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Total SA (NYSE:TOT)
Cash Flow from Investing
$-24,319 Mil (TTM As of Dec. 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 Dec. 2014, Total SA spent $7,339 Mil on purchasing property, plant, equipment. It gained $874 Mil from selling property, plant, and equipment. It spent $56 Mil on purchasing business. It gained $136 Mil from selling business. It spent $192 Mil on purchasing investments. It gained $259 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 $145 Mil for other investing activities. In all, Total SA spent $6,463 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Dec. 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.

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 Dec. 2014 is calculated as:

Total SA Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2014 was -4025 (Mar. 2014 ) + -8092 (Jun. 2014 ) + -5739 (Sep. 2014 ) + -6463 (Dec. 2014 ) = $-24,319 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 Dec. 2014 was $-7,339 Mil. It means Total SA spent $7,339 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 Dec. 2014 was $874 Mil. It means Total SA gained $874 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 Dec. 2014 was $-56 Mil. It means Total SA spent $56 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 Dec. 2014 was $136 Mil. It means Total SA gained $136 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 Dec. 2014 was $-192 Mil. It means Total SA spent $192 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 Dec. 2014 was $259 Mil. It means Total SA gained $259 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 Dec. 2014 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 Dec. 2014 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 Dec. 2014 was $-145 Mil. It means Total SA paid $145 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 3375450002,0401,8651,8221,7663,442
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 00-14,551-16,331-16,779-16,329-21,400000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities -2,261-49415,38016,51216,97717,47822,531-853-1,257-1,229
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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
PurchaseOfPPE -5,826-7,985-6,489-6,836-6,801-9,830-5,448-6,800-6,733-7,339
SaleOfPPE 35463701,10656361,0201351,413874
PurchaseOfBusiness -9612-210000-414-1-56
SaleOfBusiness 141902642,36921000136
PurchaseOfInvestment -1,072-784-770-256-268-462-156-434-167-192
SaleOfInvestment 1,4731080232328445666291259
NetIntangiblesPurchaseAndSale 00-5,93500-9,5720000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 2839056,124-10-2339,146103-645-542-145
Cash Flow from Investing -4,882-6,688-7,091-5,709-4,854-10,378-4,025-8,092-5,739-6,463
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