Good day, and welcome to the Snap-on Incorporated 2013 First Quarter Results Call. Today's conference is being recorded. And at this time, I would like to turn the conference over to Leslie Kratcoski, VP Investor Relations. Please go ahead.

Thanks, Mary, and good morning, everyone. Thanks for joining us today to review Snap-on's first quarter 2013 results, which are detailed in our press release issued earlier this morning. We have on the call today Nick Pinchuk, Snap-on's Chief Executive Officer; and Aldo Pagliari, Snap-on's Chief Financial Officer. Nick will kick off our call this morning with his perspective on our performance. Aldo will then provide a more detailed review of our financial results. After Nick provides some closing thoughts, we'll take your questions. As usual, we have provided slides to supplement our discussion. You can find a copy of these slides on our website next to the audio icon for this call. These slides will be archived on our website along with a transcript of today's call. Any statements made during this call relative to management's expectations, estimates or beliefs; or otherwise state management's or the company's outlook, plans or projections, are forward-looking statements, and actual results may differ materially from those made in such statements. Additional information and the factors that could cause our results to differ materially from those in the forward-looking statements are contained in our SEC filings. With that, I'd now like to turn the call over to Nick Pinchuk. Nick?

Thanks, Leslie. Good morning, everyone. As usual, I'll start out by providing my perspective on the results, on our various markets and on the highlights of the quarter. Then I'll turn the call over to Aldo for a detailed review of the financials. The results and the trends of our first quarter remained much the same as we've seen in the past few periods. We once again had solid profit gains on a sales increase that came in the face of some continuing headwinds. Our EPS in the quarter of $1.40 was up nearly 16% from last year's $1.21. Our opco operating margin was 14.5%, an increase of 120 basis points. And our operating earnings -- and operating earnings from Financial Services was $30.5 million, up $23.9 million in -- up from the $23.9 million in 2012. On a consolidated basis, the overall operating margin was 17.6%. That compares to 15.7% in last year's first quarter. Now we believe that these increased profits clearly demonstrate the benefit being driven by our Snap-on value-creation processes, the set of principles and tools we apply every day to drive improvement, with a focus on safety, quality, customer connection, innovation and rapid continuous improvement, or RCI, as we call it. They help us move down our runways for improvement, and they are driving results. Related to the sale -- related to sales, we're up in the quarter by 1.5% organically before a negative impact from foreign currency of, I guess, 60 basis points. There are, of course, always differences from period to period. But from my perspective, the big picture is similar to the last quarter. We're seeing reasonable growth in our businesses serving the Automotive Repair sector, in the Tools Group, in the Repair Systems & Information group -- or Repair Systems &…

Thanks, Nick. Our first quarter consolidated operating results are summarized on Slide 6. Net sales of $741.7 million in the quarter increased 1.5% organically. Higher sales to OEM dealerships, increased sales of diagnostics and repair information products and continued higher sales of the Snap-on Tools Group more than offset lower sales to the military and ongoing weakness in Europe. Consolidated gross profit of $356.9 million increased $9.2 million from 2012 levels, and gross margin of 48.1% improved 80 basis points, largely due to savings from ongoing rapid continuous improvement, or RCI initiatives. Operating expenses of $249.1 million decreased $1.1 million, and the operating expense margin of 33.6% improved 40 basis points from 2012 levels. Total restructuring cost of $2.9 million in the quarter compared with $4 million last year. Operating earnings before Financial Services of $107.8 million increased 10.6% and, as a percentage of sales, improved 120 basis points from 13.3% last year to 14.5% this year. Operating earnings from Financial Services of $30.5 million increased $6.6 million, or 27.6% over prior-year levels. Consolidated operating earnings of $138.3 million increased 13.9% over 2012 levels, and the operating margin of 17.6% improved 190 basis points from 15.7% a year ago. Our first quarter effective income tax rate was 31.9%. We continue to expect that our full year 2013 effective tax rate will be comparable to our 2012 full year rate of 32.8%, but this quarter's rate benefited from the retroactive extension of the federal research tax credit and certain other business tax provisions included in the American Taxpayer Relief Act of 2012, which you'll recall was signed into law on January 2 of this year. Finally, net earnings in the quarter of $82.8 million, or $1.40 per diluted share, compared to net earnings of $71 million, or $1.21 per share last…

