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Rockwell Automation Inc (NYSE:ROK)
Cash Flow from Investing
\$-440 Mil (TTM As of Sep. 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 Sep. 2016, Rockwell Automation Inc spent \$38 Mil on purchasing property, plant, equipment. It gained \$0 Mil from selling property, plant, and equipment. It spent \$118 Mil on purchasing business. It gained \$0 Mil from selling business. It spent \$269 Mil on purchasing investments. It gained \$290 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, Rockwell Automation Inc spent \$135 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Sep. 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.

Rockwell Automation Inc's Cash Flow from Investing for the fiscal year that ended in Sep. 2016 is calculated as:

 Cash Flow from Investing (A: Sep. 2016 ) = Purchase of PPE + Sale of PPE + Purchase of Business = -116.9 + 0.4 + -139.1 + Sale of Business + Purchase of Investment + Sale of Investment + 0 + -1070.7 + 886.3 + Net Intangibles Purchase And Sale + Cash From Discontinued Investing + Cash From Other Investing + 0 + 0 + 1.13686837722E-13 = -440

Rockwell Automation Inc's Cash Flow from Investing for the quarter that ended in Sep. 2016 is calculated as:

 Cash Flow from Investing (Q: Sep. 2016 ) = Purchase of PPE + Sale of PPE + Purchase of Business = -37.5 + 0 + -117.9 + Sale of Business + Purchase of Investment + Sale of Investment + 0 + -269.2 + 290.1 + Net Intangibles Purchase And Sale + Cash From Discontinued Investing + Cash From Other Investing + 0 + 0 + 0 = -135

Rockwell Automation Inc Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2016 was -91.3 (Dec. 2015 ) + -175.2 (Mar. 2016 ) + -39 (Jun. 2016 ) + -134.5 (Sep. 2016 ) = \$-440 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.

Rockwell Automation Inc's purchase of property, plant, equipment for the three months ended in Sep. 2016 was \$-38 Mil. It means Rockwell Automation Inc spent \$38 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.

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

Rockwell Automation Inc's purchase of business for the three months ended in Sep. 2016 was \$-118 Mil. It means Rockwell Automation Inc spent \$118 Mil on purchasing business.

Rockwell Automation Inc's sale of business for the three months ended in Sep. 2016 was \$0 Mil. It means Rockwell Automation Inc gained \$0 Mil from selling business.

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

Rockwell Automation Inc's purchase of investment for the three months ended in Sep. 2016 was \$-269 Mil. It means Rockwell Automation Inc spent \$269 Mil on purchasing investments.

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

Rockwell Automation Inc's sale of investment for the three months ended in Sep. 2016 was \$290 Mil. It means Rockwell Automation Inc gained \$290 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.

Rockwell Automation Inc's net Intangibles purchase and sale for the three months ended in Sep. 2016 was \$0 Mil. It means Rockwell Automation 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.

Rockwell Automation Inc's cash from discontinued investing activities for the three months ended in Sep. 2016 was \$0 Mil. It means Rockwell Automation 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.

Rockwell Automation Inc's cash from other investing activities for the three months ended in Sep. 2016 was \$0 Mil. It means Rockwell Automation 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.

Rockwell Automation Inc Annual Data

 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 PurchaseOfPPE -131 -151 -98 -99 -120 -140 -146 -141 -123 -117 SaleOfPPE 1,751 8 4 10 5 3 1 0 2 0 PurchaseOfBusiness 0 -111 -31 0 -46 -16 -85 -82 -21 -139 SaleOfBusiness 0 0 0 0 0 0 0 0 0 0 PurchaseOfInvestment 0 0 -13 0 0 -488 -372 -706 -868 -1,071 SaleOfInvestment 35 36 5 0 0 138 350 448 763 886 NetIntangiblesPurchaseAndSale 0 0 0 0 0 0 0 0 0 0 CashFromDiscontinuedInvestingActivities -7 0 0 0 0 0 0 0 0 0 CashFromOtherInvestingActivities -255 -3 -0 0 -0 -0 -4 -3 0 0 Cash Flow from Investing 1,392 -221 -132 -89 -161 -503 -257 -483 -247 -440

Rockwell Automation Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 PurchaseOfPPE -38 -45 -40 -18 -25 -40 -40 -12 -27 -38 SaleOfPPE 0 0 0 0 2 0 0 0 0 0 PurchaseOfBusiness 0 0 -21 0 0 0 0 -21 -0 -118 SaleOfBusiness 0 0 0 0 0 0 0 0 0 0 PurchaseOfInvestment -176 -219 -172 -166 -133 -397 -312 -278 -211 -269 SaleOfInvestment 88 163 176 148 178 261 261 137 199 290 NetIntangiblesPurchaseAndSale 0 0 0 0 0 0 0 0 0 0 CashFromDiscontinuedInvestingActivities 0 0 0 0 0 0 0 0 0 0 CashFromOtherInvestingActivities 0 0 0 0 0 0 -0 0 0 0 Cash Flow from Investing -127 -101 -57 -36 22 -176 -91 -175 -39 -135
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