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Ulta Salon Cosmetics & Fragrance Inc (NAS:ULTA)
Cash Flow from Investing
$-279 Mil (TTM As of Jan. 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 Jan. 2016, Ulta Salon Cosmetics & Fragrance Inc spent $67 Mil on purchasing property, plant, equipment. It gained $0 Mil from selling property, plant, and equipment. It spent $0 Mil on purchasing business. It gained $0 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 $20 Mil from other investing activities. In all, Ulta Salon Cosmetics & Fragrance Inc spent $47 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Jan. 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.

Ulta Salon Cosmetics & Fragrance Inc's Cash Flow from Investing for the fiscal year that ended in Jan. 2016 is calculated as:

Ulta Salon Cosmetics & Fragrance Inc's Cash Flow from Investing for the quarter that ended in Jan. 2016 is calculated as:

Ulta Salon Cosmetics & Fragrance Inc Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2016 was -56.622 (Apr. 2015 ) + -80.596 (Jul. 2015 ) + -94.691 (Oct. 2015 ) + -47.049 (Jan. 2016 ) = $-279 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.

Ulta Salon Cosmetics & Fragrance Inc's purchase of property, plant, equipment for the three months ended in Jan. 2016 was $-67 Mil. It means Ulta Salon Cosmetics & Fragrance Inc 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.

Ulta Salon Cosmetics & Fragrance Inc's sale of property, plant, equipment for the three months ended in Jan. 2016 was $0 Mil. It means Ulta Salon Cosmetics & Fragrance Inc gained $0 Mil from selling property, plant, and equipment.

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

Ulta Salon Cosmetics & Fragrance Inc's purchase of business for the three months ended in Jan. 2016 was $0 Mil. It means Ulta Salon Cosmetics & Fragrance Inc spent $0 Mil on purchasing business.

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

Ulta Salon Cosmetics & Fragrance Inc's sale of business for the three months ended in Jan. 2016 was $0 Mil. It means Ulta Salon Cosmetics & Fragrance Inc gained $0 Mil from selling business.

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

Ulta Salon Cosmetics & Fragrance Inc's purchase of investment for the three months ended in Jan. 2016 was $0 Mil. It means Ulta Salon Cosmetics & Fragrance Inc spent $0 Mil on purchasing investments.

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

Ulta Salon Cosmetics & Fragrance Inc's sale of investment for the three months ended in Jan. 2016 was $0 Mil. It means Ulta Salon Cosmetics & Fragrance Inc 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.

Ulta Salon Cosmetics & Fragrance Inc's net Intangibles purchase and sale for the three months ended in Jan. 2016 was $0 Mil. It means Ulta Salon Cosmetics & Fragrance 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.

Ulta Salon Cosmetics & Fragrance Inc's cash from discontinued investing activities for the three months ended in Jan. 2016 was $0 Mil. It means Ulta Salon Cosmetics & Fragrance 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.

Ulta Salon Cosmetics & Fragrance Inc's cash from other investing activities for the three months ended in Jan. 2016 was $20 Mil. It means Ulta Salon Cosmetics & Fragrance Inc received $20 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 own currency.

Ulta Salon Cosmetics & Fragrance Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
PurchaseOfPPE -62-102-111-68-97-129-189-226-249-299
SaleOfPPE 0000000000
PurchaseOfBusiness 0000000000
SaleOfBusiness 0000000000
PurchaseOfInvestment 00000000-200-130
SaleOfInvestment 0000000050150
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities -240000000-0
Cash Flow from Investing -65-97-111-68-97-129-189-226-399-279

Ulta Salon Cosmetics & Fragrance Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
PurchaseOfPPE -79-49-39-55-78-77-57-81-95-67
SaleOfPPE 0000000000
PurchaseOfBusiness 0000000000
SaleOfBusiness 0000000000
PurchaseOfInvestment 0000000000
SaleOfInvestment 0000000000
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 000-1000-5000020
Cash Flow from Investing -79-49-39-155-78-127-57-81-95-47
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