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.

Fiserv Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Trade accounts payable	593)	437)	392)	127)	80)
Client deposits	783)	702)	650)	564)	481)
Accrued compensation and benefits	392)	419)	378)	199)	198)
Accrued taxes	154)	130)	137)	18)	—)
Accrued interest	216)	220)	224)	35)	—)
Other accrued expenses	1,412)	1,278)	1,299)	203)	245)
Accounts payable and accrued expenses	3,550)	3,186)	3,080)	1,146)	1,004)
Short-term and current maturities of long-term debt	508)	384)	287)	4)	3)
Contract liabilities	585)	546)	492)	380)	552)
Settlement obligations	13,652)	11,521)	11,868)	480)	379)
Current liabilities	18,295)	15,637)	15,727)	2,010)	1,938)
Long-term debt, excluding current maturities	20,729)	20,300)	21,612)	5,955)	4,897)
Deferred income taxes	4,172)	4,389)	4,247)	745)	552)
Long-term contract liabilities	225)	187)	155)	89)	54)
Other long-term liabilities	878)	777)	941)	170)	117)
Long-term liabilities	26,004)	25,653)	26,955)	6,959)	5,620)
Total liabilities	44,299)	41,290)	42,682)	8,969)	7,558)
Redeemable noncontrolling interests	278)	259)	262)	—)	—)
Preferred stock, no par value; none issued	—)	—)	—)	—)	—)
Common stock, $0.01 par value	8)	8)	8)	8)	4)
Additional paid-in capital	22,983)	23,643)	23,741)	1,057)	1,035)
Accumulated other comprehensive loss	(745)	(387)	(180)	(67)	(54)
Retained earnings	14,846)	13,441)	12,528)	11,635)	10,240)
Treasury stock, at cost	(6,140)	(4,375)	(3,118)	(10,340)	(8,494)
Total Fiserv, Inc. shareholders’ equity	30,952)	32,330)	32,979)	2,293)	2,731)
Noncontrolling interests	720)	740)	1,616)	—)	—)
Total equity	31,672)	33,070)	34,595)	2,293)	2,731)
Total liabilities and equity	76,249)	74,619)	77,539)	11,262)	10,289)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

A significant increase in total liabilities and stockholders’ equity is observed over the period from 2017 to 2021. While total liabilities demonstrate substantial growth, the composition shifts notably, with a considerable rise in settlement obligations and long-term debt. Stockholders’ equity also experiences growth, though with fluctuations, and is impacted by changes in retained earnings and treasury stock.

Current Liabilities: Current liabilities exhibit a consistent upward trend, increasing from US$1,938 million in 2017 to US$18,295 million in 2021. The most substantial increases within this category are seen in settlement obligations, which rise dramatically from US$379 million to US$13,652 million, and accounts payable and accrued expenses, growing from US$1,004 million to US$3,550 million. Client deposits also contribute to the increase, moving from US$481 million to US$783 million. Short-term debt also shows a marked increase, rising from US$3 million to US$508 million.
Long-Term Liabilities: Long-term liabilities also demonstrate a significant increase over the period, rising from US$5,620 million in 2017 to US$26,004 million in 2021. Long-term debt, excluding current maturities, is a primary driver of this growth, increasing from US$4,897 million to US$20,729 million. Deferred income taxes also contribute substantially, growing from US$552 million to US$4,172 million. Other long-term liabilities also show an increase, though less pronounced.
Stockholders’ Equity: Total stockholders’ equity initially increases from US$2,731 million in 2017 to a peak of US$34,595 million in 2019, before declining to US$31,672 million in 2021. Retained earnings contribute significantly to this equity, growing from US$10,240 million to US$14,846 million. However, this growth is partially offset by a substantial increase in treasury stock, which moves from negative US$8,494 million to negative US$6,140 million, indicating increased share repurchases. Accumulated other comprehensive loss also increases, becoming more negative over time, further reducing equity. Additional paid-in capital shows a large increase in 2019, but then declines in subsequent years.
Specific Accrued Expenses: Accrued compensation and benefits show an initial increase from US$198 million in 2017 to US$419 million in 2020, then a slight decrease to US$392 million in 2021. Accrued taxes and accrued interest both show consistent growth throughout the period, increasing from minimal values in 2017 to US$154 million and US$216 million respectively in 2021. Other accrued expenses demonstrate a substantial increase, particularly in 2019, rising from US$245 million to US$1,412 million in 2021.

Overall, the financial position of the company is characterized by a significant expansion of both liabilities and equity. The growth in liabilities appears to be driven primarily by increases in settlement obligations and long-term debt, while changes in equity are influenced by a combination of retained earnings, share repurchases, and accumulated other comprehensive loss. The substantial increase in accrued expenses warrants further investigation.

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Fiserv Inc. (NASDAQ:FISV)

Balance Sheet: Liabilities and Stockholders’ Equity