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International Business Machines Corp. (IBM)

Balance Sheet: Liabilities and Stockholders’ Equity

Difficulty: Beginner

The balance sheet provides creditors, investors, and analysts with information on company’s resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company’s 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.

International Business Machines Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Taxes 3,046  4,219  3,235  2,847  5,084 
Short-term debt 10,207  6,987  7,513  6,461  5,731 
Accounts payable 6,558  6,451  6,209  6,028  6,864 
Compensation and benefits 3,310  3,644  3,577  3,560  4,031 
Deferred income 11,165  11,552  11,035  11,021  11,877 
Other accrued expenses and liabilities 3,941  4,510  4,706  4,352  6,013 
Current liabilities 38,227  37,363  36,275  34,269  39,600 
Long-term debt 35,605  39,837  34,655  33,428  35,073 
Retirement and nonpension postretirement benefit obligations 17,002  16,720  17,070  16,504  18,261 
Deferred income 3,445  3,746  3,600  3,771  3,691 
Income tax reserves 4,195  4,193  2,621  3,150  3,146 
Excess 401(k) Plus Plan 1,380  1,583  1,494  1,445  1,658 
Disability benefits 507  504  538  590  675 
Derivative liabilities 206  38  61  22  31 
Workforce reductions 736  804  782  769  900 
Deferred taxes 3,696  545  424  253  288 
Other taxes payable 40  948  90  89  17 
Environmental accruals 244  262  262  270  240 
Warranty accruals 76  56  68  83  91 
Asset retirement obligations 111  115  142  134  136 
Acquisition related 13  88  111  200  50 
Divestiture related 173  253  270  575  1,124 
Other 796  576  615  519  537 
Other liabilities 12,173  9,965  7,478  8,099  8,893 
Noncurrent liabilities 68,225  70,268  62,803  61,802  65,918 
Total liabilities 106,452  107,631  99,078  96,071  105,518 
Common stock, par value $.20 per share, and additional paid-in capital 55,151  54,566  53,935  53,262  52,666 
Retained earnings 159,206  153,126  152,759  146,124  137,793 
Treasury stock, at cost (168,071) (163,507) (159,050) (155,518) (150,716)
Accumulated other comprehensive loss (29,490) (26,591) (29,398) (29,606) (27,875)
Total IBM stockholders’ equity 16,796  17,594  18,246  14,262  11,868 
Noncontrolling interests 134  131  146  162  146 
Total equity 16,930  17,725  18,392  14,424  12,014 
Total liabilities and equity 123,382  125,356  117,470  110,495  117,532 

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-23), 10-K (filing date: 2015-02-24).

Balance sheet item Description The company
Current liabilities Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer. International Business Machines Corp.’s current liabilities increased from 2016 to 2017 and from 2017 to 2018.
Noncurrent liabilities Amount of obligation due after one year or beyond the normal operating cycle, if longer. International Business Machines Corp.’s noncurrent liabilities increased from 2016 to 2017 but then slightly declined from 2017 to 2018.
Total liabilities Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. International Business Machines Corp.’s total liabilities increased from 2016 to 2017 but then slightly declined from 2017 to 2018.
Total IBM stockholders’ equity Total of all stockholders’ equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity’s stockholders’ equity attributable to the parent excludes the amount of stockholders’ equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. International Business Machines Corp.’s total IBM stockholders’ equity declined from 2016 to 2017 and from 2017 to 2018.