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.

Allergan Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Notes payable	72,100)	55,600)	48,800)	83,900)	28,100)
Convertible notes	—)	—)	—)	—)	642,500)
Accounts payable	287,400)	283,200)	233,100)	200,400)	222,500)
Accrued compensation	292,800)	269,100)	223,700)	200,600)	182,400)
Sales rebates and other incentive programs	372,100)	279,300)	270,600)	249,100)	186,500)
Royalties	27,300)	26,200)	26,000)	27,000)	34,600)
Interest	22,000)	22,000)	18,200)	15,000)	17,300)
Sales returns, specialty pharmaceutical products	60,400)	56,500)	50,000)	37,300)	29,200)
Legal settlement expenses	—)	—)	—)	—)	15,200)
Product warranties, breast implant products	7,700)	7,600)	6,700)	6,500)	6,700)
Contingent consideration	53,800)	9,900)	59,000)	4,900)	—)
Investment bank advisory fees	24,000)	—)	—)	—)	—)
Annual branded prescription drug fee	34,100)	6,100)	—)	—)	—)
Restructuring charges	109,600)	—)	—)	—)	—)
Other	194,000)	189,900)	159,100)	130,300)	147,300)
Other accrued expenses	905,000)	597,500)	589,600)	470,100)	436,800)
Income taxes	—)	38,900)	—)	—)	16,100)
Current liabilities	1,557,300)	1,244,300)	1,095,200)	955,000)	1,528,400)
Long-term debt, excluding current maturities	2,085,300)	2,098,300)	1,512,400)	1,515,400)	1,534,200)
Postretirement benefit plan	56,500)	44,300)	46,600)	41,300)	56,500)
Qualified and non-qualified pension plans	267,300)	194,500)	218,300)	204,400)	152,100)
Deferred executive compensation	116,300)	105,300)	85,300)	75,000)	68,900)
Deferred income	72,800)	67,000)	75,100)	81,100)	87,800)
Contingent consideration	312,100)	215,300)	165,300)	209,700)	41,300)
Product warranties, breast implant products	28,500)	26,000)	27,700)	26,100)	23,400)
Unrecognized tax benefit liabilities	82,600)	67,700)	53,800)	39,300)	15,900)
Other	74,000)	42,100)	37,000)	28,900)	18,500)
Other liabilities	1,010,100)	762,200)	709,100)	705,800)	464,400)
Non-current liabilities	3,095,400)	2,860,500)	2,221,500)	2,221,200)	1,998,600)
Total liabilities	4,652,700)	4,104,800)	3,316,700)	3,176,200)	3,527,000)
Preferred stock, $.01 par value; none issued	—)	—)	—)	—)	—)
Common stock, $.01 par value	3,100)	3,100)	3,100)	3,100)	3,100)
Additional paid-in capital	3,353,700)	3,032,800)	2,900,600)	2,761,800)	2,815,500)
Accumulated other comprehensive loss	(408,600)	(226,600)	(244,600)	(241,400)	(152,900)
Retained earnings	5,894,800)	4,646,700)	3,832,100)	2,969,300)	2,225,900)
Treasury stock, at cost	(1,090,000)	(992,800)	(654,100)	(183,200)	(133,900)
Total Allergan, Inc. stockholders’ equity	7,753,000)	6,463,200)	5,837,100)	5,309,600)	4,757,700)
Noncontrolling interest	10,000)	6,300)	25,500)	22,800)	23,400)
Total equity	7,763,000)	6,469,500)	5,862,600)	5,332,400)	4,781,100)
Total liabilities and equity	12,415,700)	10,574,300)	9,179,300)	8,508,600)	8,308,100)

Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).

The balance sheet reflects a period of significant expansion in both total liabilities and total equity between 2010 and 2014. Total liabilities and equity grew from 8.3 billion USD to 12.4 billion USD, indicating a substantial increase in the company's overall capital base. While total liabilities increased by approximately 32% over the five-year period, total equity grew more aggressively, increasing by approximately 62%.

Liability Structure and Trends: Total liabilities exhibited a fluctuating but generally upward trajectory, rising from 3.5 billion USD in 2010 to 4.65 billion USD in 2014. A notable shift occurred in 2013 and 2014, where both current and non-current liabilities saw sharp increases.; Within current liabilities, other accrued expenses emerged as a primary driver of growth, nearly doubling from 436.8 million USD in 2010 to 905 million USD in 2014. Sales rebates and other incentive programs also showed a steady upward trend, increasing from 186.5 million USD to 372.1 million USD, suggesting an increase in sales volume or a change in pricing strategies.; Non-current liabilities increased from 1.99 billion USD to 3.09 billion USD. This growth was largely driven by long-term debt, which rose from 1.53 billion USD in 2010 to 2.08 billion USD in 2014, with a significant jump occurring in 2013. Additionally, contingent consideration liabilities rose sharply from 41.3 million USD in 2010 to 312.1 million USD in 2014, typically indicating active acquisition activity and the associated future payment obligations.
Stockholders' Equity and Capital Management: Total equity demonstrated consistent growth, rising from 4.78 billion USD in 2010 to 7.76 billion USD in 2014. The primary driver of this increase was retained earnings, which grew from 2.22 billion USD to 5.89 billion USD, reflecting strong profitability and a policy of reinvesting earnings into the business.; A significant trend is observed in the treasury stock account, which expanded from a negative 133.9 million USD in 2010 to a negative 1.09 billion USD in 2014. This represents an aggressive share repurchase program, which serves to return capital to shareholders and reduce the number of outstanding shares.; Accumulated other comprehensive loss widened over the period, moving from -152.9 million USD in 2010 to -408.6 million USD in 2014, suggesting unrealized losses in other comprehensive income accounts, such as currency translation or investment adjustments.

The overall capital structure reveals a strategic balance between increasing leverage to fund growth and substantial equity accumulation. The ratio of total liabilities to total equity decreased over the period, moving from approximately 0.74 in 2010 to 0.60 in 2014, suggesting an improvement in the company's solvency profile despite the increase in absolute debt levels.

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Allergan Inc. (NYSE:AGN.)

Balance Sheet: Liabilities and Stockholders’ Equity