Greetings, and welcome to Leggett & Platt's Fourth Quarter 2013 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, David DeSonier, Senior Vice President, Strategy and Investor Relations for Leggett & Platt, Incorporated. Thank you, sir. You may now begin.

Good morning, and thank you for taking part in Leggett & Platt's fourth quarter conference call. I'm Dave DeSonier, and with me today are the following: Dave Haffner, our Board Chair and CEO; Karl Glassman, who is President and Chief Operating Officer; Matt Flanigan, our Executive VP and CFO; and Susan McCoy, our Staff VP of Investor Relations. Jack Crusa, who is Senior Vice President of the company and also President of the Specialized Products segment, is also joining us this morning to participate in Q&A. The agenda for our call this morning is as follows: Dave Haffner will start with a summary of the major statements we made in yesterday's press release, Matt Flanigan will discuss financial details and address our outlook for 2014, Karl Glassman will provide segment highlights and finally, the group will answer any questions that you have. This conference is being recorded for Leggett & Platt and is copyrighted material. This call may not be transcribed, recorded or broadcast without our express permission. A replay is available from the IR portion of Leggett's website. We posted to the IR portion of the website a set of PowerPoint slides that contain summary financial information along with segment details. Those slides supplement the information we discuss on this call, including non-GAAP reconciliations. I need to remind you that remarks today concerning future expectations, events, objectives, strategies, trends or results constitute forward-looking statements. Actual results or events may differ materially due to a number of risks and uncertainties, and the company undertakes no obligation to update or revise these statements. For a summary of these risk factors and additional information, please refer to yesterday's press release and the section in our 10-K entitled Forward-looking Statements. I'll now turn the call over to Dave Haffner.

Good morning, and thank you for participating in our call. We are pleased with our underlying operating performance in the fourth quarter and encouraged by the sales momentum in certain of our markets. But a few factors impacted us from a reported GAAP earnings perspective. Consistent with our announcement on December 17, we recognized a $67 million or $0.31 per share noncash charge related to the goodwill and intangible assets of our Commercial Vehicle Products business. In addition, increases in steel costs late in 2013 resulted in a larger-than-expected LIFO expense of $12 million in the quarter. The timing of the steel cost increase has concentrated the LIFO impact into the fourth quarter and ahead of the benefit we expect from selling price increases. We've begun implementing price increases to recover the higher costs and should realize a benefit in first half of 2014 that offsets this LIFO impact. And the earnings per share impact from higher LIFO expense was essentially offset by a lower-than-normal effective tax rate in the quarter. Fourth quarter earnings, adjusted to exclude the CVP impairment charge, were $0.35 per share, in line with the guidance we issued in late October. In the fourth quarter of 2012, earnings per share, adjusted to exclude an $0.18 unusual tax benefit, were $0.32. Same-location sales increased 3% during the fourth quarter, with growth in Automotive, residential furniture, bedding, Carpet Underlay and Machinery, partially offset by lower demand in store fixtures and CVP. EBIT and EBIT margins adjusted to exclude the CVP impairment charge decreased in the fourth quarter. The earnings benefit from sales growth was more than offset by higher steel costs and the concentration of the yet-to-be-recovered LIFO expense that I mentioned earlier. For the full year, earnings from continuing operations, adjusted to exclude the fourth quarter CVP…

Thanks, Dave. Good morning, everyone. Once again, we generated strong cash flow in the fourth quarter with operating cash of $178 million. For the full year, operating cash flow totaled $417 million. Working capital contributed $26 million of that amount, a notable accomplishment since we ended 2012 with particularly low levels of accounts receivable. Optimizing returns on capital employed continues to be a major focus for our operations. We ended the year with working capital at 10.1% of annualized sales, well below our 15% target. In August, we increased the quarterly dividend by 3.4% to $0.30 per share, and 2013 marked our 42nd consecutive annual dividend increase at a compound annual growth rate of 13%. At yesterday's closing price of $30.69, the current yield is 3.9%, which is the fourth highest among all of the S&P 500's Dividend Aristocrats. In 2014, we expect to again generate over $350 million of operating cash. Dividends should require about $170 million in 2014, and capital expenditures should approximate $100 million. Our depreciation and amortization expense should again total about $120 million. With current capacity utilization rates still relatively low, our need to invest in additional productive capacity is limited. We continue to make investments for maintenance, efficiency improvement and growth in businesses and product lines where sales are strong. As volumes improve, we expect capital expenditure levels to increase. But longer term, they will likely remain at or below total depreciation and amortization. Our incentive plans emphasize returns on capital, which include net fixed assets and working capital. This emphasis, we believe, helps ensure that we are efficiently utilizing our asset base and investing capital dollars where the highest return potential exists. Going forward, returns should continue to improve as we expand EBIT margins while controlling invested capital. In other uses of cash,…

