Name: Kraft Foods Group Inc. (NASDAQ:KRFT) | 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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Kraft Foods Group Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 27, 2014	Dec 28, 2013	Dec 29, 2012
Current portion of long-term debt	1,405)	4)	5)
Accounts payable	1,537)	1,548)	1,556)
Accrued marketing	511)	685)	740)
Accrued employment costs	163)	184)	194)
Dividends payable	324)	313)	296)
Accrued postretirement health care costs	192)	197)	236)
Other current liabilities	641)	479)	579)
Current liabilities	4,773)	3,410)	3,606)
Long-term debt, excluding current portion	8,627)	9,976)	9,966)
Deferred income taxes	340)	662)	288)
Accrued pension costs	1,105)	405)	1,990)
Accrued postretirement health care costs	3,399)	3,080)	3,502)
Other liabilities	338)	428)	405)
Noncurrent liabilities	13,809)	14,551)	16,151)
Total liabilities	18,582)	17,961)	19,757)
Common stock, no par value	—)	—)	—)
Additional paid-in capital	4,678)	4,434)	4,240)
Retained earnings (deficit)	1,045)	1,281)	(206)
Accumulated other comprehensive losses	(562)	(499)	(460)
Treasury stock, at cost	(796)	(29)	(2)
Equity	4,365)	5,187)	3,572)
Total liabilities and equity	22,947)	23,148)	23,329)

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

The balance sheet exhibits a strategic shift in the debt profile and a volatile but generally improving equity position between 2012 and 2014. While total liabilities decreased from 19,757 million US$ in 2012 to 18,582 million US$ in 2014, the composition of these liabilities shifted significantly toward short-term obligations.

Current Liabilities and Short-Term Debt Maturity: Current liabilities remained relatively stable between 2012 and 2013, moving from 3,606 million US$ to 3,410 million US$. However, a sharp increase to 4,773 million US$ occurred in 2014. This spike is primarily driven by the current portion of long-term debt, which escalated from 4 million US$ in 2013 to 1,405 million US$ in 2014, indicating a substantial amount of debt maturing within the next twelve months.
Long-Term Debt and Noncurrent Obligations: Noncurrent liabilities showed a consistent downward trend, declining from 16,151 million US$ in 2012 to 13,809 million US$ in 2014. Long-term debt, excluding the current portion, decreased from 9,966 million US$ in 2012 to 8,627 million US$ in 2014. Additionally, accrued pension costs exhibited high volatility, dropping significantly from 1,990 million US$ in 2012 to 405 million US$ in 2013 before rebounding to 1,105 million US$ in 2014.
Stockholders' Equity and Retained Earnings: Total equity experienced a peak in 2013 at 5,187 million US$ before declining to 4,365 million US$ in 2014. A notable recovery is observed in retained earnings, which shifted from a deficit of 206 million US$ in 2012 to a surplus of 1,281 million US$ in 2013 and 1,045 million US$ in 2014. This suggests a transition toward sustained profitability during this period.
Treasury Stock and Capital Management: There is a marked increase in treasury stock acquisitions, rising from 2 million US$ in 2012 to 796 million US$ in 2014. This upward trend in treasury stock indicates an aggressive share buyback program, which contributed to the reduction in total equity observed between 2013 and 2014.

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