It would be easier for us to see and understand the element you’re having problems with if you reduce your pen to the very minimum amount of code. We don’t need all the stuff you’ve put in the existing pen – just the pertinent element markup (and maybe a wrapper) and immediately-related CSS.
hmmm… and why you don’t like the negative margin? if you make a padding-bottom in the grey piece, you can add an equal negative margin-top for navigation and slider container; I can’t imagine any problem with that.
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