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Marriott International Inc (NAS:MAR)
Cash Flow from Investing
\$-2,493 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, Marriott International Inc spent \$72 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 \$0 Mil on purchasing investments. It gained \$0 Mil from selling investments. It paid \$18 Mil for net Intangibles purchase and sale. It paid \$0 Mil for discontinued investing activities. And it paid \$2,325 Mil for other investing activities. In all, Marriott International Inc spent \$2,415 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.

Marriott International Inc's Cash Flow from Investing for the fiscal year that ended in Dec. 2015 is calculated as:

 Cash Flow from Investing (A: Dec. 2015 ) = Purchase of PPE + Sale of PPE + Purchase of Business = -426 + 673 + -137 + Sale of Business + Purchase of Investment + Sale of Investment + 0 + -7 + 0 + Net Intangibles Purchase And Sale + Cash From Discontinued Investing + Cash From Other Investing + -121 + 0 + 385 = 367

Marriott International 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 = -72 + 0 + 0 + Sale of Business + Purchase of Investment + Sale of Investment + 0 + 0 + 0 + Net Intangibles Purchase And Sale + Cash From Discontinued Investing + Cash From Other Investing + -18 + 0 + -2325 = -2,415

Marriott International Inc Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2016 was -6 (Dec. 2015 ) + -64 (Mar. 2016 ) + -8 (Jun. 2016 ) + -2415 (Sep. 2016 ) = \$-2,493 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.

Marriott International Inc's purchase of property, plant, equipment for the three months ended in Sep. 2016 was \$-72 Mil. It means Marriott International Inc spent \$72 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.

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

Marriott International Inc's purchase of business for the three months ended in Sep. 2016 was \$0 Mil. It means Marriott International Inc spent \$0 Mil on purchasing business.

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

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

Marriott International Inc's purchase of investment for the three months ended in Sep. 2016 was \$0 Mil. It means Marriott International Inc spent \$0 Mil on purchasing investments.

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

Marriott International Inc's sale of investment for the three months ended in Sep. 2016 was \$0 Mil. It means Marriott International Inc gained \$0 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.

Marriott International Inc's net Intangibles purchase and sale for the three months ended in Sep. 2016 was \$-18 Mil. It means Marriott International Inc paid \$18 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.

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

Marriott International Inc's cash from other investing activities for the three months ended in Sep. 2016 was \$-2,325 Mil. It means Marriott International Inc paid \$2,325 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.

Marriott International Inc Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 PurchaseOfPPE -529 -671 -357 -186 -363 -257 -498 -357 -476 -426 SaleOfPPE 798 745 38 0 0 0 65 0 435 673 PurchaseOfBusiness 0 0 0 0 0 0 -210 -112 -184 -137 SaleOfBusiness 0 0 38 2 114 20 65 0 0 0 PurchaseOfInvestment -122 -40 -25 -28 -53 -83 -15 -16 -6 -7 SaleOfInvestment 0 43 22 16 18 0 155 0 0 0 NetIntangiblesPurchaseAndSale 0 0 -133 -39 -56 -74 -61 -61 -65 -121 CashFromDiscontinuedInvestingActivities 0 0 0 0 0 0 0 0 0 0 CashFromOtherInvestingActivities -28 48 -66 166 76 147 -86 27 -17 385 Cash Flow from Investing 119 125 -483 -69 -264 -247 -585 -519 -313 367

Marriott International Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 PurchaseOfPPE -117 -130 -162 -136 -95 -76 -119 -63 -52 -72 SaleOfPPE 0 0 0 0 0 0 0 0 0 0 PurchaseOfBusiness 0 0 0 0 0 0 0 0 0 0 SaleOfBusiness 0 0 0 0 0 0 0 0 0 0 PurchaseOfInvestment 0 0 0 0 0 0 0 0 0 0 SaleOfInvestment 0 0 0 0 0 0 0 0 0 0 NetIntangiblesPurchaseAndSale -22 -19 -18 -61 -11 -17 -32 -21 -16 -18 CashFromDiscontinuedInvestingActivities 0 0 0 0 0 0 0 0 0 0 CashFromOtherInvestingActivities -86 28 171 175 480 114 145 20 60 -2,325 Cash Flow from Investing -225 -121 -9 -22 374 21 -6 -64 -8 -2,415
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