Name: HP Inc. (NYSE:HPQ) | 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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HP Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Notes payable and short-term borrowings	1,463)	1,072)	78)	2,885)	3,486)	5,979)
Accounts payable	14,816)	13,279)	11,103)	15,956)	15,903)	14,019)
Employee compensation and benefits	1,136)	894)	759)	3,608)	4,209)	4,436)
Taxes on earnings	340)	214)	231)	830)	1,017)	1,203)
Accrued restructuring	—)	—)	—)	689)	898)	901)
Other accrued taxes	982)	895)	755)	2,371)	2,269)	2,703)
Warranty	673)	660)	729)	1,147)	1,325)	1,390)
Deferred revenue	1,095)	1,012)	919)	6,199)	6,143)	6,477)
Sales and marketing programs	2,758)	2,441)	2,312)	3,089)	2,986)	2,823)
Other	1,868)	1,945)	1,922)	5,417)	5,499)	5,590)
Other accrued liabilities	7,376)	6,953)	6,637)	18,223)	18,222)	18,983)
Current liabilities	25,131)	22,412)	18,808)	42,191)	43,735)	45,521)
Long-term debt, excluding current portion	4,524)	6,747)	6,758)	21,780)	16,039)	16,608)
Pension, post-retirement, and post-employment liabilities	1,645)	1,999)	2,705)	5,630)	6,379)	5,098)
Deferred tax liability	100)	1,410)	1,116)	295)	1,124)	2,668)
Tax liability	2,063)	2,005)	1,910)	2,593)	2,861)	2,213)
Deferred revenue	1,005)	921)	865)	4,373)	3,931)	3,907)
Other	793)	827)	737)	1,869)	2,010)	2,005)
Other non-current liabilities	5,606)	7,162)	7,333)	14,760)	16,305)	15,891)
Non-current liabilities	10,130)	13,909)	14,091)	36,540)	32,344)	32,499)
Total liabilities	35,261)	36,321)	32,899)	78,731)	76,079)	78,020)
Preferred stock, $0.01 par value; none issued	—)	—)	—)	—)	—)	—)
Common stock, $0.01 par value	16)	16)	17)	18)	18)	19)
Additional paid-in capital	663)	380)	1,030)	1,963)	3,430)	5,465)
Retained earnings (accumulated deficit)	(473)	(2,386)	(3,498)	32,089)	29,164)	25,563)
Accumulated other comprehensive loss	(845)	(1,418)	(1,438)	(6,302)	(5,881)	(3,778)
Total HP stockholders’ equity (deficit)	(639)	(3,408)	(3,889)	27,768)	26,731)	27,269)
Non-controlling interests	—)	—)	—)	383)	396)	387)
Total stockholders’ equity (deficit)	(639)	(3,408)	(3,889)	28,151)	27,127)	27,656)
Total liabilities and stockholders’ equity (deficit)	34,622)	32,913)	29,010)	106,882)	103,206)	105,676)

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

A structural shift in the balance sheet is evident between the 2015 and 2016 fiscal years, characterized by a substantial reduction in total liabilities and a transition from positive stockholders' equity to a deficit position. Total liabilities decreased from 78,731 million US dollars in 2015 to 32,899 million US dollars in 2016, remaining relatively stable thereafter at 35,261 million US dollars by 2018.

Current Liabilities Trends: Current liabilities experienced a significant contraction in 2016, dropping from 42,191 million US dollars in 2015 to 18,808 million US dollars. This decline was largely driven by reductions in other accrued liabilities, which fell from 18,223 million US dollars to 6,637 million US dollars in the same period. Accounts payable remained the most consistent current liability, fluctuating between 11,103 million US dollars and 15,956 million US dollars throughout the analyzed period. From 2016 to 2018, current liabilities showed a gradual increase, ending at 25,131 million US dollars.
Non-Current Liabilities and Debt Profile: Non-current liabilities followed a downward trajectory, falling from a peak of 36,540 million US dollars in 2015 to 10,130 million US dollars in 2018. A primary driver of this decrease was the reduction in long-term debt, excluding the current portion, which declined from 21,780 million US dollars in 2015 to 4,524 million US dollars in 2018. Additionally, pension, post-retirement, and post-employment liabilities decreased steadily from 6,379 million US dollars in 2014 to 1,645 million US dollars in 2018.
Stockholders' Equity and Retained Earnings: The equity position shifted from a surplus of 28,151 million US dollars in 2015 to a deficit of 3,889 million US dollars in 2016. This reversal is primarily attributed to the movement in retained earnings, which shifted from a positive balance of 32,089 million US dollars in 2015 to an accumulated deficit of 3,498 million US dollars in 2016. However, a recovery trend is observable from 2016 to 2018, as the total stockholders' equity deficit narrowed from 3,889 million US dollars to 639 million US dollars, indicating a gradual restoration of equity.
Comprehensive Loss and Capital Components: Accumulated other comprehensive loss widened from 3,778 million US dollars in 2013 to a peak of 6,302 million US dollars in 2015, before reducing to 845 million US dollars by 2018. Additional paid-in capital also saw a marked decline, falling from 5,465 million US dollars in 2013 to 663 million US dollars in 2018, reflecting changes in the company's capital structure over the six-year period.

The overall financial position indicates a significant deleveraging event occurring around 2016, resulting in a much leaner liability profile but leaving the company with a temporary equity deficit. The subsequent trend from 2016 to 2018 shows a managed approach to liabilities and a consistent reduction in the equity deficit.

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