Name: Celgene Corp. (NASDAQ:CELG) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Celgene Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Short-term borrowings and current portion of long-term debt	501)	—)	501)	—)	606)
Accounts payable	418)	305)	247)	241)	198)
Rebates, distributor chargebacks and distributor services	1,107)	814)	561)	367)	233)
Compensation	391)	358)	414)	353)	318)
Clinical trial costs and grants	475)	622)	342)	255)	190)
Litigation-related loss contingency	—)	—)	199)	—)	—)
Interest	238)	173)	168)	170)	59)
Sales, use, value added, and other taxes	66)	59)	101)	69)	66)
Milestones payable	—)	62)	—)	—)	—)
Success payment liability	70)	—)	—)	—)	—)
Short-term contingent consideration and success payments	60)	—)	47)	109)	35)
Royalties, license fees and collaboration agreements	114)	52)	—)	—)	—)
Deferred tax liability	—)	—)	—)	—)	131)
Other	466)	383)	285)	324)	236)
Accrued expenses and other current liabilities	2,987)	2,523)	2,115)	1,648)	1,267)
Income taxes payable	78)	84)	41)	20)	13)
Current portion of deferred revenue	73)	75)	55)	61)	29)
Current liabilities	4,057)	2,987)	2,959)	1,969)	2,112)
Deferred revenue, net of current portion	73)	34)	28)	30)	28)
Income taxes payable	2,190)	2,490)	420)	324)	273)
Deferred income tax liabilities	2,753)	1,327)	—)	378)	556)
Other non-current tax liabilities	—)	—)	2,519)	2,519)	—)
Contingent consideration	103)	80)	1,443)	1,412)	1,245)
Deferred compensation and long-term incentives	243)	240)	215)	171)	151)
Contingent value rights	19)	42)	45)	52)	136)
Derivative contracts	21)	134)	1)	—)	—)
Other	91)	48)	68)	30)	50)
Other non-current liabilities	477)	544)	1,771)	1,664)	1,581)
Long-term debt, net of discount, excluding current portion	19,769)	15,838)	13,789)	14,250)	6,266)
Non-current liabilities	25,262)	20,233)	18,527)	19,166)	8,703)
Total liabilities	29,319)	23,220)	21,486)	21,134)	10,815)
Preferred stock, $.01 par value per share; none outstanding	—)	—)	—)	—)	—)
Common stock, $.01 par value per share	10)	10)	10)	9)	9)
Common stock in treasury, at cost	(26,336)	(20,243)	(16,281)	(14,052)	(10,699)
Additional paid-in capital	14,978)	13,806)	12,378)	11,119)	9,827)
Retained earnings	17,559)	13,061)	10,074)	8,074)	6,472)
Accumulated other comprehensive income (loss)	(50)	287)	419)	768)	915)
Stockholders’ equity	6,161)	6,921)	6,599)	5,919)	6,525)
Total liabilities and stockholders’ equity	35,480)	30,141)	28,086)	27,053)	17,340)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Total liabilities exhibited a substantial upward trajectory between 2014 and 2018, increasing from US$ 10,815 million to US$ 29,319 million. This expansion was primarily driven by a significant rise in non-current liabilities, which grew from US$ 8,703 million to US$ 25,262 million over the five-year period.

Long-Term Debt and Financing: A dominant trend is observed in the escalation of long-term debt, which rose from US$ 6,266 million in 2014 to US$ 19,769 million by 2018. This indicates a strategic reliance on debt financing to fund operations or acquisitions. While short-term borrowings remained relatively stable, fluctuating around US$ 500 million to US$ 600 million, the long-term debt profile expanded more than threefold.
Current Liabilities and Operational Obligations: Current liabilities increased from US$ 2,112 million in 2014 to US$ 4,057 million in 2018. A notable component of this growth is found in rebates, distributor chargebacks, and distributor services, which surged from US$ 233 million to US$ 1,107 million. Additionally, accrued expenses and other current liabilities showed a consistent upward trend, reaching US$ 2,987 million in 2018.
Tax Liabilities and Contingencies: Deferred income tax liabilities experienced a sharp increase, particularly in the latter years, growing from US$ 556 million in 2014 to US$ 2,753 million in 2018. Conversely, contingent consideration liabilities decreased significantly from US$ 1,245 million in 2014 to US$ 103 million in 2018, suggesting the resolution of prior acquisition-related obligations.
Stockholders' Equity and Capital Allocation: Total stockholders' equity remained relatively stagnant, ending at US$ 6,161 million in 2018 compared to US$ 6,525 million in 2014. A detailed analysis reveals a divergence between earnings retention and capital return: retained earnings grew robustly from US$ 6,472 million to US$ 17,559 million. However, this growth was almost entirely offset by an aggressive share repurchase program, as common stock in treasury increased from US$ 10,699 million to US$ 26,336 million over the period.

The overall financial structure reflects a shift toward higher leverage. The combination of rapidly increasing long-term debt and substantial treasury stock acquisitions suggests a capital structure strategy focused on returning value to shareholders while utilizing the debt markets for liquidity and growth.

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