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Kellogg Co (NYSE:K)
Cash Flow from Operations
$1,536 Mil (TTM As of Mar. 2016)

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

For the three months ended in Mar. 2016, Kellogg Co's Net Income From Continuing Operations was $175 Mil. Its DDA was $115 Mil. Its Change In Working Capital was $-228 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $15 Mil. And its Cash Flow from Others was $-72 Mil. In all, Kellogg Co's Cash Flow from Operations for the three months ended in Mar. 2016 was $5 Mil.


Definition

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

Kellogg Co's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

Kellogg Co's Cash Flow from Operations for the quarter that ended in Mar. 2016 is

Kellogg Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 381 (Jun. 2015 ) + 401 (Sep. 2015 ) + 749 (Dec. 2015 ) + 5 (Mar. 2016 ) = $1,536 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Cash flow from operations contains six items:

1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.

Kellogg Co's net income from continuing operations for the three months ended in Mar. 2016 was $175 Mil.

2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
• The term “depreciation” is used when discussing man made tangible assets
• The term “depletion” is used when discussing natural tangible assets
• The term “amortization” is used when discussing intangible assets

Kellogg Co's depreciation, depletion and amortization for the three months ended in Mar. 2016 was $115 Mil.

3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.

Kellogg Co's change in working capital for the three months ended in Mar. 2016 was $-228 Mil. It means Kellogg Co's working capital declined by $228 Mil from Dec. 2015 to Mar. 2016 .

4. Deferred Tax:
It is the cash flow generated from deferred tax.

Kellogg Co's cash flow from deferred tax for the three months ended in Mar. 2016 was $0 Mil.

5. Cash Flow from Discontinued Operations:
Cash received by a company that comes from the sale of part of business.

Kellogg Co's cash flow from discontinued operations for the three months ended in Mar. 2016 was $0 Mil.

6. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.

Kellogg Co's stock based compensation for the three months ended in Mar. 2016 was $15 Mil.

7. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).

Kellogg Co's cash flow from others for the three months ended in Mar. 2016 was $-72 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, Stock Based Compensation, Cash Flow from Others, Cash Flow from Investing


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Kellogg Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 1,0041,1031,1481,2081,2808649611,808633614
CF_DDA 353372375384392369448532503534
ChangeInWorkingCapital -3910-81178-344127161251249267
CF_DeferredTax -44-69157-4026684-159317-254-169
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000343751
Cash Flow from Others 13687-332-87-586151347-1,135625394
Cash Flow from Operations 1,4111,5031,2671,6431,0081,5951,7581,8071,7931,691

Kellogg Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
NetIncomeFromContinuingOperations 819406295225-293227222205-40175
CF_DDA 192116119140128131138118147115
ChangeInWorkingCapital 176-25519227258-220-47135399-228
CF_DeferredTax 34445-27-16-256-2-9-50-1080
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000001000015
Cash Flow from Others -1,113-44-20-537791477-7351-72
Cash Flow from Operations 4182683865236161603814017495
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