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.

Estée Lauder Cos. Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Current debt	997)	268)	32)	1,222)	516)	183)
Accounts payable	1,670)	1,822)	1,692)	1,177)	1,490)	1,182)
Current operating lease liabilities	357)	365)	379)	375)	—)	—)
Employee compensation	546)	693)	670)	424)	574)	579)
Accrued sales incentives	321)	278)	—)	—)	—)	—)
Deferred revenue	323)	312)	322)	222)	314)	33)
Other	2,026)	2,077)	2,203)	1,759)	1,711)	1,333)
Other accrued liabilities	3,216)	3,360)	3,195)	2,405)	2,599)	1,945)
Current liabilities	6,240)	5,815)	5,298)	5,179)	4,605)	3,310)
Long-term debt, excluding current maturities	7,117)	5,144)	5,537)	4,914)	2,896)	3,361)
Long-term operating lease liabilities	1,698)	1,868)	2,151)	2,278)	—)	—)
Other noncurrent liabilities	1,943)	1,651)	2,037)	1,448)	1,244)	1,186)
Noncurrent liabilities	10,758)	8,663)	9,725)	8,640)	4,140)	4,547)
Total liabilities	16,998)	14,478)	15,023)	13,819)	8,745)	7,857)
Redeemable noncontrolling interest	832)	842)	857)	—)	—)	—)
Common stock, $.01 par value	6)	6)	6)	6)	6)	6)
Paid-in capital	6,153)	5,796)	5,335)	4,790)	4,403)	3,972)
Retained earnings	13,991)	13,912)	12,244)	10,134)	9,984)	9,040)
Accumulated other comprehensive loss	(934)	(762)	(470)	(665)	(563)	(434)
Treasury stock, at cost	(13,631)	(13,362)	(11,058)	(10,330)	(9,444)	(7,896)
Stockholders’ equity, The Estée Lauder Companies Inc.	5,585)	5,590)	6,057)	3,935)	4,386)	4,688)
Noncontrolling interests	—)	—)	34)	27)	25)	22)
Total equity	5,585)	5,590)	6,091)	3,962)	4,411)	4,710)
Total liabilities, redeemable noncontrolling interest and equity	23,415)	20,910)	21,971)	17,781)	13,156)	12,567)

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

Current Debt: The current debt experienced significant fluctuations over the period. It peaked notably in 2020 at 1,222 million USD and again in 2023 at 997 million USD, while periods such as 2021 saw a substantial decrease to 32 million USD, indicating variability in short-term borrowing or repayment strategies.
Accounts Payable: Accounts payable showed an overall increasing trend from 1,182 million USD in 2018 to a peak of 1,822 million USD in 2022, followed by a slight decline to 1,670 million USD in 2023. This pattern suggests growing obligations to suppliers with some moderation in the most recent period.
Current Operating Lease Liabilities: First reported in 2020 at 375 million USD, current operating lease liabilities remained relatively steady, slightly declining from 379 million USD in 2021 to 357 million USD in 2023. This reflects stability in short-term lease commitments.
Employee Compensation: Employee compensation decreased between 2018 and 2020 from 579 million USD to 424 million USD, possibly due to cost control measures, then sharply increased to 693 million USD by 2022 before declining again to 546 million USD in 2023. This indicates fluctuations potentially linked to workforce adjustments or incentive structures.
Accrued Sales Incentives: Data for accrued sales incentives appears only in 2022 and 2023, with values of 278 million USD and 321 million USD respectively, showing an increasing accrual in these recent years.
Deferred Revenue: Deferred revenue rose sharply from 33 million USD in 2018 to 314 million USD in 2019, followed by fluctuations hovering around 300 million USD through 2023, indicating a substantial increase in advance customer payments or unearned revenue early in the period, with relative stability thereafter.
Other and Other Accrued Liabilities: Other liabilities and other accrued liabilities cumulatively increased from 3,278 million USD in 2018 to a peak around 5,447 million USD in 2021, with a slight decline afterwards. This trend points to growing miscellaneous obligations and accrued expenses over time.
Current Liabilities: Current liabilities demonstrated a steady upward trajectory from 3,310 million USD in 2018 to 6,240 million USD in 2023, nearly doubling, reflecting growing short-term obligations across multiple categories.
Long-term Debt, Excluding Current Maturities: Long-term debt showed some volatility, initially decreasing from 3,361 million USD in 2018 to 2,896 million USD in 2019, then sharply increasing to 7,117 million USD in 2023. This substantial rise suggests increased long-term borrowing or refinancing activities.
Long-term Operating Lease Liabilities: Reported beginning 2020, long-term operating lease liabilities have trended downward from 2,278 million USD to 1,698 million USD by 2023, indicating a gradual reduction in lease commitments or changes in lease agreements.
Other Noncurrent Liabilities: Other noncurrent liabilities rose from 1,186 million USD in 2018 to a peak around 2,037 million USD in 2021 before decreasing somewhat to 1,943 million USD in 2023, reflecting volatility in longer-term obligations outside of debt and leases.
Noncurrent Liabilities: Noncurrent liabilities nearly doubled from 4,547 million USD in 2018 to 10,758 million USD in 2023, depicting significant growth in obligations due beyond one year, primarily driven by increased long-term debt and other liabilities.
Total Liabilities: Total liabilities rose consistently from 7,857 million USD in 2018 to 16,998 million USD in 2023, more than doubling, which signals expanding overall financial obligations over the period.
Redeemable Noncontrolling Interest: This liability emerged from 2021 onwards around 840 million USD, remaining stable through 2023, indicating a consistent level of third-party interests redeemable by the company.
Common Stock and Paid-in Capital: Common stock remained constant in par value at 6 million USD throughout all periods. Paid-in capital steadily increased from 3,972 million USD in 2018 to 6,153 million USD in 2023, reflecting ongoing capital contributions or equity issuance.
Retained Earnings: Retained earnings showed continuous growth from 9,040 million USD in 2018 to 13,991 million USD in 2023, pointing to accumulated profits being retained within the company over time.
Accumulated Other Comprehensive Loss: Accumulated other comprehensive loss fluctuated but deepened overall, increasing in absolute value from -434 million USD in 2018 to -934 million USD in 2023, suggesting growing unrealized losses from items such as foreign currency translation or hedging activities.
Treasury Stock: Treasury stock, recorded at cost, consistently increased in absolute value from -7,896 million USD in 2018 to -13,631 million USD in 2023, indicative of ongoing share repurchases reducing outstanding equity.
Stockholders’ Equity: Equity attributable to the company decreased from 4,688 million USD in 2018 to a low point of 3,935 million USD in 2020, before rebounding to around 5,585 million USD by 2023. This fluctuation reflects the impact of retained earnings growth, treasury stock purchases, and other comprehensive losses.
Noncontrolling Interests and Total Equity: Noncontrolling interests were minor and relatively stable when reported. Total equity mirrored the patterns seen in stockholders’ equity, declining to 3,962 million USD in 2020 then recovering to 5,585 million USD in 2023.
Total Liabilities, Redeemable Noncontrolling Interest, and Equity: This total amount grew from 12,567 million USD in 2018 to 23,415 million USD in 2023, indicating overall company growth in assets supported by increasing liabilities and equity.

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Estée Lauder Cos. Inc. (NYSE:EL)

Balance Sheet: Liabilities and Stockholders’ Equity