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Total SA (NYSE:TOT)
Cash Flow from Investing
\$-17,022 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, Total SA spent \$4,124 Mil on purchasing property, plant, equipment. It gained \$57 Mil from selling property, plant, and equipment. It spent \$1,119 Mil on purchasing business. It gained \$0 Mil from selling business. It spent \$0 Mil on purchasing investments. It gained \$34 Mil from selling investments. It paid \$4,124 Mil for net Intangibles purchase and sale. It paid \$0 Mil for discontinued investing activities. And it received \$4,267 Mil from other investing activities. In all, Total SA spent \$5,009 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.

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

 Cash Flow from Investing (A: Dec. 2014 ) = Purchase of PPE + Sale of PPE + Purchase of Business = -26320 + 3442 + -471 + Sale of Business + Purchase of Investment + Sale of Investment + 136 + -949 + 1072 + Net Intangibles Purchase And Sale + Cash From Discontinued Investing + Cash From Other Investing + -26320 + 0 + 25091 = -24,319

Total SA'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 = -4124 + 57 + -1119 + Sale of Business + Purchase of Investment + Sale of Investment + 0 + 0 + 34 + Net Intangibles Purchase And Sale + Cash From Discontinued Investing + Cash From Other Investing + -4124 + 0 + 4267 = -5,009

Total SA Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2016 was -4297 (Dec. 2015 ) + -3923 (Mar. 2016 ) + -3793 (Jun. 2016 ) + -5009 (Sep. 2016 ) = \$-17,022 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.

Total SA's purchase of property, plant, equipment for the three months ended in Sep. 2016 was \$-4,124 Mil. It means Total SA spent \$4,124 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. 2016 was \$57 Mil. It means Total SA gained \$57 Mil from selling property, plant, and equipment.

Total SA's purchase of business for the three months ended in Sep. 2016 was \$-1,119 Mil. It means Total SA spent \$1,119 Mil on purchasing business.

Total SA's sale of business for the three months ended in Sep. 2016 was \$0 Mil. It means Total SA gained \$0 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. 2016 was \$0 Mil. It means Total SA spent \$0 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. 2016 was \$34 Mil. It means Total SA gained \$34 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. 2016 was \$-4,124 Mil. It means Total SA paid \$4,124 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. 2016 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. 2016 was \$4,267 Mil. It means Total SA received \$4,267 Mil from 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.

Total SA Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 PurchaseOfPPE -13,079 -15,405 -16,512 -16,977 -18,369 -23,265 -25,574 -29,748 -26,320 -25,132 SaleOfPPE 545 831 0 0 2,040 1,865 1,822 1,766 3,442 2,623 PurchaseOfBusiness 0 -541 -1,357 -802 -1,146 -1,107 -245 -21 -471 -128 SaleOfBusiness 0 7 123 0 412 745 452 2,654 136 2,508 PurchaseOfInvestment -531 -1,169 -1,119 -1,347 -2,127 -7,436 -1,152 -1,756 -949 -513 SaleOfInvestment 923 1,432 3,295 4,217 2,139 7,376 3,618 330 1,072 837 NetIntangiblesPurchaseAndSale 0 -14,551 -16,331 -16,779 -16,329 -21,400 0 -29,748 -26,320 -25,132 CashFromDiscontinuedInvestingActivities 0 0 0 0 0 0 0 0 0 0 CashFromOtherInvestingActivities -494 14,574 16,512 16,977 17,478 22,531 -853 28,491 25,091 24,488 Cash Flow from Investing -12,636 -14,822 -15,390 -14,711 -15,902 -20,690 -21,932 -28,032 -24,319 -20,449

Total SA Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 PurchaseOfPPE -6,800 -6,733 -7,339 -7,956 -5,991 -5,266 -5,919 -4,146 -4,094 -4,124 SaleOfPPE 135 1,413 874 959 221 6 1,437 792 200 57 PurchaseOfBusiness -414 -1 -56 -7 -3 -76 -42 -133 11 -1,119 SaleOfBusiness 0 0 0 1,758 403 289 58 0 270 0 PurchaseOfInvestment -434 -167 -192 -53 -205 -175 -80 -57 -226 0 SaleOfInvestment 66 291 259 22 109 100 606 93 2 34 NetIntangiblesPurchaseAndSale 0 -6,733 -7,339 -7,956 -5,991 -5,266 -5,919 -4,146 -4,094 -4,124 CashFromDiscontinuedInvestingActivities 0 0 0 0 0 0 0 0 0 0 CashFromOtherInvestingActivities -645 6,191 7,330 7,408 6,760 4,758 5,562 3,674 4,138 4,267 Cash Flow from Investing -8,092 -5,739 -6,463 -5,825 -4,697 -5,630 -4,297 -3,923 -3,793 -5,009
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