Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Jeff Germanotta from Houston Wire & Cable. Please proceed.
Jeff Germanotta
Good morning, gentlemen. I wanted to get your thoughts on share repurchase. You’ve added a little debt to buyback shares, you’ve got a fair amount of capacity on your remaining authorization. Can you give a little more, frame for us a little bit greater detail where you’re headed there?
Charles Sorrentino
Jeff, it’s difficult to give specifics, but let me walk you through the logic and the sequencing of our logic as we think through the share repurchase program. The first thing we start out with we look at what our operating cash flow is going to be and then we also look at what our debt capacity. We also look at what he future holds in terms of possibility of near-term acquisitions or mid-term acquisitions and any other supporting requirements such as working capital for the business. On that we look at all of those things in concert with where the stock is and make a decision.
During the second half, actually from August through December we bought what I would consider to be fairly aggressively. But we had adequate cash; we had good cash reserves, operating cash flow; we had plenty of debt capacity and it made just a great deal of sense to us. In addition to the share repurchase program, I just want to remind everybody that we also have a dividend, and we increased that dividend by 13% just a few weeks ago.
So all in all we look at this thing in balance of what’s the best and most optimum way to return to the shareholders and at the same time, make sure that we have adequate resources and reserves for the needs, the immediate needs of the business and any future acquisitions.
Jeff Germanotta
This is Jeff. I’m still here. But thank you for answering my question.
Operator
Your next question comes from the line of Sam Darkatsh, please proceed.
Charles Sorrentino
Good morning, Sam. Operator, can you go to the next question?
Operator
Your next question comes from the line of David Manthey from Robert W. Baird. Please proceed.
David Manthey – Robert W. Baird & Company
Hi guys. Can you hear me?
Charles Sorrentino
Hi Dave. Yeah, sorry for the phone interruptions, but yes we can hear you.
David Manthey – Robert W. Baird & Company
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