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.

Colgate-Palmolive Co., 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
Notes and loans payable	11)	39)	258)	260)	12)
Current portion of long-term debt	14)	12)	9)	254)	—)
Accounts payable	1,551)	1,479)	1,393)	1,237)	1,222)
Accrued income taxes	317)	436)	403)	370)	411)
Accrued advertising and coupon redemption	774)	709)	728)	525)	486)
Accrued payroll and employee benefits	329)	353)	401)	340)	275)
Accrued taxes other than income taxes	133)	118)	116)	104)	127)
Restructuring accrual	39)	7)	21)	85)	148)
Pension and other retiree benefits	82)	87)	89)	54)	84)
Operating lease liabilities due in one year	108)	137)	137)	145)	—)
Accrued interest	59)	38)	39)	43)	35)
Derivatives	15)	6)	93)	16)	9)
Other	572)	630)	717)	605)	532)
Other accruals	2,111)	2,085)	2,341)	1,917)	1,696)
Current liabilities	4,004)	4,051)	4,404)	4,038)	3,341)
Long-term debt, excluding current portion	8,741)	7,194)	7,334)	7,333)	6,354)
Deferred income taxes	383)	395)	426)	507)	235)
Pension and other retiree benefits	1,129)	1,722)	1,815)	1,728)	1,600)
Restructuring accrual	—)	2)	10)	15)	54)
Long-term operating lease liabilities	397)	451)	476)	491)	—)
Other	271)	254)	354)	364)	380)
Other liabilities	1,797)	2,429)	2,655)	2,598)	2,034)
Non-current liabilities	10,921)	10,018)	10,415)	10,438)	8,623)
Total liabilities	14,925)	14,069)	14,819)	14,476)	11,964)
Common stock, $1 par value	1,466)	1,466)	1,466)	1,466)	1,466)
Additional paid-in capital	3,546)	3,269)	2,969)	2,488)	2,204)
Retained earnings	24,573)	24,350)	23,699)	22,501)	21,615)
Accumulated other comprehensive loss	(4,055)	(4,386)	(4,345)	(4,273)	(4,188)
Unearned compensation	(1)	(1)	(1)	(2)	(3)
Treasury stock, at cost	(25,128)	(24,089)	(23,045)	(22,063)	(21,196)
Total Colgate-Palmolive Company shareholders’ equity	401)	609)	743)	117)	(102)
Noncontrolling interests	405)	362)	358)	441)	299)
Total equity	806)	971)	1,101)	558)	197)
Total liabilities and equity	15,731)	15,040)	15,920)	15,034)	12,161)

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 position from 2018 to 2022 is characterized by a steady increase in total liabilities and a capital structure heavily influenced by aggressive share repurchases, resulting in consistently low total equity relative to the scale of operations.

Liability Trends and Debt Profile: Total liabilities grew from 11,964 million USD in 2018 to 14,925 million USD in 2022. This increase was primarily driven by a rise in long-term debt, which climbed from 6,354 million USD to 8,741 million USD over the period, with a notable acceleration in borrowing observed between 2021 and 2022. Current liabilities also saw an overall increase, peaking in 2020 at 4,404 million USD before stabilizing around 4,004 million USD by 2022. Within current liabilities, accounts payable demonstrated a consistent upward trajectory, increasing from 1,222 million USD in 2018 to 1,551 million USD in 2022, indicating a growing reliance on trade credit.
Equity and Capital Management: The company's equity structure reflects a strategy of returning significant capital to shareholders. Treasury stock at cost increased from 21,196 million USD in 2018 to 25,128 million USD in 2022, effectively offsetting the growth in retained earnings, which rose from 21,615 million USD to 24,573 million USD. This aggressive buyback program resulted in a deficit in shareholders' equity in 2018 (-102 million USD), although this transitioned to a positive balance of 401 million USD by 2022. Total equity, including noncontrolling interests, remained lean throughout the period, moving from 197 million USD in 2018 to 806 million USD in 2020, before moderating to 806 million USD in 2022.
Other Long-Term Obligations: A significant reduction in pension and other retiree benefit obligations occurred in 2022, where the balance dropped to 1,129 million USD from 1,722 million USD in 2021. Deferred income taxes remained relatively stable after an initial spike in 2019, ending the period at 383 million USD. Other non-current liabilities showed a general downward trend from 2019 levels, decreasing from 2,598 million USD to 1,797 million USD by 2022.

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Colgate-Palmolive Co. (NYSE:CL)

Balance Sheet: Liabilities and Stockholders’ Equity