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Ralph Lauren Corp (NYSE:RL)
Cash Flow from Investing
$-645 Mil (TTM As of Jun. 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 Jun. 2014, Ralph Lauren Corp spent $85 Mil on purchasing property, plant, equipment. It gained $0 Mil from selling property, plant, and equipment. It spent $4 Mil on purchasing business. It gained $0 Mil from selling business. It spent $411 Mil on purchasing investments. It gained $236 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, Ralph Lauren Corp spent $264 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Jun. 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.

Ralph Lauren Corp's Cash Flow from Investing for the fiscal year that ended in Mar. 2014 is calculated as:

Ralph Lauren Corp's Cash Flow from Investing for the quarter that ended in Jun. 2014 is calculated as:

Ralph Lauren Corp Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2014 was -301 (Sep. 2013 ) + -32 (Dec. 2013 ) + -48 (Mar. 2014 ) + -264 (Jun. 2014 ) = $-645 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.

Ralph Lauren Corp's purchase of property, plant, equipment for the three months ended in Jun. 2014 was $-85 Mil. It means Ralph Lauren Corp spent $85 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.

Ralph Lauren Corp's sale of property, plant, equipment for the three months ended in Jun. 2014 was $0 Mil. It means Ralph Lauren Corp gained $0 Mil from selling property, plant, and equipment.

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

Ralph Lauren Corp's purchase of business for the three months ended in Jun. 2014 was $-4 Mil. It means Ralph Lauren Corp spent $4 Mil on purchasing business.

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

Ralph Lauren Corp's sale of business for the three months ended in Jun. 2014 was $0 Mil. It means Ralph Lauren Corp gained $0 Mil from selling business.

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

Ralph Lauren Corp's purchase of investment for the three months ended in Jun. 2014 was $-411 Mil. It means Ralph Lauren Corp spent $411 Mil on purchasing investments.

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

Ralph Lauren Corp's sale of investment for the three months ended in Jun. 2014 was $236 Mil. It means Ralph Lauren Corp gained $236 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.

Ralph Lauren Corp's net Intangibles purchase and sale for the three months ended in Jun. 2014 was $0 Mil. It means Ralph Lauren Corp 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.

Ralph Lauren Corp's cash from discontinued investing activities for the three months ended in Jun. 2014 was $0 Mil. It means Ralph Lauren Corp 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.

Ralph Lauren Corp's cash from other investing activities for the three months ended in Jun. 2014 was $0 Mil. It means Ralph Lauren Corp 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.

Ralph Lauren Corp Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
PurchaseOfPPE -174-159-184-217-185-201-255-272-276-390
SaleOfPPE 0000000000
PurchaseOfBusiness 0000-46-31-71-12-22-40
SaleOfBusiness 0000000000
PurchaseOfInvestment 000-97-623-1,351-1,244-1,361-876-1,067
SaleOfInvestment 000133701,0721,2421,3941,0581,011
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities -243-381-251-2042762913-2
Cash Flow from Investing -417-539-435-505-458-504-299-250-113-488

Ralph Lauren Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
PurchaseOfPPE -112-62-55-78-81-66-148-81-95-85
SaleOfPPE 0000000000
PurchaseOfBusiness -2-7-3-8-4-32-4-3-1-4
SaleOfBusiness 0000000000
PurchaseOfInvestment -291-278-331-143-124-305-339-199-224-411
SaleOfInvestment 145218429304107298194247272236
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 08-10-4-2-4400
Cash Flow from Investing -259-1213975-106-107-301-32-48-264
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