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 PLC, consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Accrued third-party rebates	2,001,800)	1,832,100)	1,713,700)	1,595,500)	1,281,600)
Litigation-related reserves and legal fees	1,250,700)	92,000)	78,300)	101,100)	213,500)
Accrued payroll and related benefits	830,300)	694,300)	635,600)	543,500)	409,700)
Accrued returns and other allowances	596,700)	527,800)	466,200)	295,900)	288,400)
Accrued R&D expenditures	184,800)	215,500)	165,900)	154,000)	384,100)
Interest payable	189,500)	191,400)	245,900)	294,200)	312,000)
Royalties payable	216,900)	155,100)	189,200)	146,600)	126,900)
Accrued pharmaceutical fees	125,900)	145,300)	186,400)	221,300)	162,200)
Accrued severance, retention and other shutdown costs	12,700)	71,600)	132,800)	86,200)	110,400)
Accrued non-provision taxes	64,600)	68,500)	76,500)	55,000)	100,300)
Accrued selling and marketing expenditures	61,300)	61,100)	53,000)	95,900)	127,200)
Current portion of contingent consideration obligations	12,100)	8,300)	56,200)	511,000)	79,900)
Dividends payable	1,100)	1,400)	24,600)	23,200)	23,900)
Other accrued expenses	409,900)	373,000)	1,192,600)	670,700)	360,000)
Accrued expenses	5,958,300)	4,437,400)	5,216,900)	4,794,100)	3,980,100)
Accounts payable	390,400)	349,800)	324,500)	224,900)	369,400)
Accounts payable and accrued expenses	6,348,700)	4,787,200)	5,541,400)	5,019,000)	4,349,500)
Income taxes payable	65,100)	72,400)	74,900)	57,800)	54,200)
Current portion of long-term debt and capital leases	4,532,500)	868,300)	4,231,800)	2,797,900)	2,432,800)
Current portion of lease liability, operating	124,400)	—)	—)	—)	—)
Current liabilities held for sale	—)	—)	—)	—)	1,491,800)
Current liabilities	11,070,700)	5,727,900)	9,848,100)	7,874,700)	8,328,300)
Long-term debt and capital leases, excluding current portion	18,116,500)	22,929,400)	25,843,500)	29,970,800)	40,293,400)
Lease liability, operating, excluding current portion	446,100)	—)	—)	—)	—)
Acquisition related contingent consideration liabilities	377,300)	336,300)	420,700)	661,100)	788,100)
Long-term pension and post retirement liability	144,100)	166,500)	162,700)	201,600)	222,100)
Legacy Allergan deferred executive compensation	89,200)	90,800)	113,800)	111,700)	117,900)
Accrued R&D milestone	75,000)	75,000)	—)	—)	—)
Long-term contractual obligations	—)	43,200)	45,200)	25,300)	26,400)
Deferred revenue	26,600)	36,100)	37,900)	15,700)	18,200)
Product warranties	29,200)	27,900)	28,700)	28,100)	28,400)
Long-term severance and restructuring liabilities	10,800)	14,200)	53,100)	22,000)	34,900)
Other long-term liabilities	48,700)	92,000)	24,800)	19,500)	26,000)
Other long-term liabilities	800,900)	882,000)	886,900)	1,085,000)	1,262,000)
Long-term liabilities held for sale	—)	—)	—)	—)	580,100)
Other taxes payable	1,704,800)	1,615,500)	1,573,900)	886,200)	801,900)
Deferred tax liabilities	4,363,700)	5,501,800)	6,352,400)	12,969,100)	7,985,700)
Long-term liabilities	25,432,000)	30,928,700)	34,656,700)	44,911,100)	50,923,100)
Total liabilities	36,502,700)	36,656,600)	44,504,800)	52,785,800)	59,251,400)
Preferred shares, $0.0001 par value per share	—)	—)	4,929,700)	4,929,700)	4,929,700)
Ordinary shares; $0.0001 par value per share	—)	—)	—)	—)	—)
Additional paid-in capital	55,974,900)	56,510,000)	54,013,500)	53,958,900)	68,508,300)
Retained earnings	991,500)	7,258,900)	12,957,200)	18,342,500)	3,647,500)
Accumulated other comprehensive income (loss)	1,207,200)	1,345,200)	1,920,700)	(1,038,400)	(494,100)
Shareholders’ equity	58,173,600)	65,114,100)	73,821,100)	76,192,700)	76,591,400)
Noncontrolling interest	22,800)	16,900)	16,000)	7,800)	(2,100)
Total equity	58,196,400)	65,131,000)	73,837,100)	76,200,500)	76,589,300)
Total liabilities and equity	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).

Accrued Third-Party Rebates: There is a consistent increase in accrued third-party rebates from 1,281,600 thousand USD in 2015 to 2,001,800 thousand USD in 2019, indicating growing obligations in this category over the period.
