DAN
#Dave, it's <UNK> <UNK>.
A couple of things.
One, you've already seen sequential improvement from Q4 to Q1 related to premium.
We will still experience some premium cost in Q2, but it will be actually on the declining basis.
So, we should see margin progression throughout the rest of the year.
And, as I already mentioned, we should approximate our 10% EBITDA target we had for full-year.
Dave, it's <UNK> <UNK> again.
When you look at our Light Vehicle Driveline business, we've obviously had strong demand with Jeep and the Ford super duty.
We have very strong demand with Jaguar, Land Rover in England as well as we see a recovering market in Thailand.
But, on top of that, as mentioned before, we're seeing the expansion of the Colorado Canyon hitting us full year at better than we expected.
So, kind of a good news across the board.
We're seeing definitely some improvement in the current base of business, but as well as our new business coming on at the better margin rates.
We touched that up a bit.
This is <UNK>.
You're exactly right.
We touched up to about 31%.
What you'll note here is we're seeing some incremental tax expense largely around our US operations.
You will recall in the fourth quarter of last year, we released or had a benefit on the income statement of about $179 million of our deferred tax valuation allowance.
What we're seeing is under the accounting rules we now have to book a tax expense at basically the US rate even though we haven't completed the planning action that we undertook to realize a benefit a year ago.
So, basically what you're seeing is a neck up on that tax expense.
And, as we proceed the rest of the year as we look also at our valuation allowance and our deferred tax asset positions, that probably will be a fourth-quarter discussion item as well.
There's no cash impact to this.
Obviously, with respect to utilization of our NOLs, it's just more of the timing of expense recognition via the accounting rules versus what we had expected when we put our guidance out at 23%.
Thank you.
Let me take a first shot, <UNK>, and you can follow up on this.
If you think about the backlog, and we had the progression and how it was going to increment 2015 forward.
There was an incremental increase of about $140 million expected for 2015 as we progress through the year.
I think it's two-old actually.
One was that was based on an assumption of production, and we'll use one particular platform, being the GM platform, that we launched late last year.
It had an assumption with respect to demand.
So, twofold.
One is we're certainly meeting that assumption if not exceeding it, but I think the more important piece of the puzzle as well is that we are seeing the margins that we expected on that business.
And, obviously from a volume perspective, we're seeing an uptick in our contribution margin.
So, you're exactly right.
It's the best of the best, if you will.
It's a great program for us.
Hopefully, a great program for GM as we are seeing.
Reasonable and good returns on that business in excess of our base business.
And, you're right.
We are seeing some upside on the production environment as we head through not only the first quarter but the rest of the year.
I would suggest there was really no offsets to that ---+ other than set aside FX, right.
But, from a pure volume perspective probably in the current year, might be some positive there.
<UNK>, just on the margin for Q1, definitely the new business is driving the higher ---+ major portion of the margin but also we continue to work on our cost improvement initiatives inside.
So, we do expect that the LVD business will continue to have stronger margins than historically and will be, again, part of our margin expansion into 2016 as well.
<UNK>, this is <UNK>.
No, not at all because much of that if you think about it was what we were experiencing largely in South America, largely around Venezuela.
What the expectation was, obviously as we discussed in early January pre-the disposition was that was going to be the same situation.
Certainly, with the solution that we came up with, Venezuela ---+ that's going to neck down significantly.
I would suggest it's going to be more of a normal course.
Inflation recoveries that we have around the world with respect to certain countries that we operate in that are well-worn paths with the customers.
I think the exception a year ago and really two years ago is largely around Venezuela.
This is <UNK>.
I just want to thank everyone for joining the call today.
We'll see you the next time.
Thank you very much.
