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.

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 data exhibits notable trends across several key liability and equity accounts over the five-year period ending December 31, 2019.

Current Liabilities

The current portion of long-term debt shows a steady increase from $300 million in 2015 to $977 million in 2019, indicating higher short-term debt obligations. Accounts payable rose from $593 million in 2015 to a peak of $780 million in 2017 before slightly declining towards 2019. Accrued payroll and benefits consistently increased from $861 million to approximately $1.34 billion, reflecting rising employee-related obligations. The liability for the guest loyalty program in current liabilities doubled from $952 million in 2015 to a peak of $2.53 billion in 2018, then slightly decreased in 2019. Accrued expenses and other current liabilities rose sharply in 2016 and 2017 but fluctuated thereafter. Total current liabilities increased significantly from $3.23 billion to $6.68 billion, demonstrating growing short-term obligations overall.

Noncurrent Liabilities

Long-term debt excluding current portion more than doubled from $3.81 billion in 2015 to $9.96 billion in 2019, indicating substantial leverage growth. The noncurrent liability for the guest loyalty program also grew steadily from $1.62 billion in 2015 to $3.46 billion in 2019. Deferred tax liabilities experienced a sharp increase in 2016 to over $1 billion, but subsequently declined to $290 million by 2019. Deferred revenue first appears in 2018 and increased modestly in 2019. Noncurrent operating lease liabilities were introduced in 2019, recorded at $882 million. Other noncurrent liabilities rose considerably from $994 million in 2015 to a peak of $2.89 billion in 2017, followed by a moderate decline through 2019. Overall, noncurrent liabilities nearly tripled from $6.44 billion to $17.67 billion, highlighting the growing long-term debt and other obligations.

Total Liabilities

Total liabilities exhibited a dramatic increase, rising from $9.67 billion in 2015 to nearly $24.35 billion in 2019. This trend underscores significant accumulation of both current and noncurrent liabilities, reflecting heightened financial obligations over the period.

Shareholders’ Equity and Related Accounts

Class A Common Stock remained constant at $5 million, while additional paid-in capital more than doubled by 2016 and then stabilized around $5.8 billion. Retained earnings showed continuous growth, increasing from $4.88 billion to $9.64 billion, indicating cumulative profitability or earnings retention.

Treasury stock grew negatively larger from -$11.10 billion in 2015 to -$14.39 billion in 2019, representing a significant increase in shares repurchased or held by the company, which reduces equity. Accumulated other comprehensive loss fluctuated but remained a comparatively small negative amount. Consequently, shareholders’ equity, initially a deficit of -$3.59 billion in 2015, shifted to a positive position reaching $5.36 billion in 2016, but then declined continuously over subsequent years to just $703 million in 2019, indicating a reduction in net equity available to shareholders.

Overall Financial Position

Total liabilities and shareholders’ equity increased markedly from $6.08 billion in 2015 to $25.05 billion in 2019, reflecting an overall expansion of the balance sheet. The substantial rise in liabilities outpaced equity growth, resulting in a declining equity ratio by the end of the period. The trends suggest increased borrowing and financial leverage, growth in customer-related liabilities associated with loyalty programs, and active management of equity through treasury stock transactions.

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Marriott International Inc. (NASDAQ:MAR)

Balance Sheet: Liabilities and Stockholders’ Equity