Name: Warner Bros. Discovery Inc. (NASDAQ:WBD) | 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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Warner Bros. Discovery Inc., 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	412)	397)	463)	325)	277)
Accrued payroll and related benefits	533)	494)	425)	484)	535)
Content rights payable	772)	528)	456)	384)	219)
Finance lease liabilities, current	58)	57)	47)	—)	—)
Other accrued liabilities	867)	714)	750)	695)	555)
Accrued liabilities	2,230)	1,793)	1,678)	1,563)	1,309)
Deferred revenues	478)	557)	489)	249)	255)
Current portion of debt	339)	335)	609)	1,860)	30)
Current liabilities	3,459)	3,082)	3,239)	3,997)	1,871)
Noncurrent portion of debt	14,420)	15,069)	14,810)	15,185)	14,755)
Deferred income taxes	1,225)	1,534)	1,691)	1,811)	319)
Finance lease liabilities, noncurrent	197)	184)	203)	—)	—)
Other noncurrent liabilities	1,730)	1,835)	1,826)	1,040)	587)
Noncurrent liabilities	17,572)	18,622)	18,530)	18,036)	15,661)
Total liabilities	21,031)	21,704)	21,769)	22,033)	17,532)
Redeemable noncontrolling interests	363)	383)	442)	415)	413)
Series A-1 convertible preferred stock: $0.01 par value	—)	—)	—)	—)	—)
Series C-1 convertible preferred stock: $0.01 par value	—)	—)	—)	—)	—)
Series A common stock: $0.01 par value	2)	2)	2)	2)	1)
Series B convertible common stock: $0.01 par value	—)	—)	—)	—)	—)
Series C common stock: $0.01 par value	5)	5)	5)	5)	4)
Additional paid-in capital	11,086)	10,809)	10,747)	10,647)	7,295)
Treasury stock, at cost	(8,244)	(8,244)	(7,374)	(6,737)	(6,737)
Retained earnings	9,580)	8,543)	7,333)	5,254)	4,632)
Accumulated other comprehensive loss	(830)	(651)	(822)	(785)	(585)
Total Discovery, Inc. stockholders’ equity	11,599)	10,464)	9,891)	8,386)	4,610)
Noncontrolling interests	1,434)	1,536)	1,633)	1,716)	—)
Total equity	13,033)	12,000)	11,524)	10,102)	4,610)
Total liabilities and equity	34,427)	34,087)	33,735)	32,550)	22,555)

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

The financial position between 2017 and 2021 is characterized by a significant expansion of stockholders' equity and a stabilization of total liabilities following a peak in 2018. Total liabilities increased from 17,532 million USD in 2017 to a peak of 22,033 million USD in 2018, before gradually declining to 21,031 million USD by the end of 2021. Conversely, total equity exhibited consistent growth, rising from 4,610 million USD in 2017 to 13,033 million USD in 2021, suggesting a strengthening of the solvency profile over the five-year period.

Liability Structure and Debt Trends: A notable fluctuation occurred in current liabilities, which surged from 1,871 million USD in 2017 to 3,997 million USD in 2018. This increase was primarily driven by the current portion of debt, which rose sharply from 30 million USD to 1,860 million USD in that year. Long-term debt remained relatively stable, fluctuating between 14,420 million USD and 15,185 million USD, indicating a consistent reliance on long-term borrowing. Total noncurrent liabilities showed a peak in 2020 at 18,622 million USD before decreasing to 17,572 million USD in 2021.
Operational Obligations: Content rights payable demonstrated a steady upward trajectory, increasing from 219 million USD in 2017 to 772 million USD in 2021, reflecting increased financial commitments toward content acquisition or production. Accrued liabilities also trended upward, growing from 1,309 million USD in 2017 to 2,230 million USD in 2021, with other accrued liabilities and accounts payable contributing to this growth.
Equity Composition and Retained Earnings: The growth in total equity was supported by a substantial increase in retained earnings, which rose from 4,632 million USD in 2017 to 9,580 million USD in 2021. Additional paid-in capital also grew from 7,295 million USD in 2017 to 11,086 million USD in 2021. This growth was partially offset by an increase in treasury stock at cost, which moved from -6,737 million USD to -8,244 million USD, indicating active share repurchase activity.
Solvency and Leverage Observations: The relationship between total liabilities and total equity shifted markedly over the period. In 2017, total liabilities were approximately 3.8 times the size of total equity. By 2021, this ratio decreased to approximately 1.6 times, demonstrating a significant reduction in financial leverage and an increase in the proportion of assets financed by equity rather than debt.

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