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.

NXP Semiconductors N.V., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Accounts payable	1,252)	991)	944)	999)	1,146)
Restructuring liabilities, current	25)	60)	32)	60)	74)
Accrued compensation and benefits	476)	286)	—)	—)	—)
Income taxes payable	82)	140)	—)	—)	—)
Dividend payable	149)	105)	—)	—)	—)
Other	468)	435)	815)	1,219)	747)
Other current liabilities	1,175)	966)	815)	1,219)	747)
Short-term debt	—)	—)	—)	1,107)	751)
Current liabilities	2,452)	2,017)	1,791)	3,385)	2,718)
Long-term debt	10,572)	7,609)	7,365)	6,247)	5,814)
Restructuring liabilities	12)	14)	—)	5)	15)
Deferred tax liabilities	57)	85)	282)	450)	701)
Other non-current liabilities	1,001)	971)	923)	753)	1,085)
Non-current liabilities	11,642)	8,679)	8,570)	7,455)	7,615)
Total liabilities	14,094)	10,696)	10,361)	10,840)	10,333)
Preferred stock, par value €0.20 per share; none issued	—)	—)	—)	—)	—)
Common stock, par value €0.20 per share	56)	59)	64)	67)	71)
Capital in excess of par value	13,727)	14,133)	15,184)	15,460)	15,960)
Treasury shares, at cost	(1,932)	(1,037)	(3,037)	(3,238)	(342)
Accumulated other comprehensive income	48)	117)	75)	123)	177)
Accumulated deficit	(5,371)	(4,328)	(2,845)	(1,907)	(2,339)
Stockholders’ equity	6,528)	8,944)	9,441)	10,505)	13,527)
Non-controlling interests	242)	207)	214)	185)	189)
Total equity	6,770)	9,151)	9,655)	10,690)	13,716)
Total liabilities and equity	20,864)	19,847)	20,016)	21,530)	24,049)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).

The financial data reveals several notable trends in the company's liabilities, equity, and overall financial structure over the five-year period.

Liabilities

Current liabilities experienced fluctuations, with a peak of US$ 3,385 million in 2018, a significant decline to US$ 1,791 million in 2019, and a gradual increase thereafter to US$ 2,452 million by the end of 2021. Accounts payable generally decreased from 2017 to 2019 but rose again by 2021.

Short-term debt showed a presence in 2017 and 2018 but was absent in subsequent years, indicating repayment or reclassification.

Long-term debt steadily increased every year, reaching US$ 10,572 million in 2021, which signals growing reliance on long-term financing. This rise outpaces the relatively stable increase in total liabilities, implying a shift from short-term to longer-term obligations.

Restructuring liabilities declined overall, with current restructuring liabilities showing a decrease from US$ 74 million in 2017 to US$ 25 million in 2021, indicating reduced restructuring activities.

Deferred tax liabilities declined markedly from US$ 701 million in 2017 to US$ 57 million in 2021, suggesting changes in tax positions or benefits.

Other current and non-current liabilities fluctuated but remained relatively stable overall, with slight increases by 2021.

Equity

Stockholders’ equity decreased significantly over the period, dropping from US$ 13,527 million in 2017 to US$ 6,528 million in 2021. This decline is corroborated by the reduction in common stock and capital in excess of par value, as well as the increased accumulated deficit, which deepened from US$ -2,339 million to US$ -5,371 million.

The reduction in treasury shares from a negative US$ 3,238 million in 2018 to a lower negative value in 2021 reflects changes in share repurchases or reissues.

Accumulated other comprehensive income showed a downward trend, reaching US$ 48 million in 2021 from US$ 177 million in 2017, indicating fewer gains recognized outside of net income.

Total equity contracted from US$ 13,716 million to US$ 6,770 million through the period, mirroring the declines seen in equity components.

Total Liabilities and Equity

The sum of liabilities and equity decreased from US$ 24,049 million in 2017 to US$ 19,847 million in 2020 but rose again to US$ 20,864 million by the end of 2021. This suggests a contraction followed by modest growth in the overall financial base.

Additional Observations

Emergence and increases in accrued compensation, benefits, income taxes payable, and dividend payable from 2020 onward point to expanding obligations related to employee compensation, tax liabilities, and shareholder distributions.

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NXP Semiconductors N.V. (NASDAQ:NXPI)

Balance Sheet: Liabilities and Stockholders’ Equity