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Illumina Inc (NAS:ILMN)
Cash Flow from Operations
\$647 Mil (TTM As of Sep. 2016)

Cash flow from operations refers to the cash brought in through a company's normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

For the three months ended in Sep. 2016, Illumina Inc's Net Income From Continuing Operations was \$117 Mil. Its DDA was \$36 Mil. Its Change In Working Capital was \$-50 Mil. Its cash flow from deferred tax was \$30 Mil. Its Cash Flow from Discontinued Operations was \$0 Mil. Its Stock Based Compensation was \$35 Mil. And its Cash Flow from Others was \$-17 Mil. In all, Illumina Inc's Cash Flow from Operations for the three months ended in Sep. 2016 was \$150 Mil.

Definition

Cash flow from operations refers to the cash brought in through a company's normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

Illumina Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

 Cash Flow from Operations (A: Dec. 2014 ) = Net Income From Continuing Operations + DDA + Change In Working Capital + Deferred Tax = 353.351 + 112.574 + -56.473 + 99.846 + Cash Flow from Discontinued Operations + Stock Based Compensation + Cash Flow from Others + 0 + 152.55 + -160.577 = 501

Illumina Inc's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

 Cash Flow from Operations (Q: Sep. 2016 ) = Net Income From Continuing Operations + DDA + Change In Working Capital + Deferred Tax = 116.935 + 35.912 + -50.218 + 29.71 + Cash Flow from Discontinued Operations + Stock Based Compensation + Cash Flow from Others + 0 + 34.58 + -16.619 = 150

Illumina Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 240.378 (Dec. 2015 ) + 39.738 (Mar. 2016 ) + 217.047 (Jun. 2016 ) + 150.3 (Sep. 2016 ) = \$647 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 operations contains six items:

1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.

Illumina Inc's net income from continuing operations for the three months ended in Sep. 2016 was \$117 Mil.

2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
 The term depreciation is used when discussing man made tangible assets
 The term depletion is used when discussing natural tangible assets
 The term amortization is used when discussing intangible assets

Illumina Inc's depreciation, depletion and amortization for the three months ended in Sep. 2016 was \$36 Mil.

3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.

Illumina Inc's change in working capital for the three months ended in Sep. 2016 was \$-50 Mil. It means Illumina Inc's working capital declined by \$50 Mil from Jun. 2016 to Sep. 2016 .

4. Deferred Tax:
It is the cash flow generated from deferred tax.

Illumina Inc's cash flow from deferred tax for the three months ended in Sep. 2016 was \$30 Mil.

5. Cash Flow from Discontinued Operations:
Cash received by a company that comes from the sale of part of business.

Illumina Inc's cash flow from discontinued operations for the three months ended in Sep. 2016 was \$0 Mil.

6. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.

Illumina Inc's stock based compensation for the three months ended in Sep. 2016 was \$35 Mil.

7. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).

Illumina Inc's cash flow from others for the three months ended in Sep. 2016 was \$-17 Mil.

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.

Illumina Inc Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 NetIncomeFromContinuingOperations 40 -278 50 72 125 87 151 125 353 457 CF_DDA 6 16 28 31 42 68 64 98 113 126 ChangeInWorkingCapital -19 13 -88 -11 -2 37 -18 153 -56 -38 CF_DeferredTax -1 -11 32 30 49 19 -22 -37 100 81 Cash Flow from Disc. Op. 0 0 0 0 0 0 0 0 0 0 Stock Based Compensation 0 0 48 61 72 92 94 106 153 133 Cash Flow from Others 13 317 19 -8 -13 55 22 -59 -161 -99 Cash Flow from Operations 39 56 88 174 273 358 292 386 501 660

Illumina Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 NetIncomeFromContinuingOperations 47 93 153 137 102 116 103 87 116 117 CF_DDA 28 27 30 30 31 33 33 33 34 36 ChangeInWorkingCapital 54 -4 -30 -98 -7 2 64 -57 14 -50 CF_DeferredTax -2 -1 69 53 27 3 -3 -6 34 30 Cash Flow from Disc. Op. 0 0 0 0 0 0 0 0 0 0 Stock Based Compensation 36 45 38 32 33 32 35 35 32 35 Cash Flow from Others 16 -14 -121 -87 -15 -5 9 -52 -13 -17 Cash Flow from Operations 178 146 141 67 171 181 240 40 217 150
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