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.

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

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Accounts payable	2,833)	2,334)	1,936)
Accrued liabilities	2,610)	2,561)	2,471)
Contract liabilities, current	449)	415)	512)
Liabilities held for sale	—)	1,134)	—)
Current portion of long-term debt	140)	183)	191)
Current liabilities	6,032)	6,627)	5,110)
Long-term debt, net of current portion	8,702)	9,513)	10,036)
Future pension and post-retirement obligations	349)	380)	524)
Future income tax obligations	568)	354)	479)
Long-term operating lease liabilities	529)	527)	642)
Other long-term liabilities	1,830)	1,677)	1,724)
Long-term liabilities	11,978)	12,451)	13,405)
Total liabilities	18,010)	19,078)	18,515)
Common stock, par value $0.01	9)	9)	9)
Treasury stock	(1,910)	(529)	—)
Additional paid-in capital	5,481)	5,411)	5,345)
Retained earnings	5,866)	2,865)	1,643)
Accumulated other comprehensive loss	(1,688)	(989)	(745)
Equity attributable to common shareowners	7,758)	6,767)	6,252)
Non-controlling interest	318)	327)	326)
Total equity	8,076)	7,094)	6,578)
Total liabilities and equity	26,086)	26,172)	25,093)

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

The annual financial data reveals several notable patterns and trends across the three-year period.

Liabilities

Current liabilities increased from 5,110 million USD in 2020 to a peak of 6,627 million USD in 2021, before declining to 6,032 million USD in 2022. This growth was largely driven by an increase in accounts payable, which steadily rose each year from 1,936 million USD to 2,833 million USD. Accrued liabilities showed a moderate but continuous increase, reflecting a slight rise from 2,471 million USD to 2,610 million USD over the period.

Contract liabilities, current demonstrated some volatility, dropping from 512 million USD in 2020 to 415 million USD in 2021, followed by a modest recovery to 449 million USD in 2022. The presence of 1,134 million USD in liabilities held for sale in 2021 is an isolated observation for that year.

The current portion of long-term debt decreased consistently, indicating a reduction in near-term debt obligations—from 191 million USD in 2020 to 140 million USD in 2022.

Long-term liabilities

Long-term debt, net of the current portion, showed a clear decreasing trend from 10,036 million USD in 2020 to 8,702 million USD in 2022, suggesting a gradual deleveraging strategy. Future pension and post-retirement obligations declined over the period, shrinking from 524 million USD to 349 million USD, which may reflect efforts to manage or settle these obligations.

Future income tax obligations exhibited variability, decreasing from 479 million USD in 2020 to 354 million USD in 2021, but then rising significantly to 568 million USD in 2022. Long-term operating lease liabilities remained relatively stable, fluctuating slightly but remaining near the 500 million USD mark.

Other long-term liabilities increased moderately, from 1,724 million USD to 1,830 million USD. Overall, this resulted in a decline in total long-term liabilities from 13,405 million USD in 2020 to 11,978 million USD in 2022.

Total liabilities

Total liabilities saw a marginal upward movement from 18,515 million USD in 2020 to 19,078 million USD in 2021, followed by a return to a lower level of 18,010 million USD in 2022. This pattern reflects decreases in some components offsetting increases in others within the liability structure.

Equity

Equity attributable to common shareowners showed consistent growth over the reported years, rising from 6,252 million USD in 2020 to 7,758 million USD in 2022. Retained earnings exhibited a particularly strong increase, more than tripling from 1,643 million USD to 5,866 million USD, which signals accumulation of profits or other comprehensive income over the period.

Treasury stock reflects increased repurchases or share retirements, with values moving from zero to -1,910 million USD by 2022, representing a significant use of equity resources. Additional paid-in capital saw modest increases, indicating incremental capital injections or adjustments.

The accumulated other comprehensive loss deepened from -745 million USD to -1,688 million USD, suggesting increasing unrealized losses or unfavorable adjustments in comprehensive income elements.

Non-controlling interest remained relatively constant across the timeframe. Overall, total equity increased steadily from 6,578 million USD to 8,076 million USD.

Total liabilities and equity

The sum of liabilities and equity remained relatively stable, rising slightly between 2020 and 2021, then slightly decreasing in 2022, ranging narrowly near the 26,000 million USD mark.

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Carrier Global Corp. (NYSE:CARR)

Balance Sheet: Liabilities and Stockholders’ Equity