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Seagate Technology PLC (NAS:STX)
Cash Flow from Operations
$2,647 Mil (TTM As of Jun. 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 Jun. 2015, Seagate Technology PLC's Net Income From Continuing Operations was $137 Mil. Its DDA was $212 Mil. Its Change In Working Capital was $-175 Mil. Its cash flow from deferred tax was $5 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $31 Mil. And its Cash Flow from Others was $18 Mil. In all, Seagate Technology PLC's Cash Flow from Operations for the three months ended in Jun. 2015 was $228 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.

Seagate Technology PLC's Cash Flow from Operations for the fiscal year that ended in Jun. 2015 is calculated as:

Seagate Technology PLC's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

Seagate Technology PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 602 (Sep. 2014 ) + 1443 (Dec. 2014 ) + 374 (Mar. 2015 ) + 228 (Jun. 2015 ) = $2,647 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.

Seagate Technology PLC's net income from continuing operations for the three months ended in Jun. 2015 was $137 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

Seagate Technology PLC's depreciation, depletion and amortization for the three months ended in Jun. 2015 was $212 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.

Seagate Technology PLC's change in working capital for the three months ended in Jun. 2015 was $-175 Mil. It means Seagate Technology PLC's working capital declined by $175 Mil from Mar. 2015 to Jun. 2015 .

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

Seagate Technology PLC's cash flow from deferred tax for the three months ended in Jun. 2015 was $5 Mil.

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

Seagate Technology PLC's cash flow from discontinued operations for the three months ended in Jun. 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.

Seagate Technology PLC's stock based compensation for the three months ended in Jun. 2015 was $31 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).

Seagate Technology PLC's cash flow from others for the three months ended in Jun. 2015 was $18 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.

Seagate Technology PLC Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
NetIncomeFromContinuingOperations 8409131,262-3,0861,6095112,8621,8381,5701,742
CF_DDA 612851844931780754814873879841
ChangeInWorkingCapital -76-683324300-569-116-424274-1-142
CF_DeferredTax 23-36510306-3646-28-70-672
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0008357515176118137
Cash Flow from Others 58227982,2899118-13565967
Cash Flow from Operations 1,4579432,5388231,9321,2643,2623,0472,5582,647

Seagate Technology PLC Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 416348427428395320381933291137
CF_DDA 221222228229211211218208203212
ChangeInWorkingCapital 52-255-1213-24532-53234-148-175
CF_DeferredTax -3-56-1-14-2-502-615
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 20202730303142313331
Cash Flow from Others -231092-3054331243-618
Cash Flow from Operations 6833886828564435776021,443374228
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