Name: Edwards Lifesciences Corp. (NYSE:EW) | 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.

Download chart

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

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Accounts payable	204,500)	196,500)	180,400)	134,000)	116,600)
Employee compensation and withholdings	319,700)	236,700)	295,800)	226,100)	249,400)
Accrued rebates	77,000)	67,200)	67,100)	80,000)	53,900)
Property, payroll, and other taxes	68,900)	49,700)	51,400)	39,500)	41,900)
Research and development accruals	58,200)	52,300)	51,400)	48,900)	39,200)
Legal and insurance	79,100)	60,800)	20,000)	196,700)	15,000)
Taxes payable	30,600)	18,600)	52,900)	31,300)	97,800)
Fair value of derivatives	3,900)	39,300)	6,400)	4,400)	24,800)
Accrued marketing expenses	20,100)	14,300)	17,500)	22,300)	14,900)
Accrued professional services	11,900)	7,600)	10,100)	11,000)	8,500)
Accrued realignment reserves	19,100)	14,500)	16,700)	100)	8,200)
Accrued relocation costs	26,200)	21,000)	17,400)	11,300)	8,700)
Other accrued liabilities	87,600)	88,200)	89,800)	71,000)	74,300)
Accrued and other liabilities	802,300)	670,200)	696,500)	742,600)	636,600)
Operating lease liabilities, current portion	25,500)	27,200)	25,500)	—)	—)
Short-term debt	—)	—)	—)	—)	598,000)
Contingent consideration liabilities	—)	—)	—)	—)	51,700)
Current liabilities	1,032,300)	893,900)	902,400)	876,600)	1,402,900)
Long-term debt	595,700)	595,000)	594,400)	593,800)	438,400)
Contingent consideration liabilities	62,000)	186,100)	172,500)	178,600)	192,600)
Taxes payable	190,000)	215,300)	236,600)	259,400)	394,000)
Operating lease liabilities, long-term portion	69,100)	72,700)	58,900)	—)	—)
Uncertain tax positions	259,000)	214,400)	171,700)	124,900)	164,600)
Litigation settlement accrual	191,300)	233,000)	—)	—)	—)
Other liabilities	267,300)	252,400)	203,300)	150,000)	147,100)
Long-term liabilities	1,634,400)	1,768,900)	1,437,400)	1,306,700)	1,336,700)
Total liabilities	2,666,700)	2,662,800)	2,339,800)	2,183,300)	2,739,600)
Preferred stock, $.01 par value, no shares outstanding	—)	—)	—)	—)	—)
Common stock, $1.00 par value	642,000)	636,400)	218,100)	215,200)	212,000)
Additional paid-in capital	1,700,400)	1,438,100)	1,623,300)	1,384,400)	1,166,900)
Retained earnings	6,068,100)	4,565,000)	3,741,600)	2,694,700)	1,962,100)
Accumulated other comprehensive loss	(157,700)	(161,100)	(156,000)	(138,500)	(132,700)
Treasury stock, at cost	(2,416,900)	(1,904,100)	(1,278,700)	(1,015,400)	(252,100)
Stockholders’ equity	5,835,900)	4,574,300)	4,148,300)	3,140,400)	2,956,200)
Total liabilities and stockholders’ equity	8,502,600)	7,237,100)	6,488,100)	5,323,700)	5,695,800)

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 balance sheet reflects a period of significant expansion in total assets and funding, with total liabilities and stockholders' equity increasing from $5.69 billion in 2017 to $8.50 billion by 2021. This growth is characterized by a substantial strengthening of the equity base and a strategic shift in the composition of liabilities.

Current Liability Trends: Current liabilities showed a notable decrease between 2017 and 2018, falling from $1.40 billion to $876.6 million, primarily attributed to the elimination of $598 million in short-term debt. Following this correction, current liabilities trended upward to $1.03 billion by 2021. This recent increase is driven by steady growth in accounts payable, which rose from $116.6 million in 2017 to $204.5 million in 2021, and employee compensation and withholdings, which reached $319.7 million in 2021.
Long-Term Obligations and Contingencies: Long-term debt increased from $438.4 million in 2017 to approximately $595 million in 2018, remaining virtually stagnant through 2021. However, other long-term liabilities have shown volatility. Long-term taxes payable decreased consistently from $394 million in 2017 to $190 million in 2021. Conversely, uncertain tax positions trended upward, rising from $164.6 million in 2017 to $259 million in 2021. A significant emergence of litigation settlement accruals occurred in 2020 at $233 million, which remained substantial at $191.3 million in 2021, indicating new legal contingencies.
Stockholders' Equity and Capital Structure: Stockholders' equity grew aggressively from $2.95 billion in 2017 to $5.83 billion in 2021. The primary driver of this growth was retained earnings, which surged from $1.96 billion to $6.06 billion over the period, signaling strong cumulative profitability. This growth was partially offset by an aggressive share repurchase strategy, as evidenced by treasury stock increasing from $252.1 million in 2017 to $2.41 billion in 2021. Additionally, a significant increase in common stock occurred in 2020, rising from $218.1 million to $636.4 million.
Overall Financial Leverage and Stability: The company's reliance on liabilities relative to equity has diminished over the five-year period. While total liabilities remained relatively stable, fluctuating between $2.18 billion and $2.73 billion, the equity base nearly doubled. This shift indicates a transition toward a more equity-funded capital structure, reducing overall financial leverage and enhancing the long-term solvency profile.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?