Name: Halliburton Co. (NYSE:HAL) | 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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Halliburton Co., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Accounts payable	3,018)	2,554)	1,764)	2,019)	2,814)
Accrued employee compensation and benefits	714)	746)	544)	838)	1,033)
Taxes other than income	248)	231)	218)	293)	407)
Short-term borrowings and current maturities of long-term debt	36)	512)	170)	659)	14)
Liabilities for Macondo well incident	—)	—)	369)	400)	367)
Other current liabilities	786)	819)	958)	1,150)	1,248)
Current liabilities	4,802)	4,862)	4,023)	5,359)	5,883)
Long-term debt, excluding current maturities	10,421)	10,430)	12,214)	14,687)	7,840)
Employee compensation and benefits	483)	609)	574)	457)	691)
Other liabilities	732)	835)	741)	944)	1,528)
Noncurrent liabilities	11,636)	11,874)	13,529)	16,088)	10,059)
Total liabilities	16,438)	16,736)	17,552)	21,447)	15,942)
Common shares, par value $2.50 per share	2,671)	2,673)	2,674)	2,677)	2,679)
Paid-in capital in excess of par value	211)	207)	201)	274)	309)
Accumulated other comprehensive loss	(355)	(469)	(454)	(363)	(399)
Retained earnings	13,739)	12,668)	14,141)	20,524)	21,809)
Treasury stock, at cost	(6,744)	(6,757)	(7,153)	(7,650)	(8,131)
Company shareholders’ equity	9,522)	8,322)	9,409)	15,462)	16,267)
Noncontrolling interest in consolidated subsidiaries	22)	27)	39)	33)	31)
Total shareholders’ equity	9,544)	8,349)	9,448)	15,495)	16,298)
Total liabilities and shareholders’ equity	25,982)	25,085)	27,000)	36,942)	32,240)

Based on: 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), 10-K (reporting date: 2014-12-31).

The balance sheet reflects a period of significant volatility and subsequent contraction between 2014 and 2018. Total liabilities and shareholders' equity peaked in 2015 at 36,942 million US$ before declining to 25,982 million US$ by the end of 2018. This overall reduction in balance sheet size is primarily driven by a substantial erosion of shareholders' equity and a general reduction in total liabilities following a peak in 2015.

Debt and Long-Term Liability Trends: A sharp increase in long-term debt occurred in 2015, rising from 7,840 million US$ to 14,687 million US$. Following this peak, long-term debt trended downward over the next three years, settling at 10,421 million US$ by 2018. This suggests a period of aggressive borrowing in 2015, followed by a strategic effort to deleverage the balance sheet.
Shareholders' Equity and Retained Earnings: Total shareholders' equity experienced a severe decline, falling from 16,298 million US$ in 2014 to a low of 8,349 million US$ in 2017, before recovering slightly to 9,544 million US$ in 2018. This contraction is largely attributable to the decline in retained earnings, which dropped from 21,809 million US$ in 2014 to 12,668 million US$ in 2017, indicating significant net losses or substantial dividend distributions during this period.
Current Liability Management: Current liabilities showed a general downward trend from 5,883 million US$ in 2014 to 4,802 million US$ in 2018. Accounts payable fluctuated significantly, decreasing to 1,764 million US$ in 2016 before rising to 3,018 million US$ in 2018. Short-term borrowings remained minimal in 2014 and 2018 but showed sporadic spikes in 2015 and 2017, suggesting the use of short-term credit for liquidity management.
Specific Liability Resolutions: Liabilities related to the Macondo well incident were consistently reported between 2014 and 2016, ranging from 367 million US$ to 400 million US$. The absence of these liabilities in 2017 and 2018 indicates a full resolution or settlement of these specific legal and environmental obligations.

The overall financial position shifted from a more equity-heavy structure in 2014 to one with a higher relative reliance on liabilities by 2018. The substantial decrease in retained earnings and the volatility in long-term debt indicate a challenging operational environment during the middle of the analyzed period, followed by a stabilization phase toward 2018.

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