Thank you, Matt, and good morning. In the Residential Furnishings segment, same-location sales increased 6% in the fourth quarter from higher unit volumes in several product categories and raw material-related price increases in Carpet Underlay. In our U.S. Spring business, sales increased 1% in the quarter. Innerspring unit volumes were essentially flat. However, growth in the Comfort Core innerspring category continued, with those higher-priced and higher-margin units up 35% during the quarter. Our boxspring volume was also strong, with units up 8%. Sales grew 8% in international spring, primarily from market share gains and increased Comfort Core sales in Europe. In Furniture Components, sales increased 9% in the fourth quarter. Volume in our seating and sofa sleeper businesses grew 13%, and motion hardware unit volume was up 7%. Adjustable Bed units were down 11% in the quarter. In Carpet Underlay, sales grew primarily from price increases implemented to recover higher raw material cost. Fourth quarter EBIT and EBIT margins increased in the segment, primarily from higher sales. For the full year, same-location sales in the Residential segment increased 3%, largely from growth in Carpet Underlay, partially offset by declines in Adjustable Bed. EBIT and EBIT margins improved primarily from higher sales in certain product categories, cost improvements and favorable product mix in U.S. Spring. In the Commercial Fixturing & Components segment, same-location sales decreased 8% in the fourth quarter. Store Fixtures sales decreased 10%, and volume in Office Furniture Components was down 4% during the quarter. Segment EBIT and EBIT margins decreased versus the fourth quarter of 2012, primarily due to the lower sales. For the full year, Commercial segment same location sales were down 6%, and EBIT decreased on the lower volumes. In the Industrial Materials segment, fourth quarter same-location sales decreased 4%, with slightly higher unit volumes more…

Thanks, Karl. As we look forward into 2014 and beyond, we are encouraged by the positive direction several of our businesses are headed. We continue to be very optimistic about the growth potential in our Automotive business for the next several years. Industry forecasts project 3% global production growth in 2014. With content gains, we expect to outperform this industry growth rate as we did in 2013. We are also encouraged by the longer-term view for the office furniture industry and expect improving growth rates in our related business in 2014. Customer backlogs in aerospace support industry demand strength in that business for several years. Our Adjustable Bed business has recently gained significant market share that we will start to see the benefit from in 2014. And with consumer confidence in housing generally on an upward track, our Residential Furniture Components and bedding businesses are poised to benefit as demand in those end markets improves. And with those comments, I'll turn the call back over to you, Dave DeSonier.

That concludes our prepared remarks. We appreciate your attention, and we will be glad to answer your questions. [Operator Instructions] Jessie, we're ready to begin the Q&A.

[Operator Instructions] Our first question is coming from the line of Daniel Moore with CJS Securities.

Dave, you sounded increasingly optimistic obviously around 2014, and you touched on some of these topics at the end of your prepared remarks. But in Automotive, obviously seeing a nice pickup there. In the core businesses, mattresses and furniture, what gives you the confidence that consumers are likely to get off their hands and get out there and increase unit purchases? And then a quick follow-up is simply what is the tax rate embedded in your adjusted $0.35 EPS for fiscal Q4?

Okay, Dan. In fact, we were talking before the conference call just amongst ourselves about the fact that we indeed do feel better about 2014. Things seem and indices would indicate that business is likely to be better in a broad array of our business units. Those things that I did mention, of course, there's some publicly available information that would support that. And then relative to your question about some of our core products, it's a broad-based combination of facts that lead us to believe that we're going to see improvement in those, Dan, obviously, interacting with our customers, taking a look at what they're planning to provide at markets, what sort of new products they're asking us to pursue, timing of those. But the general uplift of the housing market and consumer confidence going forward is likely to lift a lot of ships, not just Leggett's core businesses. So I don't want to come across as overly optimistic. We're a fairly conservative company. But I can tell you the group that sits here with me today feel like 2014 is likely to be a meaningfully better year, and obviously, Karl and his operating people have generated a forecast that would suggest that. Now I'm going to hand over the tax rate -- I know the answer, but I'll give it to Matt and let him comment on the tax rate that was embedded in that 2014 forecast.

