Name: General Dynamics Corp. (NYSE:GD) | 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.

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

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Short-term debt and current portion of long-term debt	2,920)	973)	2)	900)	501)
Accounts payable	3,162)	3,179)	3,207)	2,538)	1,964)
Customer advances and deposits	7,148)	7,270)	6,992)	4,939)	5,674)
Salaries and wages	941)	952)	786)	695)	648)
Workers’ compensation	306)	244)	320)	337)	369)
Retirement benefits	296)	272)	295)	303)	304)
Current operating lease liabilities	252)	—)	—)	—)	—)
Fair value of cash flow hedges	32)	141)	180)	521)	780)
Deferred income taxes	—)	—)	—)	1,258)	829)
Other	1,744)	1,708)	1,317)	1,355)	1,376)
Other current liabilities	3,571)	3,317)	2,898)	4,469)	4,306)
Current liabilities	16,801)	14,739)	13,099)	12,846)	12,445)
Long-term debt, excluding current portion	9,010)	11,444)	3,980)	2,988)	2,898)
Retirement benefits	5,172)	4,422)	4,408)	4,393)	4,251)
Noncurrent operating lease liabilities	1,251)	—)	—)	—)	—)
Customer deposits on commercial contracts	709)	726)	814)	418)	506)
Deferred income taxes	481)	577)	244)	72)	75)
Other	1,840)	1,768)	1,066)	1,179)	1,084)
Other liabilities	9,453)	7,493)	6,532)	6,062)	5,916)
Noncurrent liabilities	18,463)	18,937)	10,512)	9,050)	8,814)
Total liabilities	35,264)	33,676)	23,611)	21,896)	21,259)
Common stock	482)	482)	482)	482)	482)
Surplus	3,039)	2,946)	2,872)	2,819)	2,730)
Retained earnings	31,633)	29,326)	26,444)	25,227)	23,204)
Treasury stock	(17,358)	(17,244)	(15,543)	(14,156)	(12,392)
Accumulated other comprehensive loss	(4,219)	(3,778)	(2,820)	(3,396)	(3,286)
Shareholders’ equity	13,577)	11,732)	11,435)	10,976)	10,738)
Total liabilities and shareholders’ equity	48,841)	45,408)	35,046)	32,872)	31,997)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Total liabilities experienced a substantial increase between 2015 and 2019, rising from 21,259 million US$ to 35,264 million US$. This growth is primarily driven by a strategic escalation in debt financing and an increase in noncurrent obligations.

Debt Obligations and Leverage: A significant shift in the borrowing profile is observed toward the end of the period. Long-term debt, excluding the current portion, increased from 2,898 million US$ in 2015 to a peak of 11,444 million US$ in 2018, before adjusting to 9,010 million US$ in 2019. Simultaneously, short-term debt and the current portion of long-term debt surged from 501 million US$ in 2015 to 2,920 million US$ in 2019, indicating an increased reliance on debt instruments to fund operations or capital allocation.
Operational Liabilities: Customer advances and deposits remained a dominant component of current liabilities, fluctuating between 4,939 million US$ and 7,270 million US$. This pattern suggests a steady flow of contract-based prepayments. Accounts payable also trended upward, growing from 1,964 million US$ in 2015 to 3,162 million US$ in 2019, reflecting an expansion in the scale of operational procurement.
Equity and Capital Management: Shareholders' equity grew moderately from 10,738 million US$ in 2015 to 13,577 million US$ in 2019. This growth was fueled by a consistent increase in retained earnings, which rose from 23,204 million US$ to 31,633 million US$. However, the impact of these earnings on total equity was tempered by aggressive share repurchases, as treasury stock increased from negative 12,392 million US$ to negative 17,358 million US$ over the period.
Noncurrent Liability Trends: Noncurrent liabilities more than doubled, rising from 8,814 million US$ in 2015 to 18,463 million US$ in 2019. Beyond the aforementioned debt increases, retirement benefit obligations saw a steady climb from 4,251 million US$ to 5,172 million US$. Additionally, the introduction of noncurrent operating lease liabilities of 1,251 million US$ in 2019 reflects changes in accounting standards or leasing activity.

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