nine Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency purchase contracts

 

$

81

 

 

$

—

 

 

$

20

 

 

$

61

 

Futures contracts – copper and aluminum

 

 

105

 

 

 

384

 

 

 

260

 

 

 

229

 

 

$

186

 

 

$

384

 

 

$

280

 

 

$

290

 

 

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 in Statements

 

Estimated to
be Reclassified
in the Next 12 Months

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

of Operations

 

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Foreign currency purchase contracts

 

Depreciation and amortization

 

$

28

 

 

$

6

 

 

$

6

 

 

$

20

 

 

$

20

 

Futures contracts – copper and aluminum

 

Costs of products sold
(excluding depreciation and amortization)

 

$

102

 

 

$

242

 

 

$

7

 

 

$

578

 

 

$

267