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Intel Corp (NAS:INTC)
Cash Flow from Investing
$-12,815 Mil (TTM As of Sep. 2015)

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. 2015, Intel Corp spent $1,206 Mil on purchasing property, plant, equipment. It gained $0 Mil from selling property, plant, and equipment. It spent $14 Mil on purchasing business. It gained $0 Mil from selling business. It spent $12,775 Mil on purchasing investments. It gained $4,251 Mil from selling investments. It paid $0 Mil for net Intangibles purchase and sale. It paid $0 Mil for discontinued investing activities. And it received $577 Mil from other investing activities. In all, Intel Corp spent $9,167 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Sep. 2015.


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.

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

Intel Corp's Cash Flow from Investing for the quarter that ended in Sep. 2015 is calculated as:

Intel Corp Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2015 was -1904 (Dec. 2014 ) + -449 (Mar. 2015 ) + -1295 (Jun. 2015 ) + -9167 (Sep. 2015 ) = $-12,815 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.

Intel Corp's purchase of property, plant, equipment for the three months ended in Sep. 2015 was $-1,206 Mil. It means Intel Corp spent $1,206 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.

Intel Corp's sale of property, plant, equipment for the three months ended in Sep. 2015 was $0 Mil. It means Intel Corp gained $0 Mil from selling property, plant, and equipment.

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

Intel Corp's purchase of business for the three months ended in Sep. 2015 was $-14 Mil. It means Intel Corp spent $14 Mil on purchasing business.

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

Intel Corp's sale of business for the three months ended in Sep. 2015 was $0 Mil. It means Intel Corp gained $0 Mil from selling business.

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

Intel Corp's purchase of investment for the three months ended in Sep. 2015 was $-12,775 Mil. It means Intel Corp spent $12,775 Mil on purchasing investments.

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

Intel Corp's sale of investment for the three months ended in Sep. 2015 was $4,251 Mil. It means Intel Corp gained $4,251 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.

Intel Corp's net Intangibles purchase and sale for the three months ended in Sep. 2015 was $0 Mil. It means Intel 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.

Intel Corp's cash from discontinued investing activities for the three months ended in Sep. 2015 was $0 Mil. It means Intel 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.

Intel Corp's cash from other investing activities for the three months ended in Sep. 2015 was $577 Mil. It means Intel Corp received $577 Mil from 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.

Intel Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
PurchaseOfPPE -5,779-5,000-5,197-4,515-5,207-10,764-11,027-10,711-10,1050
SaleOfPPE 0000000000
PurchaseOfBusiness 00-16-853-218-8,721-638-925-9340
SaleOfBusiness 008500500000
PurchaseOfInvestment -6,994-13,187-8,170-13,091-27,012-23,237-9,169-29,651-22,7810
SaleOfInvestment 7,1478,0118,30910,74822,17832,1398,25622,94723,3360
NetIntangiblesPurchaseAndSale 000000-815-36-920
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 719250-876-254-280232-6673036710
Cash Flow from Investing -4,907-9,926-5,865-7,965-10,539-10,301-14,060-18,073-9,9050

Intel Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
PurchaseOfPPE -2,866-2,948-2,689-2,828-2,445-2,143-2,025-1,767-1,2060
SaleOfPPE 0000000000
PurchaseOfBusiness -498-43-108-29-56-741-57-467-140
SaleOfBusiness 0000000000
PurchaseOfInvestment -6,336-6,252-5,878-7,175-4,851-4,877-2,892-4,212-12,7750
SaleOfInvestment 6,0235,6075,7805,7286,2155,6134,5204,8874,2510
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 354-2851463815124452645770
Cash Flow from Investing -3,323-3,921-2,749-4,266-986-1,904-449-1,295-9,1670
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