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.

National Oilwell Varco Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Accounts payable	623)	1,189)	1,275)	1,200)	901)
Accrued vendor costs	449)	815)	531)	444)	280)
Customer prepayments and billings	426)	703)	673)	699)	686)
Fair value of derivatives	261)	297)	31)	18)	83)
Warranty	244)	272)	228)	194)	211)
Compensation	241)	662)	516)	511)	468)
Taxes, non income	175)	211)	188)	150)	119)
Insurance	113)	126)	131)	108)	103)
Accrued commissions	73)	97)	97)	77)	—)
Interest	8)	11)	11)	14)	7)
Other	294)	324)	357)	356)	419)
Accrued liabilities	2,284)	3,518)	2,763)	2,571)	2,376)
Billings in excess of costs	785)	1,775)	1,771)	1,189)	865)
Current portion of long-term debt and short-term borrowings	2)	152)	1)	1)	351)
Accrued income taxes	264)	431)	556)	355)	709)
Deferred income taxes	291)	309)	312)	333)	214)
Current liabilities	4,249)	7,374)	6,678)	5,649)	5,416)
Long-term debt, excluding current portion	3,928)	3,014)	3,149)	3,148)	159)
Deferred income taxes	1,805)	1,972)	2,292)	1,997)	1,852)
Other liabilities	283)	430)	363)	334)	360)
Noncurrent liabilities	6,016)	5,416)	5,804)	5,479)	2,371)
Total liabilities	10,265)	12,790)	12,482)	11,128)	7,787)
Common stock, par value $.01	4)	4)	4)	4)	4)
Additional paid-in capital	8,005)	8,341)	8,907)	8,743)	8,535)
Accumulated other comprehensive income (loss)	(1,553)	(834)	(4)	107)	(23)
Retained earnings	9,927)	13,181)	13,323)	11,385)	9,103)
Total Company stockholders’ equity	16,383)	20,692)	22,230)	20,239)	17,619)
Noncontrolling interests	77)	80)	100)	117)	109)
Total stockholders’ equity	16,460)	20,772)	22,330)	20,356)	17,728)
Total liabilities and stockholders’ equity	26,725)	33,562)	34,812)	31,484)	25,515)

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

The financial data reveals several significant trends in liabilities and equity over the five-year period ending December 31, 2015.

Current Liabilities: Current liabilities showed an increase from 2011 to 2014, rising from US$5,416 million to US$7,374 million, before decreasing sharply to US$4,249 million in 2015. This volatility is reflected in components such as accounts payable, which peaked at US$1,275 million in 2013 and then declined to US$623 million by 2015. Accrued vendor costs rose steadily through 2014 but fell in 2015. Similarly, customer prepayments and billings fluctuated without a clear upward or downward trend but decreased significantly in 2015.
Accrued and Other Current Liabilities: Accrued liabilities generally increased, showing a steady rise from US$2,376 million in 2011 to a peak of US$3,518 million in 2014, followed by a decrease to US$2,284 million in 2015. Billings in excess of costs more than doubled between 2011 and 2014 but dropped by more than half in 2015. The current portion of long-term debt and short-term borrowings remained low overall but showed a significant increase in 2014. Accrued income taxes and deferred income taxes also demonstrated a decline in 2015 after some fluctuations in earlier years.
Noncurrent Liabilities: Noncurrent liabilities experienced considerable growth, rising from US$2,371 million in 2011 to US$6,016 million in 2015, albeit with some fluctuation. Long-term debt, excluding current portion, showed a dramatic increase starting in 2012, peaking at US$3,928 million in 2015. Deferred income taxes increased until 2013, before gradually declining through 2015. Other liabilities fluctuated moderately without a distinct trend.
Total Liabilities: Total liabilities expanded significantly from US$7,787 million in 2011 to a peak of US$12,790 million in 2014, then decreased to US$10,265 million in 2015. This pattern corresponds closely to movements in current and noncurrent liabilities, with a notable peak in 2014 before the subsequent decline.
Stockholders’ Equity: Stockholders’ equity increased steadily from 2011 through 2013, rising from US$17,728 million to US$22,330 million, but decreased from 2014 onward, settling at US$16,460 million in 2015. This downward trend was influenced by declines in retained earnings and additional paid-in capital in 2015. Accumulated other comprehensive income (loss) showed increasing negative values from 2013, reaching a significant loss of US$1,553 million by 2015, impacting total equity negatively. Noncontrolling interests decreased slightly over the period.
Total Liabilities and Stockholders’ Equity: This metric trended upwards from 2011 to 2013, increasing from US$25,515 million to US$34,812 million, followed by a decrease through 2014 and 2015, ending at US$26,725 million. The reduction in 2015 corresponds with decreases observed in current liabilities and equity components.
Other Observations: Elements such as warranty, compensation, and taxes (non-income) typically showed moderate increases until 2014, with variable declines in 2015. Compensation, in particular, rose significantly between 2013 and 2014 before falling sharply in 2015. The fair value of derivatives varied widely, peaking in 2014 and declining somewhat in 2015.

Overall, the data indicates growth in both liabilities and equity during the early part of the period, with a peak around 2013-2014, followed by notable declines in 2015. The increase in long-term debt suggests greater leverage, while the decrease in equity and some liability accounts in 2015 may imply asset dispositions, debt repayments, or restructuring activities. Negative accumulated other comprehensive income in later years also suggests adverse market or currency effects impacting equity.

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National Oilwell Varco Inc. (NYSE:NOV)

Balance Sheet: Liabilities and Stockholders’ Equity