AXL
#That's correct.
Yes, and <UNK> again, what we've said all along is that when we are running high capacity utilization and we're in a favorable material environment, we can generate some strong profitability and you're seeing that right now.
Yes, <UNK>, you're spot on, the fact that some of the roll-off business will commence in that 2018 period of time, but it's going to take three years for some of the T1XX impact to fully impact us.
At the same time, the new non-GM business that we're bringing in that period of time overlaps very close to that.
I wouldn't say it's identical, but it's fairly close in that same period of 2018 to 2020 period of time.
So again, we're highly confident that we can offset the business, and we're comfortable with where we are with respect to the timing of that replacement business.
For the full year.
How much relates to metal.
It was a year-over-year piece.
It was minor.
Can you repeat that, Joe.
We're having a hard time hearing you, Joe.
You're breaking up on us.
Okay.
So as it relates to the metal indices, think we pass-through again either net price increases or price decreases, approximately 80% of that.
And mechanically it works and it resets either monthly or quarterly, depends on the customer, based on a variety of index, whether it be the scrap index, aluminum index, things of those nature that are into our products.
A slight lag from the actual spot rate I would think about, but generally speaking, 80% or so is passed on to the customer.
All I'd say is that we're having an outstanding performance, and of all of our launches globally around the world from an operational standpoint, and we're seeing good margins that are going with that business.
At the same time, remember, we're also realizing strong margins with our base core business, too.
Yes.
Tying it back to the tax rate, clearly we've been performing very strong in our North American market, as I mentioned in my prepared remarks, especially as it relates to translation to our effective tax rate.
So you are seeing this programs, such as the full-sized truck programs here in North America, and when they run well, we generate high profits in this region, and we pay a higher tax rate associated with that.
So there is some level of cadence associate with those platforms, as it relates to our geographic profitability and the tax rate connection.
If you follow our effective tax rate, it started to pick up midpoint of last year, running closer towards that 20% range basis.
So you start to see this now transition over the last four quarters.
Our focus continues to be to reduce our interest rate, and as you know, we take an action in the fourth quarter of last year to take off some of our term loan.
Right now, our primary drivers of our interest expense are our four principal bonds we have outstanding, two of which are callable.
And I would tell you we continue to monitor the market activity and assess those bonds on a go-forward basis.
But over a period of time, our objective would be to reduce that fixed cost structure in our business.
Two of them are callable now, one is not callable, and one starts callable next year.
So we're in a period of time in the near future that we'll just continue to monitor market activity.
We'll see.
<UNK>, this is <UNK>.
Everything is going to be in balance.
As we have said before, there's a four critical areas, the organic growth will continue to support the debt management side, and then this year, we brought into effect the whole shareholder activity, as well as we indicated, the desire and interest in regards to strategic activity.
So we'll keep things in balance, and we'll set the priorities based on how things present themselves.