Litigation-Related Reserves and Legal Fees: These reserves declined from 213,500 thousand USD in 2015 to 78,300 thousand USD in 2017, but surged sharply to 1,250,700 thousand USD in 2019, which suggests increased legal contingencies or settlements in the latest year.
Accrued Payroll and Related Benefits: Accrued payroll increased steadily, from 409,700 thousand USD in 2015 to 830,300 thousand USD in 2019, reflecting higher payroll-related liabilities or workforce growth.
Accrued Returns and Other Allowances: This category showed a gradual rise, nearly doubling from 288,400 thousand USD in 2015 to 596,700 thousand USD in 2019, signaling increasing expected returns or allowances.
Accrued R&D Expenditures: Accrued R&D expenses dropped sharply after 2015 (384,100 thousand USD) to a low of 154,000 thousand USD in 2016 but fluctuated afterwards, ending at 184,800 thousand USD in 2019, reflecting variability in R&D investment timing or recognition.
Interest Payable: Interest payable declined steadily from 312,000 thousand USD in 2015 to 189,500 thousand USD in 2019, possibly due to reduced interest expenses or changes in debt structure.
Royalties Payable: Royalties payable exhibited an overall upward trend, reaching 216,900 thousand USD in 2019 from 126,900 thousand USD in 2015, which may reflect increased royalty obligations linked to product sales or licensing agreements.
Accrued Pharmaceutical Fees: These fees declined from 162,200 thousand USD in 2015 to 125,900 thousand USD in 2019, indicating reduced accrued pharmaceutical-related liabilities over time.
Accrued Severance, Retention, and Other Shutdown Costs: There was a significant reduction in this liability from 110,400 thousand USD in 2015 to 12,700 thousand USD in 2019, suggesting a decrease in restructuring or shutdown activities.
Accrued Non-Provision Taxes: These accrued taxes dropped sharply from 100,300 thousand USD in 2015 to 64,600 thousand USD in 2019, indicating lower accrued tax liabilities outside of provisions.
Accrued Selling and Marketing Expenditures: There was a notable decline from 127,200 thousand USD in 2015 to around 61,300 thousand USD by 2019, demonstrating reduced accruing marketing expenses.
Current Portion of Contingent Consideration Obligations: This liability showed volatility, peaking at 511,000 thousand USD in 2016 before falling sharply to 12,100 thousand USD in 2019, suggesting settlements or reclassifications of contingent obligations.
Dividends Payable: Dividends payable decreased dramatically from 23,900 thousand USD in 2015 to just 1,100 thousand USD in 2019, pointing at lower dividend payments or changes in dividend timing.
Other Accrued Expenses: Other accrued expenses increased significantly to 1,192,600 thousand USD in 2017, from 360,000 thousand USD in 2015, before falling to 409,900 thousand USD in 2019, indicating varied accruals over the years.
Total Accrued Expenses: Overall accrued expenses rose from 3,980,100 thousand USD in 2015 to 5,958,300 thousand USD in 2019, revealing increased short-term accrued liabilities.
Accounts Payable: Accounts payable fluctuated but showed an upward trend from 369,400 thousand USD in 2015 to 390,400 thousand USD in 2019, indicating slightly higher payable balances.
Combined Accounts Payable and Accrued Expenses: This combined liability increased from 4,349,500 thousand USD in 2015 to 6,348,700 thousand USD in 2019, confirming a growth in short-term obligations.
Income Taxes Payable: Income taxes payable remained relatively stable with a slight decrease from 54,200 thousand USD in 2015 to 65,100 thousand USD in 2019, showing minor fluctuations.
Current Portion of Long-Term Debt and Capital Leases: This amount showed notable volatility, peaking at 4,231,800 thousand USD in 2017, dropping to 868,300 thousand USD in 2018, then rising again to 4,532,500 thousand USD in 2019, indicating refinancing activities or reclassifications.
Current Portion of Lease Liability: Data appears only for 2019, showing 124,400 thousand USD, suggesting the adoption of new lease accounting standards or newly recognized lease liabilities.
Current Liabilities Held for Sale: This liability was reported only in 2015 at 1,491,800 thousand USD, implying disposal or completion of held-for-sale transactions thereafter.
Total Current Liabilities: Current liabilities present irregular trends with a decrease in 2018 to 5,727,900 thousand USD from a high of 9,848,100 thousand USD in 2017, followed by a sharp increase to 11,070,700 thousand USD in 2019, reflecting fluctuating short-term obligations and possibly shifts in classification.
Long-Term Debt and Capital Leases (Excluding Current Portion): There is a consistent decrease from 40,293,400 thousand USD in 2015 to 18,116,500 thousand USD in 2019, indicating significant debt repayments or refinancing reducing long-term debt obligations.
