The cooler line is cut and the Racor is spliced inline using the hoses with special ferule fittings (arrow 1). Again, the choice is to splice it into the "out" line or the return line, and the Racor works fine in either venue. It's a tight fit in the F-150, but the line you can see here is the out line returning from the filter and is going forward to the coolers. Take the time to secure the lines and hoses as needed (arrow 2) all along their length, as we did with the strap. The Racor hoses are rated for much more heat and pressure than this trans can produce, but they can still be cut or chafed by sharp edges, or melted by the exhaust.