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TIBCO Software Inc (NAS:TIBX)
Cash Flow from Investing
\$-356 Mil (TTM As of Aug. 2014)

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 Aug. 2014, TIBCO Software Inc spent \$8 Mil on purchasing property, plant, equipment. It gained \$0 Mil from selling property, plant, and equipment. It spent \$-1 Mil on purchasing business. It gained \$0 Mil from selling business. It spent \$15 Mil on purchasing investments. It gained \$9 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, TIBCO Software Inc spent \$12 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Aug. 2014.

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.

TIBCO Software Inc's Cash Flow from Investing for the fiscal year that ended in Nov. 2013 is calculated as:

 Cash Flow from Investing (A: Nov. 2013 ) = Purchase of PPE + Sale of PPE + Purchase of Business = -19.269 + 0 + -74.898 + Sale of Business + Purchase of Investment + Sale of Investment + 0 + -70.786 + 22.657 + Net Intangibles Purchase And Sale + Cash From Discontinued Investing + Cash From Other Investing + 0 + 0 + -1.377 = -144

TIBCO Software Inc's Cash Flow from Investing for the quarter that ended in Aug. 2014 is calculated as:

 Cash Flow from Investing (Q: Aug. 2014 ) = Purchase of PPE + Sale of PPE + Purchase of Business = -7.795 + 0 + 1.413 + Sale of Business + Purchase of Investment + Sale of Investment + 0 + -14.732 + 9.145 + Net Intangibles Purchase And Sale + Cash From Discontinued Investing + Cash From Other Investing + 0 + 0 + -0.003 = -12

TIBCO Software Inc Cash Flow from Investing for the trailing twelve months (TTM) ended in Aug. 2014 was -55.099 (Nov. 2013 ) + -156.468 (Feb. 2014 ) + -132.108 (May. 2014 ) + -11.972 (Aug. 2014 ) = \$-356 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.

TIBCO Software Inc's purchase of property, plant, equipment for the three months ended in Aug. 2014 was \$-8 Mil. It means TIBCO Software Inc spent \$8 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.

TIBCO Software Inc's sale of property, plant, equipment for the three months ended in Aug. 2014 was \$0 Mil. It means TIBCO Software Inc gained \$0 Mil from selling property, plant, and equipment.

TIBCO Software Inc's purchase of business for the three months ended in Aug. 2014 was \$1 Mil. It means TIBCO Software Inc spent \$-1 Mil on purchasing business.

TIBCO Software Inc's sale of business for the three months ended in Aug. 2014 was \$0 Mil. It means TIBCO Software Inc gained \$0 Mil from selling business.

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

TIBCO Software Inc's purchase of investment for the three months ended in Aug. 2014 was \$-15 Mil. It means TIBCO Software Inc spent \$15 Mil on purchasing investments.

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

TIBCO Software Inc's sale of investment for the three months ended in Aug. 2014 was \$9 Mil. It means TIBCO Software Inc gained \$9 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.

TIBCO Software Inc's net Intangibles purchase and sale for the three months ended in Aug. 2014 was \$0 Mil. It means TIBCO Software Inc 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.

TIBCO Software Inc's cash from discontinued investing activities for the three months ended in Aug. 2014 was \$0 Mil. It means TIBCO Software 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.

TIBCO Software Inc's cash from other investing activities for the three months ended in Aug. 2014 was \$-0 Mil. It means TIBCO Software Inc 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 own currency.

TIBCO Software Inc Annual Data

 Nov04 Nov05 Nov06 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 PurchaseOfPPE -7 -15 -13 -13 -9 -5 -6 -14 -24 -19 SaleOfPPE 0 0 0 0 0 0 0 0 0 0 PurchaseOfBusiness 0 0 0 0 0 -27 -79 -64 -132 -75 SaleOfBusiness 0 0 0 0 0 0 0 0 0 0 PurchaseOfInvestment -531 -232 -408 -141 -37 -3 -1 -3 -41 -71 SaleOfInvestment 757 255 279 451 124 13 1 1 7 23 NetIntangiblesPurchaseAndSale 0 0 0 0 0 0 0 0 0 0 CashFromDiscontinuedInvestingActivities 0 0 0 0 0 0 0 0 0 0 CashFromOtherInvestingActivities -110 -25 -2 -183 -19 -0 -5 0 -1 -1 Cash Flow from Investing 108 -17 -143 115 59 -23 -91 -79 -191 -144

TIBCO Software Inc Quarterly Data

 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 PurchaseOfPPE -5 -5 -7 -3 -3 -5 -9 -7 -8 -8 SaleOfPPE 0 0 0 0 0 0 0 0 0 0 PurchaseOfBusiness -132 -1 0 0 -4 -50 -21 0 -183 1 SaleOfBusiness 0 0 0 2 0 0 0 0 0 0 PurchaseOfInvestment -1 -0 -40 -0 -38 0 -33 -166 -27 -15 SaleOfInvestment 0 0 0 0 9 7 7 16 85 9 NetIntangiblesPurchaseAndSale 0 0 0 0 0 0 0 0 0 0 CashFromDiscontinuedInvestingActivities 0 0 0 0 0 0 0 0 0 0 CashFromOtherInvestingActivities 1 -0 6 0 -3 -1 -0 1 1 -0 Cash Flow from Investing -136 -6 -42 -1 -39 -49 -55 -156 -132 -12
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