In the first half of this year, we will recognize $6 million of charges, half of this in the first quarter from an acquisition-related fair value adjustment to inventory. These charges will not repeat in the back half of this year, so we expect Western's earnings to improve as the year progresses.Our operating folks continue to do an excellent job of closely managing working capital reflecting our focus on return optimization. We ended the quarter with working capital at 12.3% of annualized sales. Current liabilities include approximately $28 million, associated with an interest rate swap that we entered in 2010. If you exclude that item, working capital was 13% of annualized sales, still well below our 15% target. Cash from operations was strong during the quarter at $65 million. We expect operating cash for the full year of over $325 million, which should once again comfortably exceed the amount required to fund capital expenditures and dividends.
Leggett & Platt, Incorporated's CEO Discusses Q1 2012 Results - Earnings Call Transcript
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