Name: Norfolk Southern Corp. (NYSE:NSC) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

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.

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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).

The balance sheet reflects a consistent trend of increasing financial leverage between 2017 and 2021. Total liabilities grew from US$ 19,352 million to US$ 24,852 million, representing a significant increase in total obligations. Concurrently, total stockholders' equity experienced a steady decline, falling from US$ 16,359 million in 2017 to US$ 13,641 million by the end of 2021.

Long-Term Debt Trends: A substantial and continuous increase in long-term debt is observed, rising from US$ 9,136 million in 2017 to US$ 13,287 million in 2021. This growth is the primary driver of the overall increase in non-current liabilities, which rose from US$ 16,807 million to US$ 22,331 million over the five-year period.
Equity and Retained Earnings: Stockholders' equity exhibits a downward trajectory, largely attributable to a decline in retained income, which dropped from US$ 14,176 million in 2017 to US$ 11,586 million in 2021. This reduction in retained earnings suggests a strategy of returning capital to shareholders or the impact of cumulative losses during this period.
Current Liabilities and Liquidity: Current liabilities remained relatively stable, fluctuating between US$ 2,160 million and US$ 2,591 million. Accounts payable showed volatility, peaking in 2018 at US$ 1,505 million before dipping in 2020 and recovering to US$ 1,351 million in 2021.
Deferred Tax and Other Obligations: Deferred income taxes showed a gradual upward trend, increasing from US$ 6,324 million in 2017 to US$ 7,165 million in 2021. Other non-current liabilities also saw a net increase, moving from US$ 1,347 million to US$ 1,879 million, contributing to the overall growth of the liability base.

The combination of rising long-term debt and diminishing stockholders' equity indicates a shifting capital structure with a higher reliance on borrowed funds to finance assets and operations.

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