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Kellogg Co (NYSE:K)
Cash Flow from Operations
$1,793 Mil (TTM As of Dec. 2014)

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 Dec. 2014, Kellogg Co's Net Income From Continuing Operations was $-293 Mil. Its DDA was $128 Mil. Its Change In Working Capital was $258 Mil. Its cash flow from deferred tax was $-256 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $779 Mil. In all, Kellogg Co's Cash Flow from Operations for the three months ended in Dec. 2014 was $616 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. 2014 is calculated as:

Kellogg Co's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

Kellogg Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 268 (Mar. 2014 ) + 386 (Jun. 2014 ) + 523 (Sep. 2014 ) + 616 (Dec. 2014 ) = $1,793 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 Dec. 2014 was $-293 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 Dec. 2014 was $128 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 Dec. 2014 was $258 Mil. It means Kellogg Co's working capital increased by $258 Mil from Sep. 2014 to Dec. 2014 .

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 Dec. 2014 was $-256 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 Dec. 2014 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 Dec. 2014 was $0 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 Dec. 2014 was $779 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 9801,0041,1031,1461,2081,2808649611,808633
CF_DDA 392353372375384392369448532503
ChangeInWorkingCapital 28-3910-81178-35778161251249
CF_DeferredTax -59-44-69157-40266-93-159317-254
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -19813687-330-87-573377347-1,101662
Cash Flow from Operations 1,1431,4101,5031,2671,6431,0081,5951,7581,8071,793

Kellogg Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 318-32311352326819406295225-293
CF_DDA 108146113113114192116119140128
ChangeInWorkingCapital 281-25-67-142275185-25519227258
CF_DeferredTax 12-13911-2-3634445-27-16-256
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -24433-30465-1,122-44-20-53779
Cash Flow from Operations 695383338367684418268386523616
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