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GDF Suez (OTCPK:GDFZY)
Cash Flow from Investing
$-4,857 Mil (TTM As of Dec. 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 six months ended in Dec. 2014, GDF Suez spent $4,085 Mil on purchasing property, plant, equipment. It gained $109 Mil from selling property, plant, and equipment. It spent $650 Mil on purchasing business. It gained $1,695 Mil from selling business. It spent $-139 Mil on purchasing investments. It gained $323 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, GDF Suez spent $2,469 Mil on investment activities in financial market and operating subsidiaries for the six months ended in Dec. 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.

GDF Suez's Cash Flow from Investing for the fiscal year that ended in Dec. 2014 is calculated as:

Cash Flow from Investing(A: Dec. 2014 )
=Purchase of PPE+Sale of PPE+Purchase of Business
=-7139.33415536+297.163995068+-909.987669544
+Sale of Business+Purchase of Investment+Sale of Investment
+1710.23427867+-303.329223181+1311.96054254
+Net Intangibles Purchase And Sale+Cash From Discontinued Investing+Cash From Other Investing
+0+0+176.325524044
=-4,857

GDF Suez's Cash Flow from Investing for the quarter that ended in Dec. 2014 is calculated as:

Cash Flow from Investing(Q: Dec. 2014 )
=Purchase of PPE+Sale of PPE+Purchase of Business
=-4085.08014797+108.508014797+-649.815043157
+Sale of Business+Purchase of Investment+Sale of Investment
+1695.4377312+139.334155364+323.057953144
+Net Intangibles Purchase And Sale+Cash From Discontinued Investing+Cash From Other Investing
+0+0+-3.41060513165E-13
=-2,469

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. GDF Suez Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2014 was $-4,857 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.

GDF Suez's purchase of property, plant, equipment for the six months ended in Dec. 2014 was $-4,085 Mil. It means GDF Suez spent $4,085 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.

GDF Suez's sale of property, plant, equipment for the six months ended in Dec. 2014 was $109 Mil. It means GDF Suez gained $109 Mil from selling property, plant, and equipment.

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

GDF Suez's purchase of business for the six months ended in Dec. 2014 was $-650 Mil. It means GDF Suez spent $650 Mil on purchasing business.

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

GDF Suez's sale of business for the six months ended in Dec. 2014 was $1,695 Mil. It means GDF Suez gained $1,695 Mil from selling business.

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

GDF Suez's purchase of investment for the six months ended in Dec. 2014 was $139 Mil. It means GDF Suez spent $-139 Mil on purchasing investments.

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

GDF Suez's sale of investment for the six months ended in Dec. 2014 was $323 Mil. It means GDF Suez gained $323 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.

GDF Suez's net Intangibles purchase and sale for the six months ended in Dec. 2014 was $0 Mil. It means GDF Suez 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.

GDF Suez's cash from discontinued investing activities for the six months ended in Dec. 2014 was $0 Mil. It means GDF Suez 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.

GDF Suez's cash from other investing activities for the six months ended in Dec. 2014 was $-0 Mil. It means GDF Suez paid $0 Mil for 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.

GDF Suez Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
PurchaseOfPPE -40-3,128-4,556-12,331-14,061-12,291-11,708-12,043-8,941-7,139
SaleOfPPE 0240191172490536220243366297
PurchaseOfBusiness 0-1,438-2,195-977-1,109-184-2,453-537-1,442-910
SaleOfBusiness 02,6558083,4301,9681,6393,4131,0982,7941,710
PurchaseOfInvestment -800-417-1,982-699-1,315-1,649-339-186-196-303
SaleOfInvestment 1251,0275911499991,6651001222351,312
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities -1,7885763303271,109-11366213184176
Cash Flow from Investing -2,503-483-6,814-9,930-11,920-10,295-10,401-11,091-7,000-4,857

GDF Suez Semi-Annual Data

Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14
PurchaseOfPPE -5,169-6,698-5,491-6,693-5,080-6,730-4,083-4,695-3,365-4,085
SaleOfPPE 26025412110972168125236208109
PurchaseOfBusiness -37-144-58-2,400-198-329-28-1,413-287-650
SaleOfBusiness 1,424981,5462,0013447392512,534161,695
PurchaseOfInvestment -910-665-1,284833-146-34-711543-488139
SaleOfInvestment 3451,292150-3755641,596-1,4251,090323
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 622-684422-20-147366-58244194-0
Cash Flow from Investing -3,463-6,548-4,594-6,207-5,100-5,756-2,908-3,977-2,632-2,469
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