Thanks, Aldo. Let me just summarize my perspectives on the quarter. We had the headwinds in Europe and the military. We had gains in vehicle repair and critical industries, which more than offset the continuing challenges. But what I view as most significant is that we believe we've strengthened our position along our decisive runways, enhancing the van channel. The network is stronger, and you clearly get that impression when you meet with the franchisees. And franchisee turnover was down again. Expanding with vehicle repair shop owners and managers, our diagnostics and information products have never been more powerful or better received. Extending to critical industries, you can see our connections with aerospace and natural resources customers growing. And building in emerging markets, our fourth factory in Kunshan is coming to light, and our Asian engineering center is growing in effectiveness. Our strength increased in each of these decisive areas, and we believe it's that progress which is most important and ensures our continued advancement. This quarter also clearly demonstrated gains along our runway for improvement, progress propelled by the Snap-on value-creation processes. They have become part of our corporate everyday culture, and you can see it in the numbers, Opco operating margin of 14.5%, up 120 basis points; and EPS of $1.40, rising despite the challenges. We believe that the energy of Snap-on value creation and the strengthening of our positions in the 4 areas of strategic importance will enable our team to continue on its encouraging trend, as we move through 2013 and beyond. Now finally, before I conclude, it's appropriate that I recognize Snap-on franchisees and associates. As usual, I know many of you are listening. Your enthusiasm, your capability and your dedication made our first quarter possible. For your extraordinary contribution to our performance, you have my congratulations. And for your continuing commitment to your team, you have my thanks. Now I'll turn the call over to Mary for questions. Mary?

[Operator Instructions] And we'll take our first question from David MacGregor with Longbow Research.

How much forward visibility do you have on this military order book? And you'd indicated it was down double-digits. So I'm just wondering if that's kind of the pace that's expected over the balance of the year?

Yes. But what happens is, is that the base shrinks. I think I said in the fourth quarter -- we don't have the greatest visibility. We know that the military isn't the most robust of businesses. Whether we have visibility or not, it's kind of -- you read any paper or anything like that, you see both sequestration causing uncertainty around the Department of Defense, and you see the fact that troops are coming home. The difference there is, David, is that -- and I think I did say this in the fourth -- in the last conference call, the fourth quarter is our biggest quarter, the first quarter is our next highest, and then it reduces as we go to the second and third quarter. And then the second and third quarter last year, as the world progressed, we were already seeing some sort of contraction. So contractions are liable to be big. In fact, they were a little bit bigger in the first quarter than it was on a percentage basis than the fourth quarter, but the base is smaller. So we would expect the impact to somewhat reduce -- attenuate I would say.

So is the -- so you're still expecting to be down maybe double-digits, but it becomes a less consequential part of the business, is what you're saying?

Correct. And I've sized this for people. People have asked how big it is, and the -- well, we don't give guidance by segments. Or what we've said is, is that the -- it's part of the industrial business, the critical industries, which is roughly, give or take, $400 million, a little bit over $400 million business. And we've identified 5, 6 segments in that business, the critical segments in that business, and this is one of the bigger ones. So you can kind of chop them up into 5 or 6 pieces and say okay, this is one of the bigger ones, and calendarize it like I said, fourth biggest; first, next biggest; and then second and third. That kind of gives you some directional guidance, and that's what I see coming on. We don't have the greatest visibility. And any -- much of our business is in terms of backlog. So...

On the RS&I business, I guess it sounds like the facilitation business has come back a little bit, and that was the source of the pressure on the gross margin in that segment? Is the facilitation business back in somewhat of a permanent way now? Or how should we think about the mixed dynamics in that segment going forward?

Yes. Let me give you a couple of thoughts. One is, strictly -- you have it right. But strictly speaking, the facilitation business in that business is sort of like a distribution business. We're speaking -- that's where we offer distribution services for OEM dealerships. You're appointed by Toyota or somebody else to kind of be their go-to supplier for a wide variety of products for the dealerships, for their dealership network. That's not what we're referring to here. We're referring to the other side of that, what we call EQS business, which is essential diagnostics, where an OEM manufacturer says I'd like to roll out either a hard tool -- I said diagnostics, but any essential tool, either a hard tool or a diagnostics, a laptop for a specific make of car -- and says, Snap-on, I'd like you to develop -- help us develop it and roll it out to our distribution -- well, help roll it out to our dealerships. And what happened here is we got a couple of those products -- we got a couple of those programs in place now that are rolling, and that nurtures this business. It does tend to be lumpy. So you can -- you get an award, it says -- some manufacturer, Rolls-Royce, says I'd like to rollout -- Rolls-Royce doesn’t have many dealerships, but let's say Toyota or somebody, says I'd like you to roll out to my dealerships, and you do it and it takes you 5 quarters. And then there's no -- there isn't a program, so you have to replace it with another program. So it can be lumpy. Overlaid on top of that, though, David, is whether the OEMs themselves are feeling robust or more favorable. And I think -- actually, I think the 2013 forecast in North America are for what? Must be a 5% increase in the auto industry? So a 15.1% to 15.7% or something like that? So I mean, it’s a small increase. So I think they're a little bit more positive here. So we're seeing little positive news there. Plus, on top -- overlaid on top of this lumpy business. Did that help you a little bit?

Okay. The last question -- yes, that does help. Last question, I guess, just pertains to possible acquisitions. And I guess the question is…

What acquisition? Say that again, please.

Yes. The last question just has to do with acquisitions, and I guess the question is just how much leverage would you be willing to undertake in support of an acquisition?

Oh, I don't know if I'm -- I don’t know if I want to necessarily speak about that on a call or in this kind of situation. I'd just offer that -- if you look at our…

Because I'm just wondering if there was softening [ph].

Credit [indiscernible] and you look at our operating business, we had quite a bit of powder available. So I think that's sufficient to say that. I think those questions, David, always depend on the particular opportunity that's there. It's kind of a happenstance. One of the things -- we have capability in-house who knows how to acquire, because we have people who have experience in this. We have -- I know we have a great integration team available. We are reviewing an ongoing list of possibilities, and we know we have ammo. So I think we would adjust to any kind of situation. So I wouldn't want to pen myself in, in that regard.

And we'll take our next question from David Leiker with Baird. David Leiker - Robert W. Baird & Co. Incorporated, Research Division: Couple of things. Let's start with the Tool business. And Nick, you had -- and Aldo, you had talked about carryover impact from Sandy and payroll tax increase having an impact. Can you characterize on an exit rate what type of growth you might have been seeing? And I don't want to get bogged down in monthly numbers at all, but were you 0 to 3 to 6? Or some characterization there of how you ended...

I don't want to speak like that, but I would -- it's hard for me to characterize, but let me try it this way. You and I have talked, spoken many times about this, and I think I've said on every conference call that we have had over the last -- I don't know, more than 2 years, when the Tools Group is rolling double-digits, I have cautioned everyone that I don't think that continues. I think we hold to our 4% to 6%, but then there's the question of how fast is the deceleration. Right? I think. And I think everybody recognized that it probably can't grow at double-digits forever, and so how does that transition occur? And that was the $64,000 question. And I think, given -- I would just talk -- and this is speculation and so on, but I would say if we didn't see the lingering effects of Sandy, which we know is a factor, because we know Middle Atlantic was down and there were other places in the regions that were down, but if we didn't see that and if we didn't see what I would consider -- I can't document this, but what seemed to be a pause associated with -- it might have been the payroll tax, it might have been other things around -- it was kind of like a boundary layer when we went over '12 to '13. I think, we would have seen a more cushioned deceleration, let's say. If that helps. David Leiker - Robert W. Baird & Co. Incorporated, Research Division: Okay. So do you think we're…

More expectable, would have been more expectable. I think people had certain expectations around those things, and I think this would have been a decelerated quarter. But it would have been more cushions, less abrupt. David Leiker - Robert W. Baird & Co. Incorporated, Research Division: Okay. And what kind of numbers did you see in the U.S. versus the international markets for the business?

Well, the U.S. -- international was below the -- I mean, international was above the U.S., because the U.S. is where we saw the impact of Sandy and the -- but the international business was also decelerated somewhat as well. So I mean, they were -- but generally, the U.S. was down more than -- decelerated faster than international. David Leiker - Robert W. Baird & Co. Incorporated, Research Division: So from your perspective then, it sounds like we've, more quickly than expected guidance to sport a 5% or 4% to 6% kind of range going forward?

Well, I don't want to say that I expected that. I mean, I don't -- I never knew how we would go into that. I'd simply say that I think we have an event. We had some boundary layer conditions at the end of last year and certainly the beginning of -- mostly the beginning of this year that tended to what I want to say steepen or heighten the deceleration. And I still think 3.7% isn’t chopped liver, I would offer. And so we are not -- if I look at the 4% to 6% myself, I would say look, we always said we'd grow at 4% to 6% over time. We said 3.7% is reasonably inside -- a standard deviation of that, so it’s the kind of variation you'd see around those numbers. So I'm not so surprised about the 3.7%. I'm simply offering that in this particular period, if we didn't have the boundary layer, we probably would have seen somewhat softened -- a softer change. David Leiker - Robert W. Baird & Co. Incorporated, Research Division: Okay. And then on the RS&I side, when you look at the minority interest there at Mitchell 1, I'm suspecting that Mitchell 1 was a very strong performer there for you?