Well, the forecast is basically implying for 2014 a tax rate approximately 30%. In the fourth quarter alone, Dan, it was certainly a bit of a cluttered quarter, but it was about 11%. And again, that was a function of a lot of unique occurred in that quarter, not in our decision-making but because of the taxing jurisdictions that we are involved with literally all around the world. Specifically, Mexico, China, Canada and Austria are all 4 examples of activities that occurred in the fourth quarter with decisions or ruling that proved to be beneficial in this case and drove our tax rate down uniquely, which, of course, we mentioned in that fourth quarter EPS result.

Got it. So that $0.35 is on the $0.11 tax rate -- 11% tax rate?

Yes.

The next question is coming from Josh Borstein with Longbow Research.

With respect to the revenue guidance, I was just wondering if you can tell me, at the midpoint, what it implies for each segment?

Yes, Josh. Just in kind of rough terms, Residential would be at somewhere around 4%; Commercial up 1 point or 2; Industrial, up around 6%, with about half of that actually coming from the acquisitions that we completed earlier in 2013. You'll remember those were roughly midyear, so we still have some of that benefit carrying into 2014. And we expect strong growth in Specialized. Obviously, Automotive did really well in the fourth quarter. That growth would be up somewhere around 10% or 11% next year. All of that aggregates to kind of a midpoint growth in the ballpark of about 5%, 5.5%.

Great. Just on the other expense line, the $59.3 million in the quarter, could you talk a little bit about what that was exactly?

That's the impairment showing up in there.

Yes, Josh. There was, of that total $60 million -- call it $67 million of impairment, there was about $63 million of that. In fact, I think it was exactly $63 million that hit the other line. That was specifically the goodwill impairment. We also impaired another customer-related intangible, but we did that by accelerating the amortization on that particular asset. And so that, that hit -- I think it's the line above on the table that you're looking at, the amortization expense.

Okay. So nothing there that should be recurring in the following quarters?

There's always a little bit of other income or expense. But no, not relative to those 2 items.

The next question is coming from the line of Budd Bugatch with Raymond James. Budd Bugatch - Raymond James & Associates, Inc., Research Division: I guess my question really is in Industrial. I'm trying to get some more color and understanding of the bridge between last year and this year. We've got good-performing Aerospace this year. And last year, while you still had it, I think there were some charges that were still -- accounting charges that still were depressing or at least toward the first half of last year, maybe not in the fourth quarter. But I'm trying to understand how do we get to that $3.2 million bridge, when we keep saying that Western Pneumatic and the other 2 new acquisitions are performing well? And so can you maybe put some color, you just add some numbers to that, if you would? And is Aerospace around 20% or 25% of revenue of that segment now?

The run rate that it's at, Budd, is about $120 million. But of course, we didn't have all of that revenue in 2013.

I'll get that pretty quick. No, 16%, 17%.

Okay, so 16% or 17% of the segment revenues. Budd Bugatch - Raymond James & Associates, Inc., Research Division: Okay. And how do we get to the bridge in the EBIT between the 2 parts of that?

Budd, this is Karl. Let's talk about steel pricing for just a second while Susan is trying to dig through a little of that. The quarter was, as you wrote in your note this morning, a little ugly from a lot of perspectives. But it certainly was in Industrial as it relates to steel pricing, and this commentary primarily relates to the long or round products. But what we experienced in late September, early October, was some selling price deflation in both rod and wire, with sale -- with pricing pressured by an abnormally large amount of import rods, so rods that were flooding into the country from primarily China and Turkey that were taking down that sell price while scrap was relatively flat. And then -- so that there was an oddity in that we were experiencing actually in the business units some FIFO expense and -- with revaluing inventories because of the selling price. And then what happened in November and then accelerated in December was a significant inflation in scrap -- in domestic scrap costs, driving selling prices up. We did not incur the benefit of those selling price inflation. They were announced in the month of December, but they start -- became effective first week of January and second -- and first week of February, as it relates to wire and rod. So that drove that big LIFO issue. And I can't remember having FIFO expense and LIFO expense in the same quarter. So it was that dramatic swing that caused some of the pressure, all manifested itself in a metal margin spread that was tighter than anything we've experienced in quite some time. Now in the first quarter, we should have the benefit of the wire and rod selling price increases. Simultaneously between Christmas and New Year's, we announced selling price increases into the bedding industry that become effective in the first quarter. So that's the cause of the chop, so to speak, in Industrial. It will also have somewhat of an impact going forward. So the first quarter of this year is going to be somewhat pressured by the increased cost and then the delay, that's our typical delay, in getting those price increases implemented, in both in Industrial and in Residential.