Lease Liability Excluding Current Portion: Reported at 446,100 thousand USD in 2019 only, likely reflecting implementation of updated lease accounting rules.
Acquisition Related Contingent Consideration Liabilities: These liabilities decreased from 788,100 thousand USD in 2015 to 377,300 thousand USD in 2019, indicating resolution or reduction of contingent acquisition obligations over time.
Long-Term Pension and Post Retirement Liability: This liability decreased steadily from 222,100 thousand USD in 2015 to 144,100 thousand USD in 2019, reflecting possible plan settlements or reduced pension obligations.
Legacy Deferred Executive Compensation: These liabilities declined gradually from 117,900 thousand USD in 2015 to 89,200 thousand USD in 2019, suggesting progressive payments or adjustments.
Accrued R&D Milestone: Reported only in 2018 and 2019 at 75,000 thousand USD each year, suggesting milestone-related R&D commitments recognized in these periods.
Long-Term Contractual Obligations: Showed an increase from 26,400 thousand USD in 2015 to a peak of 45,200 thousand USD in 2017, before slightly declining, reflecting contractual commitments fluctuating.
Deferred Revenue: Deferred revenue experienced an increase to 37,900 thousand USD in 2017 before declining to 26,600 thousand USD in 2019, indicating timing variations in unearned revenue recognition.
Product Warranties: Maintained relative stability between 27,900 and 29,200 thousand USD, showing consistent warranty liabilities.
Long-Term Severance and Restructuring Liabilities: These decreased from 34,900 thousand USD in 2015 to 10,800 thousand USD in 2019, suggesting reduced restructuring activities.
Other Long-Term Liabilities: One category shows an increase from 26,000 thousand USD in 2015 to 92,000 thousand USD in 2018, falling back to 48,700 thousand USD in 2019, while another larger category declined steadily from 1,262,000 thousand USD in 2015 to 800,900 thousand USD in 2019, both indicating fluctuations in miscellaneous long-term obligations.
Long-Term Liabilities Held for Sale: Reported only in 2015 at 580,100 thousand USD, with no subsequent entries, consistent with disposal or completion of held-for-sale transactions.
Other Taxes Payable: There is a clear increasing trend from 801,900 thousand USD in 2015 to 1,704,800 thousand USD in 2019, indicating growing tax-related liabilities.
Deferred Tax Liabilities: Deferred tax liabilities saw significant fluctuations, rising from 7,985,700 thousand USD in 2015 to a peak of 12,969,100 thousand USD in 2016, then decreasing steadily to 4,363,700 thousand USD in 2019, reflecting changes in temporary differences and tax planning strategies.
Total Long-Term Liabilities: Displayed a continuous decrease from 50,923,100 thousand USD in 2015 to 25,432,000 thousand USD in 2019, signifying debt reductions and lower long-term obligations.
Total Liabilities: Total liabilities declined markedly from 59,251,400 thousand USD in 2015 to 36,502,700 thousand USD in 2019, primarily driven by decreases in long-term debt and other obligations outweighing current liabilities’ rise.
Preferred Shares: Preferred shares remained constant at 4,929,700 thousand USD through 2017, with no data in later years, suggesting possible redemption or reclassification.
Additional Paid-In Capital: Decreased from 68,508,300 thousand USD in 2015 to 55,974,900 thousand USD in 2019, indicating possible share repurchases or capital adjustments.
Retained Earnings: Retained earnings experienced a peak of 18,342,500 thousand USD in 2016, but subsequently declined sharply to 991,500 thousand USD in 2019, which may reflect net losses, dividends, or other equity changes.
Accumulated Other Comprehensive Income (Loss): This balance moved from a negative 494,100 thousand USD in 2015 to a positive 1,207,200 thousand USD in 2019, showing improvements in unrealized gains or other comprehensive income components.
Shareholders’ Equity: Shareholders’ equity declined from 76,591,400 thousand USD in 2015 to 58,173,600 thousand USD in 2019, indicating reductions in net assets possibly due to losses, dividend payments, or capital transactions.
Noncontrolling Interest: Gradually increased from a negative 2,100 thousand USD in 2015 to 22,800 thousand USD in 2019, reflecting changes in ownership interests.
Total Equity: Total equity followed a downward trend from 76,589,300 thousand USD in 2015 to 58,196,400 thousand USD in 2019, consistent with decreases in shareholders’ equity and shifts in noncontrolling interests.
Total Liabilities and Equity: The aggregate of liabilities and equity showed a steady decline from 135,840,700 thousand USD in 2015 to 94,699,100 thousand USD in 2019, reflecting overall balance sheet contraction possibly from asset sales, debt reductions, or other financial restructuring.

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Allergan PLC (NYSE:AGN)

Balance Sheet: Liabilities and Stockholders’ Equity