Name: EMC Corp. (NYSE:EMC) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

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.

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

US$ in millions

	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Accounts payable	1,644)	1,696)	1,434)	1,041)	1,102)
Salaries and benefits	1,189)	1,260)	1,078)	1,018)	962)
Product warranties	172)	210)	289)	278)	255)
Dividends payable	234)	237)	205)	—)	—)
Partner rebates	221)	235)	214)	187)	168)
Restructuring, current	333)	115)	84)	76)	62)
Derivatives	82)	75)	23)	40)	51)
Other	892)	1,009)	890)	923)	859)
Accrued expenses	3,123)	3,141)	2,783)	2,522)	2,355)
Notes converted and payable	—)	—)	1,665)	—)	1,700)
Income taxes payable	609)	852)	639)	514)	156)
Short-term debt	1,299)	—)	—)	—)	—)
Current portion of convertible debt	—)	—)	—)	1,652)	1,605)
Deferred revenue	6,210)	6,021)	5,278)	4,575)	3,459)
Current liabilities	12,885)	11,710)	11,799)	10,304)	10,376)
Income taxes payable	461)	306)	296)	293)	239)
Deferred revenue	4,592)	4,144)	3,701)	2,976)	2,715)
Deferred income taxes	—)	274)	421)	575)	603)
Long-term debt	5,475)	5,495)	5,494)	—)	—)
Long-term convertible debt, excluding current portion	—)	—)	—)	58)	119)
Other liabilities	480)	431)	352)	339)	288)
Noncurrent liabilities	11,008)	10,650)	10,264)	4,241)	3,965)
Total liabilities	23,893)	22,360)	22,063)	14,545)	14,341)
Preferred stock, par value $0.01; none outstanding	—)	—)	—)	—)	—)
Common stock, par value $0.01	19)	20)	20)	21)	20)
Additional paid-in capital	—)	—)	1,406)	3,691)	3,053)
Retained earnings	21,700)	22,242)	21,114)	18,853)	16,121)
Accumulated other comprehensive loss, net	(579)	(366)	(239)	(208)	(235)
Total EMC Corporation’s shareholders’ equity	21,140)	21,896)	22,301)	22,357)	18,959)
Non-controlling interests	1,579)	1,629)	1,485)	1,167)	968)
Total shareholders’ equity	22,719)	23,525)	23,786)	23,524)	19,927)
Total liabilities and shareholders’ equity	46,612)	45,885)	45,849)	38,069)	34,268)

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Total liabilities experienced a significant expansion over the five-year period, rising from $14.3 billion in 2011 to $23.9 billion by the end of 2015. A critical inflection point occurred in 2013, where total liabilities jumped from $14.5 billion to $22.1 billion, primarily driven by a substantial increase in noncurrent liabilities.

Debt Profiling and Obligations: A strategic shift in debt structure is observed. Between 2011 and 2012, the company utilized convertible debt, with the current portion totaling approximately $1.6 billion. By 2013, this was replaced by long-term debt amounting to $5.5 billion, which remained relatively constant through 2015. Furthermore, a new short-term debt obligation of $1.3 billion was introduced in 2015.
Operational Liabilities and Deferred Revenue: Deferred revenue showed consistent growth across both current and noncurrent categories. Current deferred revenue increased from $3.5 billion in 2011 to $6.2 billion in 2015, while noncurrent deferred revenue rose from $2.7 billion to $4.6 billion in the same period. This suggests a steady increase in prepaid customer obligations. Accrued expenses also followed an upward trend, moving from $2.4 billion in 2011 to $3.1 billion in 2015.
Equity and Retained Earnings Analysis: Total shareholders' equity increased from $19.9 billion in 2011 to a peak of $23.8 billion in 2013, before contracting to $22.7 billion by 2015. Retained earnings served as the primary driver of equity growth, increasing from $16.1 billion in 2011 to $22.2 billion in 2014. However, accumulated other comprehensive losses widened from negative $235 million in 2011 to negative $579 million in 2015, exerting downward pressure on total equity.
Overall Capitalization Trend: The total balance sheet size grew from $34.3 billion in 2011 to $46.6 billion in 2015. This expansion was fueled by a combination of increased long-term borrowing and the accumulation of retained earnings, although the growth in equity slowed and slightly reversed in the final year of the analysis.

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