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.

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

US$ in millions

	Dec 31, 2020	Dec 29, 2019	Dec 30, 2018	Dec 31, 2017	Dec 31, 2016
Accounts payable	192)	149)	184)	160)	138)
Contract liabilities, current portion	186)	167)	175)	150)	141)
Accrued compensation expenses	153)	154)	193)	177)	112)
Accrued taxes payable	68)	86)	82)	50)	32)
Operating lease liabilities, current portion	51)	45)	—)	—)	—)
Other, including warranties	83)	64)	63)	55)	58)
Accrued liabilities	541)	516)	513)	432)	343)
Build-to-suit lease liability	—)	—)	—)	144)	223)
Long-term debt, current portion	511)	—)	1,107)	10)	1)
Current liabilities	1,244)	665)	1,804)	746)	705)
Operating lease liabilities, excluding current portion	671)	695)	—)	—)	—)
Long-term debt, excluding current portion	673)	1,141)	890)	1,182)	1,048)
Other long-term liabilities	303)	202)	359)	360)	214)
Long-term liabilities	1,647)	2,038)	1,249)	1,542)	1,262)
Total liabilities	2,891)	2,703)	3,053)	2,288)	1,966)
Redeemable noncontrolling interests	—)	—)	61)	220)	44)
Preferred stock, $0.01 par value; no shares issued and outstanding	—)	—)	—)	—)	—)
Common stock, $0.01 par value	2)	2)	2)	2)	2)
Additional paid-in capital	3,815)	3,560)	3,290)	2,833)	2,733)
Accumulated other comprehensive income (loss)	2)	5)	(1)	(1)	(1)
Retained earnings	4,723)	4,067)	3,083)	2,256)	1,485)
Treasury stock	(3,848)	(3,021)	(2,616)	(2,341)	(2,022)
Total Illumina stockholders’ equity	4,694)	4,613)	3,758)	2,749)	2,197)
Noncontrolling interests	—)	—)	87)	—)	73)
Total stockholders’ equity	4,694)	4,613)	3,845)	2,749)	2,270)
Total liabilities and stockholders’ equity	7,585)	7,316)	6,959)	5,257)	4,281)

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Liabilities

Overall, total liabilities increased from 1,966 million US dollars in 2016 to 2,891 million US dollars in 2020, showing an upward trend with a peak at 3,053 million in 2018, followed by some fluctuation.

Current liabilities displayed volatility, rising sharply to 1,804 million in 2018 from 746 million in 2017, then falling to 665 million in 2019 before increasing again to 1,244 million in 2020. This variability indicates inconsistent short-term obligations over the period.

Accounts payable steadily increased from 138 million in 2016 to 192 million in 2020, reflecting a gradual growth in trade payables or supplier credit.

Contract liabilities, current portion, moved upward as well, from 141 million in 2016 to 186 million in 2020, with minor fluctuations suggesting steady increases in deferred revenues or similar obligations.

Accrued compensation expenses rose significantly from 112 million in 2016 to a peak of 193 million in 2018, then decreased slightly to 153 million by 2020, which may reflect changing employee compensation accruals.

Accrued taxes payable followed an increasing trend until 2019, peaking at 86 million, then declined to 68 million in 2020, indicating some variability in tax liabilities.

The company began reporting operating lease liabilities from 2019, with 45 million as current portion and 695 million as long-term portion, decreasing slightly to 51 million and 671 million respectively in 2020. This introduction aligns with accounting standard changes regarding lease obligations.

Accrued liabilities increased consistently, from 343 million in 2016 to 541 million in 2020, demonstrating rising obligations accrued but not yet paid.

Long-term debt, excluding the current portion, fluctuated; it was 1,048 million in 2016, rose to 1,182 million in 2017, declined to 890 million in 2018, increased to 1,141 million in 2019, then fell to 673 million by 2020, reflecting varying borrowing strategies or repayments.

Long-term debt, current portion, showed a remarkable jump to 1,107 million in 2018 from 10 million in 2017, dropping to zero in 2019, then rising to 511 million in 2020, indicating changes in the short-term portion of debt liabilities.

Other long-term liabilities tended to fluctuate, starting at 214 million in 2016, reaching 360 million in 2017, then generally declining to 202 million in 2019 before rising again to 303 million in 2020.

Equity

Stockholders’ equity increased steadily from 2,270 million in 2016 to 4,694 million in 2020, showing consistent growth in the company’s net asset base.

Common stock remained constant at 2 million throughout all years, while additional paid-in capital increased from 2,733 million to 3,815 million, reflecting ongoing capital contributions or equity issuance.

Retained earnings showed robust growth, rising significantly from 1,485 million in 2016 to 4,723 million in 2020, indicative of accumulated profits being retained within the company.

Treasury stock increased in absolute value from -2,022 million in 2016 to -3,848 million in 2020, signifying substantial buybacks or repurchases of own shares over the period.

Accumulated other comprehensive income remained marginally negative or slightly positive, with minor fluctuations, without material effect on overall equity.

Summary of Financial Position Trends

The company demonstrated growth in total assets and equity over the five-year period, with total liabilities increasing but at a slower rate than equity, suggesting strengthening financial leverage and solvency.

Significant volatility in current liabilities, particularly the spike in current long-term debt in 2018, should be further examined for implications on liquidity and working capital management.

The introduction of lease liabilities from 2019 onward aligns with accounting changes and added considerable long-term obligations.

Steady increases in retained earnings and paid-in capital, coupled with substantial treasury stock repurchases, reveal active capital management and efforts to return value to shareholders.

Overall, the data reflect a company with growing obligations balanced by increasing equity, maintaining a stable financial structure through the period analyzed.

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Illumina Inc. (NASDAQ:ILMN)

Balance Sheet: Liabilities and Stockholders’ Equity