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Discover Financial Services (NYSE:DFS)
Cash from Financing
$1,101 Mil (TTM As of Dec. 2014)

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. 2014, Discover Financial Services paid $398 Mil more to buy back shares than it received from issuing new shares. It received $1,585 Mil from issuing more debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent $119 Mil paying cash dividends to shareholders. It received $706 Mil on other financial activities. In all, Discover Financial Services earned $1,774 Mil on financial activities for the three months ended in Dec. 2014.


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 Dec. 2014 is

Cash from Financing(Q: Dec. 2014 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-398+1585+0+-119+706
=1,774

Discover Financial Services Cash Flow from Financing for the trailing twelve months (TTM) ended in Dec. 2014 was -763 (Mar. 2014 ) + -985 (Jun. 2014 ) + 1075 (Sep. 2014 ) + 1774 (Dec. 2014 ) = $1,101 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 Dec. 2014 was $-398 Mil. Discover Financial Services paid $398 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. 2014 was $1,585 Mil. Discover Financial Services received $1,585 Mil from issuing more 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. 2014 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. 2014 was $-119 Mil. Discover Financial Services spent $119 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. 2014 was $706 Mil. Discover Financial Services received $706 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

Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Dec13Dec14
Net Issuance of Stock 00-1-7522-7-413-1,190-1,283-1,559
Net Issuance of Debt -7013,852-3,279-657194-7,144-2,3562,3192,5251,990
Net Issuance of Preferred 00001,225-1,225056000
Dividends 0-500-879-117-101-845-110-209-399-467
Other Financing 3,128-2,73111,6183,8163,5732,1495,1422,2482,7731,137
Cash from Financing 2,4266217,4593,0355,412-7,0722,2633,7283,6161,101

Discover Financial Services Quarterly Data

Nov12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Net Issuance of Stock -3920-256-338-344-345-364-177-620-398
Net Issuance of Debt 68001,514-1,2764771,810-319-1448681,585
Net Issuance of Preferred 560000000000
Dividends -500-79-108-107-105-106-122-120-119
Other Financing -33901871975391,85026-542947706
Cash from Financing 45901,366-1,5255653,210-763-9851,0751,774
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