This is Dave, Budd, just one other thing. We had a little bit of a hiccup, if you will, it wasn't nearly as large as the things that Karl was talking about, in our steel tubing products, not aerospace tubing but steel products tubing where our margins were lower than we had originally had hoped they would be in the fourth quarter. That's another element of that. Budd Bugatch - Raymond James & Associates, Inc., Research Division: So if I heard you right, let me just see if this math works, then it looks like that the metal margins were somewhere between 3% to 4% in the quarter, and the balance of that of $160 million or so of sales, and the balance would be the Aerospace margins on those sales. Is that about right?

I don't know the answer to that, Budd. I might -- my sense is that may -- if you go through that calculus, that may give you aerospace margins that are higher than you -- I know what you're trying to calculate, but I don't know. I'll just have to go back and check that. But I do want to reaffirm that our Aerospace business is performing very, very well. So you should not look at Industrial in the fourth quarter and say, "Hey, these guys were being a little disingenuous with Aerospace." Aerospace is doing well. Budd Bugatch - Raymond James & Associates, Inc., Research Division: Do you want to put any quantification on that, Karl?

Very. This is all you're getting. It's performing at -- above our expectations at the time that we made each of those individual acquisitions. So very well.

The next question is coming from the line of John Baugh with Stifel. John A. Baugh - Stifel, Nicolaus & Co., Inc., Research Division: I wanted to ask, and you don't have to go into minutiae of products, but was wondering, as you enter '14, and you look at key product areas, you referenced a couple where you were going to have market share gains, I think -- or had market share gains. I think international springs was one, and there was a reference to tending share gain in adjustables. But could you go through the whole company key product areas and cite where you think you're gaining share or losing share. Did it influence the numbers when we look at '14 versus '13?

We'll start with Residential. John, this is Karl. U.S. Spring is an area that we are gaining the benefit -- continued benefit of Comfort Core, which gives us optimism as we go forward. To see that growth rate of 35% in units and growth of hybrids is a very good thing for us. Admittedly, the U.S. bedding market has been pretty soft. I think when they -- ISPA sorts through and trues up, we'll probably ultimately report that units were down in 2013. The ISPA forecast for '14 is 2% real unit growth, so that would help us. As we -- the furniture performed -- home furniture performed extremely well in the fourth quarter, as it did all year. We expect that it will continue to perform well there. As more upholstery is manufactured in North America, that's a very good thing for us, especially in seating and distribution. Rest of segment, carpet continues to just be a macro benefit from correlated to housing. As we said, as Dave said in his comments, we expect some strength in office. Office has been under pressure the last couple of years. We expect -- as supported by the BIFMA forecast of 2% to 3% growth this year, we feel good about that business and have also experienced some market share gains there as well. Moving into Industrial, I spoke to Aerospace. Certainly feel good about that and the aircraft manufacturer build plans going forward. Automotive is a great story that we -- the fourth quarter of last year, we saw productive growth in Europe for the first time in a number of quarters. So Europe, bottoming out and becoming a contributor is a good thing, and we continue to gain content in each vehicle produced. So that gives us that general optimism augmented by the macro statistics.

Relative to specific, where do we get these market gains? In Adjustable Beds, we know specifically who those customers are that have made that change, and they're customers that are significant bedding manufacturers. It's business that has already been consummated. We're taking that business from another adjustable bed manufacturer. So we try not to just assume that we're going to gain market share. John, you know that about us. Only when we know that we've realized that market share will -- we build it into a budget. Now that doesn't mean we can't lose market share, too. And obviously, competition is what it is. But there's also some major, I'll just say, development work that's -- that happens that's built into this forecast with some customers. Most of those are existing customers. Some of them are new customers. So we build that into a budget based upon a risk profile or probability profile that we think's prudent. John A. Baugh - Stifel, Nicolaus & Co., Inc., Research Division: So, Dave, probably just to kind of sum it up, it's -- I hear share gains in office. I -- content share gains, I guess, in Automotive, particularly in Europe. Share gains in adjustables, maybe a lingering share gain in innersprings internationally. All gains. Any areas where you see any losses going into '14?

