Name: Boston Scientific Corp. (NYSE:BSX) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

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.

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

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Current debt obligations	20)	261)	13)	1,416)	2,253)
Accounts payable	862)	794)	513)	542)	349)
Legal reserves	231)	264)	505)	470)	712)
Payroll and related liabilities	830)	848)	681)	708)	630)
Rebates	352)	350)	331)	298)	229)
Contingent consideration	74)	289)	26)	56)	138)
Other	673)	685)	654)	577)	537)
Accrued expenses	2,160)	2,436)	2,197)	2,109)	2,246)
Deferred revenue	220)	208)	138)	144)	115)
Licensing arrangements	79)	138)	153)	197)	—)
Taxes payable	232)	209)	158)	265)	125)
Liabilities held for sale	—)	—)	200)	—)	—)
Other	230)	228)	309)	193)	172)
Other current liabilities	761)	783)	958)	799)	412)
Current liabilities	3,803)	4,274)	3,681)	4,866)	5,260)
Long-term debt	8,915)	8,804)	9,130)	8,592)	4,803)
Deferred tax liabilities	144)	310)	330)	595)	328)
Accrued income taxes	597)	442)	547)	667)	739)
Legal reserves	212)	284)	64)	227)	217)
Contingent consideration	75)	197)	171)	299)	209)
Licensing arrangements	80)	143)	253)	374)	—)
Long-term operating lease liabilities	347)	389)	401)	276)	—)
Deferred revenue	289)	276)	257)	257)	—)
Other	434)	489)	617)	535)	717)
Other long-term liabilities	2,034)	2,220)	2,310)	2,635)	1,882)
Long-term liabilities	11,093)	11,334)	11,770)	11,822)	7,013)
Total liabilities	14,896)	15,608)	15,451)	16,688)	12,273)
Preferred stock, $0.01 par value	—)	—)	—)	—)	—)
Common stock, $0.01 par value	17)	17)	17)	16)	16)
Treasury stock, at cost	(2,251)	(2,251)	(2,251)	(1,717)	(1,717)
Additional paid-in capital	20,288)	19,985)	19,731)	17,561)	17,347)
Accumulated deficit	(750)	(1,392)	(2,378)	(2,253)	(6,953)
Accumulated other comprehensive income, net of tax	269)	263)	207)	270)	33)
Stockholders’ equity	17,573)	16,622)	15,326)	13,877)	8,726)
Total liabilities and stockholders’ equity	32,469)	32,230)	30,777)	30,565)	20,999)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The balance sheet reveals a strategic transition in the organization's financing structure between 2018 and 2022, characterized by a shift from short-term to long-term debt and a substantial expansion of stockholders' equity.

Debt Maturity and Liability Composition: A significant reduction in short-term liquidity risk is evident as current debt obligations fell from 2,253 million US dollars in 2018 to 20 million US dollars by 2022. This trend is mirrored by a substantial increase in long-term debt, which rose from 4,803 million US dollars in 2018 to peak at 9,130 million US dollars in 2020, ending the period at 8,915 million US dollars. Consequently, total liabilities peaked in 2019 at 16,688 million US dollars before gradually declining to 14,896 million US dollars by 2022.
Operational Liabilities and Accruals: Accounts payable demonstrated a consistent upward trend, increasing from 349 million US dollars in 2018 to 862 million US dollars in 2022, suggesting an increase in trade credit utilization. Accrued expenses remained relatively stable, fluctuating between 2,109 million and 2,436 million US dollars over the five-year period. Legal reserves showed volatility, with current legal reserves decreasing from 712 million US dollars in 2018 to 231 million US dollars in 2022, while long-term legal reserves fluctuated between 64 million and 284 million US dollars.
Equity Growth and Capital Strength: Stockholders' equity experienced robust growth, doubling from 8,726 million US dollars in 2018 to 17,573 million US dollars in 2022. A primary driver of this growth was the drastic reduction of the accumulated deficit, which improved from negative 6,953 million US dollars in 2018 to negative 750 million US dollars in 2022. This suggests significant cumulative profitability over the period. Additionally, additional paid-in capital increased steadily from 17,347 million US dollars to 20,288 million US dollars.
Overall Solvency and Leverage: The total balance sheet size grew from 20,999 million US dollars in 2018 to 32,469 million US dollars in 2022. While the company increased its long-term debt load, the simultaneous expansion of equity—specifically through the reduction of the accumulated deficit—has resulted in a strengthened solvency position and a more balanced capital structure.

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