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TJX Companies (NYSE:TJX)
Cash Flow from Investing
$-945 Mil (TTM As of Oct. 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 Oct. 2014, TJX Companies spent $281 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 $119 Mil on purchasing investments. It gained $117 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, TJX Companies spent $283 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Oct. 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.

TJX Companies's Cash Flow from Investing for the fiscal year that ended in Jan. 2014 is calculated as:

TJX Companies's Cash Flow from Investing for the quarter that ended in Oct. 2014 is calculated as:

TJX Companies Cash Flow from Investing for the trailing twelve months (TTM) ended in Oct. 2014 was -250.834 (Jan. 2014 ) + -155.06 (Apr. 2014 ) + -255.91 (Jul. 2014 ) + -282.851 (Oct. 2014 ) = $-945 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.

TJX Companies's purchase of property, plant, equipment for the three months ended in Oct. 2014 was $-281 Mil. It means TJX Companies spent $281 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.

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

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

TJX Companies's purchase of business for the three months ended in Oct. 2014 was $0 Mil. It means TJX Companies spent $0 Mil on purchasing business.

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

TJX Companies's sale of business for the three months ended in Oct. 2014 was $0 Mil. It means TJX Companies gained $0 Mil from selling business.

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

TJX Companies's purchase of investment for the three months ended in Oct. 2014 was $-119 Mil. It means TJX Companies spent $119 Mil on purchasing investments.

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

TJX Companies's sale of investment for the three months ended in Oct. 2014 was $117 Mil. It means TJX Companies gained $117 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.

TJX Companies's net Intangibles purchase and sale for the three months ended in Oct. 2014 was $0 Mil. It means TJX Companies 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.

TJX Companies's cash from discontinued investing activities for the three months ended in Oct. 2014 was $0 Mil. It means TJX Companies 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.

TJX Companies's cash from other investing activities for the three months ended in Oct. 2014 was $0 Mil. It means TJX Companies 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.

TJX Companies Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
PurchaseOfPPE -429-496-378-527-583-429-707-803-978-947
SaleOfPPE 01000000000
PurchaseOfBusiness 00000000-1900
SaleOfBusiness 0000000000
PurchaseOfInvestment 00000-279-120-152-356-478
SaleOfInvestment 00000153180133213387
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 111114-6-112343
Cash Flow from Investing -428-486-377-526-569-560-648-811-1,277-1,036

TJX Companies Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
PurchaseOfPPE -185-337-203-239-258-262-187-193-232-281
SaleOfPPE 0700000000
PurchaseOfBusiness 00-1900000000
SaleOfBusiness 0000000000
PurchaseOfInvestment -44-126-93-81-115-111-171-82-97-119
SaleOfInvestment 3910258751148910812073117
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 027030-00-000
Cash Flow from Investing -189-327-429-242-260-284-251-155-256-283
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