We formulate a theory of spin dependent transport in an electronic circuit involving ferromagnetic elements with noncollinear magnetization which is based on the conservation of spin and charge current. The theory considerably simplifies the calculation of the transport properties of complicated ferromagnet-normal metal systems. We illustrate the theory by considering a novel three-terminal device.PACS numbers: 72.10. Bg, 75.70.Pa Electron transport in hybrid systems involving ferromagnetic and normal metals has been shown to exhibit new phenomena due to the interplay between spin and charge. The giant magnetoresistance (GMR) effect in metallic magnetic multilayers is a result of spin dependent scattering [1]. The manganese oxides exhibit a colossal magnetoresistance [2] due to a ferromagnetic phase transition. The dependence of the current on the relative angle between the magnetization directions has been reported in transport through tunnel junctions between ferromagnetic reservoirs [3]. Transport involving ferromagnets with noncollinear magnetizations has also been studied theoretically in Ref. [4] Johnson and Silsbee demonstrated that spin dependent effects are also important in systems with more than two terminals [5]. Their ferromagnetic-normal-ferromagnetic (F-N-F ) device manifests a transistor effect that depends on the relative orientation of the magnetization directions. Recently, another three-terminal spin electronics device was realized; a ferromagnetic single-electron transistor [6]. In this case the current depends on the relative orientation of the magnetization of the source, the island and the drain, and of the electrostatic potential of the island tuned by a gate voltage [7].These examples illustrate that devices with ferromagnetic order deserve a thorough theoretical investigation. Inspired by the circuit theory of Andreev reflection [8], we present a finite-element theory for transport in hybrid ferromagnetic-normal metal systems based on the conservation of charge and spin current. We demonstrate that spin transport can be understood in terms of four generalized conductances for each contact between a ferromagnet and a normal metal. The relations between these conductance parameters and the microscopic details of the contacts are derived and calculated for diffuse, tunnel, and ballistic contacts. Finally, we illustrate the theory by computing the current through a novel three-terminal device.Let us first explain the basic idea of the finite-element theory of spin transport. The system can be divided into (normal or ferromagnetic) "nodes," where each node is characterized by the appropriate generalization of the distribution function, viz. a 2 3 2 distribution matrix in spin space. The nodes are connected to each other and to the reservoirs by "contacts" which limit the total conductance but are arbitrary otherwise. The charge and spin current through the contacts is related to the distribution matrices of the adjacent nodes. Provided these relations are known, we can solve for the 2 3 ...