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Carnival Corporation (NYSE:CCL)
Cash Flow from Investing
$-2,238 Mil (TTM As of Feb. 2014)

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 Feb. 2014, Carnival Corporation spent $353 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 received $4 Mil from other investing activities. In all, Carnival Corporation spent $349 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Feb. 2014.


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.

Carnival Corporation's Cash Flow from Investing for the fiscal year that ended in Nov. 2013 is calculated as:

Carnival Corporation's Cash Flow from Investing for the quarter that ended in Feb. 2014 is calculated as:

Carnival Corporation Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2014 was -1206 (May. 2013 ) + -434 (Aug. 2013 ) + -249 (Nov. 2013 ) + -349 (Feb. 2014 ) = $-2,238 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.

Carnival Corporation's purchase of property, plant, equipment for the three months ended in Feb. 2014 was $-353 Mil. It means Carnival Corporation spent $353 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.

Carnival Corporation's sale of property, plant, equipment for the three months ended in Feb. 2014 was $0 Mil. It means Carnival Corporation gained $0 Mil from selling property, plant, and equipment.

3. Purchase Of Business:
Purchase of business indicates the amount used to purchase business.

Carnival Corporation's purchase of business for the three months ended in Feb. 2014 was $0 Mil. It means Carnival Corporation spent $0 Mil on purchasing business.

4. Sale Of Business:
Sale of business indicates the amount gained from selling business.

Carnival Corporation's sale of business for the three months ended in Feb. 2014 was $0 Mil. It means Carnival Corporation gained $0 Mil from selling business.

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

Carnival Corporation's purchase of investment for the three months ended in Feb. 2014 was $0 Mil. It means Carnival Corporation spent $0 Mil on purchasing investments.

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

Carnival Corporation's sale of investment for the three months ended in Feb. 2014 was $0 Mil. It means Carnival Corporation 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.

Carnival Corporation's net Intangibles purchase and sale for the three months ended in Feb. 2014 was $0 Mil. It means Carnival Corporation 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.

Carnival Corporation's cash from discontinued investing activities for the three months ended in Feb. 2014 was $0 Mil. It means Carnival Corporation 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.

Carnival Corporation's cash from other investing activities for the three months ended in Feb. 2014 was $4 Mil. It means Carnival Corporation received $4 Mil from other investing activities.


Related Terms

Cash Flow from Operations, Cash Flow from Financing, Cash Flow for Capital Expenditures, Purchase of PPE, Sale of PPE, Purchase of Business, Sale of Business, Purchase of Investment, Sale of Investment, Net Intangibles Purchase And Sale, Cash From Discontinued Investing, Cash From Other Investing


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Carnival Corporation Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
PurchaseOfPPE -3,586-1,977-2,480-3,312-3,353-3,380-3,579-2,696-2,332-2,149
SaleOfPPE 77000000000
PurchaseOfBusiness 000-339000000
SaleOfBusiness 0000000000
PurchaseOfInvestment -772-935-18-2,098-400000
SaleOfInvestment 1,21694362,0781100000
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities -24-149-7591-4785056093
Cash Flow from Investing -3,089-1,970-2,443-3,746-3,255-3,384-3,501-2,646-1,772-2,056

Carnival Corporation Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
PurchaseOfPPE -261-267-1,730-167-168-241-1,206-365-337-353
SaleOfPPE 046000700000
PurchaseOfBusiness 0000000000
SaleOfBusiness 0000000000
PurchaseOfInvestment 0000000000
SaleOfInvestment 0000000000
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 25-2752223-440-69884
Cash Flow from Investing -236-248-1,208-144-172-167-1,206-434-249-349
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