Arthur Ajemyan: And Martin, just a quick reminder. We refreshed our authorization back in October to $1.5 billion, and we have $1.4 billion remaining on that authorization. So in our prepared remarks, we provided some three-year historical figures on total returns, which was roughly 58% of free cash flows over the last three years. Does that mean that’s the number that we’re guiding to going forward? No. As Karla said, we kind of look at that largely opportunistically, and we have the authorization and the balance sheet and the cash flows to be able to act on that when the opportunities present themselves.
Martin Englert: Is there any – well, that might not necessarily be the target or the last three years have trended? Is there some lower bound that – I guess, lower bound to the framework as a minimum that you would like to return by dividends and repurchases? Or not necessarily, it’s really based on the best opportunity set?
Karla Lewis: Yes. Martin, because as I just mentioned, we try to be opportunistic in all of our capital allocation buckets, whether it’s acquisitions, organic growth, dividends, share repurchases. We don’t set formal policies because we are selling into cyclical markets. So we want to have the flexibility to allow us to do what we think is the best use of capital at the time. So we don’t have any formal policies established for that, other than trying to be a good capital allocator and reward our stockholders and grow our company.
Martin Englert: Okay. Thank you for all the detail and congratulations on the results and all the progress.
Karla Lewis: Okay. Thanks, Martin.
Arthur Ajemyan: Thank you.
Operator: Our next question is a follow-up question from the line of Phil Gibbs. Please proceed with your question.
Phil Gibbs: Thank you. Just broadly speaking, what are you seeing in the automotive market right now? Because I know there was a lot of volatility in the headlines in the back half of last year from the auto strike.
Karla Lewis: Yes. Hi, Phil. So we service the automotive market predominantly through toll processing, where we do not take ownership of the metal, which we like servicing that market that way, taking out any metal price risk for us. And we’re processing and inspecting, delivering, storing the metal. Typically, our customers in that business are the mills selling to the automakers. And our companies that do that are very good at what they do. They’ve done a great job servicing the markets, also shifting to be able to process aluminum as there’s more and more aluminum content. We’ve been continuing to invest in those companies. And last year, our processing volumes in our toll processing businesses, which are about 65% automotive-related were up 7.5%.
And so it was a good year for us, again, partly because of our investments for growth, but also because even though there were a few stoppages and it was a little erratic for certain periods during the strikes, it didn’t hit us on a broad basis. It was typically one customer, one platform that would be down. So it wasn’t too broad-based for us. A lot of our customers were anticipating the strike coming. And so we worked with them to try to build up a little more inventory for them prior to that, and it came back pretty quickly when the strike ended. So, we didn’t see a big impact from that, and we continue to be busy. We’re continuing to invest to increase capacity there, and we’re positive on automotive going forward.
Phil Gibbs: Thank you. And then just a question for modeling clarity. The other income was pretty robust in Q4. Does that capture largely the interest income on your cash balance?
Arthur Ajemyan: That’s correct, Phil. And there’s some life insurance income in there, but the vast majority of that is interest income on our cash.
Phil Gibbs: Perfect. And then if I could sneak in one more just on semis [ph] infrastructure. I know you’ve made some good investments there in the last couple of years. Are you starting to see some of that spending come back? Or is that not a market that you’re looking for growth in 2024? Thanks.
Karla Lewis: Yes. So, I think for the year 2024, we would look for some growth in our smaller investment in a new facility in Texas. They’re ramping up now, they’re in production mode, but with where the industry is right now, they’re starting a little slower. The equipment side of the business is more negatively impacted than kind of the construction project side of the semiconductor business. Our larger facility capacity expansion in Texas is not yet live. So they’re still in build mode. So we haven’t seen anything out of that new investment yet. But we did see in Q4, the semiconductor industry really – they’re still busy, but there was a bit of an inventory buildup. So they’ve been working through that. And we’re positive going into 2024 that we’ll start to see some improvement. A lot of it, though, on the construction side is dependent upon the pace that our customers build because there have been some stops and starts on some of the projects.
Phil Gibbs: Thanks very much.
Karla Lewis: Thanks, Phil.
Operator: That concludes our question-and-answer session. I’d like to hand it back to Karla Lewis for closing remarks.
