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).

Notes and loans payable: The amount fluctuated significantly over the period, showing a steep decline from 260 million in 2018 to 11 million in 2022 after peaking at 258 million in 2020. This suggests a substantial reduction in short-term borrowings towards the end of the period.
Current portion of long-term debt: Values increased from 254 million in 2019 to a stable level around 12-14 million from 2020 onward, indicating a decrease in the immediate maturities of long-term debt except for the initial year in the dataset.
Accounts payable: Accounts payable consistently increased each year, from 1222 million in 2018 to 1551 million in 2022, indicating rising obligations to suppliers or increased purchases on credit over time.
Accrued income taxes: Accrued income taxes fluctuated moderately, declining from 411 million in 2018 to 317 million in 2022, with an increase peaking at 436 million in 2021. The overall trend suggests variability in tax liabilities possibly linked to profitability or tax planning.
Accrued advertising and coupon redemption: This liability increased substantially from 486 million in 2018 to 774 million in 2022, indicating higher anticipated advertising costs or promotional activities.
Accrued payroll and employee benefits: These decreased after peaking at 401 million in 2020, down to 329 million in 2022, which may reflect adjustments in payroll obligations or benefit expenses.
Accrued taxes other than income taxes: There was a slight increase over time from 127 million in 2018 to 133 million in 2022, indicating relatively stable accrued non-income tax liabilities.
Restructuring accrual: Restructuring accruals substantially decreased from 148 million in 2018 to minimal amounts by 2021, with a modest increase to 39 million in 2022, suggesting a reduction in restructuring activities followed by some new obligations.
Pension and other retiree benefits (current and long-term): Current pension benefit obligations were relatively stable, slightly declining from 84 million in 2018 to 82 million in 2022. Long-term pension obligations rose from 1600 million in 2018 to a peak of 1815 million in 2020, then declined sharply to 1129 million in 2022, indicating possible benefit payments, plan changes, or actuarial adjustments.
Operating lease liabilities: Both current and long-term operating lease liabilities showed a declining trend: current lease liabilities reduced from 145 million in 2019 to 108 million in 2022; long-term lease liabilities decreased from 491 million in 2019 to 397 million in 2022, reflecting either lease expirations or changes in lease accounting or portfolio.
Accrued interest and derivatives: Accrued interest increased notably from 35 million in 2018 to 59 million in 2022, whereas derivative liabilities showed volatility, peaking at 93 million in 2020 but generally low in other years.
Other and other accruals: Other accruals rose significantly from 1696 million in 2018 to a peak of 2341 million in 2020 before declining, and other current liabilities fluctuated without a clear trend, suggesting variable miscellaneous obligations.
Current liabilities: Current liabilities increased from 3341 million in 2018, peaking at 4404 million in 2020, then decreased to around 4000 million in 2022, indicating changes in short-term obligations aligned with various accruals and payables.
Long-term debt, excluding current portion: Long-term debt grew steadily from 6354 million in 2018 to 8741 million in 2022, reflecting increased borrowing or refinancing on a long-term basis.
Deferred income taxes: Deferred income taxes increased notably from 235 million in 2018 to 507 million in 2019 but gradually decreased afterward to 383 million in 2022, indicating shifts in timing differences affecting taxable income recognition.
Restructuring accrual (long-term): Long-term restructuring accruals decreased from 54 million in 2018 to nearly zero by 2021 and were absent in 2022, signaling completion or removal of prior restructuring obligations.
Other liabilities and non-current liabilities: Other liabilities peaked in 2020 at 2655 million then declined sharply to 1797 million by 2022. Non-current liabilities overall peaked at 10438 million in 2019, then remained relatively stable before increasing to 10921 million in 2022.
Total liabilities: Total liabilities rose from 11964 million in 2018 to a peak of 14819 million in 2020, decreased slightly through 2021, then increased again to 14925 million in 2022, indicating an overall increasing trend in obligations.
Shareholders’ equity components: Common stock remained constant at 1466 million over the period. Additional paid-in capital consistently increased from 2204 million in 2018 to 3546 million in 2022, reflecting new capital inflows or stock-based compensation. Retained earnings steadily increased from 21615 million to 24573 million, indicating consistent profitability. Accumulated other comprehensive loss slightly increased in magnitude to -4386 million by 2021, then improved somewhat to -4055 million by 2022. Treasury stock cost consistently increased in negative value from -21196 million to -25128 million, suggesting ongoing share repurchases. Overall, total shareholders’ equity showed positive growth from -102 million in 2018 to 743 million in 2020, then declined to 401 million by 2022.
Noncontrolling interests and total equity: Noncontrolling interests increased from 299 million in 2018 to 405 million in 2022. Total equity grew markedly from 197 million in 2018 to 1101 million in 2020 before declining to 806 million by 2022.
Total liabilities and equity: Total financing sources expanded from 12161 million in 2018 to 15920 million in 2020, then decreased slightly before rising again to 15731 million in 2022, consistent with trends in liabilities and equity.

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Colgate-Palmolive Co. (NYSE:CL)

Balance Sheet: Liabilities and Stockholders’ Equity