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.

Baxter International Inc., 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
Short-term debt	1,775)	913)	181)	27)	256)
Current maturities of long-term debt and lease obligations	810)	786)	859)	323)	190)
Accounts payable, principally trade	716)	1,264)	1,103)	766)	795)
Deferred income taxes	—)	9)	760)	878)	738)
Common stock dividends payable	137)	282)	266)	246)	188)
Employee compensation and withholdings	481)	716)	667)	567)	517)
Property, payroll and certain other taxes	166)	261)	237)	152)	150)
Infusion pump reserves	52)	22)	64)	37)	202)
Business optimization reserves	98)	118)	199)	151)	176)
Accrued rebates	192)	374)	346)	291)	267)
Separation-related reserves	190)	—)	—)	—)	—)
Other	634)	961)	922)	870)	1,025)
Accounts payable and accrued liabilities	2,666)	4,007)	4,564)	3,958)	4,058)
Current income taxes payable	453)	336)	302)	451)	353)
Current liabilities held for disposition	46)	—)	—)	—)	—)
Current liabilities	5,750)	6,042)	5,906)	4,759)	4,857)
Long-term debt and lease obligations, excluding current maturities	3,935)	7,606)	8,126)	5,580)	4,749)
Pension and other employee benefits	2,041)	2,748)	2,049)	2,427)	1,920)
Deferred tax liabilities	195)	212)	239)	98)	116)
Litigation reserves	24)	53)	72)	32)	63)
Infusion pump reserves	—)	—)	19)	90)	74)
Business optimization reserves	18)	51)	89)	69)	49)
Contingent payment liabilities	20)	569)	340)	86)	—)
Other	127)	480)	543)	271)	417)
Other long-term liabilities	2,425)	4,113)	3,351)	3,073)	2,639)
Noncurrent liabilities	6,360)	11,719)	11,477)	8,653)	7,388)
Total liabilities	12,110)	17,761)	17,383)	13,412)	12,245)
Common stock, $1 par value	683)	683)	683)	683)	683)
Common stock in treasury, at cost	(7,646)	(7,993)	(7,914)	(7,592)	(6,719)
Additional contributed capital	5,902)	5,853)	5,818)	5,769)	5,783)
Retained earnings	9,683)	13,227)	11,852)	10,888)	9,429)
Accumulated other comprehensive income (loss)	224)	(3,650)	(1,976)	(2,810)	(2,591)
Total Baxter shareholders’ equity	8,846)	8,120)	8,463)	6,938)	6,585)
Noncontrolling interests	19)	36)	23)	40)	243)
Total equity	8,865)	8,156)	8,486)	6,978)	6,828)
Total liabilities and equity	20,975)	25,917)	25,869)	20,390)	19,073)

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).