John, nothing of any magnitude. There's always puts and takes, but I can't think of anything of any magnitude that would be considered a loss. Good question though.

The next question is coming from the line of Keith Hughes with SunTrust.

Two questions. One, back to the other expense line. You highlighted the $63 million of the charge that was in there, which still leave a kind of positive 3 on that number. What were the other elements that made it a positive 3?

Nothing that comes to mind immediately, Keith. I can look at that and get back to you. But there weren't any other large things in the quarter.

Yes, Keith, we had a small real estate building gain. It's part of that 3. It's certainly's not all of it. A few other, I mean, knickknacks. Clearly, it's a cluster of a number of things.

Okay. And then to your comments on commercial furniture, besides some share gains on those components that you had discussed, do you see that business growing faster than the BIFMA numbers? Is there a chance that could be up mid-single digits in the industry?

Strictly should seating -- the seating category grow faster than the macro BIFMA numbers?

Yes.

It could. Frankly, I don't know why it would. I think that we'll outperform that data point because of the gains that I spoke of. But I don't know that there's any real reason, Keith, that seating would grow faster. That -- at NeoCon, the last NeoCon, the launches tended to be across all product categories, not heavy-weighted to seating. So I don't know that seating would get an inordinate share of that growth.

As some of our customers -- as you know, Keith, we do some private label-type business right now where we produce the entire component or chair for our customer. And that appears to continue to be gaining some interest by some of our customers to bring that activity to Leggett. And indeed, the 2014 forecast does have some more of that type of revenue growth or content, if you will, in it. But I'm not Karl. It's hard for us to dispute the BIFMA numbers -- numbers of BIFMA. And I think they do as good of job as anybody in trying to forecast that.

The next question is coming from the line of Herb Hardt with Monness, Crespi and Hardt. Herbert A. Hardt - Monness, Crespi, Hardt & Co., Inc., Research Division: My question is that things seem to be coming together reasonably well for you across most sectors. What areas are the most concern to you?

I'll let Karl and/or Matt comment, too. I have some concern -- continuing concern, Herb, with Commercial Vehicle Products. Mind you, we've righted the balance sheet, the value that we carry to what we think is the right number now. But I continue to have some concern with that part of our business. Of course, Jack is here with us, and he can comment on that if he wants. We're highly focused on improving that business since we chose not to give it away. We could have sold it. We chose not to at the prices that were offered. I also have some continuing anxiety about some of our primary steel tubing. It's more of a commodity-type product. Certainly, the antithesis of the aerospace tubing. But I do have some concern about that commodity-type product. Karl, how about you?

I would throw in Store Fixtures in that it's such a difficult business to forecast. Our people do everything that they can to forecast that business. But, Herb, as you know, it's a seasonal and cyclical business that just is -- it's a tough business. And we're optimistic from the standpoint that we've had greater access to bids and feel relatively good, but it's a business, because of the nature of the business, that sometimes surprises us. So that's a concern. The other is, as we pass through this raw material bulge, we always get through, but it's a challenge. It -- there's the lag that's -- in kind of innate, but at the same time, there are some tough conversations with customers at a time that they're pretty bullish about their demand. So it's always a challenge, but our people are great at executing.

[Operator Instructions] Our next question is a follow-up coming from the line of Daniel Moore with CJS Securities.

Maybe talk a little bit about capacity. You reiterated in the press release that you have -- you've been seeing $400 million in additional sales with little needed CapEx. Maybe talk about where that capacity is proportionally, where -- I guess, where, if -- what areas of the business, if you saw more material pickup, you might need to start adding capacity over the next 12 months plus. And one quick follow-up.

Yes, Dan, this is Karl. Where we're tight on capacity is certainly at the steel mill. As I said, it runs at 100%. But Automotive, with Automotive's growth, if we go back and look at the 2013 CapEx of $81 million of spend, about 30% of that has been in Automotive. That's a great thing because they're devoted to new programs, awarded programs that will impact us today and well into the future. But that's an area, because of the growth in that business, that we're a little tight. In Residential Furnishings, we're -- continue to be a little tight on Comfort Core as that has grown around the world. So there's not much available capacity. But we certainly have the ability to add capacity and continue to do so and certainly at -- more efficiency at each one of the -- the addition of each one of those machines. I don't know of any other area that we're really tight. There are capital investments. We'll continue to heavy-weight to Automotive, Residential and to the steel mill. And that's not a capacity situation. It is steel mills are just expensive to maintain, but we improve utilization with most dollars spent there. It's not just maintenance. But, Dave, I don't know of another place that we're really...

