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Ascena Retail Group Inc (NAS:ASNA)
Cash Flow from Investing
\$-367 Mil (TTM As of Oct. 2016)

Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).

For the three months ended in Oct. 2016, Ascena Retail Group Inc spent \$107 Mil on purchasing property, plant, equipment. It gained \$0 Mil from selling property, plant, and equipment. It spent \$0 Mil on purchasing business. It gained \$0 Mil from selling business. It spent \$0 Mil on purchasing investments. It gained \$0 Mil from selling investments. It paid \$0 Mil for net Intangibles purchase and sale. It paid \$0 Mil for discontinued investing activities. And it paid \$0 Mil for other investing activities. In all, Ascena Retail Group Inc spent \$107 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Oct. 2016.

Definition

Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).

If a company spends cash on property, plant and equipment (PPE), this will reduce their cash position. This is called Capital Expenditures (CPEX).

Likewise, if a company buys another company for cash, this will reduce their cash position.

Ascena Retail Group Inc's Cash Flow from Investing for the fiscal year that ended in Jul. 2016 is calculated as:

 Cash Flow from Investing (A: Jul. 2016 ) = Purchase of PPE + Sale of PPE + Purchase of Business = -366.5 + 0 + -1494.6 + Sale of Business + Purchase of Investment + Sale of Investment + 0 + -1.1 + 26.5 + Net Intangibles Purchase And Sale + Cash From Discontinued Investing + Cash From Other Investing + 0 + 0 + -1.35003119794E-13 = -1,836

Ascena Retail Group Inc's Cash Flow from Investing for the quarter that ended in Oct. 2016 is calculated as:

 Cash Flow from Investing (Q: Oct. 2016 ) = Purchase of PPE + Sale of PPE + Purchase of Business = -106.6 + 0 + 0 + Sale of Business + Purchase of Investment + Sale of Investment + 0 + 0 + 0 + Net Intangibles Purchase And Sale + Cash From Discontinued Investing + Cash From Other Investing + 0 + 0 + 0 = -107

Ascena Retail Group Inc Cash Flow from Investing for the trailing twelve months (TTM) ended in Oct. 2016 was -67.3 (Jan. 2016 ) + -95.6 (Apr. 2016 ) + -97.9 (Jul. 2016 ) + -106.6 (Oct. 2016 ) = \$-367 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

Cash flow from investing contains nine items:

1. Purchase Of Property, Plant, Equipment:
Purchase of PPE indicates the amount used to purchase property, plant, and equipment.

Ascena Retail Group Inc's purchase of property, plant, equipment for the three months ended in Oct. 2016 was \$-107 Mil. It means Ascena Retail Group Inc spent \$107 Mil on purchasing property, plant, equipment.

In the capital spending for property, plant and equipment (PPE), some part of spending may be from the expansion of business. The business needs more property, plant and equipment (PPE) as it grows. Another part may be from replacement of the property, plant and equipment (PPE) of existing business. For some companies, the cash spent on replacing of the property, plant and equipment (PPE) of the existing business will be close to the depreciation of property, plant and equipment (PPE) reported in the income statement.

In Warren Buffetts definition of Owners Earnings, he deducts the estimate of the cost of replacing the property, plant and equipment (PPE) of the existing business from cash flow from operations. The cash spent on the new property, plant, and equipment is not deducted. The reason is because these are not costs of the existing business. In his 1986 letter to shareholders, Warren Buffett wrote this about owner earnings:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume....Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

2. Sale Of Property, Plant, Equipment:
Sale of PPE indicates the amount gained from selling property, plant, and equipment.

Ascena Retail Group Inc's sale of property, plant, equipment for the three months ended in Oct. 2016 was \$0 Mil. It means Ascena Retail Group Inc gained \$0 Mil from selling property, plant, and equipment.

Ascena Retail Group Inc's purchase of business for the three months ended in Oct. 2016 was \$0 Mil. It means Ascena Retail Group Inc spent \$0 Mil on purchasing business.

Ascena Retail Group Inc's sale of business for the three months ended in Oct. 2016 was \$0 Mil. It means Ascena Retail Group Inc gained \$0 Mil from selling business.

5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.

Ascena Retail Group Inc's purchase of investment for the three months ended in Oct. 2016 was \$0 Mil. It means Ascena Retail Group Inc spent \$0 Mil on purchasing investments.

6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.

Ascena Retail Group Inc's sale of investment for the three months ended in Oct. 2016 was \$0 Mil. It means Ascena Retail Group Inc gained \$0 Mil from selling investments.

7. Net Intangibles Purchase And Sale:
Net Intangibles purchase and sale means the net cash inflow received by a company that comes from the purchase and sale of intangibles. It equals the cash received from sale of intangibles minus the cash spent on purchasing intangibles.

Ascena Retail Group Inc's net Intangibles purchase and sale for the three months ended in Oct. 2016 was \$0 Mil. It means Ascena Retail Group Inc paid \$0 Mil for net Intangibles purchase and sale.

8. Cash From Discontinued Investing Activities:
Cash from discontinued investing activities means the cash received by a company that comes from the discontinued investing activities.

Ascena Retail Group Inc's cash from discontinued investing activities for the three months ended in Oct. 2016 was \$0 Mil. It means Ascena Retail Group Inc paid \$0 Mil for discontinued investing activities.

9. Cash From Other Investing Activities:
Cash from other investing activities means the cash received by a company that comes from other investing activities.

Ascena Retail Group Inc's cash from other investing activities for the three months ended in Oct. 2016 was \$0 Mil. It means Ascena Retail Group Inc paid \$0 Mil for other investing activities.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Ascena Retail Group Inc Annual Data

 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16 PurchaseOfPPE -63 -66 -58 -65 -102 -150 -291 -478 -313 -367 SaleOfPPE 0 0 0 0 0 0 0 0 0 0 PurchaseOfBusiness 0 0 0 83 0 -684 0 0 0 -1,495 SaleOfBusiness 0 0 0 83 0 0 0 0 0 0 PurchaseOfInvestment -405 -286 -96 -82 -181 -100 -3 -28 -22 -1 SaleOfInvestment 344 308 97 140 86 294 6 0 28 27 NetIntangiblesPurchaseAndSale 0 0 0 0 0 0 0 0 0 0 CashFromDiscontinuedInvestingActivities 0 0 0 0 0 0 0 0 0 0 CashFromOtherInvestingActivities -1 -2 -0 -83 0 38 16 42 9 -0 Cash Flow from Investing -126 -46 -57 76 -197 -602 -272 -463 -298 -1,836

Ascena Retail Group Inc Quarterly Data

 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 PurchaseOfPPE -109 -97 -58 -81 -78 -93 -80 -96 -98 -107 SaleOfPPE 0 0 0 0 0 0 0 0 0 0 PurchaseOfBusiness 0 0 0 0 0 -1,495 0 0 0 0 SaleOfBusiness 0 0 0 0 0 0 0 0 0 0 PurchaseOfInvestment 0 -13 0 -9 -0 0 -1 0 0 0 SaleOfInvestment 0 27 1 0 0 13 14 0 0 0 NetIntangiblesPurchaseAndSale 0 0 0 0 0 0 0 0 0 0 CashFromDiscontinuedInvestingActivities 0 0 0 0 0 0 0 0 0 0 CashFromOtherInvestingActivities -27 0 9 0 -0 -0 0 0 -0 0 Cash Flow from Investing -135 -83 -48 -89 -78 -1,575 -67 -96 -98 -107
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