Switch to:
Lorillard Inc (NYSE:LO)
Cash from Financing
\$-1,050 Mil (TTM As of Mar. 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 Mar. 2015, Lorillard Inc paid \$0 Mil more to buy back shares than it received from issuing new shares. It received \$0 Mil from issuing more debt. It paid \$0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent \$238 Mil paying cash dividends to shareholders. It received \$4 Mil on other financial activities. In all, Lorillard Inc spent \$234 Mil on financial activities for the three months ended in Mar. 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.

Lorillard Inc'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 = -314 + 0 + 0 + -889 + 11 = -1,192

Lorillard Inc's Cash from Financing for the quarter that ended in Mar. 2015 is

 Cash from Financing (Q: Mar. 2015 ) = Net Issuance of Stock + Net Issuance of Debt + Net Issuance of Preferred + Dividends + Other Financing = 0 + 0 + 0 + -238 + 4 = -234

Lorillard Inc Cash Flow from Financing for the trailing twelve months (TTM) ended in Mar. 2015 was -374 (Jun. 2014 ) + -221 (Sep. 2014 ) + -221 (Dec. 2014 ) + -234 (Mar. 2015 ) = \$-1,050 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.

Lorillard Inc's net issuance of stock for the three months ended in Mar. 2015 was \$0 Mil. Lorillard Inc paid \$0 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.

Lorillard Inc's net issuance of debt for the three months ended in Mar. 2015 was \$0 Mil. Lorillard Inc received \$0 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.

Lorillard Inc's net issuance of preferred for the three months ended in Mar. 2015 was \$0 Mil. Lorillard Inc 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.

Lorillard Inc's cash flow for dividends for the three months ended in Mar. 2015 was \$-238 Mil. Lorillard Inc spent \$238 Mil paying cash dividends to shareholders.

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

Lorillard Inc's other financing for the three months ended in Mar. 2015 was \$4 Mil. Lorillard Inc received \$4 Mil on other financial activities.

Related Terms

Historical Data

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

Lorillard Inc Annual Data

 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Net Issuance of Stock 0 0 0 -400 -910 -716 -1,586 -578 -795 -314 Net Issuance of Debt 0 0 0 0 750 1,000 750 500 500 0 Net Issuance of Preferred 0 0 0 0 0 0 0 0 0 0 Dividends -646 -783 -1,170 -804 -631 -645 -723 -807 -823 -889 Other Financing 0 2 3 4 -2 -11 3 10 18 11 Cash from Financing -646 -781 -1,167 -1,200 -793 -372 -1,556 -875 -1,100 -1,192

Lorillard Inc Quarterly Data

 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Net Issuance of Stock -304 -149 -169 -250 -227 -158 -156 0 0 0 Net Issuance of Debt 0 0 500 0 0 0 0 0 0 0 Net Issuance of Preferred 0 0 0 0 0 0 0 0 0 0 Dividends -199 -209 -208 -204 -202 -224 -222 -221 -222 -238 Other Financing 2 3 2 0 13 6 4 0 1 4 Cash from Financing -501 -355 125 -454 -416 -376 -374 -221 -221 -234
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)