Yes, it was. It was. Great performance, yes. David Leiker - Robert W. Baird & Co. Incorporated, Research Division: Is that something that's tied to these roll out on the essential diagnostics? Or is that something more structural that can grow faster?

No. Mitchell one -- let me just parse between these 2 things. I mean, make my comment about Mitchell 1. Mitchell 1 has been actually part of our -- been a good success story for some time, and it expanded that success in the first quarter. And that is not related to the essential diagnostics. Essential diagnostics is with OEM dealerships. This is fundamentally with independent dealerships, and they just seem to be growing their position with independent dealerships. They're getting better at what they do, and the dealerships are recognizing it and they're embracing it more. Now when you talk about the minority interest there's a special wrinkle -- that I might want Aldo to comment...

Yes, David. Aldo. Just -- you're correct that Mitchell 1 was a larger contributor, and 15% of Mitchell 1 is owned by outside parties. So there's a little bit more of an elimination in equity earnings for that. You'll also recall that in Q4, Snap-on divested a non-strategic entity. It was a legacy investment that was part of the ProQuest acquisition. So the earnings from that are no longer in equity earnings. So that also accounts for that lower amount that you see. David Leiker - Robert W. Baird & Co. Incorporated, Research Division: And then on Mitchell 1, just one more item there, has this been driven by a change in the product, upgrading in the product offering, or more effective marketing? Or just normal market recognition over time?

Actually, I'd say both. I think we did change the product. I want to say 6, 7 months ago, we changed to ProDemand. We changed to ProDemand, which was an upgrade, kind of a new model, if you will, of repair information. A lot better navigation, same great database that's wider than anybody else and terrific, but also better navigation. People really have appreciated that. And so that's one. Two, is our marketing has been better. We've driven customer connection into Mitchell 1 pretty effectively. So they're out constantly. They've got a pretty robust process, looking at the field and getting feedback saying, how can we improve? So they've kind of got this ongoing improvement activity that's actually, I think, pretty good for a software business, that's overlaying on top of the sort of upgrades and the software. They're actually improving it based on what the customers are telling them, and we never had that before. So we're doing better at that. And then thirdly, we're expanding a little bit our reach into heavy duty and other places. So we've got a couple of other non-automotive segments in there. So all 3 of those things are in a cocktail, and it's been doing pretty well. And when it came together this quarter with the sort of diagnostic information products, the repair shop owners and managers that went up and we paired it with a pretty robust quarter for -- we've been kind of carrying the OEM dealerships for several quarters. You might remember, last year's numbers were like 0.5, 2.9, 2.7 in RS&I. Now we're up pretty well because we've got -- we're hitting on more like oil cylinders. We're still carrying 25% of European business with that business. And one of the things that happened was that SBS, the parts catalog business, got out from under the consolidation of the dealerships. That was an ongoing tail. We were even receiving some of the impact last year. That stopped now. So that's back to some upward movement.

And we'll take our next question from Gary Prestopino with Barrington Research.

Nick, can you -- when did you start seeing this military business slide? I'm trying to get at -- where are we at? Are we at the anniversary...

No, we started to see it, I think -- I wanted to see -- we started to see it sort of in the middle of the second quarter, third quarter last year, like mostly the third quarter, we started to see it roll. Third quarter was weak, but it was a smaller base. It makes -- I don't think it made scrutiny in the third quarter even though it wasn't good for us.

So really, the fourth quarter year-over-year, we should see -- that's where it kind of anniversaries then, right?

Third quarter, I'd say, too. I'd say. But the fourth quarter, clearly the big anniversary. So -- yes, that's right. That's right.

Have you been seeing the declines increase quarter-over-quarter or…

Yes, it increased some, but not -- I would -- arithmetically, it's a greater increase in the second quarter as a percent of a smaller base than the fourth quarter, but I would tend to say that's within the range of government work. You know what I mean? In the range of a variation that you might see on this kind of thing. So I guess it's pretty much the same decline.

Okay. And then last question is, is the portfolio built to the point now where it's going to really mimic the growth in the Tools Group?

