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. 2014, Protective Lifespent€1 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€776 Mil on purchasing investments.
It gained€762 Mil from selling investments.
It paid€0Mil for net Intangibles purchase and sale.
And it received€41 Mil from other investing activities.
In all, Protective Lifegained€26 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Sep. 2014.
Protective Life Cash Flow from Investing Historical Data
The historical data trend for Protective Life'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.
Protective Life Cash Flow from Investing Calculation
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.
Protective Life'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 Sep. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €-629 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.
Protective Life (FRA:PV7) Cash Flow from Investing Explanation
Protective Life's purchase of property, plant, equipment for the
three
months ended in Sep. 2014 was €-1 Mil. It means Protective Life spent €1 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)."
Protective Life's sale of property, plant, equipment for the
three
months ended in Sep. 2014 was €0 Mil. It means Protective Life gained €0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Protective Life's purchase of business for the
three
months ended in Sep. 2014 was €0 Mil. It means Protective Life spent €0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Protective Life's sale of business for the
three
months ended in Sep. 2014 was €0 Mil. It means Protective Life gained €0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Protective Life's purchase of investment for the
three
months ended in Sep. 2014 was €-776 Mil. It means Protective Life spent {stock_data.stock.currency_symbol}}776 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Protective Life's sale of investment for the
three
months ended in Sep. 2014 was €762 Mil. It means Protective Life gained €762 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.
Protective Life's net Intangibles purchase and sale for the
three
months ended in Sep. 2014 was €0 Mil.
It means Protective Life 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.
Protective Life's cash from discontinued investing activities for the
three
months ended in Sep. 2014 was 0 Mil.
It means Protective Life 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.
Protective Life's cash from other investing activities for the
three
months ended in Sep. 2014 was €41 Mil.
It means Protective Life received €41 Mil from other investing activities.
Protective Life Cash Flow from Investing Related Terms
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Protective Life Corporation, a Delaware corporation was founded in 1907. A holding company, whose subsidiaries provide financial services through the production, distribution, and administration of insurance and investment products. The Company's operating segments are Life Marketing, Acquisitions, Annuities, Stable Value Products, Asset Protection and Corporate and Other. The Life Marketing segment markets universal life, variable universal life, bank-owned life insurance and level premium term insurance products on a national basis mainly through networks of independent insurance agents and brokers, stockbrokers, and independent marketing organizations. The Acquisitions segment focuses on acquiring, converting, and servicing policies acquired from other companies. The segment's main focus is on life insurance policies and annuity products that were sold to individuals. The Annuities segment markets fixed and variable annuity products. These products are mainly sold through broker-dealers, but are also sold through financial institutions and independent agents and brokers. The Stable Value Products segment sells fixed and floating rate funding agreements directly to the trustees of municipal bond proceeds, money market funds, bank trust departments, and other institutional investors. The segment also issues funding agreements to the Federal Home Loan Bank and markets guaranteed investment contracts (GICs) to 401(k) and other qualified retirement savings plans. The Asset Protection segment mainly markets extended service contracts and credit life and disability insurance to protect consumers' investments in automobiles, watercraft, and recreational vehicles. In addition, the segment markets a guaranteed asset protection product and an inventory protection product. The Company has an additional segment referred to as Corporate and Other which earnings from several non-strategic or runoff lines of business, various investment-related transactions, the operations of several small subsidiaries, and the repurchase of non-recourse funding obligations. The Company encounters competition in all lines of business from other insurance companies, many of which have greater financial resources and higher ratings than the Company and which might have a greater market share, offer products, services or features, assume a greater level of risk, have lower operating or financing costs, or have different profitability expectations than the Company. The Company also faces competition from other providers of financial services. The Company and its subsidiaries are subject to government regulation in each of the states in which it conducts business.
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