Name: Kraft Heinz Co. (NASDAQ:KHC) | 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 Heinz Co., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Commercial paper and other short-term debt	6)	21)	460)	645)	4)
Current portion of long-term debt	1,022)	377)	2,743)	2,046)	79)
Trade payables	4,003)	4,153)	4,449)	3,996)	2,844)
Accrued marketing	647)	722)	680)	749)	856)
Interest payable	384)	408)	419)	415)	401)
Other current liabilities	1,804)	1,767)	1,381)	1,650)	2,748)
Liabilities held for sale	9)	55)	—)	—)	—)
Current liabilities	7,875)	7,503)	10,132)	9,501)	6,932)
Long-term debt, excluding current portion	28,216)	30,770)	28,333)	29,713)	25,151)
Deferred income taxes	11,878)	12,202)	14,076)	20,848)	21,497)
Accrued postemployment costs	273)	306)	427)	2,038)	2,405)
Other non-current liabilities	1,459)	902)	1,017)	806)	752)
Non-current liabilities	41,826)	44,180)	43,853)	53,405)	49,805)
Total liabilities	49,701)	51,683)	53,985)	62,906)	56,737)
Redeemable noncontrolling interest	—)	3)	6)	—)	23)
9.00% cumulative compounding preferred stock, Series A, $0.01 par value	—)	—)	—)	—)	8,320)
Common stock, $0.01 par value	12)	12)	12)	12)	12)
Additional paid-in capital	56,828)	58,723)	58,711)	58,593)	58,375)
Retained earnings (deficit)	(3,060)	(4,853)	8,589)	588)	—)
Accumulated other comprehensive losses	(1,886)	(1,943)	(1,054)	(1,628)	(671)
Treasury stock, at cost	(271)	(282)	(224)	(207)	(31)
Shareholders’ equity	51,623)	51,657)	66,034)	57,358)	57,685)
Noncontrolling interest	126)	118)	207)	216)	208)
Total equity	51,749)	51,775)	66,241)	57,574)	57,893)
Total liabilities and equity	101,450)	103,461)	120,232)	120,480)	122,973)

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

The overall financial structure exhibits a contraction in both total liabilities and total equity over the five-year period. Total liabilities peaked in 2016 at 62,906 million US$ before trending downward to 49,701 million US$ by 2019. Total equity followed a similar trajectory of volatility, reaching a peak of 66,241 million US$ in 2017 and subsequently declining to 51,749 million US$ by 2019.

Current Liabilities and Short-Term Obligations: Current liabilities demonstrated an upward trend from 2015 to 2017, peaking at 10,132 million US$, followed by a reduction to 7,875 million US$ by 2019. Trade payables remained the most significant component of current liabilities, maintaining a relatively stable range between 4,000 million US$ and 4,400 million US$ from 2016 onwards. The current portion of long-term debt showed significant volatility, spiking to 2,743 million US$ in 2017 before normalizing to 1,022 million US$ in 2019.
Non-Current Liabilities and Long-Term Debt: Non-current liabilities decreased from 49,805 million US$ in 2015 to 41,826 million US$ in 2019. A primary driver of this decline was the substantial reduction in deferred income taxes, which fell from 21,497 million US$ in 2015 to 11,878 million US$ in 2019. Long-term debt, excluding the current portion, remained elevated throughout the period, fluctuating between 25,151 million US$ and 30,770 million US$, ending at 28,216 million US$ in 2019.
Equity Composition and Retained Earnings: The equity profile underwent a significant transformation. Preferred stock, valued at 8,320 million US$ in 2015, was completely removed from the balance sheet by 2016. The most notable trend is observed in retained earnings, which shifted from a positive balance of 8,589 million US$ in 2017 to a deficit of 4,853 million US$ in 2018, and remained in a deficit position at 3,060 million US$ by 2019. This shift contributed to the overall decline in shareholders' equity from its 2017 peak.
Capital Stability and Other Components: Additional paid-in capital remained relatively stable, hovering around 58,000 million US$ for most of the period, with a slight decrease to 56,828 million US$ in 2019. Accumulated other comprehensive losses persisted throughout the period, peaking at 1,943 million US$ in 2018. Treasury stock holdings increased from 31 million US$ in 2015 to 271 million US$ in 2019, indicating a consistent pattern of share repurchases.

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