Yes. This is Aldo, Gary. I think you have that correct. There's still a small piece of tailwind that we'll pick up from CIT, but as you can see on the chart, the extended credit portfolio owned by CIT and managed by us is down to less than $10 million. So going forward, it'll mirror the growth in Snap-on Tools. But just recollect that it -- Tools, the portfolio underwrites more big ticket items. So within the Tools Group you can sometimes get a little bit of variation in the amount of big-ticket items that they sell as opposed to the lower-priced items which tend to be underwritten by the franchisees themselves. So you get a little bit of noise quarter-to-quarter. But long run, it should move in concert.

And we'll take our next question from Richard Hilgert with Morningstar.

Just wanted to ask a little bit more about the margins in the C&I Group for the quarter. Looking back over the past year, we've been in that mid-11% range since the quarter of last year, but the first quarter of last year it was a lot lower. Was there anything special in that first quarter a year ago that had the margins down?

No, I don't think so. I think generally, we tend to get seasonality around first -- at different quarters. We don’t have great seasonality in sales. But sometimes, you'll get OI seasonality because of -- as you open up a year, you'd be spending on kick-off type things. So you get out, you have distributors, you have people you meet, you have new programs, and you tend to roll them out at the first of the year. So often time, that's an overhang on these -- of those types of quarters. I'm not saying it happens every year, but it happened in many years at C&I, because I used to run C&I. So we think what happened in the C&I is this. You've got what? Is it 130 basis points up? And I'd say, what, 40 basis points is due to lower restructuring. And then I think you can put down the rest to RCI. And the reason there is, is because when you've got a division that's having difficulty on sales, like SNA Europe or -- you tend to be -- put your nose to the grindstone at this stuff, even though it's a way of life. Every place in the corporation, they tend to push hard. You tend to spend restructuring money, and we're seeing that come to fruition. And so we really think that the quarter we see in C&I is -- really reflects to a large degree, the improvement in productivity that we're seeing around, because there is spending associated with this ongoing, associated with the first quarter. So I don't think there was anything special last time.

The volume operating leverage, obviously with revenues being down 7%, one might not expect you to attain the same kind of operating leverage that we saw in the last 3 quarters of last year. But yet you were still able to do that. How much -- if you didn't have that year-over-year difference in your operating leverage, what kind of margin improvement could we have expected?

I'm not sure. Let me just say -- let me just try to answer your question this way. Look, this is a relatively complex landscape as you know. As I know you know our company, and it is complex. So it's hard to say with definitive -- make a definitive statement on any particular quarter, no matter what you see. But the thing is, is that you -- we have said that if the sales were flat, just flat, we could keep raising operating margins through the effect of our Snap-on value creation. We're confident of that. And this quarter, what we saw on the 120 basis points of improvement was 10 points of restructuring, favorability; 20 points of mix, because RS&I was up and C&I was down, so there were more different profitabilities; and then the rest you can roll up to RCI, which is associated with that. So you can expect us to try to -- not in any one particular quarter, you might not be able to see it. But over time, you'll see an overlay, and you can look back and see it. You can look back and see it. So we have operating improvement every quarter. I think -- I hope that answers your question.

To some degree. I mean, I was looking for -- well, operating leverage was this kind of a negative impact. But because of RCI, we had this much positive impact. But that's okay. I'm [indiscernible].

[indiscernible] how much. I hate to pin myself down on operating leverage. I mean, associated with volume? Yes, I don't like to say it -- I don't like to give you any particular number about that, but you can be sure that if we get -- as we get higher volume, we do get some operating leverage.

Right. Okay. With respect to Europe, at some point, with new car sales being down as much as they are and looking like we're going to have a 6th straight year of significant decline over there, at some point, the aftermarket has to pick back up because people are just going to have to be fixing their cars if they're going to keep them longer. Have you seen any of that yet? Or when are you expecting something like that to start occurring over there?

I'm out of the business of predicting where Europe is going. I think I predicted that it was at the bottom like 2 years ago or something. So I don’t know. But look, I think this, is that Europe was down again for us. Our hand tool business in Europe was down, what, high single-digits, and it was down sort of low double-digits the last time. And we're not all in auto. We're in other businesses. So it's a broad base. Industry, construction, agriculture, a lot of other things. So it's a cocktail of things. I don't know in general when Europe will come back, but I'm confident -- we're pretty confident it will, and we're -- actually, we're pretty positive about this. We think this is one of the hidden gems about Snap-on because what you've got here is you've got a business which is improving its operational fitness. Profit is up when sales are down almost double digits, and yet we know that our customers are out there. We know that our customers still are remaining. So when the Europe comes back, we figure we're going to do pretty well on that. Okay?

