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.

Norfolk Southern 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 and wages payable	850)	552)	710)	828)	822)
Casualty and other claims	166)	182)	212)	213)	187)
Vacation liability	119)	121)	136)	140)	133)
Due to Conrail	112)	56)	264)	202)	146)
Other	104)	105)	106)	122)	113)
Accounts payable	1,351)	1,016)	1,428)	1,505)	1,401)
Short-term debt	—)	—)	—)	—)	100)
Income and other taxes	305)	263)	229)	255)	211)
Interest payable	150)	141)	149)	139)	115)
Current operating lease liability	82)	89)	97)	—)	—)
Pension benefit obligations	20)	19)	18)	18)	17)
Other	60)	53)	63)	89)	101)
Other current liabilities	312)	302)	327)	246)	233)
Current maturities of long-term debt	553)	579)	316)	585)	600)
Current liabilities	2,521)	2,160)	2,300)	2,591)	2,545)
Long-term debt, excluding current maturities	13,287)	12,102)	11,880)	10,560)	9,136)
Long-term advances from Conrail	534)	534)	280)	280)	280)
Net pension benefit obligations	338)	340)	302)	278)	296)
Non-current operating lease liability	331)	344)	441)	—)	—)
Net other postretirement benefit obligations	244)	306)	287)	308)	309)
Casualty and other claims	170)	169)	171)	158)	179)
Deferred compensation	109)	107)	104)	106)	113)
Other	153)	187)	159)	136)	170)
Other liabilities	1,879)	1,987)	1,744)	1,266)	1,347)
Deferred income taxes	7,165)	6,922)	6,815)	6,460)	6,324)
Non-current liabilities	22,331)	21,011)	20,439)	18,286)	16,807)
Total liabilities	24,852)	23,171)	22,739)	20,877)	19,352)
Common Stock $1.00 per share par value, net of treasury shares	242)	254)	259)	269)	285)
Additional paid-in capital	2,215)	2,248)	2,209)	2,216)	2,254)
Accumulated other comprehensive loss	(402)	(594)	(491)	(563)	(356)
Retained income	11,586)	12,883)	13,207)	13,440)	14,176)
Stockholders’ equity	13,641)	14,791)	15,184)	15,362)	16,359)
Total liabilities and stockholders’ equity	38,493)	37,962)	37,923)	36,239)	35,711)

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: The total current liabilities exhibited a decreasing trend from 2017 to 2020, declining from US$2,545 million to US$2,160 million, followed by a partial rebound to US$2,521 million in 2021. Notably, accounts and wages payable decreased markedly in 2020 to US$552 million but recovered to US$850 million by 2021. Accounts payable followed a similar pattern, dropping substantially in 2020 before rising again in 2021. Some components such as short-term debt appeared only in 2017 and were absent in subsequent years, indicating possible repayment or reclassification.
Long-Term Liabilities: Long-term debt, excluding current maturities, increased steadily over the period, rising from US$9,136 million in 2017 to US$13,287 million in 2021, indicating growing leverage or financing needs. Long-term advances from Conrail remained constant until 2019 then almost doubled in 2020 and remained stable in 2021. Net pension benefit obligations increased from 2017 to 2020 but slightly decreased in 2021. Non-current operating lease liabilities, introduced in 2019, decreased over subsequent years, likely reflecting changes due to lease accounting standards or lease terminations.
Other Non-Current Liabilities: Other liabilities showed an overall upward trend, increasing from US$1,347 million in 2017 to US$1,879 million in 2021, with a notable jump between 2018 and 2019. Deferred income taxes also increased consistently each year, from US$6,324 million in 2017 to US$7,165 million in 2021, indicating growing deferred tax obligations. The net other postretirement benefit obligations fluctuated but decreased by 2021 compared to 2017, suggesting some liabilities were managed or settled.
Total Liabilities: Total liabilities increased steadily from US$19,352 million in 2017 to US$24,852 million in 2021, reflecting the combined effects of increased long-term debt and other liabilities.
Stockholders’ Equity: Stockholders' equity declined steadily over the period, falling from US$16,359 million in 2017 to US$13,641 million in 2021. This decline was driven principally by decreases in retained income, which dropped from US$14,176 million to US$11,586 million. Common stock and additional paid-in capital decreased modestly, while accumulated other comprehensive loss showed fluctuations but remained negative throughout the period, slightly improving by 2021.
Total Liabilities and Equity: The sum of liabilities and stockholders’ equity showed a modest increase from US$35,711 million in 2017 to US$38,493 million in 2021, suggesting overall growth in the company’s balance sheet size.
Additional Observations: Income and other taxes payable have shown a general increasing trend, rising from US$211 million in 2017 to US$305 million in 2021. Interest payable exhibited moderate increases, reflecting possibly higher debt levels. Vacation liability and casualty and other claims showed minor declines or fluctuations without clear trends, indicating relatively stable short-term obligations in these categories.

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Norfolk Southern Corp. (NYSE:NSC)

Balance Sheet: Liabilities and Stockholders’ Equity