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Discover Financial Services (NYSE:DFS)
Cash Flow from Financing
$2,811 Mil (TTM As of Dec. 2016)

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 Dec. 2016, Discover Financial Services paid $476 Mil more to buy back shares than it received from issuing new shares. It spent $1,310 Mil paying down its debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent $128 Mil paying cash dividends to shareholders. It received $2,751 Mil on other financial activities. In all, Discover Financial Services earned $837 Mil on financial activities for the three months ended in Dec. 2016.


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. 2016 is calculated as:

Cash from Financing(A: Dec. 2016 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-1901+773+0+-514+4453
=2,811

Discover Financial Services's Cash from Financing for the quarter that ended in Dec. 2016 is

Cash from Financing(Q: Dec. 2016 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-476+-1310+0+-128+2751
=837

Discover Financial Services Cash Flow from Financing for the trailing twelve months (TTM) ended in Dec. 2016 was 423 (Mar. 2016 ) + -598 (Jun. 2016 ) + 2149 (Sep. 2016 ) + 837 (Dec. 2016 ) = $2,811 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 Dec. 2016 was $-476 Mil. Discover Financial Services paid $476 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 Dec. 2016 was $-1,310 Mil. Discover Financial Services spent $1,310 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 Dec. 2016 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 Dec. 2016 was $-128 Mil. Discover Financial Services spent $128 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 Dec. 2016 was $2,751 Mil. Discover Financial Services received $2,751 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 local exchange's currency.

Discover Financial Services Annual Data

Nov07Nov08Nov09Nov10Nov11Nov12Dec13Dec14Dec15Dec16
Net Issuance of Stock -1-7522-7-412-1,190-1,283-1,559-1,710-1,901
Net Issuance of Debt -3,279-657194-7,143-2,3572,3192,5251,9902,017773
Net Issuance of Preferred 001,225-1,22505600000
Dividends -879-117-101-845-110-209-399-467-515-514
Other Financing 11,6183,8163,5732,1485,1422,2482,7731,1371,5104,453
Cash from Financing 7,4593,0355,412-7,0722,2633,7283,6161,1011,3022,811

Discover Financial Services Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
Net Issuance of Stock -398-419-423-435-433-422-422-581-4760
Net Issuance of Debt 1,5854191,140-46692449-1092,143-1,3100
Net Issuance of Preferred 0000000000
Dividends -119-119-135-131-130-129-125-132-1280
Other Financing 706333-107287997925587192,7510
Cash from Financing 1,774214475-7451,358423-5982,1498370
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