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Sears Holdings Corp (NAS:SHLD)
Cash Flow from Investing
\$66 Mil (TTM As of Jul. 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 Jul. 2016, Sears Holdings Corp spent \$35 Mil on purchasing property, plant, equipment. It gained \$176 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 \$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, Sears Holdings Corp gained \$141 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Jul. 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.

Sears Holdings Corp's Cash Flow from Investing for the fiscal year that ended in Jan. 2016 is calculated as:

 Cash Flow from Investing (A: Jan. 2016 ) = Purchase of PPE + Sale of PPE + Purchase of Business = -211 + 2730 + 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 + 0 + 0 + 0 = 2,519

Sears Holdings Corp's Cash Flow from Investing for the quarter that ended in Jul. 2016 is calculated as:

 Cash Flow from Investing (Q: Jul. 2016 ) = Purchase of PPE + Sale of PPE + Purchase of Business = -35 + 176 + 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 + 0 + 0 + 0 = 141

Sears Holdings Corp Cash Flow from Investing for the trailing twelve months (TTM) ended in Jul. 2016 was -36 (Oct. 2015 ) + -37 (Jan. 2016 ) + -2 (Apr. 2016 ) + 141 (Jul. 2016 ) = \$66 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.

Sears Holdings Corp's purchase of property, plant, equipment for the three months ended in Jul. 2016 was \$-35 Mil. It means Sears Holdings Corp spent \$35 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.

Sears Holdings Corp's sale of property, plant, equipment for the three months ended in Jul. 2016 was \$176 Mil. It means Sears Holdings Corp gained \$176 Mil from selling property, plant, and equipment.

Sears Holdings Corp's purchase of business for the three months ended in Jul. 2016 was \$0 Mil. It means Sears Holdings Corp spent \$0 Mil on purchasing business.

Sears Holdings Corp's sale of business for the three months ended in Jul. 2016 was \$0 Mil. It means Sears Holdings Corp gained \$0 Mil from selling business.

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

Sears Holdings Corp's purchase of investment for the three months ended in Jul. 2016 was \$0 Mil. It means Sears Holdings Corp spent \$0 Mil on purchasing investments.

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

Sears Holdings Corp's sale of investment for the three months ended in Jul. 2016 was \$0 Mil. It means Sears Holdings Corp 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.

Sears Holdings Corp's net Intangibles purchase and sale for the three months ended in Jul. 2016 was \$0 Mil. It means Sears Holdings 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.

Sears Holdings Corp's cash from discontinued investing activities for the three months ended in Jul. 2016 was \$0 Mil. It means Sears Holdings 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.

Sears Holdings Corp's cash from other investing activities for the three months ended in Jul. 2016 was \$0 Mil. It means Sears Holdings Corp paid \$0 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.

Sears Holdings Corp Annual Data

 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 PurchaseOfPPE -508 -570 -497 -361 -426 -432 -378 -329 -270 -211 SaleOfPPE 141 95 86 23 35 72 532 995 424 2,730 PurchaseOfBusiness 0 0 -37 0 0 0 0 0 0 0 SaleOfBusiness 0 0 0 0 0 0 0 0 0 0 PurchaseOfInvestment 0 -30 0 0 0 0 0 0 0 0 SaleOfInvestment 0 0 -189 166 0 0 0 0 0 0 NetIntangiblesPurchaseAndSale 0 0 0 0 0 0 0 0 380 0 CashFromDiscontinuedInvestingActivities 0 0 0 0 -15 43 0 0 0 0 CashFromOtherInvestingActivities -293 68 0 0 0 8 37 -2 -207 0 Cash Flow from Investing -660 -437 -637 -172 -406 -309 191 664 327 2,519

Sears Holdings Corp Quarterly Data

 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 PurchaseOfPPE -72 -54 -76 -68 -44 -42 -66 -59 -40 -35 SaleOfPPE 79 85 152 108 108 2,570 30 22 38 176 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 0 0 0 0 0 0 0 0 0 0 CashFromDiscontinuedInvestingActivities 0 0 0 0 0 0 0 0 0 0 CashFromOtherInvestingActivities 0 0 -38 211 0 0 0 0 0 0 Cash Flow from Investing 7 31 38 251 64 2,528 -36 -37 -2 141
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