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.

Marathon Oil Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Accounts payable	1,110)	837)	1,307)	1,320)	1,395)
Payroll and benefits payable	74)	57)	112)	154)	108)
Accrued taxes	157)	72)	118)	181)	177)
Current portion of long-term finance lease liability	6)	—)	—)	—)	—)
Other current liabilities	254)	247)	208)	170)	288)
Long-term debt due within one year	36)	—)	—)	—)	—)
Current liabilities held for sale	—)	—)	—)	7)	—)
Current liabilities	1,637)	1,213)	1,745)	1,832)	1,968)
Long-term debt, excluding due within one year	3,978)	5,404)	5,501)	5,499)	5,494)
Deferred tax liabilities	136)	163)	186)	199)	833)
Defined benefit postretirement plan obligations	137)	180)	183)	195)	362)
Asset retirement obligations	288)	241)	243)	1,081)	1,428)
Long-term finance lease liability, excluding current portion	24)	—)	—)	—)	—)
Deferred credits and other liabilities	108)	194)	234)	279)	217)
Noncurrent liabilities held for sale	—)	—)	—)	108)	2)
Noncurrent liabilities	4,671)	6,182)	6,347)	7,361)	8,336)
Total liabilities	6,308)	7,395)	8,092)	9,193)	10,304)
Preferred stock, no par value; no shares issued or outstanding	—)	—)	—)	—)	—)
Common stock, par value $1 per share	937)	937)	937)	937)	937)
Common stock, held in treasury, at cost	(4,825)	(4,089)	(4,089)	(3,816)	(3,325)
Additional paid-in capital	7,221)	7,174)	7,207)	7,238)	7,379)
Retained earnings	7,271)	6,466)	7,993)	7,706)	6,779)
Accumulated other comprehensive income (loss)	82)	73)	105)	63)	(62)
Stockholders’ equity	10,686)	10,561)	12,153)	12,128)	11,708)
Total liabilities and stockholders’ equity	16,994)	17,956)	20,245)	21,321)	22,012)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Current Liabilities: Current liabilities decreased overall from 1,968 million USD in 2017 to 1,213 million USD in 2020, then rose again to 1,637 million USD by 2021. Within this category, accounts payable followed a similar trend, dropping significantly in 2020 before partially recovering in 2021. Payroll and benefits payable showed a decrease over the period, reaching a low in 2020 and slightly increasing afterwards. Accrued taxes declined steadily until 2020, then increased notably in 2021. Other current liabilities fluctuated but exhibited a modest upward trend in the last two years. New entries such as current portion of long-term finance lease liability and long-term debt due within one year appeared by 2020/2021, indicating evolving short-term obligations.
Noncurrent Liabilities: Noncurrent liabilities showed a declining trend from 8,336 million USD in 2017 to 4,671 million USD in 2021, reflecting a significant reduction in long-term obligations. Notably, long-term debt (excluding the current portion) decreased steadily, especially between 2020 and 2021. Deferred tax liabilities and defined benefit postretirement plan obligations both declined consistently over the period. Asset retirement obligations markedly dropped from 1,428 million USD in 2017 to around 240 million USD in 2019-2020, slightly rising again in 2021. Deferred credits and other liabilities also diminished over the years. The presence of noncurrent liabilities held for sale was irregular, recorded only in 2017 and 2018.
Total Liabilities: Total liabilities exhibited a steady decrease from 10,304 million USD in 2017 to 6,308 million USD in 2021, driven primarily by reductions in both current and noncurrent liabilities. This overall decline suggests consistent deleveraging and possibly improved financial stability over the period.
Stockholders’ Equity: Stockholders’ equity slightly increased from 11,708 million USD in 2017 to a peak of 12,153 million USD in 2019, then declined to 10,561 million USD in 2020 before a minor recovery to 10,686 million USD in 2021. The common stock value remained constant throughout, while treasury stock at cost increased significantly in negative value, indicating elevated stock repurchases. Additional paid-in capital showed a slight downward trend but remained relatively stable. Retained earnings increased until 2019, followed by a notable decrease in 2020 and partial recovery in 2021. Accumulated other comprehensive income improved from a negative position to modest positive figures, reflecting a better performance in comprehensive income components.
Total Liabilities and Stockholders’ Equity: The total of liabilities and stockholders’ equity steadily declined from 22,012 million USD in 2017 to 16,994 million USD in 2021, mirroring the trends in liabilities reduction and equity fluctuations.
Summary: The data reveal a broader pattern of reduction in total liabilities, indicative of debt repayment or restructuring efforts. Current liabilities decreased markedly in 2020, likely influenced by external factors such as market conditions or operational adjustments, before rebounding slightly. Long-term debt contracted substantially, suggesting strengthening of the balance sheet. Stockholders' equity was somewhat volatile, impacted by changes in retained earnings and treasury stock activities, pointing to active capital management strategies. Overall, the financial data reflect an emphasis on lowering debt levels while navigating fluctuations in equity components over the analyzed timeframe.

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Marathon Oil Corp. (NYSE:MRO)

Balance Sheet: Liabilities and Stockholders’ Equity