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.

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).

Short-term borrowings and current portion of long-term debt: Values fluctuated from 606 million in 2014 to 501 million in 2016 and 2018, with missing data in 2015 and 2017, indicating some variability in short-term financing obligations.
Accounts payable: Accounts payable showed a steady increase over the period, rising from 198 million in 2014 to 418 million in 2018, reflecting growing liabilities to suppliers.
Rebates, distributor chargebacks and distributor services: This category expanded considerably, more than quadrupling from 233 million in 2014 to 1,107 million in 2018, indicating significantly higher rebate and distributor-related expenses.
Compensation: Compensation costs rose moderately from 318 million in 2014 to 391 million in 2018, with a slight decline in 2017 suggesting minor fluctuations in employee-related expenses.
Clinical trial costs and grants: These expenses increased markedly, peaking at 622 million in 2017 before decreasing to 475 million in 2018, indicating growing investment in research activities with some cost management in the final period.
Litigation-related loss contingency: Reported only in 2016 at 199 million, this item denotes a one-time or limited period liability related to legal matters.
Interest: Interest expenses showed a strong upward trend from 59 million in 2014 to 238 million in 2018, suggesting increased borrowing costs or higher debt levels.
Sales, use, value added, and other taxes: Fluctuated moderately without a clear trend, ranging between 59 million and 101 million, reflecting variability in tax obligations.
Milestones payable and Success payment liability: Milestones payable appeared in 2017 at 62 million, and success payment liability in 2018 at 70 million, representing newly recognized contingent or contractual liabilities.
Short-term contingent consideration and success payments: This liability showed inconsistency, with peaks in 2015 (109 million) and 2018 (60 million) but missing values for 2017, indicating varying recognized contingent payments.
Royalties, license fees and collaboration agreements: Reported only for 2017 and 2018, increasing from 52 million to 114 million, showing growing costs associated with intellectual property and partnerships.
Deferred tax liability: Only present in 2014 at 131 million, absence in later years suggests changes in tax position or reclassification.
Other current liabilities (including accrued expenses): Both 'Other' and 'Accrued expenses and other current liabilities' rose significantly, with accrued expenses increasing from 1,267 million in 2014 to 2,987 million in 2018, indicating higher short-term obligations.
Income taxes payable: Current income taxes payable rose from 13 million to 78 million by 2018, while non-current income taxes payable surged notably in 2017 and 2018 to over 2 billion, implying deferred tax challenges or significant tax liabilities recognized in later periods.
Current portion of deferred revenue: Remained relatively stable, between 29 million and 75 million, indicating consistent short-term revenue deferral.
Current liabilities: Overall current liabilities generally increased, particularly from 1,969 million in 2015 to 4,057 million in 2018, signaling growth in short-term financial obligations.
Deferred revenue, net of current portion: Remained low but rose sharply in 2018 to 73 million, reflecting increased longer-term revenue deferrals.
Deferred income tax liabilities: Exhibited volatility, increasing significantly to 2,753 million in 2018 after fluctuations, suggesting changes in deferred tax positions.
Other non-current tax liabilities: High values in 2015 and 2016 at 2,519 million but absent in other years, possibly reflecting reclassification or settlement.
Contingent consideration: Relatively stable around 1,200–1,440 million between 2014 and 2016 but dropped sharply to under 110 million in 2017 and 2018, indicating resolution or revaluation of contingent liabilities.
Deferred compensation and long-term incentives: Increased steadily from 151 million in 2014 to 243 million in 2018, reflecting growing long-term employee-related liabilities.
Contingent value rights: Declined consistently from 136 million to 19 million, showing gradual payout or reduction of such rights.
Derivative contracts: Valued minimally with an increase peaking at 134 million in 2017 before decreasing, indicating variable financial instrument activity.
Other non-current liabilities: Dropped sharply from 1,771 million in 2016 to under 500 million in 2017 and 2018, indicating significant liability reductions or reclassifications.
Long-term debt, net of discount: Increased substantially from 6,266 million in 2014 to 19,769 million in 2018, demonstrating significant leverage growth over the period.
Non-current liabilities: More than doubled from 8,703 million in 2014 to 25,262 million in 2018, consistent with the rise in long-term debt and other long-term obligations.
Total liabilities: Overall liabilities almost tripled from 10,815 million in 2014 to 29,319 million in 2018, reflecting expanded financial obligations.
Stockholders’ equity: Equity showed fluctuations, peaking at 6,921 million in 2017 but declining to 6,161 million in 2018. Notably, retained earnings increased strongly from 6,472 million to 17,559 million, indicating accumulated profits, while accumulated other comprehensive income transitioned from a positive 915 million to a negative 50 million.
Treasury stock and paid-in capital: Treasury stock increased in cost from -10,699 million to -26,336 million, a large outflow reducing equity, while additional paid-in capital increased steadily, partially offsetting treasury stock effects.
Total liabilities and stockholders’ equity: The combined total rose consistently from 17,340 million in 2014 to 35,480 million in 2018, illustrating overall growth in the balance sheet size.

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Celgene Corp. (NASDAQ:CELG)

Balance Sheet: Liabilities and Stockholders’ Equity