Balance Sheet: Assets

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.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Allergan PLC, consolidated balance sheet: assets

US$ in thousands

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Cash and cash equivalents	2,503,300)	880,400)	1,817,200)	1,724,000)	1,096,000)
Short-term investments	3,411,600)	1,026,900)	2,814,400)	8,062,300)	9,300)
Teva shares	—)	—)	1,817,700)	3,439,200)	—)
Marketable securities	3,411,600)	1,026,900)	4,632,100)	11,501,500)	9,300)
Accounts receivable, net	3,192,300)	2,868,100)	2,899,000)	2,531,000)	2,401,600)
Inventories	1,133,100)	846,900)	904,500)	718,000)	1,009,700)
Current assets held for sale	—)	34,000)	—)	—)	3,540,300)
Prepaid taxes	437,700)	403,800)	690,900)	957,400)	240,500)
Prepaid insurance	11,500)	16,700)	20,900)	25,700)	24,100)
Contingent income	83,600)	67,700)	80,100)	94,300)	13,800)
Sales and marketing	65,000)	41,800)	31,900)	42,500)	36,700)
Other	288,600)	289,100)	300,100)	263,500)	243,400)
Prepaid expenses and other current assets	886,400)	819,100)	1,123,900)	1,383,400)	558,500)
Current assets	11,126,700)	6,475,400)	11,376,700)	17,857,900)	8,615,400)
Property, plant and equipment, net	1,926,500)	1,787,000)	1,785,400)	1,611,300)	1,573,900)
Right of use asset, operating leases	490,400)	—)	—)	—)	—)
Deferred executive compensation investments	89,200)	90,800)	112,400)	111,700)	118,100)
Equity method investments	7,600)	8,400)	11,500)	12,800)	17,300)
Cost method investments	—)	—)	—)	15,000)	16,700)
Other long-term investments	63,300)	37,600)	60,800)	67,200)	78,200)
Taxes receivable	41,200)	1,674,800)	32,100)	36,000)	39,600)
Contingent income	51,800)	75,300)	—)	—)	—)
Other assets	154,900)	83,700)	51,100)	39,400)	307,500)
Investments and other assets	408,000)	1,970,600)	267,900)	282,100)	577,400)
Non current assets held for sale	31,700)	882,200)	81,600)	27,000)	10,541,300)
Deferred tax assets	576,900)	1,063,700)	319,100)	233,300)	49,500)
Product rights and other intangibles	37,890,600)	43,695,400)	54,648,300)	62,618,600)	67,931,700)
Goodwill	42,248,300)	45,913,300)	49,862,900)	46,356,100)	46,551,500)
Non current assets	83,572,400)	95,312,200)	106,965,200)	111,128,400)	127,225,300)
Total assets	94,699,100)	101,787,600)	118,341,900)	128,986,300)	135,840,700)

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 analysis of the financial data over the five-year period reveals several notable trends and changes in the company's asset structure and investment profile.

Liquidity and Cash Equivalents: Cash and cash equivalents showed significant fluctuation, increasing from approximately 1.1 billion USD in 2015 to 1.8 billion USD in 2017, then dropping sharply to 880 million USD in 2018 before rising again to a peak of around 2.5 billion USD in 2019. This pattern suggests periods of substantial cash accumulation followed by strategic expenditures or investments, with a strong rebound by the end of the period.
Short-term Investments and Marketable Securities: Short-term investments and marketable securities exhibited high volatility. Marketable securities peaked at over 11.5 billion USD in 2016, driven partially by significant holdings in Teva shares valued at approximately 3.4 billion USD that year. Both marketable securities and Teva shares decreased sharply in subsequent years, indicating portfolio adjustments or divestitures. By 2019, marketable securities settled around 3.4 billion USD.
Accounts Receivable and Inventories: Accounts receivable increased steadily from 2.4 billion USD in 2015 to over 3.1 billion USD in 2019, reflecting growing revenue or extended credit terms. Inventories fluctuated, declining notably from about 1 billion USD in 2015 to a low in 2016 but grew again reaching over 1.1 billion USD in 2019, which may indicate changes in production or sales strategies.
Current Assets Composition: Current assets as a whole saw a peak in 2016 at around 17.9 billion USD, driven by a significant increase in investments and cash equivalents. This level decreased substantially in 2018 to about 6.5 billion USD but recovered by 2019 to approximately 11.1 billion USD. Changes in prepaid assets and current assets held for sale also contributed to this volatility, indicating possible asset reclassification or disposals.
Non-Current Assets and Intangible Assets: Non-current assets declined consistently over the period from approximately 127.2 billion USD in 2015 to 83.6 billion USD in 2019. This reduction was primarily due to a substantial decrease in product rights and other intangibles, which decreased from nearly 68 billion USD to about 38 billion USD, alongside a decline in goodwill from 46.5 billion USD to 42.2 billion USD. Such trends may reflect amortization, impairments, or divestitures in intangible assets.
Property, Plant, and Equipment: The net value of property, plant, and equipment increased steadily from 1.57 billion USD in 2015 to nearly 1.93 billion USD in 2019, indicating ongoing capital investments or acquisitions in tangible fixed assets during the period.
Deferred Taxes and Other Assets: Deferred tax assets saw a notable increase, especially from 2017 onwards, rising from 49.5 million USD in 2015 to over 576 million USD in 2019. This suggests growing temporary differences between accounting and tax bases or recognition of deferred tax benefits. Other assets showed variability but generally remained a smaller part of the asset base.
Total Assets: Total assets decreased steadily from 135.8 billion USD in 2015 to 94.7 billion USD in 2019, consistent with reductions in intangible assets and investments. The overall contraction reflects possible strategic downsizing, asset sales, or impairments during the period.

In summary, the data indicate a strategic rebalancing of asset components, with significant reductions in intangible assets and investments offset partially by increases in tangible assets and liquidity by the end of 2019. The fluctuations in cash and marketable securities suggest dynamic investment activities, while declines in total assets point to a possible portfolio consolidation or restructuring over the analyzed years.

Assets: Selected Items

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Current Assets: Selected Items

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Allergan PLC (NYSE:AGN)

Balance Sheet: Assets

Assets: Selected Items

Current Assets: Selected Items