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Qualcomm Inc (NAS:QCOM)
Cash Flow from Investing
$-2,552 Mil (TTM As of Dec. 2015)

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 Dec. 2015, Qualcomm Inc spent $128 Mil on purchasing property, plant, equipment. It gained $0 Mil from selling property, plant, and equipment. It spent $450 Mil on purchasing business. It gained $0 Mil from selling business. It spent $3,886 Mil on purchasing investments. It gained $3,434 Mil from selling investments. It received $232 Mil from net Intangibles purchase and sale. It paid $0 Mil for discontinued investing activities. And it received $82 Mil from other investing activities. In all, Qualcomm Inc spent $716 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Dec. 2015.


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.

Qualcomm Inc's Cash Flow from Investing for the fiscal year that ended in Sep. 2015 is calculated as:

Qualcomm Inc's Cash Flow from Investing for the quarter that ended in Dec. 2015 is calculated as:

Qualcomm Inc Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2015 was 1046 (Mar. 2015 ) + -1530 (Jun. 2015 ) + -1352 (Sep. 2015 ) + -716 (Dec. 2015 ) = $-2,552 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.

Qualcomm Inc's purchase of property, plant, equipment for the three months ended in Dec. 2015 was $-128 Mil. It means Qualcomm Inc spent $128 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.

Qualcomm Inc's sale of property, plant, equipment for the three months ended in Dec. 2015 was $0 Mil. It means Qualcomm Inc gained $0 Mil from selling property, plant, and equipment.

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

Qualcomm Inc's purchase of business for the three months ended in Dec. 2015 was $-450 Mil. It means Qualcomm Inc spent $450 Mil on purchasing business.

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

Qualcomm Inc's sale of business for the three months ended in Dec. 2015 was $0 Mil. It means Qualcomm Inc gained $0 Mil from selling business.

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

Qualcomm Inc's purchase of investment for the three months ended in Dec. 2015 was $-3,886 Mil. It means Qualcomm Inc spent $3,886 Mil on purchasing investments.

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

Qualcomm Inc's sale of investment for the three months ended in Dec. 2015 was $3,434 Mil. It means Qualcomm Inc gained $3,434 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.

Qualcomm Inc's net Intangibles purchase and sale for the three months ended in Dec. 2015 was $232 Mil. It means Qualcomm Inc received $232 Mil from 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.

Qualcomm Inc's cash from discontinued investing activities for the three months ended in Dec. 2015 was $0 Mil. It means Qualcomm 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.

Qualcomm Inc's cash from other investing activities for the three months ended in Dec. 2015 was $82 Mil. It means Qualcomm Inc received $82 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.

Qualcomm Inc Annual Data

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
PurchaseOfPPE -685-818-1,397-761-426-593-1,284-1,048-1,185-994
SaleOfPPE 0000000437266
PurchaseOfBusiness 000-54-940-833-192-883-2,997
SaleOfBusiness 0000000000
PurchaseOfInvestment -12,924-8,492-8,086-10,443-9,823-10,948-19,520-17,263-16,876-16,560
SaleOfInvestment 10,9837,9986,6895,62310,47410,66112,91816,86116,41116,738
NetIntangiblesPurchaseAndSale 0000001,925000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 3-586-25178-970-3,609-8360857-25
Cash Flow from Investing -2,623-1,898-2,819-5,457-839-4,489-6,877-1,578-1,639-3,572

Qualcomm Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
PurchaseOfPPE -240-210-587-158-230-253-196-366-179-128
SaleOfPPE 0000000000
PurchaseOfBusiness -13-315-32-100-436-111-67-130-2,689-450
SaleOfBusiness 0000000000
PurchaseOfInvestment -2,493-2,840-6,801-3,762-3,473-6,268-3,185-4,699-2,408-3,886
SaleOfInvestment 7,1592,9414,5364,8864,0484,8744,4673,5643,8333,434
NetIntangiblesPurchaseAndSale 000000000232
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities -4869-1940422271019182
Cash Flow from Investing 4,409445-2,903906-87-1,7361,046-1,530-1,352-716
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