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.

Apache Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Accounts payable	618)	1,210)	1,616)	1,092)	1,048)
Derivative instruments	—)	—)	299)	116)	113)
Accrued operating expenses	139)	163)	190)	211)	221)
Accrued exploration and development	637)	1,606)	1,582)	1,792)	1,430)
Accrued compensation and benefits	166)	204)	242)	198)	180)
Accrued interest	144)	160)	161)	160)	135)
Accrued income taxes	47)	54)	248)	297)	533)
Current asset retirement obligation	36)	37)	121)	478)	447)
Current debt	1)	—)	53)	990)	431)
Other	53)	230)	188)	202)	425)
Other current liabilities	1,223)	2,454)	2,785)	4,328)	3,802)
Current liabilities	1,841)	3,664)	4,700)	5,536)	4,963)
Long-term debt, excluding current maturities	8,777)	11,245)	9,672)	11,355)	6,785)
Income taxes	1,072)	9,499)	8,364)	8,024)	7,197)
Asset retirement obligation	2,562)	3,048)	3,101)	4,100)	3,440)
Other	362)	359)	407)	391)	673)
Deferred credits and other noncurrent liabilities	3,996)	12,906)	11,872)	12,515)	11,310)
Noncurrent liabilities	12,773)	24,151)	21,544)	23,870)	18,095)
Total liabilities	14,614)	27,815)	26,244)	29,406)	23,058)
Preferred stock, no par value, 6% Cumulative Mandatory Convertible, Series D, $1,000 per share liquidation preference	—)	—)	—)	1,227)	1,227)
Common stock, $0.625 par	257)	256)	255)	245)	241)
Paid-in capital	12,467)	12,438)	12,251)	9,859)	9,066)
Retained earnings (accumulated deficit)	(7,153)	16,249)	22,032)	20,161)	18,500)
Treasury stock, at cost	(2,889)	(2,890)	(1,027)	(30)	(32)
Accumulated other comprehensive loss	(116)	(116)	(115)	(131)	(9)
Total Apache shareholders’ equity	2,566)	25,937)	33,396)	31,331)	28,993)
Noncontrolling interest	1,662)	2,200)	1,997)	—)	—)
Total equity	4,228)	28,137)	35,393)	31,331)	28,993)
Total liabilities and equity	18,842)	55,952)	61,637)	60,737)	52,051)

Based on: 10-K (reporting date: 2015-12-31), 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).

The financial data reveals several notable trends over the five-year period.

Current liabilities: Current liabilities decreased significantly from US$4,963 million in 2011 to US$1,841 million in 2015, marking a substantial reduction. Specific components such as accounts payable displayed a downward trend after peaking at US$1,616 million in 2013 and falling to US$618 million by 2015. Accrued operating expenses and accrued compensation and benefits also decreased steadily. Accrued income taxes notably declined from US$533 million in 2011 to US$47 million in 2015. Current debt showed volatility, peaking at US$990 million in 2012 but nearly disappearing by 2015.
Noncurrent liabilities: Noncurrent liabilities rose from US$18,095 million in 2011 to US$24,151 million in 2014 before falling sharply to US$12,773 million in 2015. Long-term debt fluctuated over the period and peaked at US$11,355 million in 2012 but decreased to US$8,777 million in 2015. Deferred credits and other noncurrent liabilities followed a similar pattern, growing until 2014 and then substantially decreasing in 2015.
Total liabilities: Total liabilities grew steadily from 2011 to 2014, reaching US$27,815 million, but then sharply declined to US$14,614 million in 2015. The large reduction in both current and noncurrent liabilities in 2015 strongly influenced this overall decline.
Shareholders’ equity: Total equity exhibited growth from US$28,993 million in 2011, peaking at US$35,393 million in 2013, but then declined markedly to US$4,228 million by 2015. Retained earnings decreased dramatically, shifting from a positive US$18,500 million in 2011 to a deficit of US$7,153 million in 2015, indicating significant accumulated losses or distributions. Treasury stock at cost increased negatively, reflecting substantial treasury stock transactions. Paid-in capital consistently increased, which partly offset declines elsewhere in equity.
Other observations: Derivative instruments increased sharply until 2013 but data is missing for later years. Asset retirement obligations and current asset retirement obligations declined substantially over the period. Noncontrolling interest appeared from 2013 onwards with modest changes. The preferred stock related to a specific series remained unchanged until it was absent in later periods.
Total liabilities and equity: Total liabilities and equity rose from US$52,051 million in 2011 to a peak of US$61,637 million in 2013, then decreased to US$18,842 million by 2015, driven largely by changes in liabilities and declines in equity.

Overall, the data highlights a trend of decreasing liabilities and a more pronounced decline in equity by the end of the period. The shift in retained earnings from a strong positive balance to a significant deficit signals deteriorating profitability or major losses. The reduction in both current and long-term liabilities suggests efforts to lower debt obligations, but this is accompanied by a sharp equity contraction, which may indicate financial stress or restructuring activities during the latter years.

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Apache Corp. (NYSE:APA)

Balance Sheet: Liabilities and Stockholders’ Equity