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RR Donnelley & Sons Co (NAS:RRD)
Cash Flow from Operations
$723 Mil (TTM As of Dec. 2014)

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 Dec. 2014, RR Donnelley & Sons Co's Net Income From Continuing Operations was $24 Mil. Its DDA was $117 Mil. Its Change In Working Capital was $272 Mil. Its cash flow from deferred tax was $-54 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $4 Mil. And its Cash Flow from Others was $107 Mil. In all, RR Donnelley & Sons Co's Cash Flow from Operations for the three months ended in Dec. 2014 was $469 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.

RR Donnelley & Sons Co's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

RR Donnelley & Sons Co's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

RR Donnelley & Sons Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was -80.4 (Mar. 2014 ) + 150.1 (Jun. 2014 ) + 184.2 (Sep. 2014 ) + 468.8 (Dec. 2014 ) = $723 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.

RR Donnelley & Sons Co's net income from continuing operations for the three months ended in Dec. 2014 was $24 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

RR Donnelley & Sons Co's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $117 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.

RR Donnelley & Sons Co's change in working capital for the three months ended in Dec. 2014 was $272 Mil. It means RR Donnelley & Sons Co's working capital increased by $272 Mil from Sep. 2014 to Dec. 2014 .

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

RR Donnelley & Sons Co's cash flow from deferred tax for the three months ended in Dec. 2014 was $-54 Mil.

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

RR Donnelley & Sons Co's cash flow from discontinued operations for the three months ended in Dec. 2014 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.

RR Donnelley & Sons Co's stock based compensation for the three months ended in Dec. 2014 was $4 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).

RR Donnelley & Sons Co's cash flow from others for the three months ended in Dec. 2014 was $107 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, Stock Based Compensation, Cash Flow from Others, Cash Flow from Investing


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

RR Donnelley & Sons Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 137401-49-184-21217-121-654218121
CF_DDA 425463598641579539550482436474
ChangeInWorkingCapital -19-193-121-529672-12512019-135
CF_DeferredTax -1335-89-104-54-35-123-52-41-87
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 002822242928252018
Cash Flow from Others 4171988091,17222612749387175192
Cash Flow from Operations 9489041,1761,0181,426753946692695723

RR Donnelley & Sons Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 71-852256718108-33666524
CF_DDA 119117114111106105116122120117
ChangeInWorkingCapital 46314-268-3987208-232-382272
CF_DeferredTax -3-60-9-3-7-23-3-8-22-54
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 4747544644
Cash Flow from Others -77998381140-1569216107
Cash Flow from Operations 160523-96154249388-80150184469
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