Short-term Debt: There is significant volatility in short-term debt, with a low of 27 million in 2012 and a sharp increase thereafter, peaking at 1775 million in 2015. This indicates a rising reliance on short-term borrowings in recent years.
Current Maturities of Long-term Debt and Lease Obligations: Values fluctuate between 190 million and 859 million, peaking in 2013 before stabilizing around 786-810 million in 2014 and 2015, suggesting consistent expiring long-term obligations.
Accounts Payable, Principally Trade: Accounts payable increased from 795 million in 2011 to a high of 1264 million in 2014, followed by a notable decrease to 716 million in 2015, indicating possible changes in supplier payment terms or purchasing activity.
Deferred Income Taxes: Deferred income taxes show high values early in the period (738-878 million) but nearly vanish by 2014 and disappear entirely in 2015, likely reflecting tax strategy changes or reclassification.
Common Stock Dividends Payable: Dividends payable display fluctuations, rising from 188 million to 282 million between 2011 and 2014 before dropping to 137 million in 2015, which may reflect changes in dividend policy or payment timing.
Employee Compensation and Withholdings: These liabilities increase steadily from 517 million in 2011 to 716 million in 2014 but decline to 481 million in 2015, suggesting variations in payroll obligations or timing of settlements.
Property, Payroll, and Certain Other Taxes: This category rises from 150 million to 261 million by 2014, then decreases to 166 million in 2015, indicating cyclical tax obligations or changes in tax expense recognition.
Reserves (Infusion Pump, Business Optimization, Separation-Related): Infusion pump reserves fluctuate with no clear trend, dipping significantly in 2014. Business optimization reserves decline gradually after peaking in early years. Separation-related reserves appear only in 2015 with 190 million, marking a new liability.
Accrued Rebates: These increase steadily from 267 million in 2011 to 374 million in 2014, then decrease sharply to 192 million in 2015, indicating adjustments in rebate liabilities or sales incentives.
Other Current Liabilities and Accounts Payable and Accrued Liabilities: Other current liabilities show a downward trend from 1025 million in 2011 to 634 million in 2015. Accounts payable and accrued liabilities peak in 2013 at 4564 million but decline notably to 2666 million in 2015, highlighting potentially improved working capital or payment behavior.
Current Income Taxes Payable: Current tax liabilities vary without a clear trend, fluctuating between 302 and 453 million over the years, reflecting tax expense variability or payment cycles.
Current Liabilities: Overall current liabilities increase from 4857 million in 2011 to a high of 6042 million in 2014 before decreasing slightly to 5750 million in 2015, suggesting a stabilization of short-term financial obligations.
Long-term Debt and Lease Obligations, Excluding Current Maturities: Long-term debt rises significantly from 4749 million in 2011 to a peak of 8126 million in 2013, then declines sharply to 3935 million in 2015, indicating active debt refinancing or repayment strategies.
Pension and Other Employee Benefits: Pension liabilities fluctuate, peaking at 2748 million in 2014, then declining to 2041 million in 2015, possibly reflecting actuarial adjustments or funding changes.
Deferred Tax Liabilities: These liabilities increase from 116 million in 2011 to 239 million in 2013, then decline modestly, indicating shifting tax obligations or revaluation effects.
Litigation Reserves: Litigation reserves show a downward trend from 63 million in 2011 to 24 million in 2015, possibly due to resolution of legal matters.
Contingent Payment Liabilities: These liabilities emerge in 2012 with 86 million, peak at 569 million in 2014, then fall sharply to 20 million in 2015, suggesting settlement or revision of contingent obligations.
Other Long-term Liabilities: Other long-term liabilities grow steadily from 2639 million in 2011 to 4113 million in 2014, then reduce sharply to 2425 million in 2015, indicating changing long-term obligations.
Noncurrent Liabilities: Noncurrent liabilities increase progressively from 7388 million in 2011 to 11719 million in 2014, followed by a reduction to 6360 million in 2015, consistent with overall long-term debt trends.
Total Liabilities: Total liabilities rise consistently until 2014, hitting 17761 million, then decrease to 12110 million in 2015, reflecting deleveraging or liability management efforts.
Equity Components: Common stock remains constant at 683 million throughout the period. Treasury stock increases in cost (more negative) up to 2014 then slightly reduces in 2015, indicating ongoing share repurchases.
Additional Contributed Capital: Remains relatively stable, increasing marginally from 5783 million in 2011 to 5902 million in 2015, indicating limited new capital issuance.
Retained Earnings: Shows steady growth from 9429 million in 2011 to 13227 million in 2014 before decreasing to 9683 million in 2015, suggesting a possible dividend payout, losses, or adjustments in that final year.
Accumulated Other Comprehensive Income (Loss): This item exhibits high volatility and a negative balance for most years, reaching -3650 million in 2014 but reversing to a positive 224 million in 2015, indicating volatile changes in unrealized gains/losses components.
Total Shareholders’ Equity and Total Equity: Shareholders’ equity grows steadily until 2013, dips in 2014, then rebounds in 2015 to a higher level than the start of the period. Including noncontrolling interests, total equity follows a similar trend, indicating overall equity strength despite fluctuations.
Total Liabilities and Equity: The sum of liabilities and equity increases significantly from 19073 million in 2011 to a peak of 25917 million in 2014 before declining to 20975 million in 2015, reflecting the combined changes in liabilities and equity during the period.

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Baxter International Inc. (NYSE:BAX)

Balance Sheet: Liabilities and Stockholders’ Equity