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Discover Financial Services (NYSE:DFS)
Cash from Financing
$1,718 Mil (TTM As of Sep. 2015)

Cash from financing is the cash generated/spent from financial activities such as share issuance (buy back), debt issuance (repayment), and dividends paid to preferred and common stockholders.

For the three months ended in Sep. 2015, Discover Financial Services paid $435 Mil more to buy back shares than it received from issuing new shares. It spent $466 Mil paying down its debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent $131 Mil paying cash dividends to shareholders. It received $287 Mil on other financial activities. In all, Discover Financial Services spent $745 Mil on financial activities for the three months ended in Sep. 2015.


Definition

This is the cash generated/spent from financial activities such as share issuance (buy back), debt issuance (repayment), and dividends paid to preferred and common stockholders. In the calculation of free cash flow, cash from financing is not calculated because it is not related to operating activities.

Discover Financial Services's Cash from Financing for the fiscal year that ended in Dec. 2014 is calculated as:

Cash from Financing(A: Dec. 2014 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-1559+1990+0+-467+1137
=1,101

Discover Financial Services's Cash from Financing for the quarter that ended in Sep. 2015 is

Cash from Financing(Q: Sep. 2015 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-435+-466+0+-131+287
=-745

Discover Financial Services Cash Flow from Financing for the trailing twelve months (TTM) ended in Sep. 2015 was 1774 (Dec. 2014 ) + 214 (Mar. 2015 ) + 475 (Jun. 2015 ) + -745 (Sep. 2015 ) = $1,718 Mil.

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


Explanation

Cash from financing contains five items:

1. Net Issuance of Stock:
A company may raise cash from issuing new shares. It can also use cash to buy back shares. If this number is positive, it means that the company has received more cash from issuing shares than it has paid to buy back shares. If this number is negative, it means that company has paid more cash to buy back shares than it has received for issuing shares.

Discover Financial Services's net issuance of stock for the three months ended in Sep. 2015 was $-435 Mil. Discover Financial Services paid $435 Mil more to buy back shares than it received from issuing new shares.

2. Net Issuance of Debt:
Net issuance of debt is the cash a company received or spent through debt related activities such as debt issuance or debt repayment. If a company pays down its debt during the period, this number will be negative. If a company issued more debt, it receives cash and this number is positive.

Discover Financial Services's net issuance of debt for the three months ended in Sep. 2015 was $-466 Mil. Discover Financial Services spent $466 Mil paying down its debt.

3. Net Issuance of Preferred:
A company may raise cash from issuing new preferred shares. It can also use cash to buy back preferred shares. If this number is positive, it means that the company has received more cash from issuing preferred shares than it has paid to buy back preferred shares. If this number is negative, it means that company has paid more cash to buy back preferred shares than it has received for issuing preferred shares.

Discover Financial Services's net issuance of preferred for the three months ended in Sep. 2015 was $0 Mil. Discover Financial Services paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares.

4. Dividends:
Cash flow for dividends refers to the payment of cash to shareholders as dividends when the company generates income.

Discover Financial Services's cash flow for dividends for the three months ended in Sep. 2015 was $-131 Mil. Discover Financial Services spent $131 Mil paying cash dividends to shareholders.

5. Other Financing:
Money spent or earned by company from other financial activities.

Discover Financial Services's other financing for the three months ended in Sep. 2015 was $287 Mil. Discover Financial Services received $287 Mil on other financial activities.


Related Terms

Cash Flow from Operations, Cash Flow from Investing, Net Issuance of Stock, Net Issuance of Debt, Dividends, Net Issuance of Preferred


Historical Data

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

Discover Financial Services Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Dec13Dec14Dec15
Net Issuance of Stock 0-1-7522-7-413-1,190-1,283-1,5590
Net Issuance of Debt 3,852-3,279-657194-7,144-2,3562,3192,5251,9900
Net Issuance of Preferred 0001,225-1,2250560000
Dividends -500-879-117-101-845-110-209-399-4670
Other Financing -2,73111,6183,8163,5732,1495,1422,2482,7731,1370
Cash from Financing 6217,4593,0355,412-7,0722,2633,7283,6161,1010

Discover Financial Services Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Net Issuance of Stock -344-345-364-177-620-398-419-423-4350
Net Issuance of Debt 4771,810-319-1448681,5854191,140-4660
Net Issuance of Preferred 0000000000
Dividends -107-105-106-122-120-119-119-135-1310
Other Financing 5391,85026-542947706333-1072870
Cash from Financing 5653,210-763-9851,0751,774214475-7450
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