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.

Lam Research Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
Trade accounts payable	613,966)	470,702)	1,011,208)	829,710)	592,387)	376,561)
Accrued compensation	516,717)	481,354)	481,070)	552,925)	402,401)	336,090)
Warranty reserves	228,060)	256,781)	232,248)	176,030)	117,839)	127,932)
Income and other taxes payable	186,700)	460,630)	465,601)	348,206)	215,652)	49,926)
Dividend payable	260,905)	231,267)	205,615)	185,431)	167,129)	158,868)
Restructuring	607)	8,014)	—)	—)	—)	—)
Other	608,888)	572,591)	589,738)	456,891)	369,634)	273,825)
Accrued expenses and other current liabilities	1,801,877)	2,010,637)	1,974,272)	1,719,483)	1,272,655)	946,641)
Deferred profit	1,417,781)	1,695,221)	1,571,898)	967,325)	457,523)	381,317)
Current portion of long-term debt and finance lease obligations	504,814)	8,358)	7,381)	11,349)	839,877)	667,131)
Current liabilities	4,338,438)	4,184,918)	4,564,759)	3,527,867)	3,162,442)	2,371,650)
Long-term debt and finance lease obligations, less current portion	4,478,520)	5,003,183)	4,998,449)	4,990,333)	4,970,848)	3,822,768)
Income taxes payable	813,304)	882,084)	931,117)	948,037)	909,709)	892,790)
Other long-term liabilities	575,012)	501,286)	422,941)	398,727)	332,559)	190,821)
Long-term liabilities	5,866,836)	6,386,553)	6,352,507)	6,337,097)	6,213,116)	4,906,379)
Total liabilities	10,205,274)	10,571,471)	10,917,266)	9,864,964)	9,375,558)	7,278,029)
Temporary equity, convertible notes	—)	—)	—)	—)	10,995)	49,439)
Preferred stock, at par value of $0.001 per share; none outstanding	—)	—)	—)	—)	—)	—)
Common stock, at par value of $0.001 per share	130)	133)	137)	143)	145)	144)
Additional paid-in capital	8,225,303)	7,809,002)	7,414,916)	7,052,962)	6,695,858)	6,409,405)
Treasury stock, at cost	(24,366,866)	(21,530,353)	(19,481,429)	(15,646,701)	(12,949,889)	(11,602,573)
Accumulated other comprehensive loss	(130,428)	(100,706)	(109,982)	(64,128)	(94,211)	(64,030)
Retained earnings	24,811,315)	22,032,096)	18,454,724)	14,684,912)	11,520,591)	9,930,919)
Stockholders’ equity	8,539,454)	8,210,172)	6,278,366)	6,027,188)	5,172,494)	4,673,865)
Total liabilities and stockholders’ equity	18,744,728)	18,781,643)	17,195,632)	15,892,152)	14,559,047)	12,001,333)

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

The financial data indicates several notable trends in the company's liabilities and equity positions over the six-year period from 2019 to 2024.

Trade Accounts Payable: This liability shows significant growth from 376.6 million USD in 2019, peaking at over 1 billion USD in 2022, before declining to 614.0 million USD in 2024. This trend suggests that the company initially expanded its trade credit usage substantially, followed by a strategic reduction or improved payment terms in recent years.
Accrued Compensation: Accrued compensation increased steadily from 336.1 million USD in 2019 to a high of 552.9 million USD in 2021, followed by a slight fluctuation and eventual rise to 516.7 million USD in 2024. This indicates relatively stable but increasing payroll-related obligations.
Warranty Reserves: Warranty reserves experienced growth from 127.9 million USD in 2019 to a peak near 256.8 million USD in 2023, then decreased slightly to 228.1 million USD in 2024. The rise followed by a decrease may reflect fluctuations in product warranty claims or changes in warranty policy.
Income and Other Taxes Payable: Taxes payable rose sharply from 49.9 million USD in 2019 to 465.6 million USD in 2022 but then fell notably to 186.7 million USD by 2024. This volatility could be related to changes in tax liabilities, timing differences, or tax planning strategies.
Dividend Payable: Dividends payable steadily increased from 158.9 million USD in 2019 to 260.9 million USD in 2024, reflecting ongoing dividend growth and possibly enhanced shareholder returns policies.
Restructuring: Restructuring expenses appeared only in 2023 and 2024, at relatively low levels of 8.0 million and 0.6 million USD, respectively, indicating minor restructuring activities during this period.
Other Current Liabilities: These liabilities rose notably from 273.8 million USD in 2019 to 608.9 million USD in 2024, suggesting growth in miscellaneous or less detailed short-term obligations.
Accrued Expenses and Other Current Liabilities: A strong upward trend is visible, increasing from 946.6 million USD in 2019 to a peak of 2.0 billion USD in 2023, with a slight reduction to 1.8 billion USD in 2024. This suggests increased short-term commitments possibly due to operating scale expansion.
Deferred Profit: Deferred profit more than quadrupled from 381.3 million USD in 2019 to a peak of approximately 1.70 billion USD in 2023, before declining to 1.42 billion USD in 2024. The large increase indicates significant growth in revenue received but not yet recognized, with a modest reversal in the last year.
Current Portion of Long-term Debt and Finance Lease Obligations: This component dropped drastically from 667.1 million USD in 2019 to under 10 million USD from 2021 through 2023, but surged again to 504.8 million USD in 2024, indicating debt restructuring or refinancing activities affecting short-term debt classification.
Current Liabilities: Current liabilities consistently rose from 2.37 billion USD in 2019 to a peak of 4.56 billion USD in 2022, then stabilized around 4.3 billion USD in 2023 and 2024, reflecting overall growth but some stabilization in short-term obligations.
Long-term Debt and Finance Lease Obligations, Less Current Portion: Long-term debt increased from 3.82 billion USD in 2019, reaching approximately 5.00 billion USD in 2023, before decreasing to 4.48 billion USD in 2024. The decline aligns with corresponding changes in the current portion of debt, suggesting reclassification or repayment.
Income Taxes Payable (Long-Term): Long-term income taxes payable remained relatively stable, around 890 million USD to 948 million USD between 2019 and 2021, then gradually declined to 813.3 million USD by 2024, indicating a slow reduction in deferred tax liabilities.
Other Long-term Liabilities: These liabilities more than doubled from 190.8 million USD in 2019 to 575.0 million USD in 2024, showing increased long-term obligations possibly related to pensions, contingencies, or other liabilities.
Long-term Liabilities: Total long-term liabilities mirrored the overall trend of moderate growth, rising from 4.91 billion USD in 2019 to a peak near 6.39 billion USD in 2023, before reducing to 5.87 billion USD in 2024, reflecting debt management and liability adjustments.
Total Liabilities: Total liabilities rose steadily from 7.28 billion USD in 2019 to a high of 10.92 billion USD in 2022, and then decreased to 10.21 billion USD in 2024, showing overall growth with recent deleveraging.
Stockholders’ Equity: Equity increased consistently from 4.67 billion USD in 2019 to 8.53 billion USD in 2024, reflecting significant retained earnings growth and additional capital contributions, partially offset by increasing treasury stock holdings.
Common Stock and Additional Paid-in Capital: Common stock par value remained nearly constant, with a slight decline indicating possible share repurchases or retirements. Additional paid-in capital rose steadily from 6.41 billion USD in 2019 to 8.23 billion USD in 2024, suggesting continued equity financing or accumulation of capital premiums.
Treasury Stock: Treasury stock balance increased in absolute negative value from -11.60 billion USD in 2019 to -24.37 billion USD in 2024, indicating aggressive share repurchase activity over the years.
Accumulated Other Comprehensive Loss: The loss fluctuated, increasing overall in magnitude from -64 million USD in 2019 to -130.4 million USD in 2024, indicating worsening unrealized losses or other comprehensive expense items.
Retained Earnings: Retained earnings demonstrated strong and steady growth from 9.93 billion USD in 2019 to 24.81 billion USD in 2024, reflecting sustained profitability and reinvestment of earnings over the period.
Total Liabilities and Stockholders’ Equity: The sum of liabilities and equity climbed steadily from 12.00 billion USD in 2019 to a peak of 18.78 billion USD in 2023, then slightly declined to 18.74 billion USD in 2024, consistent with the combined trends of liability management and equity growth.

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Lam Research Corp. (NASDAQ:LRCX)

Balance Sheet: Liabilities and Stockholders’ Equity