DOV
#The pricing in our backlog.
Gosh, <UNK>, we're such a book and ship business, that's not much ---+ that's not something I really pay much attention to.
As I commented earlier within energy, our price for the segment, our price concessions for the segment were down 3% for 2015, and we expect another 2% down on 2016, but I'm not sure.
Does that answer your question.
No, no I ---+ no, it's not.
I would say we dealt with the bulk of the FX impact on our backlog in the first nine months of last year.
I don't think we have any exposure in our backlog beyond what we're already guiding, which is another 2% headwind this year in FX.
And I should be sitting here with a smile on my face saying it's down from 4% to 2% but still 2% is a pretty significant number for us.
But, again, it's ---+ we are such a book and ship business that the ---+ you see it show it pretty quickly in revenue, and I think we've got it covered.
All right.
Thanks, <UNK>.
Good morning <UNK>.
Oh, my goodness.
I don't have that detail, <UNK>.
The restructuring in the fourth quarter in energy was a little over $4 million, and I think that was probably ---+ I think it was probably up $2 million slightly.
It was up about $2 million over what we thought we would do as we entered the quarter.
I think if we ---+ that's a good question, <UNK>.
I'd tell you that if we weren't continuing to try to expand our customer service activity, and we did in 2015 and our plan in 2016 is, again, to actually see an increase in product development spending within energy.
If we weren't doing that, you'd see actually more benefits coming through from some of the restructuring actions we've taken in 2015.
In 2016, I think our guide, we have I think $20 million of restructuring charges in our guide for 2016.
80% of that's probably in the first half, <UNK>.
There may be a little bit of trickle over into the third quarter.
But 80% of it I would say is in the first half.
Of the $20 million, probably $9 million of it is energy.
The balance of the $11 million, a little bit at refrigeration but the balance of the $11 million is pretty evenly split between fluids and engineered systems.
And if we see further deterioration in the energy market, look, we've got a ---+ at some point in time, we have this push versus pull of taking costs out versus continuing to invest for tomorrow and for being a better partner with our customers, and if we see further deterioration in the energy market, that debate gets a bit harsher.
Thanks.
Good morning, Shannon.
So do I have a split between drilling and production.
You'll have to follow up with <UNK> on that.
I don't have that.
I will tell you as a color comment that through every single quarter in 2016, our drilling activity was down year-over-year much more than our other upstream activity, which is artificial lift and automation.
I think our drilling activity in 2016 was down 60% or 65%, significantly more than we saw in artificial lift and automation.
Does that give you a little bit of color.
I don't have the exact numbers.
We're monitoring that pretty closely.
We continue to see what is the industry ducks drill but uncompleted.
We continue to see the ducks inventory built during the third and fourth quarter.
The ---+ it's ---+ that's always hard to forecast.
It is ---+ for us, it's something that we've looked at in our sort of our rear view mirror as the data gets released, but we do know that the activity is quite different between the basins here in North America.
West Texas or the Permian Basin is starting to see some increased completion of drilled but previously uncompleted wells.
We're not seeing that in the other basins, and that's our fourth quarter comment; that's not our first quarter comment.
No, you're referring to China as ---+ if the question is more of a general comment about China, I can't see the improvement.
We just don't see it, even when we talk to our folks on the ground there.
I think the improvement we saw in the fourth quarter, I'm going to trace it back to comments I've been making all year long.
It's ---+ we continue to look for opportunities for new product releases and new products specific to the China market.
Even with some of the restructuring activity that we have planned in the first three to five months of 2016, and this is a fluids comment, within the fluids segment, almost all of that restructuring is in Europe and China, interestingly enough.
And some of the benefits that we will achieve with the restructuring in China is actually being reallocated to increase our customer facing and customer service capabilities in China.
There are opportunities for growth, but I'm not going to label the change we saw in the fourth quarter as a ground swell change.
Oh, gosh.
This is probably the ---+ well, let's not talk about the segment.
It would be very ---+ my comment would be very specific to Hillphoenix.
I would say that this has always been a very price competitive market, and we'll see what happens in 2016 and 2017 with the change in ownership with our major competitor.
Margins in the segment for the fourth quarter, the fourth quarter is historically, traditionally our weakest quarter of the year for margins for this segment.
I think we saw that again in the fourth quarter of 2015, but we are ---+ we do see a pretty good path going forward here in 2016 for margin improvement for the year, for the year.
Do we have another question, Kristin.
Good morning.
Yes, we have some exposure.
I'm not sure what the percentage is.
I think it may be less than we have in upstream.
We have ---+ we've seen it in some of our fuel transfer products that deal with terminals and distribution.
I would say it was softer than expected in 2015, but I wouldn't label it as negative.
We are taking a cautious approach as we look at that part of the market in 2016.
But I will also point out that we also have this midstream exposure around energy within our energy segment in bearings and compression, and we watched that pretty closely, especially the OEM build rates around compressors, and that was down in the second half of last year.
We are not anticipating a recovery.
In fact, I believe that the guys are actually seeing further decreases in OEM compressor build rates in 2016.
Oh, look, you asked a question about the midstream.
Still, the bulk of our ---+ by a large percentage, the bulk of our activity in fluids is not in upstream or midstream.
The retail fueling piece, which is fairly significant and even more so now with the acquisition of Tokheim, we view as solid around the globe in 2016.
It has both market expansion opportunities as well as some significant drivers in safety and regulatory issues, and we had embedded within that platform within our fluid transfer platform is our medical and our connector business, our fluid connector business, and that business I think had 7% or 8% organic growth in 2015 and is looking at something similar to that in 2016.
