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.

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 financial data over the five-year period reflects significant fluctuations and trends in the company's liabilities and equity structure. The analysis focuses on current liabilities, long-term liabilities, total liabilities, and stockholders' equity.

Current Debt Obligations: There was a dramatic decline from US$2,253 million in 2018 to a minimal US$13 million in 2020, followed by a slight recovery to US$261 million in 2021 and a small decrease again in 2022. This suggests a strategic reduction in short-term borrowings or refinancing actions.
Accounts Payable: Accounts payable increased steadily from US$349 million in 2018 to US$862 million in 2022, indicating higher short-term liabilities towards suppliers and creditors, potentially reflecting growth in operations or procurement activities.
Legal Reserves: Legal reserves decreased significantly from US$712 million in 2018 to US$231 million in 2022 in current liabilities, and similarly fluctuated but overall decreased in long-term liabilities. This points to the settlement or resolution of certain legal matters over time.
Payroll and Related Liabilities: Payroll-related liabilities increased from US$630 million in 2018 to a peak of US$848 million in 2021, then slightly declined to US$830 million in 2022, reflecting employment cost trends in line with operational scale.
Accrued Expenses: Accrued expenses remained relatively stable but with a mild decline in 2022 after peaking in 2021, suggesting consistent expense recognition but possibly improved payment cycles or cost control measures recently.
Deferred Revenue and Licensing Arrangements: Deferred revenue exhibited growth over the period, indicating an increase in prepayments or unearned income. Licensing arrangements decreased in both current and long-term liabilities, which may indicate the conclusion of associated agreements or changes in licensing income dynamics.
Long-Term Debt: Long-term debt surged substantially from US$4,803 million in 2018 to over US$9 billion in 2020 and remained at a high level, indicating significant borrowing, possibly to finance growth or acquisitions.
Deferred Tax Liabilities and Accrued Income Taxes: Deferred tax liabilities reduced notably from US$595 million in 2019 to US$144 million in 2022, while accrued income taxes declined overall but showed some rebound in 2022, suggesting changes in tax positions or effective tax planning.
Other Long-term Liabilities: Other long-term liabilities increased sharply from US$1,882 million in 2018 to US$2,635 million in 2019 before gradually declining to US$2,034 million in 2022, possibly reflecting changes in deferred compensation, pensions, or other obligations.
Total Liabilities: Total liabilities rose markedly from US$12,273 million in 2018 to a peak of US$16,688 million in 2019, then declined somewhat, stabilizing near US$14,896 million in 2022. This pattern reflects large debt increases followed by partial deleveraging or liability management.
Stockholders’ Equity: Stockholders' equity grew consistently from US$8,726 million in 2018 to US$17,573 million in 2022, indicating improved net asset value, which is supported by increases in additional paid-in capital and a reduction in accumulated deficit.
Accumulated Deficit: The accumulated deficit decreased significantly from US$6,953 million in deficit in 2018 to US$750 million in 2022, suggesting consistent profitability or capital accumulation reducing overall negative retained earnings.
Treasury Stock and Common Stock: Treasury stock remained steady at a high negative value after 2019, indicating ongoing share buybacks or holdings, while common stock value was nearly unchanged, reflecting stable issued share capital.

Overall, the data indicates a strategic reduction in short-term debt obligations, balanced by a substantial increase and subsequent stabilization in long-term debt. Current liabilities show growth in typical operating payables and accrued expenses, while legal reserves and contingent considerations have diminished, pointing to fewer legal uncertainties. The strengthening of stockholders' equity alongside a shrinking accumulated deficit suggests improving financial health and operational profitability. These trends collectively demonstrate a focus on managing liabilities and enhancing equity value over the observed period.

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Boston Scientific Corp. (NYSE:BSX)

Balance Sheet: Liabilities and Stockholders’ Equity