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Total SA (NYSE:TOT)
Cash Flow from Investing
$-22,615 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, Total SA spent $5,266 Mil on purchasing property, plant, equipment. It gained $6 Mil from selling property, plant, and equipment. It spent $76 Mil on purchasing business. It gained $289 Mil from selling business. It spent $175 Mil on purchasing investments. It gained $100 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 $508 Mil for other investing activities. In all, Total SA spent $5,630 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.

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

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

Total SA Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2015 was -6463 (Dec. 2014 ) + -5825 (Mar. 2015 ) + -4697 (Jun. 2015 ) + -5630 (Sep. 2015 ) = $-22,615 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.

Total SA's purchase of property, plant, equipment for the three months ended in Sep. 2015 was $-5,266 Mil. It means Total SA spent $5,266 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.

Total SA's sale of property, plant, equipment for the three months ended in Sep. 2015 was $6 Mil. It means Total SA gained $6 Mil from selling property, plant, and equipment.

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

Total SA's purchase of business for the three months ended in Sep. 2015 was $-76 Mil. It means Total SA spent $76 Mil on purchasing business.

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

Total SA's sale of business for the three months ended in Sep. 2015 was $289 Mil. It means Total SA gained $289 Mil from selling business.

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

Total SA's purchase of investment for the three months ended in Sep. 2015 was $-175 Mil. It means Total SA spent $175 Mil on purchasing investments.

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

Total SA's sale of investment for the three months ended in Sep. 2015 was $100 Mil. It means Total SA gained $100 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.

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

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

Total SA's cash from other investing activities for the three months ended in Sep. 2015 was $-508 Mil. It means Total SA paid $508 Mil for 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.

Total SA Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
PurchaseOfPPE -10,038-13,079-15,380-16,512-16,977-18,369-23,265-25,574-29,748-26,320
SaleOfPPE 3375450002,04001,8221,7663,442
PurchaseOfBusiness 00-541-1,357-802-1,146-1,107-245-21-471
SaleOfBusiness 00712304127454522,654136
PurchaseOfInvestment 0-531-1,169-1,119-1,347-2,127-7,436-1,152-1,756-949
SaleOfInvestment 09231,4323,2954,2172,1397,3763,6183301,072
NetIntangiblesPurchaseAndSale 00-14,551-16,331-16,7790-21,400000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities -2,261-49415,38016,51216,9771,14924,396-853-1,257-1,229
Cash Flow from Investing -11,962-12,636-14,822-15,390-14,711-15,902-20,690-21,932-28,032-24,319

Total SA Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
PurchaseOfPPE -6,836-6,801-9,622-5,448-6,800-6,733-7,339-7,956-5,991-5,266
SaleOfPPE 1,10656501,0201351,4138749592216
PurchaseOfBusiness 0000-414-1-56-7-3-76
SaleOfBusiness 2642,3692100001,758403289
PurchaseOfInvestment -256-268-462-156-434-167-192-53-205-175
SaleOfInvestment 23232844566629125922109100
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities -10-233-649103-645-542-9-548769-508
Cash Flow from Investing -5,709-4,854-10,378-4,025-8,092-5,739-6,463-5,825-4,697-5,630
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