Switch to:
Molson Coors Brewing Co (NYSE:TAP)
Cash Flow from Investing
$-178 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, Molson Coors Brewing Co spent $67 Mil on purchasing property, plant, equipment. It gained $11 Mil from selling property, plant, and equipment. It spent $443 Mil on purchasing business. It gained $365 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 received $6 Mil from other investing activities. In all, Molson Coors Brewing Co spent $128 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.

Molson Coors Brewing Co's Cash Flow from Investing for the fiscal year that ended in Dec. 2015 is calculated as:

Molson Coors Brewing Co's Cash Flow from Investing for the quarter that ended in Sep. 2016 is calculated as:

Molson Coors Brewing Co Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2016 was 10.7 (Dec. 2015 ) + -205.5 (Mar. 2016 ) + 144.9 (Jun. 2016 ) + -128.3 (Sep. 2016 ) = $-178 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.

Molson Coors Brewing Co's purchase of property, plant, equipment for the three months ended in Sep. 2016 was $-67 Mil. It means Molson Coors Brewing Co spent $67 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.

Molson Coors Brewing Co's sale of property, plant, equipment for the three months ended in Sep. 2016 was $11 Mil. It means Molson Coors Brewing Co gained $11 Mil from selling property, plant, and equipment.

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

Molson Coors Brewing Co's purchase of business for the three months ended in Sep. 2016 was $-443 Mil. It means Molson Coors Brewing Co spent $443 Mil on purchasing business.

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

Molson Coors Brewing Co's sale of business for the three months ended in Sep. 2016 was $365 Mil. It means Molson Coors Brewing Co gained $365 Mil from selling business.

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

Molson Coors Brewing Co's purchase of investment for the three months ended in Sep. 2016 was $0 Mil. It means Molson Coors Brewing Co spent $0 Mil on purchasing investments.

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

Molson Coors Brewing Co's sale of investment for the three months ended in Sep. 2016 was $0 Mil. It means Molson Coors Brewing Co 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.

Molson Coors Brewing Co's net Intangibles purchase and sale for the three months ended in Sep. 2016 was $0 Mil. It means Molson Coors Brewing Co 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.

Molson Coors Brewing Co's cash from discontinued investing activities for the three months ended in Sep. 2016 was $0 Mil. It means Molson Coors Brewing Co 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.

Molson Coors Brewing Co's cash from other investing activities for the three months ended in Sep. 2016 was $6 Mil. It means Molson Coors Brewing Co received $6 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 local exchange's currency.

Molson Coors Brewing Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
PurchaseOfPPE -446-428-231-159-178-235-222-294-260-275
SaleOfPPE 29800551654912
PurchaseOfBusiness 0-27-91-582-1,187-925-3,267-1,187-1,388-1,534
SaleOfBusiness 2938395061,0607839421,1461,3831,450
PurchaseOfInvestment -28-33-32-2600-111000
SaleOfInvestment 3432263235150000
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 80000000000
CashFromOtherInvestingActivities 8-30190-319741713
Cash Flow from Investing -295-439-270-228-267-338-2,635-277-239-335

Molson Coors Brewing Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
PurchaseOfPPE -61-69-64-74-66-69-67-71-51-67
SaleOfPPE 2233513214211
PurchaseOfBusiness -410-336-288-424-385-427-298-414-397-443
SaleOfBusiness 432362329310383404353283448365
PurchaseOfInvestment 0000000000
SaleOfInvestment 0000000000
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 15-219-9-1220-726
Cash Flow from Investing -21-44-2-193-65-8711-206145-128
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK