Name: Marriott International Inc. (NASDAQ:MAR) | 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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Marriott International Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Current portion of long-term debt	977)	833)	398)	309)	300)
Accounts payable	720)	767)	780)	687)	593)
Accrued payroll and benefits	1,339)	1,345)	1,227)	1,174)	861)
Liability for guest loyalty program	2,258)	2,529)	2,064)	1,866)	952)
Accrued expenses and other	1,383)	963)	1,541)	1,111)	527)
Current liabilities	6,677)	6,437)	6,010)	5,147)	3,233)
Long-term debt, excluding current portion	9,963)	8,514)	7,840)	8,197)	3,807)
Liability for guest loyalty program	3,460)	2,932)	2,876)	2,675)	1,622)
Deferred tax liabilities	290)	485)	604)	1,020)	16)
Deferred revenue	840)	731)	—)	—)	—)
Noncurrent operating lease liabilities	882)	—)	—)	—)	—)
Other noncurrent liabilities	2,236)	2,372)	2,887)	1,744)	994)
Noncurrent liabilities	17,671)	15,034)	14,207)	13,636)	6,439)
Total liabilities	24,348)	21,471)	20,217)	18,783)	9,672)
Class A Common Stock	5)	5)	5)	5)	5)
Additional paid-in-capital	5,800)	5,814)	5,770)	5,808)	2,821)
Retained earnings	9,644)	8,982)	7,391)	6,501)	4,878)
Treasury stock, at cost	(14,385)	(12,185)	(9,418)	(6,460)	(11,098)
Accumulated other comprehensive loss	(361)	(391)	(17)	(497)	(196)
Shareholders’ equity (deficit)	703)	2,225)	3,731)	5,357)	(3,590)
Liabilities and shareholders’ equity (deficit)	25,051)	23,696)	23,948)	24,140)	6,082)

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

The financial position of the entity from 2015 to 2019 is characterized by a substantial expansion of total liabilities and a volatile equity structure. Total liabilities grew from 9,672 million US dollars in 2015 to 24,348 million US dollars by 2019, representing a significant increase in the overall obligations of the organization.

Current Liabilities Analysis: Current liabilities exhibited a consistent upward trend, increasing from 3,233 million US dollars in 2015 to 6,677 million US dollars in 2019. A primary driver of this growth was the liability for the guest loyalty program, which more than doubled from 952 million US dollars to 2,258 million US dollars over the period. Additionally, the current portion of long-term debt saw a sharp increase, particularly between 2017 and 2018, rising from 398 million US dollars to 833 million US dollars.
Noncurrent Liabilities and Debt Profile: Noncurrent liabilities rose sharply from 6,439 million US dollars in 2015 to 17,671 million US dollars in 2019. This increase was largely driven by long-term debt, excluding the current portion, which grew from 3,807 million US dollars to 9,963 million US dollars. The noncurrent liability for the guest loyalty program also expanded significantly, increasing from 1,622 million US dollars in 2015 to 3,460 million US dollars in 2019, indicating a substantial increase in long-term obligations to loyalty members.
Shareholders' Equity and Capital Structure: Shareholders' equity showed significant volatility, beginning with a deficit of 3,590 million US dollars in 2015, peaking at 5,357 million US dollars in 2016, and subsequently declining to 703 million US dollars by 2019. This volatility is attributed to the opposing trends of retained earnings and treasury stock. Retained earnings grew steadily from 4,878 million US dollars to 9,644 million US dollars, signaling consistent profitability. However, this was offset by an aggressive acquisition of treasury stock, which increased from a cost of 11,098 million US dollars in 2015 to 14,385 million US dollars in 2019, thereby reducing total equity.

In summary, the period was marked by a strategic shift toward higher leverage, as evidenced by the growth in both current and noncurrent debt. The substantial increase in guest loyalty program liabilities across both short-term and long-term horizons suggests a scaling of the rewards infrastructure, while the equity profile indicates that profitability gains were largely utilized for share repurchases.

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