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.

Becton, Dickinson & Co., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016
Short-term debt	500)	707)	1,309)	2,601)	203)	1,001)
Accounts payable	1,793)	1,355)	1,092)	1,106)	797)	665)
Accrued expenses	2,943)	2,638)	2,127)	2,255)	1,393)	1,575)
Salaries, wages and related items	1,214)	993)	987)	910)	773)	696)
Income taxes	176)	143)	140)	344)	176)	274)
Liabilities held for sale	—)	—)	—)	—)	—)	189)
Current liabilities	6,626)	5,836)	5,655)	7,216)	3,342)	4,400)
Long-term debt, excluding current portion	17,110)	17,224)	18,081)	18,894)	18,667)	10,550)
Long-term employee benefit obligations	1,228)	1,435)	1,272)	1,056)	1,168)	1,319)
Deferred income taxes and other liabilities	5,225)	5,753)	5,676)	5,744)	1,609)	1,684)
Noncurrent liabilities	23,563)	24,412)	25,029)	25,694)	21,444)	13,553)
Total liabilities	30,189)	30,248)	30,684)	32,910)	24,786)	17,953)
Preferred stock	2)	2)	2)	2)	2)	—)
Common stock, $1 par value	365)	365)	347)	347)	347)	333)
Capital in excess of par value	19,272)	19,270)	16,270)	16,179)	9,619)	4,693)
Retained earnings	13,826)	12,791)	12,913)	12,596)	13,111)	12,727)
Deferred compensation	23)	23)	23)	22)	19)	21)
Common stock in treasury, at cost	(7,723)	(6,138)	(6,190)	(6,243)	(8,427)	(8,212)
Accumulated other comprehensive loss	(2,088)	(2,548)	(2,284)	(1,909)	(1,723)	(1,929)
Shareholders’ equity	23,677)	23,765)	21,081)	20,994)	12,948)	7,633)
Total liabilities and shareholders’ equity	53,866)	54,013)	51,765)	53,904)	37,734)	25,586)

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

Short-term debt: The short-term debt exhibits significant volatility over the period. It declined sharply from 1001 million in 2016 to 203 million in 2017, then surged to 2601 million in 2018, followed by a gradual decrease to 500 million by 2021. This indicates fluctuations in short-term financing needs or debt management strategies.
Accounts payable: Accounts payable demonstrate a steady upward trend, increasing from 665 million in 2016 to 1793 million in 2021. This consistent rise may reflect growing operational activities or extended payment terms to suppliers.
Accrued expenses: Accrued expenses also show an increasing pattern, rising from 1575 million in 2016 to 2943 million in 2021. Despite some fluctuations, the overall increase aligns with growing liabilities related to expenses incurred but not yet paid.
Salaries, wages and related items: These expenses steadily increased from 696 million in 2016 to 1214 million in 2021, indicating rising personnel costs, possibly due to workforce expansion, wage inflation, or both.
Income taxes: Income taxes paid display irregular fluctuations, falling from 274 million in 2016 to 176 million in 2017, then increasing again to 344 million in 2018, and remaining relatively low thereafter with minor increases. This pattern suggests variable taxable income or changes in tax policies.
Liabilities held for sale: This item appears only in 2016 at 189 million and is absent in subsequent years, indicating that certain liabilities classified as held for sale were either disposed of or reclassified thereafter.
Current liabilities: Current liabilities saw a notable surge from 4400 million in 2016 to a peak of 7216 million in 2018, followed by a decline and then a moderate increase to 6626 million in 2021. The peak in 2018 corresponds with the increase in short-term debt and accounts payable, reflecting transient operational or financing conditions.
Long-term debt, excluding current portion: Long-term debt rose sharply from 10550 million in 2016 to 18894 million in 2018, then gradually declined to 17110 million by 2021. The increase suggests significant financing undertaken in the earlier years, with some repayment or refinancing in later years.
Long-term employee benefit obligations: These obligations decreased from 1319 million in 2016 to 1056 million in 2018, rose again to 1435 million in 2020, and then declined to 1228 million by 2021. This fluctuation may be influenced by actuarial assumptions or changes in employee benefit plans.
Deferred income taxes and other liabilities: There is a pronounced jump in this category from 1609 million in 2017 to 5744 million in 2018, sustaining a high level around 5200 to 5700 million afterward. This sharp increase likely reflects deferred tax liabilities arising from tax effects on temporary differences or adjustments during that period.
Noncurrent liabilities: Noncurrent liabilities increased from 13553 million in 2016 to a peak of 25694 million in 2018, then declined gradually to 23563 million in 2021. The pattern corresponds to the movements in long-term debt and deferred taxes, signifying overall debt structure adjustments.
Total liabilities: Total liabilities follow the trend of noncurrent and current liabilities combined, rising significantly from 17953 million in 2016 to 32910 million in 2018, then decreasing to about 30189 million by 2021. This indicates overall liabilities peaked in 2018 before stabilizing and slightly declining.
Preferred stock: Preferred stock remains minimal and constant at 2 million from 2017 onward, implying no substantial issuance or redemption activity in this instrument during the period.
Common stock, $1 par value: Common stock shows slight growth from 333 million in 2016 to 365 million from 2020 onward, indicating minor increases potentially due to stock issuance or adjustments in par value.
Capital in excess of par value: Capital in excess of par value shows a strong upward trend, increasing steadily from 4693 million in 2016 to 19272 million in 2021. This reflects significant equity financing or retained capital beyond par value.
Retained earnings: Retained earnings fluctuate moderately between 12596 million and 13826 million during the period, with no clear upward or downward trend. This suggests relatively stable profitability retention or payout policies over time.
Deferred compensation: Deferred compensation remains fairly stable around 21 to 23 million throughout the years, indicating consistent recognition of compensation obligations deferred to future periods.
Common stock in treasury, at cost: Treasury stock values fluctuate, peaking negatively at -8427 million in 2017, improving to approximately -6138 million in 2020, and then increasing negatively again to about -7723 million in 2021. This trend suggests active repurchasing of shares with some variability in share buyback activities.
Accumulated other comprehensive loss: This loss increases from -1929 million in 2016 to a peak of -2548 million in 2020 before improving to -2088 million in 2021. This indicates fluctuating comprehensive losses, possibly from foreign currency translation, pension adjustments, or other comprehensive income components.
Shareholders’ equity: Shareholders’ equity increases substantially from 7633 million in 2016 to a peak of 23765 million in 2020, stabilizing around 23677 million in 2021. The growth is primarily driven by increases in capital in excess of par value and retained earnings, offset partly by treasury stock movements and comprehensive losses.
Total liabilities and shareholders’ equity: The total of liabilities and shareholders’ equity reflects the overall balance sheet size, expanding notably from 25586 million in 2016 to 53904 million in 2018, followed by a slight reduction and stabilization near 53866 million in 2021. The increased size indicates growth in asset base and financing activities during the period.

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Becton, Dickinson & Co. (NYSE:BDX)

Balance Sheet: Liabilities and Stockholders’ Equity