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.

Delta Air Lines Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Current maturities of debt and finance leases	1,782)	1,732)	2,287)	1,518)	2,242)
Current maturities of operating leases	703)	678)	801)	955)	—)
Air traffic liability	6,228)	4,044)	5,116)	4,661)	4,888)
Accounts payable	4,240)	2,840)	3,266)	2,976)	3,674)
Accrued salaries and related benefits	2,457)	2,086)	3,701)	3,287)	3,022)
Loyalty program deferred revenue	2,710)	1,777)	3,219)	2,989)	1,822)
Fuel card obligation	1,100)	1,100)	736)	1,075)	1,067)
Other accrued liabilities	1,746)	1,670)	1,078)	1,117)	1,858)
Current liabilities	20,966)	15,927)	20,204)	18,578)	18,573)
Debt and finance leases, excluding current maturities	25,138)	27,425)	8,873)	8,253)	6,592)
Noncurrent air traffic liability	130)	500)	—)	—)	—)
Pension, postretirement and related benefits	6,035)	10,630)	8,452)	9,163)	9,810)
Loyalty program deferred revenue	4,849)	5,405)	3,509)	3,652)	2,296)
Noncurrent operating leases	7,056)	5,713)	5,294)	5,801)	—)
Deferred income taxes, net	—)	—)	1,456)	163)	—)
Other noncurrent liabilities	4,398)	4,862)	1,386)	969)	2,111)
Noncurrent liabilities	47,606)	54,535)	28,970)	28,001)	20,809)
Total liabilities	68,572)	70,462)	49,174)	46,579)	39,382)
Common stock at $0.0001 par value	—)	—)	—)	—)	—)
Additional paid-in capital	11,447)	11,259)	11,129)	11,671)	12,053)
Retained earnings (accumulated deficit)	(148)	(428)	12,454)	10,039)	9,636)
Accumulated other comprehensive loss	(7,130)	(9,038)	(7,989)	(7,825)	(7,621)
Treasury stock, at cost	(282)	(259)	(236)	(198)	(158)
Stockholders’ equity	3,887)	1,534)	15,358)	13,687)	13,910)
Total liabilities and stockholders’ equity	72,459)	71,996)	64,532)	60,266)	53,292)

Based on: 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), 10-K (reporting date: 2017-12-31).

The financial position between 2017 and 2021 is characterized by a substantial increase in total liabilities and a corresponding contraction in stockholders' equity, with a critical inflection point occurring in 2020. Total liabilities rose from 39,382 million US dollars in 2017 to a peak of 70,462 million US dollars in 2020, before slightly moderating to 68,572 million US dollars in 2021.

Long-Term Debt and Noncurrent Liabilities: A significant escalation in noncurrent debt and finance leases is observed, rising from 6,592 million US dollars in 2017 to 27,425 million US dollars in 2020. This represents a substantial shift in the capital structure, indicating a heavy reliance on long-term borrowing during the 2020 fiscal year. While noncurrent liabilities peaked in 2020 at 54,535 million US dollars, they decreased to 47,606 million US dollars by 2021, primarily driven by a reduction in pension, postretirement, and related benefits, which fell from 10,630 million US dollars in 2020 to 6,035 million US dollars in 2021.
Current Liabilities and Operational Obligations: Current liabilities exhibited volatility, increasing from 18,573 million US dollars in 2017 to 20,966 million US dollars in 2021, despite a temporary decline to 15,927 million US dollars in 2020. Air traffic liability, a key indicator of unearned revenue, showed a general upward trend, growing from 4,888 million US dollars in 2017 to 6,228 million US dollars in 2021. Similarly, loyalty program deferred revenue across both current and noncurrent categories saw a net increase, with total combined deferred revenue rising from approximately 4,118 million US dollars in 2017 to 7,559 million US dollars in 2021.
Stockholders' Equity and Retained Earnings: A severe erosion of stockholders' equity occurred between 2019 and 2020, where equity dropped from 15,358 million US dollars to 1,534 million US dollars. This decline is directly linked to the transition of retained earnings from a surplus of 12,454 million US dollars in 2019 to an accumulated deficit of 428 million US dollars in 2020. Although equity recovered to 3,887 million US dollars by 2021 and the deficit narrowed to 148 million US dollars, the equity base remained significantly lower than pre-2020 levels. Throughout the period, accumulated other comprehensive losses remained a persistent drag on equity, fluctuating between 7,130 million and 9,038 million US dollars.
Overall Leverage and Solvency: The balance sheet reflects a marked increase in leverage over the five-year period. The ratio of total liabilities to stockholders' equity shifted from approximately 2.83 in 2017 to a peak of 45.9 in 2020, before settling at 17.6 in 2021. The total assets, implied by the sum of liabilities and equity, grew from 53,292 million US dollars in 2017 to 72,459 million US dollars in 2021, with the growth almost entirely funded by debt rather than equity.

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Delta Air Lines Inc. (NYSE:DAL)

Balance Sheet: Liabilities and Stockholders’ Equity