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.

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 financial data exhibits several notable trends across the periods from December 31, 2014, to December 31, 2018. A detailed examination of liabilities, equity, and related components reveals changes in the company's financial structure and obligations.

Current Liabilities: Accounts payable fluctuated notably, decreasing from 2,814 million USD at the end of 2014 to 1,764 million USD in 2016, before rising significantly to 3,018 million USD by the end of 2018. Accrued employee compensation and benefits saw a decline from 1,033 million USD in 2014 to 544 million USD in 2016, with some recovery thereafter to 714 million USD in 2018. Taxes other than income consistently decreased from 407 million USD to 218 million USD by 2016, then slightly increased to 248 million USD in 2018.; Short-term borrowings and current maturities displayed high volatility, jumping from a minimal 14 million USD in 2014 to 659 million USD in 2015, then fluctuating to 170 million USD in 2016, surging again to 512 million USD in 2017, and dropping sharply to 36 million USD by 2018.; Liabilities for the Macondo well incident were recorded for the first three years with values close to 370-400 million USD but disappeared in the last two periods, indicating either resolution or reclassification. Other current liabilities steadily decreased from 1,248 million USD in 2014 to 786 million USD in 2018.; Overall, current liabilities dropped from 5,883 million USD in 2014 to a low of 4,023 million USD in 2016, before increasing back to 4,802 million USD in 2018, suggesting some recovery in short-term obligations following earlier reductions.
Noncurrent Liabilities: Long-term debt excluding current maturities almost doubled between 2014 and 2015, rising sharply from 7,840 million USD to 14,687 million USD, then decreased each subsequent year to stabilize around 10,421 million USD by 2018. This pattern may reflect significant refinancing or new debt issuance followed by repayments.; Employee compensation and benefits under noncurrent liabilities decreased from 691 million USD in 2014 to 457 million USD in 2015, with gradual increases afterward, reaching 483 million USD in 2018, implying a relatively stable but moderate liability burden in this area.; Other liabilities declined markedly from 1,528 million USD in 2014 to 732 million USD in 2018, indicating an overall effort to reduce outstanding noncurrent obligations. Collectively, noncurrent liabilities peaked at 16,088 million USD in 2015 before gradually falling to 11,636 million USD by 2018.
Total Liabilities: Total liabilities showed a similar trend to noncurrent liabilities, escalating sharply to 21,447 million USD in 2015 before steadily decreasing to 16,438 million USD by 2018. This rise and fall suggest a period of increased financial leverage followed by strategic deleveraging or repayment activities.
Shareholders’ Equity: Common shares’ par value remained relatively stable, with a slight decrease from 2,679 million USD in 2014 to 2,671 million USD in 2018, indicating minimal changes in outstanding share capital. Paid-in capital in excess of par value moderately declined until 2016 and then showed slight recovery.; The accumulated other comprehensive loss fluctuated but remained negative throughout, indicating ongoing comprehensive losses that impacted equity. Retained earnings dropped significantly from 21,809 million USD in 2014 to a low of 12,668 million USD in 2017 before increasing again to 13,739 million USD in 2018, reflecting variations in profitability and dividend policies.; Treasury stock at cost showed a consistent decrease in absolute terms (negative values becoming less negative), suggesting repurchases or adjustments reducing the amount of treasury stock held. Overall company shareholders’ equity contracted significantly from 16,267 million USD in 2014 to 8,322 million USD in 2017, followed by a partial recovery to 9,522 million USD in 2018.; When including noncontrolling interest, total shareholders’ equity mirrored this trend, highlighting a contraction and later moderate improvement in the equity base.
Total Liabilities and Shareholders’ Equity: The total of liabilities and shareholders’ equity peaked at 36,942 million USD in 2015, a substantial increase from 32,240 million USD in 2014, then declined sharply to around 25,000 million USD in 2017 and slightly increased to 25,982 million USD in 2018. This reflects significant asset base adjustments likely related to changes in debt and equity financing or asset write-downs.

In summary, the data reveals a period of increased leverage in 2015, followed by progressive deleveraging and equity contraction until around 2017, with signs of stabilization or modest recovery thereafter. The fluctuations in accounts payable and short-term borrowings suggest changing operational cash flow dynamics, while the decline in retained earnings and shareholders’ equity points to challenging profitability or distribution patterns during the observed periods.

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Halliburton Co. (NYSE:HAL)

Balance Sheet: Liabilities and Stockholders’ Equity