Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).
For the
three
months ended in Sep. 2015, PMC-Sierraspent$4.9 Mil on purchasing property, plant, equipment.
It gained$0.0 Mil from selling property, plant, and equipment.
It spent$0.0 Mil on purchasing business.
It gained$0.0 Mil from selling business.
It spent$25.1 Mil on purchasing investments.
It gained$25.1 Mil from selling investments.
It paid$0.2Mil for net Intangibles purchase and sale.
And it paid$0.0 Mil for other investing activities.
In all, PMC-Sierraspent$5.0 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Sep. 2015.
PMC-Sierra Cash Flow from Investing Historical Data
The historical data trend for PMC-Sierra's Cash Flow from Investing can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).
If a company spends cash on property, plant and equipment (PPE), this will reduce their cash position. This is called Capital Expenditures (CPEX).
Likewise, if a company buys another company for cash, this will reduce their cash position.
PMC-Sierra's Cash Flow from Investing for the fiscal year that ended in Dec. 2014 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $-58.7 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PMC-Sierra (NAS:PMCS) Cash Flow from Investing Explanation
PMC-Sierra's purchase of property, plant, equipment for the
three
months ended in Sep. 2015 was $-4.9 Mil. It means PMC-Sierra spent $4.9 Mil on purchasing property, plant, equipment.
In the capital spending for property, plant and equipment (PPE), some part of spending may be from the expansion of business. The business needs more property, plant and equipment (PPE) as it grows. Another part may be from replacement of the property, plant and equipment (PPE) of existing business. For some companies, the cash spent on replacing of the property, plant and equipment (PPE) of the existing business will be close to the depreciation of property, plant and equipment (PPE) reported in the income statement.
In Warren Buffett's definition of Owner's Earnings, he deducts the estimate of the cost of replacing the property, plant and equipment (PPE) of the existing business from cash flow from operations. The cash spent on the new property, plant, and equipment is not deducted. The reason is because these are not costs of the existing business. In his 1986 letter to shareholders, Warren Buffett wrote this about owner earnings:
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume....Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
PMC-Sierra's sale of property, plant, equipment for the
three
months ended in Sep. 2015 was $0.0 Mil. It means PMC-Sierra gained $0.0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
PMC-Sierra's purchase of business for the
three
months ended in Sep. 2015 was $0.0 Mil. It means PMC-Sierra spent $0.0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
PMC-Sierra's sale of business for the
three
months ended in Sep. 2015 was $0.0 Mil. It means PMC-Sierra gained $0.0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
PMC-Sierra's purchase of investment for the
three
months ended in Sep. 2015 was $-25.1 Mil. It means PMC-Sierra spent {stock_data.stock.currency_symbol}}25.1 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
PMC-Sierra's sale of investment for the
three
months ended in Sep. 2015 was $25.1 Mil. It means PMC-Sierra gained $25.1 Mil from selling investments.
7. Net Intangibles Purchase And Sale:
Net Intangibles purchase and sale means the net cash inflow received by a company that comes from the purchase and sale of intangibles. It equals the cash received from sale of intangibles minus the cash spent on purchasing intangibles.
PMC-Sierra's net Intangibles purchase and sale for the
three
months ended in Sep. 2015 was $-0.2 Mil.
It means PMC-Sierra paid $0.2 Mil for net Intangibles purchase and sale.
8. Cash From Discontinued Investing Activities:
Cash from discontinued investing activities means the cash received by a company that comes from the discontinued investing activities.
PMC-Sierra's cash from discontinued investing activities for the
three
months ended in Sep. 2015 was 0.0 Mil.
It means PMC-Sierra paid $0.0 Mil for discontinued investing activities.
9. Cash From Other Investing Activities:
Cash from other investing activities means the cash received by a company that comes from other investing activities.
PMC-Sierra's cash from other investing activities for the
three
months ended in Sep. 2015 was $-0.0 Mil.
It means PMC-Sierra paid $0.0 Mil for other investing activities.
PMC-Sierra Cash Flow from Investing Related Terms
Thank you for viewing the detailed overview of PMC-Sierra's Cash Flow from Investing provided by GuruFocus.com. Please click on the following links to see related term pages.
PMC-Sierra Inc was incorporated in the state of California in 1983 and reincorporated in the state of Delaware in 1997. The Company is a semiconductor and and software solution provider transforming networks that connect, move and store digital content. It designs, develops, markets and supports semiconductor solutions by integrating its mixed-signal, software and systems expertise through a network of offices in North America, Europe and Asia. The Company has approximately 700 different semiconductor devices that are sold to equipment and design manufacturers, who in turn supply their equipment principally to service providers, carriers and enterprises globally. The Company provides semiconductor solutions for its customers by leveraging its intellectual property, design expertise and systems knowledge across a range of applications and industry protocols. The Company derives its net revenues from the following operating segments: Communication Products, Enterprise Storage Products, Microprocessor Products, and Broadband Wireless Products. The Company operates in one reportable segment-semiconductor solutions for communications network infrastructure. Its semiconductor devices enable networking equipment primarily in the following three end market segments: Storage, Optical and Mobile networks. The Storage market segment is made up of enterprise storage equipment manufacturers and covers two broad areas: server storage, and stand-alone external storage systems. The Optical market segment refers to infrastructure suppliers of transport and access networks that use optical transport protocol and/or physical optical medium. The Mobile market segment is mainly infrastructure equipment suppliers, including base station and backhaul equipment, supporting the wireless transmission of content from and to mobile hand devices. The Company faces competition at the customer design stage when its customers are determining which semiconductor components to use in its equipment designs. The Company competes against peer-group semiconductor companies that engage in the communications and storage semiconductor business. These companies include the following: Altera Corp., Applied Micro Circuits Corp.; Broadcom Corp.; Cortina Systems, Inc.; Emulex Corp.; Exar Corp.; Infineon Technologies AG; Intel Corp.; Texas Instrument Inc; LSI Corp.; Maxim Integrated Products, Inc.; Marvell Technology Group Ltd.; Mindspeed Technologies, Inc.; QLogic Corp.; Vitesse Semiconductor; and Xilinx, Inc. The Company has a total of 597 U.S. and 80 foreign patents for circuit designs and other innovations used in the design and architecture of its products. In addition, it has 95 patent applications pending in the U.S. Patent and Trademark office. The Company's business is subject to or may be impacted by various environmental protection and social responsibility legal and customer requirements.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PMCS has been successfully added to your 