Balance Sheet: Liabilities and Stockholders’ Equity

Beginner level

The balance sheet provides creditors, investors, and analysts with information on company’s resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company’s 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 29, 2019	Dec 30, 2018	Dec 31, 2017	Jan 1, 2017	Jan 3, 2016
Accounts payable	149	184	160	138	139
Contract liabilities, current portion	167	175	150	141	118
Accrued compensation expenses	154	193	177	112	121
Accrued taxes payable	86	82	50	32	44
Operating lease liabilities, current portion	45	—	—	—	—
Other, including warranties	64	63	55	58	104
Accrued liabilities	516	513	432	343	387
Build-to-suit lease liability	—	—	144	223	9
Long-term debt, current portion	—	1,107	10	1	75
Current liabilities	665	1,804	746	705	610
Operating lease liabilities, excluding current portion	695	—	—	—	—
Long-term debt, excluding current portion	1,141	890	1,182	1,048	1,016
Other long-term liabilities	202	359	360	214	181
Long-term liabilities	2,038	1,249	1,542	1,262	1,196
Total liabilities	2,703	3,053	2,288	1,966	1,807
Redeemable noncontrolling interests	—	61	220	44	33
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	3,560	3,290	2,833	2,733	2,498
Accumulated other comprehensive income (loss)	5	(1)	(1)	(1)	—
Retained earnings	4,067	3,083	2,256	1,485	1,023
Treasury stock	(3,021)	(2,616)	(2,341)	(2,022)	(1,674)
Total Illumina stockholders’ equity	4,613	3,758	2,749	2,197	1,849
Noncontrolling interests	—	87	—	73	—
Total stockholders’ equity	4,613	3,845	2,749	2,270	1,849
Total liabilities and stockholders’ equity	7,316	6,959	5,257	4,281	3,688

Based on: 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-03-02).

Balance sheet item	Description	The company
Current liabilities	Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.	Illumina Inc.’s current liabilities increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
Long-term liabilities	Amount of obligation due after one year or beyond the normal operating cycle, if longer.	Illumina Inc.’s long-term liabilities decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
Total liabilities	Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.	Illumina Inc.’s total liabilities increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Total Illumina stockholders’ equity	Total of all stockholders’ equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity’s stockholders’ equity attributable to the parent excludes the amount of stockholders’ equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.	Illumina Inc.’s total Illumina stockholders’ equity increased from 2017 to 2018 and from 2018 to 2019.

Illumina Inc. (NASDAQ:ILMN)

Balance Sheet: Liabilities and Stockholders’ Equity