Well, it's interesting. As you were talking, I wrote down mine, and I put Sterling, Automotive and pocket springs, which is Comfort Core. Those are the 3 areas where -- and as you know, Dan, we can't wait to spend some more money in those areas. That generic volume, of course, is very attractive to us. And so we did bump up -- it's probably conservative, but we did bump up forecast for CapEx in 2014. Whether or not we'll spend all that, we'll see. But those are the areas where the capacity dollars are likely to go.

Okay. And then maybe just a couple of comments on the CVP business. Given the sort of lack of demand in the marketplace, and now you're going to kind of try to right the ship. What do you think -- what margins are achievable or sustainable in that business as we look out over the next couple of years?

The -- this is Jack, Daniel. And the target in a long-term perspective for CVP would be to get it up closer to the 9% to 10% margin range. In 2014, that's going to be a challenge because we have a lot of -- we have moving parts. The Ford business, they're going to cease the production of the E-Series van and begin to produce a transit in Kansas City. And we'll be establishing our presence in Kansas City to do that, to support that. So it will be a steady progression towards those improvements. Historically, we've seen that business, in good years, approach that 9% to 10% EBIT margin. And in soft years, it will be in the low single digits. So to be fair, I would probably use something, in a longer-term perspective, in the 6% to 8% range.

And the next question is a follow-up coming from the line of Budd Bugatch with Raymond James. Budd Bugatch - Raymond James & Associates, Inc., Research Division: Got a couple of follow-ups. One, Karl, is there any update on the tariff situation? I think it's going through a review again.

Yes, we're in early stages of that review now. It's in the combination of a review, Budd, at the ITC and the DOC that -- at this point, we expect the DOC decision sometime in March. The ITC would trail that a little bit. That -- we're very confident there because of circumstances have not changed. You may have seen the recent publication of a Malaysian manufacturer that was speeding, cheating, lying and all those other dirty, nasty things that they were doing in transhipping products in the United States. And they were caught doing so. That duty rate was -- of 234% was reaffirmed. We see that as a good sign. We continue to work with a number of other manufacturers of other products, both steel and non-steel-related, to deal with continued enforcement of the existing antidumping and countervailing duty orders as they relate to transhipment. And we've done a pretty good job, I think, of engaging Congress and the DOC and Customs. So they're certainly well aware of the situation, and I think that bodes well for them adding another 5 years to the time frame. Budd Bugatch - Raymond James & Associates, Inc., Research Division: And do you still think about 1 million units are finding their way in? And I think it peaked at about 4 million?

Yes, Budd, I think that there's about 1.5 million units coming into the United States, about half of those coming in legally and about half of those coming in illegally. Budd Bugatch - Raymond James & Associates, Inc., Research Division: Okay. And I know Comfort Core has done real well. But how will we think about pockets [ph], about coil versus open coil these days? It seems like open coil must be losing share, and that's been a traditional Leggett strength or is a legacy Leggett strength for as long as I've been around.

That certainly is a good point, that we have some open coil capacity that is available right now. Some of it's being relocated in the other geographies. But certainly, if you deal with 35% growth in Comfort Core, which today in the U.S. is about 12% of our total business growing obviously quickly, that it is obsoleting, so to speak, some open coil. And I would suspect, as you make your way around the showrooms in Las Vegas at market next week, you'll see more Hybrid, more Comfort Core introductions. A number of us were in Cologne last week at the IMM Fair and, boy, there's pocket coil in places there that used to be open coil as well. So it actually bodes well for us because of -- as you heard in my commentary, the higher average unit selling price is at higher margins. So it's been a good trend for us. With us having access to the best machinery company in the world, being Schpeul [ph], to manufacture those machines, it has been a very good thing for us. It allows us to innovate, and we'll continue to innovate on each one of the triggers that trigger the consumers' purchase of a Hybrid product. Budd Bugatch - Raymond James & Associates, Inc., Research Division: Okay, and last thing from me if I could, I guess, to Matt maybe or Susan. On the working capital, on the cash from operations, expectation of $350 million or more, if I do the midpoint of it and with depreciation and amortization and maybe some stock compensation expense, I get to, like, about a $410 million before working capital usage. How should we think about that? If you do that midpoint, I think it's $20 million more -- $200 million more of revenue. What do we think about the use of working capital to get to your working capital or to your cash from operations for [indiscernible]?

