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 Mar. 2014, LSIspent€15 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€0 Mil on purchasing investments.
It gained€19 Mil from selling investments.
It paid€0Mil for net Intangibles purchase and sale.
And it paid€0 Mil for other investing activities.
In all, LSIgained€3 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Mar. 2014.
LSI Cash Flow from Investing Historical Data
The historical data trend for LSI'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.
LSI's Cash Flow from Investing for the fiscal year that ended in Dec. 2013 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €-78 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.
LSI (FRA:LOG) Cash Flow from Investing Explanation
LSI's purchase of property, plant, equipment for the
three
months ended in Mar. 2014 was €-15 Mil. It means LSI spent €15 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)."
LSI's sale of property, plant, equipment for the
three
months ended in Mar. 2014 was €0 Mil. It means LSI gained €0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
LSI's purchase of business for the
three
months ended in Mar. 2014 was €0 Mil. It means LSI spent €0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
LSI's sale of business for the
three
months ended in Mar. 2014 was €0 Mil. It means LSI gained €0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
LSI's purchase of investment for the
three
months ended in Mar. 2014 was €-0 Mil. It means LSI spent {stock_data.stock.currency_symbol}}0 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
LSI's sale of investment for the
three
months ended in Mar. 2014 was €19 Mil. It means LSI gained €19 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.
LSI's net Intangibles purchase and sale for the
three
months ended in Mar. 2014 was €0 Mil.
It means LSI 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.
LSI's cash from discontinued investing activities for the
three
months ended in Mar. 2014 was 0 Mil.
It means LSI 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.
LSI's cash from other investing activities for the
three
months ended in Mar. 2014 was €0 Mil.
It means LSI paid €0 Mil for other investing activities.
LSI Cash Flow from Investing Related Terms
Thank you for viewing the detailed overview of LSI's Cash Flow from Investing provided by GuruFocus.com. Please click on the following links to see related term pages.
LSI Corporation was incorporated in California on November 6, 1980, and was reincorporated in Delaware on June 11, 1987. The Company designs, develops and markets networking semiconductors and storage systems. It provides silicon-to-system solutions that are used to create, store, consume and transport digital information. It offers integrated circuits used in hard disk drives, solid state drives, high-speed communications systems, computer servers, storage systems and personal computers. It also offers external storage systems, storage systems software, redundant array of independent disks, or RAID, adapters for computer servers, and RAID software applications. The Company has two segments — the Semiconductor segment and the Storage Systems segment. Its semiconductor segment designs, develops and markets complex integrated circuits for storage and networking applications. These solutions include both custom solutions and standard products. It designs custom solutions for a specific application defined by the customer. The Company develops products for market applications that it defines and sells them to multiple customers. It sells its integrated circuits for storage applications to makers of hard disk drives, solid state drives and computer servers. It sells its integrated circuits for networking applications principally to makers of devices used in computer and telecommunications networks and, to a lesser extent, to makers of personal computers. Its storage systems segment designs and sells enterprise storage systems and storage software applications that enable storage area networks. The Company also offers RAID adapters for computer servers and associated software for attaching storage devices to computer servers. It sells its storage systems and storage solutions mainly to OEMs who resell these products to end customers under their own brand name. The semiconductor industry is competitive and is characterized by rapidly changing technology, short product cycles and emerging standards. The semiconductor manufacturing process begins with wafer fabrication, where a design is transferred to silicon wafers through a series of processes, including photolithography, ion implantation, deposition of numerous films and the etching of these various films and layers. On January 3, 2012, the company acquired SandForce, Inc., a provider of flash storage processors, or FSPs, for enterprise and client flash solutions and solid state drives, or SSDs. Federal, state and local regulations, in addition to those of other nations, impose various environmental controls on certain chemicals and restricted substances used in the manufacture of semiconductor and storage products.
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