Balance Sheet: Liabilities and Stockholders’ Equity

Beginner level

The balance sheet provides creditors, investors, and analysts with information on company’s resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company’s 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.

Air Products & Chemicals Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Trade creditors	519,300	594,600	659,500	676,100	638,900	740,600
Payables associated with Lu’An	8,900	330,000	—	—	—	—
Contract liabilities	247,400	156,600	438,900	376,100	195,300	172,100
Accrued payroll and employee benefits	186,100	201,400	187,100	262,600	247,800	155,000
Pension and postretirement benefits	26,000	34,100	22,600	35,500	26,100	48,400
Dividends payable	255,700	241,500	207,500	186,900	174,400	164,100
Derivative instruments	91,200	54,200	95,900	74,000	114,600	82,500
Obligation for future contribution to an equity affiliate	94,400	—	—	—	—	—
Other	206,700	205,400	202,800	199,400	265,300	228,300
Payables and accrued liabilities	1,635,700	1,817,800	1,814,300	1,810,600	1,662,400	1,591,000
Accrued income taxes	86,600	59,600	98,600	146,600	55,800	78,000
Short-term borrowings	58,200	54,300	144,000	935,800	1,494,300	1,228,700
Current portion of long-term debt	40,400	406,600	416,400	371,300	435,600	65,300
Current liabilities of discontinued operations	—	—	15,700	19,000	—	—
Current liabilities	1,820,900	2,338,300	2,489,000	3,283,300	3,648,100	2,963,000
Long-term debt, excluding current portion	2,907,300	2,967,400	3,402,400	4,918,100	3,949,100	4,824,500
Long-term debt, related party	320,100	384,300	—	—	—	—
Pension benefits	651,200	417,200	703,800	1,186,800	860,000	609,200
Postretirement benefits	36,000	47,000	57,000	74,900	76,500	82,800
Noncurrent customer liability	118,000	92,400	62,600	—	—	—
Long-term accrued income taxes related to U.S. tax reform	215,400	184,400	—	—	—	—
Contingencies related to uncertain tax positions	123,300	113,200	130,600	95,600	91,100	111,600
Contract liabilities	49,200	58,200	39,000	43,800	135,100	57,600
Environmental liabilities	59,100	64,600	72,300	70,300	71,600	78,400
Derivative instruments	21,200	39,900	36,000	21,800	10,600	3,400
Asset retirement obligations	201,900	189,500	144,000	116,100	106,500	94,000
Obligation for future contribution to an equity affiliate	—	94,400	94,400	94,400	67,500	—
Obligations associated with EfW	57,800	63,300	65,300	—	—	—
Other	179,300	172,800	206,900	169,700	137,600	150,500
Other noncurrent liabilities	1,712,400	1,536,900	1,611,900	1,873,400	1,556,500	1,187,500
Deferred income taxes	793,800	775,100	778,400	767,100	903,300	995,500
Noncurrent liabilities	5,733,600	5,663,700	5,792,700	7,558,600	6,408,900	7,007,500
Total liabilities	7,554,500	8,002,000	8,281,700	10,841,900	10,057,000	9,970,500
Redeemable noncontrolling interest	—	—	—	—	—	287,200
Common stock, par value $1 per share	249,400	249,400	249,400	249,400	249,400	249,400
Capital in excess of par value	1,070,900	1,029,300	1,001,100	970,000	904,700	842,000
Retained earnings	14,138,400	13,409,900	12,846,600	10,475,500	10,580,400	9,993,200
Accumulated other comprehensive loss	(2,375,600)	(1,741,900)	(1,847,400)	(2,388,300)	(2,125,900)	(1,241,900)
Treasury stock, at cost	(2,029,500)	(2,089,200)	(2,163,500)	(2,227,000)	(2,359,600)	(2,476,900)
Total Air Products shareholders’ equity	11,053,600	10,857,500	10,086,200	7,079,600	7,249,000	7,365,800
Noncontrolling interests	334,700	318,800	99,300	133,800	132,100	155,600
Total equity	11,388,300	11,176,300	10,185,500	7,213,400	7,381,100	7,521,400
Total liabilities and equity	18,942,800	19,178,300	18,467,200	18,055,300	17,438,100	17,779,100

Based on: 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24), 10-K (filing date: 2014-11-24).

Balance sheet item	Description	The company
Current liabilities	Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.	Air Products & Chemicals Inc.’s current liabilities decreased from 2017 to 2018 and from 2018 to 2019.
Noncurrent liabilities	Amount of obligation due after one year or beyond the normal operating cycle, if longer.	Air Products & Chemicals Inc.’s noncurrent liabilities decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
Total liabilities	Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.	Air Products & Chemicals Inc.’s total liabilities decreased from 2017 to 2018 and from 2018 to 2019.
Total Air Products shareholders’ equity	Total of all stockholders’ equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity’s stockholders’ equity attributable to the parent excludes the amount of stockholders’ equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.	Air Products & Chemicals Inc.’s total Air Products shareholders’ equity increased from 2017 to 2018 and from 2018 to 2019.

Air Products & Chemicals Inc. (NYSE:APD)

Balance Sheet: Liabilities and Stockholders’ Equity