Yes, very good. On Financial Services, you're getting to the point where you're pretty much up to speed with respect to mimicking the tools as you mentioned earlier in the call. I was curious, is there any other opportunities with your Financial Services that you might be interested in pursuing in terms of providing credit services in other areas?

No. we have said -- I think we have said that our Financial Services is hand-in-glove with our Tools Group -- with our own operations. So we view it as limited to the strategic support of Snap-on operations. We don't view it as a sort of a credit company that provides services to other things, which aren't associated with the rest for the business. We see it as financing our customers and our products and our franchisees, that's it.

And we'll take our last question from David Leiker with Baird. David Leiker - Robert W. Baird & Co. Incorporated, Research Division: Nick, just one last item here. You talked about China and how you're expanding your product range there. What portion of your product offering do you think you have available in China, Southeast Asia to deliver into the market today?

I would say we have 1/3 right now. Maybe 40%, that kind of thing. Maybe 1/3. You mean in terms of our overall product line? You mean in terms of the overall Snap-on product line? Is that what... David Leiker - Robert W. Baird & Co. Incorporated, Research Division: Yes.

Yes. I'd say about 1/3. We have entries in virtually every category, maybe less than 1/3. Maybe 1/4 actually. So let's say 1/4 to 1/3, we are -- but we have pretty comprehensive activity. We're putting our toe in a lot of places. But our product line is quite narrow in each -- is more narrow than we have in other places, simply because you've got to start from 0, and you're trying to build up. And so that's an important thing. And a lot of this is learning the specific characterizations -- character of the customers. Not China, but just -- as we roll out into new markets like China or aerospace, you have to learn. I was just in an aerospace facility down in Indianapolis recently, and it's interesting to walk the floor of that place, 800 technicians, and you realize how different it is than vehicle -- this was our money. It was vehicle -- different from vehicle repairs. Some of the tools are held centrally. Some of them are done -- owned by each technician. The technicians don't necessarily do the same thing, so they need a different set of tools. But one thing is in common, is that they all like Snap-on. I ran into a number of technicians that said -- we had just entered this place. We started to sell there only like 3 or 4 months ago. It's part of the reason why our aerospace is up. And they said "We're glad you're here." The same kind of thing happens in China. You're constantly understanding where the customer base is, what they want and adjusting the product line and then trying to Asian-ize the product line to this. So it's an ongoing process. And I would say, we've got about 25% now. David Leiker - Robert W. Baird & Co. Incorporated, Research Division: And do you think it's -- how much of your product offering do you think you could put there? Could it be 100%? Or is it only half of it?

A version of a lot of it. I can't say. But nothing -- unfortunately, probably nothing goes exactly. We have to make changes to almost everything, and that's what we call Asianization. That's why the product line -- I think one of the mistakes people make is they try to sell what they have. And it doesn't really work. It works at the top end. That's how you enter. We entered with the top end with the super-premium brand, we're selling to the best people, and then what happens -- when you have to deal with the other people, you actually have to make products that they might want and that they -- that fit their actual situations. For example, garages in China are lot -- a lot of the garages in China are a lot smaller. So things like your under-car equipment have to be configured for that. Now it's got the same base, the same actual function, but the physicals, the geometries of it have to change. Now that might not be a tough engineering move, but it has to happen. First, you have to realize it's needed; and secondly, then you have to execute it. So we're constantly doing that. That's why I'm so excited about the engineering center. David Leiker - Robert W. Baird & Co. Incorporated, Research Division: And then the last item, just following on, on that, what about your geographic footprint in Asia, Southeast Asia? Is that -- how much more work is there to build that out like you wanted to be?

It's a lot more work in China and India. We've got a lot more work there. I think -- we could tick off the countries, I think we have more work in Indonesia. We have more work in the Philippines. We're pretty good in Korea, Singapore, Taiwan, Hong Kong, Malaysia, Thailand. Those places were okay. The other places, we've got more -- a lot more work to do. David Leiker - Robert W. Baird & Co. Incorporated, Research Division: So you're still very early in this whole revenue stream coming out of Asia?

Sure. Yes. And not to mention, the repair wave is just starting to rise.

And that does conclude today's question-and-answer session. I'd like to turn the call over for any closing remarks back over to Leslie Kratcoski. Please go ahead.

Yes. Just thanks, everyone, for joining us on the call today and for your interest in Snap-on. A replay of the call will be available shortly on snapon.com. And good day. Thanks.

And that does conclude today's conference. Thank you for your participation.