Yes, great question, Budd. This is Matt. If you look at the end of the year, as I know you have done, and the working capital rate is 10.1%, you've heard us say for many -- several years now that our goal is 15% or that's our target. We've been inside of that routinely. We expect to stay inside that. Our current modeling, which, again, we think is conservative, would estimate, say, around 12%, 12.5% as a working capital investment on that sales growth that we anticipate taking place in 2014. If you plow that into your model, you would get something between $360 million and $400 million of operating cash flow to come out of 2014. Again, we would look forward to doing better than that. Also, as you well know, seasonally, the fourth quarter of the year is always the big operating cash flow time of those 12 months for us. So a lot of that comes home to roost in the fourth quarter, as it did once again this year. So we say more than $350 million; we certainly feel very strongly about that. Might it begin with a $400 million by the time we close this coming year's books? Could be the case, just like it was this past year and the year before that. Budd Bugatch - Raymond James & Associates, Inc., Research Division: And that usage, how does that split between receivables and inventory?

Yes, we really -- we obviously look at all the pieces. But if you take receivables, inventory and payables, where there's a lot of work going on the payable side, that you can basically take that 10% all-in metric, go to 12.5% and basically use all 3 of those pieces to find your way there.

Our next question is a follow-up question coming from the line of Josh Borstein with Longbow Research.

Just to -- another question on the Comfort Core is if you could talk about the cadence in the quarter, I'm just curious if you saw a fall-off in December as some other companies have reported and just how January started off for you.

That's an interesting question, Josh, in that we didn't see a fall-off. We did, full disclosure, see a fall-off in December in spring sales, so I don't want to do anything to disconnect. When we aggregate, maybe I'll stop dancing with you. Our total innersprings in December were down 6% in units, so it was a tough month for people, probably weather-driven. But if we look at the cadence of Comfort Core, up 38% in October, up 28% in November and up 34% in December. And I would expect us to continue to run at a pretty impressive rate as we have some insight into what our customers' introductions are next week in Las Vegas.

Karl, were all those bedding, Comfort Core or any of that furniture Comfort Core?

Yes, that's a good question, Dave. That excludes Comfort Core. We're seeing significant growth in Comfort Core applications and furniture upholstery and, to a very small extent, in pet beds. And all of that is excluded. So it -- the growth in Comfort Core, though, back to home furniture is a good story as well.

Great. And then just on the adjustable foundations, if I think back to last quarter, seems -- or the business seemingly was improving as the quarter progressed, much like the Comfort Core business back in 3Q. Can you just talk about what the falloff in 4Q was that you saw?

Josh, it was pretty constant in the quarter, that it was -- aggregate to that 11%, we ran at about that rate. Actually, the fourth quarter was -- the December month was exactly 11%. And you've opened a door for me on adjustables. Let's talk about that category for a little bit. Dave made reference to it as well. But the -- our path of distribution on adjustables had been primarily to -- direct-to-retail, and we -- through what was admittedly a difficult year in 2013, we did not lose any retail floor placements. What had happened to us is some of the OEM manufacturers did a really good job of packaging their mattress with a specific base, and in some cases, those bases weren't ours. As Dave said, some of that has been rectified, and we're starting to shift those programs now. So I think that we're behind the loss of Adjustable Bed business.

Okay, great. And then just one more for me. On the slide deck, I noticed, for the 2014 guidance, the contribution margin was 25%. Normally, you use a more normalized 30%. What accounts for the change?

Josh, that acknowledges that in our sales guidance range, we expect to have some inflation. We haven't split out how much of that 3% to 8% is pricing and how much is units. But admittedly, some of it's going to be pricing. And we don't get 30% contribution margin, obviously, as we've talked with you in the past about when it's price-driven sales growth. So that really is just a bit of a hedge, if you will. At this point of the year, it's difficult to identify exactly what's going to make up the sales growth, but considering that some of that's going to come from pricing. That just simply was just hedging, that contribution of that.

There are no further questions at this time. I would now like to turn the floor back over to management for any concluding comments.

Thank you. We appreciate your time, and we'll talk to you again in April.

Thank you. Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time, and thank you for your participation.