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, Broadcomspent$81 Mil on purchasing property, plant, equipment.
It gained$0 Mil from selling property, plant, and equipment.
It spent$0 Mil on purchasing business.
It gained$0 Mil from selling business.
It spent$1,115 Mil on purchasing investments.
It gained$1,055 Mil from selling investments.
It paid$0Mil for net Intangibles purchase and sale.
And it paid$3 Mil for other investing activities.
In all, Broadcomspent$144 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Sep. 2015.
Broadcom Cash Flow from Investing Historical Data
The historical data trend for Broadcom'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.
Broadcom'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 $-1,586 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.
Broadcom (NAS:BRCM) Cash Flow from Investing Explanation
Broadcom's purchase of property, plant, equipment for the
three
months ended in Sep. 2015 was $-81 Mil. It means Broadcom spent $81 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)."
Broadcom's sale of property, plant, equipment for the
three
months ended in Sep. 2015 was $0 Mil. It means Broadcom gained $0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Broadcom's purchase of business for the
three
months ended in Sep. 2015 was $0 Mil. It means Broadcom spent $0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Broadcom's sale of business for the
three
months ended in Sep. 2015 was $0 Mil. It means Broadcom gained $0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Broadcom's purchase of investment for the
three
months ended in Sep. 2015 was $-1,115 Mil. It means Broadcom spent {stock_data.stock.currency_symbol}}1,115 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Broadcom's sale of investment for the
three
months ended in Sep. 2015 was $1,055 Mil. It means Broadcom gained $1,055 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.
Broadcom's net Intangibles purchase and sale for the
three
months ended in Sep. 2015 was $0 Mil.
It means Broadcom paid $0 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.
Broadcom's cash from discontinued investing activities for the
three
months ended in Sep. 2015 was 0 Mil.
It means Broadcom paid $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.
Broadcom's cash from other investing activities for the
three
months ended in Sep. 2015 was $-3 Mil.
It means Broadcom paid $3 Mil for other investing activities.
Broadcom Cash Flow from Investing Related Terms
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Broadcom Corp was incorporated in California in August 16, 1991. The Company is provider of semiconductors for wired and wireless communications. It provides a portfolio of SoCs that seamlessly deliver voice, video, data and multimedia connectivity in the home, office and mobile environments. Its business segments include Broadband and Connectivity; and Infrastructure and Networking. The solutions in Broadband and Connectivity segment include set-top box solutions, broadband modem solutions, connectivity solutions, and a range of other technologies. Customer products incorporating its solutions in Broadband and Connectivity segment include set-top boxes, or STBs, central office broadband access equipment, residential gateways, stand-alone broadband access modems, and a range of consumer devices, including smartphones and tablets, wearable devices, PCs, laptops, access points, and others. It offers complete platform solutions for cable, satellite, Internet Protocol, over-the-top and terrestrial STBs. Its solutions in Infrastructure and Networking segment include Ethernet switches and PHYs, which includes switches and fabrics; copper and optical transceivers; backplane and optical front-end physical layer devices; processors (including multicore processors); and other Infrastructure and Networking technologies (including knowledge-based processors, VoIP solutions, microwave backhaul solutions and radio head digital front ends). It also offers a family of Ethernet controllers. Customer products incorporating its solutions in Infrastructure and Networking segment include service provider metro equipment; edge and core routers, wireless infrastructure and wireless access points; switches and routers; servers and workstations; network interface cards; LAN on motherboard applications; optical networks and dense wave division multiplexing applications; security appliances; storage controllers; microwave links for wireless backhaul; cellular remote radio heads; automobile Ethernet networks; point-of-sale equipment; and other embedded SoC subsystems. Its customers shipping wired and/or wireless communications equipment and devices incorporating its products include Alcatel-Lucent, Apple, Arris, Cisco, Huawei Technologies, Humax, Pace, Samsung, Technicolor, ZTE. Its trademark includes Broadcom and BroadR-Reach. The Company's competitors include Intel Corporation, Marvell Technology Group Ltd., Mediatek Inc., Qualcomm Incorporation, and STMicroelectronics NV with respect to Broadband and Connectivity segment; and Cavium, Inc., Freescale Semiconductor,Ltd., Intel Corporation, Marvell Technology Group Ltd., and Mellanox with respect to Infrastructure and Networking segment. The Company's production is subject to environmental rules and regulations.
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