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Plains All American Pipeline LP (NYSE:PAA)
Cash Flow from Operations
$1,344 Mil (TTM As of Dec. 2015)

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. 2015, Plains All American Pipeline LP's Net Income From Continuing Operations was $247 Mil. Its DDA was $106 Mil. Its Change In Working Capital was $-362 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $131 Mil. In all, Plains All American Pipeline LP's Cash Flow from Operations for the three months ended in Dec. 2015 was $122 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.

Plains All American Pipeline LP's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

Plains All American Pipeline LP's Cash Flow from Operations for the quarter that ended in Dec. 2015 is

Plains All American Pipeline LP Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 732 (Mar. 2015 ) + -72 (Jun. 2015 ) + 562 (Sep. 2015 ) + 122 (Dec. 2015 ) = $1,344 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.

Plains All American Pipeline LP's net income from continuing operations for the three months ended in Dec. 2015 was $247 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

Plains All American Pipeline LP's depreciation, depletion and amortization for the three months ended in Dec. 2015 was $106 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.

Plains All American Pipeline LP's change in working capital for the three months ended in Dec. 2015 was $-362 Mil. It means Plains All American Pipeline LP's working capital declined by $362 Mil from Sep. 2015 to Dec. 2015 .

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

Plains All American Pipeline LP's cash flow from deferred tax for the three months ended in Dec. 2015 was $0 Mil.

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

Plains All American Pipeline LP's cash flow from discontinued operations for the three months ended in Dec. 2015 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.

Plains All American Pipeline LP's stock based compensation for the three months ended in Dec. 2015 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).

Plains All American Pipeline LP's cash flow from others for the three months ended in Dec. 2015 was $131 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.

Plains All American Pipeline LP Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 2853654375805149941,1271,3911,386906
CF_DDA 102181211236256249482365384432
ChangeInWorkingCapital -705193-2-461-6051,002-46674-267-116
CF_DeferredTax 013-1-9001000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 002468981101011169827
Cash Flow from Others 4244188-49-410-5840395
Cash Flow from Operations -2767968573652592,3651,2401,9542,0041,344

Plains All American Pipeline LP Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
NetIncomeFromContinuingOperations 237317385287324390284124251247
CF_DDA 92100961009791107110109106
ChangeInWorkingCapital -89-78254-274-152-95343-303206-362
CF_DeferredTax -70126100-261460
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 182034342281917-90
Cash Flow from Others 6141-12143325-34-1131
Cash Flow from Operations 257360822141315726732-72562122
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